NEW YORK CITY ADDS PLAY STREETS TO NATION-LEADING OPEN STREETS INITIATIVE

City announces new Open Streets while removing some locations in coordination with community partners and local elected officials

 Mayor Bill de Blasio today announced Play Streets, a new initiative to provide families with safe, structured activities on 12 Open Streets during weekdays, in partnership with the Fresh Air Fund, Building Healthy Communities and the Police Athletic League. The Administration is also continuing the expansion of its nation-leading Open Streets program, moving the City further toward the goal of 100 miles laid out in late April, while removing some underused locations in coordination with local elected officials and community partners.

 

“Young people deserve the chance to play freely in their neighborhoods while staying safe from COVID-19, and Play Streets will go a long way toward easing the burden of a summer unlike any other,” said Mayor Bill de Blasio. “Rebuilding a fairer and better city means using our urban landscape creatively, and I’m proud to build on the success of our Open Streets program by finding exciting and productive uses for city streets.”

 

At Play Streets locations, children will participate in independent crafting and art projects that include making kaleidoscopes, birdhouses, rhythm drums, and cloud climbers. Giant board games such as Connect 4 and Jenga will also be available. Sports drills will include basketball, frisbee, softball, Wiffle ball, kickball, and laser tag. Reading corners, dance classes, cardio and yoga exercises will also be provided. Street Lab, an NYC-based nonprofit that creates outdoor furniture and programming for public space, is providing 160 custom benches, and a new no-touch obstacle course called PLAY NYC. All programming is creatively designed to meet social distancing guidelines.

 

“As Open Streets continues to grow, providing New Yorkers with space to walk, bike, cool off, and enjoy outdoor dining, we are now proud to roll out Play Streets for children and their families in some of the City’s most COVID-impacted neighborhoods,” said NYC DOT Commissioner Polly Trottenberg. “Thanks to Mayor de Blasio for his leadership and to our Play Streets partners, including the Fresh Air Fund, Building Healthy Communities, the Police Athletic League and the Central Family Life Center.”

 

“Streets are meant to connect people to each other. The expansion of Open Streets demonstrates how we can continue to reimagine and transform our roads to better serve New Yorkers, keep our air cleaner with less polluting vehicles, and stay safer during the summer heat waves,” said Mark Chambers, Director of the Mayor’s Office of Sustainability. “The program announced today allows our young people to reengage the outdoors, their neighborhoods, and their communities.”

 

“The global pandemic has hit working families of color disproportionately hard, and our kids still need safe, active spaces for play within their communities,” said Mayor’s Action Plan for Neighborhood Safety Executive Director Renita Francois. “We’re grateful to Mayor de Blasio, the Department of Transportation, the Police Athletic League, and the Fresh Air Fund for their partnership in opening our streets for young New Yorkers to enjoy their neighborhoods this summer.”

 

Play Streets locations will launch on a rolling basis beginning next week and will operate Monday through Friday through September 4^th. Hours vary by location, but will generally be from 10 AM to 5 PM and include streets adjacent to NYCHA developments as part of the Mayor’s Action Plan for Neighborhood Safety. Vehicles are not permitted to enter the streets during the hours of the full street closure. Organizing Partners will be responsible for setting up barricades and posting signage, as well as restoring the Open Street condition at the end of their programming. They will also post No Parking signage with days and times ahead of starting their activations.   

  

Play Streets locations include:

 

Neighborhood	Boro	Street	From	To	Partner	Start Date	End Date	Days	Times
Sunset Park	BK	6th Ave	44th St	45th St	Fresh Air Fund	8/5/20	9/4/20	M,T,W,Th	10am -4pm
Crown Heights	BK	Park Pl	New York Ave	Kingston Ave	Fresh Air Fund	8/3/20	9/4/20	M,T,W,Th	10am -4pm
Brownsville	BK	Blake Ave	Powell St	Mother Gaston Blvd	PAL	7/27/20	9/4/20	M,T,W,Th	12pm - 5pm
Bushwick	BK	Humboldt St	Moore St	Varet St	PAL	7/27/20	9/4/20	M,T,W,Th	12pm - 5pm
Quarry Ballfields/Belmont	BX	Oak Tree Pl	Hughes Ave	Quarry Rd	Fresh Air Fund	8/3/20	9/4/20	M,T,W,Th	10am -4pm
Mt. Eden / Highbridge	BX	Cromwell Ave	McClellan St	Jerome Ave	Fresh Air Fund	8/3/20	9/4/20	M,T,W,Th	10am -4pm
Harlem	MN	150th St	St. Nicholas Pl	Edgecombe Ave	Fresh Air Fund	8/5/20	9/4/20	M,T,W,Th	10am -4pm
Harlem	MN	129th St	Adam Clayton Powell Blvd	Frederick Douglas Blvd	PAL	7/27/20	9/4/20	M,T,W,Th	12pm - 5pm
Jackson Heights/Corona	QN	34th Ave	72nd St	74th St	Fresh Air Fund	7/30/20	9/4/20	M,T,W,Th	10am -4pm
Jackson Heights/Corona	QN	34th Ave	79th St	80th St	Fresh Air Fund	7/30/20	9/4/20	M,T,W,Th	10am -4pm
Jackson Heights/Corona	QN	34th Ave	92nd St	94th St	Fresh Air Fund	7/30/20	9/4/20	M,T,W,Th	10am -4pm
Stapleton	SI	Wright St	Canal St	Thompson St	The Central Family Life Center	8/7/20	9/4/20	F	12pm -4pm

