Acting Manhattan U.S. Attorney Announces Securities And Wire Fraud Charges Against Founder And Former CEO Of Pharmaceutical Company

 

  Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that SEPEHR SARSHAR was charged this morning with securities fraud and other fraud offenses in connection with SARSHAR’s scheme to provide inside information to his friends and family so they could trade in the securities of a pharmaceutical company SARSHAR founded and of which he was a member of the board of directors.

Acting Manhattan U.S. Attorney Audrey Strauss said:  “As alleged, Sepehr Sarshar, aware of an impending tender offer for his company, tipped off friends and a close relative, enabling them to reap nearly three-quarters of a million dollars in illegal profits.  My Office and the FBI remain resolute in our commitment to policing and prosecuting insider trading.”

FBI Assistant Director William F. Sweeney Jr. said:  “It seems intuitive that material nonpublic information should never be shared with the public, or traded on, prior to shareholder knowledge. Still, time and time again we see where those privy to a company’s inside information pass it on to family and friends. As alleged today, Sepehr Sarshar, a founder and board member of Auspex Pharmaceuticals, Inc., tipped off his own inner circle to an anticipated tender offer for the company. His associates traded on this information, and profited by the hundreds of thousands. Upsetting the market balance in this way puts all investors at a disadvantage. I think the message here is pretty clear – insider trading is risky business, and it’s a crime that’s typically met with hefty fines or significant jail time.”  

According to the Complaint[1] unsealed today Manhattan