 

Open Streets will be added in:

 

Local Partner Management
Partner	Boro	Street	From	To	Mileage
Good Shepherd Services	BK	Wolcott St	Conover St	Van Brunt St	0.09
700 Jefferson Avenue Block Association	BK	Jefferson Ave	Patchen Ave	Malcolm X Blvd	0.15
Judson Memorial Church	MN	Thompson Street	West 3rd St	Washington Sq South	0.05
LES BID	MN	Broome St	Allen St	Ludlow St	0.06
31st Ave Open Street Collective	QN	31st Ave	31st St	36th St	0.25
Rockrose	QN	Dutch Kills	Jackson Ave	Sunnyside Yards	0.09
39th Ave Open Street Coalition	QN	47th St	39th Ave	Skillman Ave	0.19
39th Ave Open Street Coalition	QN	49th St	39th Ave	Skillman Ave	0.19
Streets Lab	SI	Wright St	Canal St	Thompson St	0.04
TOTAL					1.11
Local Precinct Management
Neighborhood	Boro	Street	From	To	Mileage
Claremont	BX	169th St	3rd Ave	Webster Ave	0.19
West Village	MN	Jane St	Hudson St	8th Ave	0.07
UES	MN	East 90th St	5th Ave	Madison Ave	0.10
Port Richmond	SI	Henderson Ave	Broadway	Alaska St	0.16
Port Richmond	SI	New St	Cottage Pl	Jewett Ave	0.09
TOTAL					0.61
TOTAL NEW OPEN STREETS					1.72

 

The following streets will be removed from the Open Streets program, and returned to normal vehicle traffic:

  

Boro	Street	From	To	Mileage
BX	Louis Nine Blvd	Intervale Ave	Southern Blvd	0.13
BK	Prospect Park West	Garfield Pl	3rd St	0.15
BK	Parkside Ave	Park Circle	Ocean Ave	0.56
BK	East 7th Street	Caton St	Ditmas Ave	0.78
MN	29th St	Broadway	Madison Ave	0.19
QN	Center Blvd	57th Ave	Borden Ave	0.23
QN	27 St	43rd Ave	Queens Plaza North	0.16
QN	85 St	25th Ave	30th Ave	0.13
TOTAL				2.77

Under Open Streets, pedestrians and cyclists are free to use the roadbed of each street. No through traffic is permitted, with remaining vehicle traffic limited to local deliveries, pick-ups/drop-offs, necessary city service, utility, and emergency vehicles only. Such drivers are alerted to be hyper-vigilant and to drive at 5 MPH along these routes. Regular Open Streets operate from 8:00 AM to 8:00 PM, with timing varying slightly depending on staff availability. 

 

If you have questions about Open Streets or would like to request an Open Street in your community, please contact your NYC DOT Borough Commissioner's office.

 

“Children in New York City need to be able to play outside in safe spaces now more than ever. The Fresh Air Fund is excited to serve children citywide as part of the new Open Streets: Play Streets program,” said Fatima Shama, executive director of The Fresh Air Fund.  “On open streets across the city, Fresh Air Summer Spaces will provide opportunities for art, movement and recreation activities that will have children engaged within their communities, following all physical-distancing guidelines, and experiencing some of the joys of summer amid these challenging times.”

 

“This is a unique moment to stand up for NYC kids, giving them a place to play and learn, while also expanding our city’s sense of what’s possible for streets and public space,” said Leslie Davol, Executive Director of Street Lab. “We’re all in, and we’re proud to play a role in supporting play streets.”

 

“The Police Athletic League is grateful for the City's support in allowing us to provide safe recreational activities for youth this summer.  PAL feels it is important to provide safe recreational options for young people, and our Play Street model allows us to do that. Health and safety for our participants and staff is our highest priority. We are looking forward to serving young people this summer,” said Frederick J. Watts, Executive Director of the Police Athletic League.

Nayor de Blasio Daily Update July 24, 2020

Mayor Bill de Blasio: Good morning, everybody. Well, I want to talk to you about a couple of quick updates today, but I especially want to focus on our young people. The kids in this city have been through so much in the last few months, and I've talked about it a lot, because I think it's something we really need to focus on. Every one of us has dealt with the strain of this crisis, but our young people, imagine, for so many of them, trying to make sense of this, dealing with a lot of pain around them. The reality of being cooped up, not getting to see their friends, so many challenges – but look, there's some good news starting to emerge here, because with every step we take forward, we're able to open up more and more opportunity for our young people. You go back to March and April, things were very dire. We didn't know what we'd be able to do this summer, but because we've made so much progress, thanks to all of you, we're now able to do a lot more to engage our young people positively and productively this summer and, of course, beyond. So, I want to talk about that. I want to talk about the ways we're going to help them not only have a fun summer, but also have a summer where they grow and they develop and they prepare for their futures.

But before I do that – first, something we should all be celebrating, because this is another sign of rebirth and renewal, opening day of baseball. For so many of us, this is one of the great symbols each year that tells us, you know, good things are ahead – little delayed this time, but, you know, it did happen and I think it's a blessing. For all of you, whether you're a baseball fan or not – I'm a huge baseball fan, but even if you're not, it's something to celebrate. So, congratulations to the New York Yankees, winning their first game of the season. And Dr. Fauci was there, and I want to really celebrate him – a great new Yorker, a great Brooklynite. Look at that, I think he's 79 years old – good form there, Dr. Fauci, that looks pretty good. So, what a great moment for New York City to see a New Yorker celebrated there and the first game of the season in this way and how much he has done for us. It's been absolutely amazing. Well, today, opening day here in New York City. Dr. Fauci thew out that pitch in Washington, but today it's opening day in New York City. Four o'clock at Citi Field, the New York Mets take the field. And yeah, it'll be different – there won't be fans in the stands, it'll feel a little weird, but still what a wonderful thing. And I'm wishing a great season for the Mets as well. And this is something we can really feel good about as New Yorkers, baseball is back.

So, now, let's go back to our young people. And you know, sports is going to be a part of their summer again, because, finally, we're able to open stuff up, and the things that we do to support our young people, like we know baseball is a great tradition. Another tradition in this city is that every summer we do a lot to help our young people have a better summer and to support them. Summer Youth Employment, a longstanding tradition in this city that's done a lot of good for so many tens of thousands of kids each year. This year, the Summer Bridge program, a specially designed program for the reality that we're dealing with now – it begins on Monday, and 35,000 teens and young adults will benefit. And then, they’ll get the kind of support and training that's going to help them with their future. So, this is great for them now, but also for what it means for where they're going. The young people who will be part of this program, they'll be building career skills, there'll be a part of workshops. They'll really be learning and they'll get compensation to help them and to help their families in the middle of everything we're dealing with. A lot of the young people come from public housing, a lot were referred by social service organizations. These are kids who need the most support and the most help, and they're going to get it through the Summer Bridge program.

Now, another great thing – play streets. You know, when you think about all the things that kids have been through, and, again, not being able to get as much physical activity and play, not being able to see their friends as much, a lot of things have been on hold. Well, we're going to open up something – again, a good New York City tradition that has been so great for kids – Play Streets coming back. And that is going to be an important step forward for kids and families to have something to enjoy. We're also going to be opening up 1.5 additional miles of Open Streets, which have been something great for our communities as well. So, more and more opportunities for kids to engage. And on the Play Streets program, the Open Streets with kids, what we're talking about is having a lot of specific things for them to do – arts and crafts, and sports activities, reading corners, dance classes, everything done the smart way. And here's an example, that, that you see on the screen is a touchless obstacle course. So, that's an obstacle course for the age of COVID, but it's still going to give kids a lot of fun and a lot of exercise, and it's going to be great for them.

So, this is the reality of today, but we're going to make it work. We're going to make it work with the right face coverings, social businesses, all the things that we need to do while still giving kids a really rewarding experience. Now, a lot of great activities as you see there. We're going to do them a little bit differently in many ways, but still so many great activities for kids. And I want to thank the partners who would be running these streets for us and providing these great activities for the kids. Street Lab, thank you; Fresh Air Fund, thank you; and the Police Athletic League, thank you. Great activities coming this summer for our kids.

Now, a small, but important matter – I bring it up regularly – and this is an announcement that's actually going to have longer ramifications. Many, many New Yorkers care deeply about alternate side parking because it affects so many people's every-day lives. So, first, for next week, alternate side parking will be suspended next week through Sunday, August 2nd. So, no, alternate side parking anywhere next week. But then, after that, starting Monday, August 3rd, we're going to resume alternate side parking on an ongoing basis. So, we're going to take another step towards something a little more normal, go back to having alternate side parking on a regular basis. That will go all the way from Monday, August 3rd to Saturday, September 5th – the Saturday right before Labor Day. So, for the whole month of August, and the beginning of September, alternate side, parking back the way it was, but with an important change that we're now saying, if you're on one of those streets that has multiple times a week that you have to move your car on your side of the street, we want to address that issue, make it easier for you, make it clear you can only do that one time a week, going forward, and you do that on the last day. We're going to get a lot more information out. But, again, if you're on a street that you have to park your car or honor alternate side multiple times during the week on your side of the street, it will be during this period for this next month only once per week and it will be the last day noted on your side of the street. We'll get a lot more information out on it. And this is – again, why do we do alternate side parking? We do it to be able to clean the curbs, keep our streets clean, keep our sidewalks clean, keep our communities clean. So, we're going back to it, but we're going to try and do it in a way that makes sense and makes it easier for the people of this city.

Now, everybody, I want to tell you, in the midst of this crisis, so many people have been helping out New York City. It's really wonderful. It's really powerful to see. And I want to always give thanks to folks – a particular thanks today to Bank of America that donated $250,000 to provide 100 high school students with college and career readiness and paid internships in the fall. So, this is the kind of thing we want to see our colleagues in the business sector do more and more of, support our young people. Here's a tangible way of doing it. So, thanks to everyone at Bank of America. And then, just want to note some other donors who have been really great and generous. One is a proud New York City public school graduate – his name is Jo-Vaughn Virginie Scott. You may not know that name, but you may know the name of the rapper, Joey Bada$$. So, that's who actually made the donation. We are so appreciative for that. And it's great to see a New York City kid, remember his city and give back. Crown Castle, Meevo, and Jessica Seinfeld and the Good Plus Foundation all have made generous donations. So, again, so many people helping out – always like to show our appreciation for the people helping New York City come back.

Now, let's do the indicators. And let me tell you, a lot to be proud of again today. So, this is such an example of what New Yorkers have achieved together. Day after day, we see this progress. So, daily indicator number one, daily number of people admitted to hospitals for a suspected COVID-19, threshold is 200 patients – today's report, 72. Indicator number two, daily number of people in Health + Hospitals ICU’s threshold 375 – today's report, 295. And percentage of people testing citywide who are positive for COVID-19, threshold 15 percent – today, once again, two percent. That's very extraordinarily consistent. Let's keep it that way and let's see if we can go even farther together.

ASSEMBLYMAN JEFFREY DINOWITZ COMMENTS ON PASSAGE OF AUTOMATIC VOTER REGISTRATION & REDISTRICTING BILLS

The New York State Legislature passed two bills this week which would create an automatic voter registration system in New York State and would make technical changes to the independent redistricting process scheduled for 2022.

  Amidst the flurry of legislation that passed this week, there are two bills which have gathered acute interest from electoral reform advocates. One bill would create an automatic voter registration system in New York State beginning in 2023, something that advocates have been particularly excited about after a typographical error in the State Senate version of the bill derailed its passage in 2019. Another bill would make technical corrections to the independent redistricting process slated to take place before the 2022 election cycle, including the removal of a provision that would have allowed the redistricting commission rules to be changed midway through the process based on who wins majority control in each legislative chamber.

The automatic voter registration bill would require participating agencies including the Department of Motor Vehicles, Department of Health, Office of Temporary and Disability Assistance, Department of Labor, NYCHA, and Office of Vocational and Educational Services for Individuals with Disabilities to register people with the Board of Elections who are otherwise eligible to vote in New York State unless the person opts out of the voter registration process. People who do not opt out would also be given the choice whether to enroll in a political party both at the time of automatic voter registration as well as in two subsequent mailers and informed that if they decline to register in a party that they will not be able to participate in primary elections for that party.

This legislation was poised to pass in 2019 until the State Senate passed a version of the bill that would have inadvertently required undocumented immigrants to either disclose their immigration status or improperly submit a voter registration form. That error was corrected in the bill that passed this week.

Assemblyman Jeffrey Dinowitz said: “Automatic voter registration is a common sense solution to increase voter participation. We should be making it as easy as possible to cast a ballot, and our state agencies are already collecting much of the information required to register to vote. Furthermore, I am pleased with the requirement for party enrollment notification. In some districts, including most of New York City, the winner of a party primary is the de facto winner of the general election due to significant skews in party enrollment statistics. If a resident of one of these districts wants to give up their voice in choosing their representative, that is there prerogative but it should be a decision that was made with intention and not out of ignorance. I am optimistic that the Governor will sign this bill into law and I look forward to a future with higher voter participation.”

The legislation to change the redistricting process is a state constitutional amendment, so it will have to pass once more in 2021 and then be ratified by statewide popular vote in the November 2021 general election. The bill was developed following a joint public hearing on legislative redistricting that identified several flaws with current constitutional provisions and addresses concerns that have recently arisen regarding federal attempts to exclude undocumented immigrants from census population counts for the purposes of legislative districts.

Under the proposed state constitutional amendment, all undocumented immigrants and non-taxed indigenous people would be required to count for the purposes of redistricting (which the Assembly has done for the last three redistricting cycles already). The amendment would clarify that incarcerated persons would be counted at their last place of residence (which is already done in New York State) even if the census fails to identify them. It would also eliminate a formula to determine the number of State Senators in New York State and replace it with a permanent cap of 63. The amendment would adjust the deadlines set by the 2014 constitutional amendment which were established around a September primary date (New York State subsequently moved state and Congressional primaries to June).

Most controversially, the amendment changes internal voting requirements of the redistricting commission which currently depend on which party controls each house. As constructed, a redistricting proposal would have to have the consent of minority parties in both chambers which creates an ability for political parties who were rejected by voters for majority control to have outsize influence on the redistricting process. Under the proposal, a plan would require seven of ten votes (regardless of who appointed the relevant commissioner) to send a plan to the legislature, with a provision that if no plan receives seven votes by a certain date that the commission would submit the plan that received the highest number of votes. The proposal would retain provisions of the 2014 amendment that require a simple majority vote of the legislature if the redistricting plan receives seven of ten votes by the commission or a sixty percent vote of the legislature if the plan receives less than seven votes.

Assemblyman Jeffrey Dinowitz added: “The existing law on independent redistricting gave outsize veto power to a small group of elected officials who failed to win the approval of voters in New York State. Furthermore, it allowed the rules of the process to be changed midway through depending on who wins more elections. New Yorkers are marching in the streets for equality, and it is unconscionable to allow the tyranny of the minority to threaten the representation of districts.”

Representative Adriano Espaillat Statement on the Inwood Rezoning Appeals Decision

Today, Representative Adriano Espaillat issued the following statement in response to the court decision to allow the rezoning of the Inwood neighborhood within New York’s 13th congressional district to proceed. “Affordable housing and protecting the availability of affordable housing for residents is a cornerstone of our community,” said Rep. Adriano Espaillat (NY-13). “I am deeply disappointed and concerned by yesterday's ruling to allow for the rezoning of Inwood following our years long efforts to ensure affordable housing for residents. The affects of this week’s decision will be felt throughout our city and will particularly hit communities of color the hardest. It is my hope that the appeal of this decision be allowed to continue to the highest court in the state.”

Bronx Board of Elections Completes Count of Absentee Ballot and Affidavit Ballots

 Thursday afternoon shortly after 12:30 PM there was a roar of accomplishment as the Bronx Board of Elections completed counting the last Absentee Ballot, and the last Affidavit Ballot. Just under fifty-thousand ballots had to be counted from the eleven assembly districts in the Bronx. The last Assembly District that was counted was the 79th Assembly District which held the suspense in the 15th Congressional and other races to the last vote that was counted. Manhattan and Brooklyn remain the only two boroughs not to have finished counting all the ballots yet. Official results should be in no later than August 4th due to party and judicial calls. 

One major problem the Board of Elections is going to have is how to declare the party position winners of the Male and Female District Leaders and Male and Female State Committee members from the 79th Assembly District, as well as the Male District Leader and Male State Committee member from the 87th A.D. Slates of candidates in the 79th and 87th Assembly Districts were knocked off the ballot by the Board of Elections on what is known as a technicality. Those candidates went to court and were then placed back on the ballot. 

In what is usually the job of a candidate, the Board of Elections appealed the judge's decision to place these candidates back on the ballot. BOE spokeswoman Valerie Vazquez-Diaz told me that the primary day ballots had to be made up before the appeal decision date, and it was not known if the BOE would win their appeal, so the names of the candidates in question were placed on all primary day ballots. At first she said that those ballots would not be counted, then later saying the votes for those candidates would not count. I asked Ms. Vazquez-Diaz to inform me when the BOE had ever challenged a judge's decision to place a candidate back on the ballot since I could not remember when I ever saw it happen. That was ten days ago, and I have not heard back from Ms. Vazquez-Diaz nor the BOE. 

In looking at the recap of the Absentee ballot count in the 79th A.D. all four of the candidates who appeared on the ballot, but were knocked off on the appeal by the BOE were leading in all four party positions. These candidates appear in the recap of the vote, because the ballot scanner counted each and every vote for each and every candidate that was on the ballot. Thus there can not be winners declared in the 79th A.D. party position for Male and Female District Leaders and both State Committee members, as well as the position of Male District Leader and Male State Committeeman in the 87th Assembly District where these candidates changed the outcome of the election if they did not come out the winners. 

There is also the question of why the BOE allowed 79th Assembly District candidate Elvis Santana to be placed on the ballot while he did not meet the residency requirement of five years residency in New York State to run for the State Assembly. In a check of Mr. Santana's voter registration he only had three years of residency in New York having put a Connecticut address for the two years prior to that. From the unofficial results of the 79th Assembly race Mr. Santana being on the ballot effected the chances of winning by another candidate. 

Current City Councilman Ritchie Torres kept his lead over second place finisher soon to be former Assemblyman Michael Blake. A surprise here was that current City Councilman Ruben Diaz Sr. who was the favorite to win this race appears to have fallen into fourth place behind Samelys Lopez. It has been reported that Blake and now Lopez have not conceded the election yet. Once Councilman Torres leaves office the mayor will have forty-five days to call a special election to replace him. The winner of the special election will then have to run again if challenged in the June primary, and the November general elections in 2021. 

More about the counting of the Absentee and Affidavit ballots in the next article.

AOC-Endorsed Local Candidates Sweep New York Primary

Progressive candidates have increased their representative voice in the New York State Legislature. 15 out of the 15 candidates endorsed by Congresswoman Alexandria Ocasio-Cortez swept the New York primaries. The candidates’ victories were made official this week after a delayed verification of absentee ballots from the June 23rd Primary. Candidates Nathalia Fernández, Gustavo Rivera and Jamaal Bailey ran unopposed. “On behalf of our campaign, I’d like to extend our sincere congratulations to these leaders fighting for bold progressive change.” Said Alexandria Ocasio-Cortez’s Campaign Manager,  Rebecca Rodríguez. “The results of the 2020 Primary Election are a clear mandate to continue fighting for issues like housing as a human right, defunding the police and a Green New Deal that puts working people first and that’s exactly what these candidates intend to do.” The following local New York candidates have been endorsed by Ocasio-Cortez. New York State Senate: Jamaal Bailey, Bx (SD 36)* Alessandra Biaggi, Bx (SD 34) Jabari Brisport, Bk (SD 25) Michael Gianaris, Qns (SD 12) Robert Jackson, Man (SD 31) Jessica Ramos, Qns (SD 13) Gustavo Rivera, Bx (SD 33)* Julia Salazar, Bk (SD 18) New York State Assembly: Catalina Cruz, Qns (AD 39) Nathalia Fernández, Bx (AD 80)* Ron Kim, Qns (AD 40) Marcela Mitaynes, Bk (AD 51) Yuh-Line Niou, Man (AD 65) Karines Reyes, Bx (AD 87) Phara Souffrant, Bk (AD 57) EDITOR'S NOTE: We would like to remind Congresswoman Ocasio-Cortez that not all of the candidates she endorsed were winners. Congresswoman Ocasio-Cortez endorsed candidate Samelys Lopez in the neighboring 15th Congressional District who did not come away with a victory. Ocasio-Cortez backed candidate Samelys Lopez finished third or forth in the 15th Congressional race where current Councilman Ritchie Torres pulled off an astonishing win. A recount is expected.

Former Supervisory Committee Member Of Municipal Credit Union Sentenced To 27 Months In Prison For Embezzlement

  Audrey Strauss, Acting United States Attorney for the Southern District of New York, announced that Joseph Guagliardo, a/k/a “Joseph Gagliardo,” a former New York City Police Department (“NYPD”) officer and former member of the supervisory committee (the “Supervisory Committee”) of Municipal Credit Union (“MCU”), a non-profit financial institution, was sentenced today in Manhattan federal court to 27 months in prison for abusing his leadership position at MCU to embezzle more than $400,000.  Guagliardo previously pled guilty to defrauding a federally insured credit union before U.S. District Judge Denise L. Cote, who imposed today’s sentence.

Acting U.S. Attorney Audrey Strauss said:  “For years, Joseph Guagliardo betrayed the trust of MCU’s members, who elected him to supervise and protect MCU, by abusing his position to steal hundreds of thousands of dollars.  Guagliardo did so with the complicity of the now imprisoned former CEO of the credit union, whom he provided with a steady stream of painkillers.  Guagliardo will now serve a substantial prison sentence for his crime.”

According to the allegations contained in the Complaint, the Information, other filings in Manhattan federal court, statements made in court, and publicly available documents:           

MCU is a non-profit financial institution headquartered in New York, New York, which is federally insured by the National Credit Union Administration (“NCUA”).  MCU is the oldest credit union in New York State and one of the oldest and largest in the country, providing banking services to more than 500,000 members, and with more than $2.9 billion in member accounts, each of which is federally insured for at least $250,000 by the National Credit Union Share Insurance Fund, which is administered by the NCUA.  Membership in MCU is generally available to employees of New York City and its agencies, employees of the federal and New York State governments who work in New York City, and employees of hospitals, nursing homes, and similar facilities located within New York State.

GUAGLIARDO is a former officer with the NYPD and a former Supervisory Committee member of MCU, a volunteer position.  In or about 1993, GUAGLIARDO joined the Supervisory Committee, and remained in that position until he was removed from that position by the New York State Department of Financial Services on or about May 24, 2018, except for a brief period of time when he served as a member of MCU’s Board of Directors in or about 2008. 

Under New York banking law, the Supervisory Committee’s duties included supervision of the actions of MCU’s Board of Directors and officers.  MCU’s written conflict of interest policy, which was regularly distributed to Board members, Supervisory Committee members, and others, provided, among other things, that members of MCU’s “Board of Directors and Supervisory Committee may not do business with the Credit Union, either individually or as representative of any business entity.”

From 2009 through May 2018, in violation of MCU policy and his fiduciary duty as a member of the Supervisory Committee, GUAGLIARDO engaged in a scheme to obtain money from MCU to which he knew he was not entitled, and took steps to conceal his efforts.  Among other things, GUAGLIARDO caused MCU to direct more than $250,000 to a security company created and controlled by GUAGLIARDO, but operated in another’s name, and then directed that money from that company be paid to him and to his family members.  GUAGLIARDO also over-billed MCU more than $200,000 for purported web advertising services provided by a non-profit organization that GUAGLIARDO also controlled.

In addition, during substantially the same period in which GUAGLIARDO was committing these offenses, GUAGLIARDO unlawfully distributed controlled substances to the former chief executive officer of MCU, Kam Wong, in the form of prescription drugs, some of which were obtained from GUAGLIARDO’s spouse, who worked as a doctor affiliated with a public hospital, and some of which were obtained from a different doctor affiliated with the NYPD.

In addition to his prison term, GUAGLIARDO, 63, of Brooklyn, New York, was sentenced to two years of supervised release, and was ordered to forfeit $425,514, and to pay $468,189 in restitution to MCU and a fine of $10,000. 

Ms. Strauss praised the outstanding work of the Special Agents of the United States Attorney’s Office.  Ms. Strauss also thanked the New York County District Attorney’s Office, the New York State Department of Financial Services, and the New York City Police Department Internal Affairs Bureau for their assistance.  She noted that the investigation is ongoing.

Acting Manhattan U.S. Attorney Announces $49 Million Settlement With Biotech Testing Company For Fraudulent Billing And Kickback Practices

Progenity Inc. Admits to Fraudulently Using Wrong Billing Code, Paying “Draw Fees” to Physicians, and Providing Meals and Happy Hours to Physicians and Their Staff

  Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health, Office of Inspector General (“HHS OIG”), Leigh-Alistair Barzey, Special Agent in Charge of the Northeast Field Office of the U.S. Department of Defense - Office of Inspector General’s Defense Criminal Investigative Service (“DCIS”), and Christopher Algieri, Special Agent in Charge of the Department of Veterans Affairs (“VA”), Office of Inspector General, Northeast Field Office (“VA OIG”), announced today a $49 million settlement with PROGENITY, INC. (“PROGENITY”), a San Diego-based biotechnology company that provides molecular and diagnostic tests.  The settlement resolves claims that PROGENITY fraudulently billed federal healthcare programs for prenatal tests and provided kickbacks to physicians to induce to them to order PROGENITY tests for their patients.  The Office’s lawsuit filed in Manhattan federal court alleges that PROGENITY overbilled Medicaid and the VA by fraudulently using a billing code that misrepresented the tests provided.  The lawsuit further alleges that PROGENITY provided illegal kickbacks in the form of excessive “draw fees” to physicians, meals and happy hours for physicians and their staff, and the improper reduction or waiver of patient coinsurance and deductible payments.   

Under the settlement approved today by U.S. District Judge Loretta A. Preska, PROGENITY will pay $19,449,316 to the United States to resolve the kickback claims and the Medicaid and VA fraudulent billing claims, and also makes extensive admissions regarding the company’s conduct.  PROGENITY will also pay $13,150,684 to various states to resolve these claims.  In addition, PROGENITY will pay $16.4 million to resolve similar fraudulent billing claims related to TRICARE and the Federal Employees Health Benefits Program through a separate civil settlement with the United States Attorney’s Office for the Southern District of California (“USAO SDCA”), and has entered into a Non-Prosecution Agreement with that office.  

Acting U.S. Attorney Audrey Strauss said:  “Progenity received millions of dollars from federal healthcare programs through its fraudulent billing and kickback schemes.  The company misrepresented the tests it performed, and tried to get doctors to order Progenity tests by paying them excessive fees and providing meals and happy hours for them and their staff.  Our Office will continue to hold healthcare providers accountable when they engage in fraud and other illegal conduct.” 

HHS-OIG Special Agent in Charge Scott J. Lampert said:  “Kickbacks and fraudulent billing schemes undermine the integrity of our healthcare system, compromise patient care, and increase the financial burden on taxpayers.  Along with our law enforcement partners, HHS-OIG will continue to ensure that those billing federal health insurance programs do so in an honest manner.” 

DCIS Special Agent in Charge Leigh-Alistair Barzey said:  “Ensuring the integrity of TRICARE, the U.S. Defense Department's healthcare system for military members and their families, is top priority for the DCIS.  This settlement agreement is the result of a joint effort and demonstrates the DCIS’s commitment to work with the USAO-SDNY and its law enforcement partners to investigate and prosecute kickbacks and other fraudulent schemes that impact TRICARE.”

VA-OIG Special Agent in Charge Christopher Algieri said:  “VA OIG will vigorously pursue those who engage in unjust kickback and billing schemes, which generate profits at the expense of veterans and taxpayers.  We appreciate the United States Attorney’s Office and our agency partners for this collaborative effort.”

As alleged in the Complaint filed in Manhattan federal court:

Fraudulent Billing

When submitting claims for payment, healthcare providers use Current Procedural Terminology (“CPT”) codes to identify the nature of the medical procedure or services rendered.   Government healthcare payors rely on the CPT code to determine whether the procedure or service is covered, as well as the level of reimbursement.  From March 2014 through April 2016, PROGENITY fraudulently used CPT code 88271 to seek reimbursement for noninvasive prenatal tests (“NIPTs”) that screen for genetic disorders and abnormalities when this code misrepresented the services PROGENITY actually provided.  As a result, PROGENITY received payments for non-reimbursable tests, or received substantially higher payments than it was entitled to receive.  PROGENITY knew that many patients did not meet the medical necessity criteria for NIPTs, and that it could circumvent those requirements by billing under the incorrect billing code. 

Kickbacks

PROGENITY induced physicians to order PROGENITY tests by engaging in three kickback schemes.  First, from January 2012 through March 2016, PROGENITY paid “draw fees” to physicians or physician offices for blood specimens collected for PROGENITY tests.  These fees exceeded the fair market value of the services performed.  The total draw fees paid to physicians depended on the volume of blood specimens collected, so physicians would receive more money if they ordered more PROGENITY tests.

Second, from 2012 through 2018, PROGENITY sales representatives provided food and alcohol to physicians and their staff at gatherings, including happy hours and birthday or holiday parties, that often involved little or no educational content.  For the vast majority of the relevant period, PROGENITY did not limit or even monitor the total amount its sales representatives spent on a physician.  One former sales representative spent $65,658 on meals and alcohol for physicians during a single year.

Third, from January 2012 through April 2018, to market its expensive tests, PROGENITY routinely reduced or waived coinsurance and deductible payments without making the required individualized determination of financial need or reasonable collection efforts.  Sales representatives informed physicians and their staff, as well as patients, that PROGENITY would waive coinsurance and deductibles, or limit the patient’s payment to a certain maximum out-of-pocket amount.  And PROGENITY had agreements with several physicians that it would not collect any payments from their patients.

As part of the settlement approved today by Judge Preska, PROGENITY admits, acknowledges, and accepts responsibility for the following conduct: 

Miscoding:

• From March 2014 through April 2016, PROGENITY knowingly submitted false claims for payment to Medicaid and the VA by using CPT code 88271 to obtain reimbursement for NIPTs.
   
• PROGENITY improperly used CPT code 88271, which applies to fluorescence in situ hybridization (“FISH”) procedures, knowing that its genetic tests were cell-free DNA sequencing-based NIPTs that are not FISH procedures and that CPT code 88271 did not accurately represent the tests performed. 
   
• As a result of fraudulently using CPT code 88721 and misrepresenting the type of test performed when submitting claims for payment to Medicaid and the VA for NIPTs, PROGENITY received payments for non-reimbursable tests, or received substantially higher payments than it was entitled to receive for the genetic testing services provided.  

            Kickbacks:

• From January 2012 through March 2016, PROGENITY knowingly made “draw fee” payments to physicians or physicians’ offices for the collection of blood specimens for PROGENITY tests performed on federal healthcare program beneficiaries.  In total, PROGENITY paid over $1.7 million in draw fees during this period. 
   
• The draw fees paid by PROGENITY exceeded the fair market value of the services performed when collecting blood specimens.  PROGENITY frequently paid physicians $20 or more for each blood draw.  PROGENITY paid dozens of physicians and physician offices thousands of dollars in above fair market draw fee payments during the relevant time period.

• From 2012 through 2018, PROGENITY knowingly provided meals and happy hours to physicians who ordered PROGENITY tests for federal healthcare program beneficiaries, as well to individuals who worked in physicians’ offices.  The value of these meals and happy hours exceeded Stark Law limits.  In total, PROGENITY expended millions of dollars on food and drinks for physicians and their staff during this period.

• During the vast majority of the relevant period, PROGENITY did not have effective systems in place to ensure that the company’s expenses for meals and happy hours for physicians and their employees complied with the Stark Law and the Anti-Kickback Statute.  For example, PROGENITY did not (i) reliably track the amount it spent on meals and happy hours for physicians or their staff, (ii) maintain accurate sign-in sheets reflecting attendance at PROGENITY-sponsored gatherings, (iii) keep records of materials or topics that were discussed during PROGENITY-sponsored gatherings, and (iv) implement and enforce limits on the total nonmonetary compensation that could be provided to physicians.

• From January 2012 through April 2018, PROGENITY knowingly routinely reduced or waived federal healthcare program beneficiaries’ coinsurance and deductible payments without making the required individualized determinations of financial need or reasonable collection efforts.  PROGENITY offered to reduce or waive coinsurance and deductible payments as part of its sales efforts. 
   

In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act, which alleged that PROGENITY engaged in illegal kickback schemes.  PROGENITY has also entered into a Corporate Integrity Agreement (“CIA”) with HHS-OIG.  The CIA promotes compliance with the statutes, regulations, program requirements, and written directives of federal healthcare programs.  Among other things, the CIA requires that for the next five years PROGENITY must retain an Independent Review Organization to annually review the accuracy of the company’s claims for services furnished to federal healthcare program beneficiaries and monitor its arrangements with other individuals and entities.

Ms. Strauss thanked HHS-OIG, VA-OIG, DCIS, USAO SDCA, and the Medicaid Fraud Control Unit of the New York State Attorney General’s Office for their assistance with the case.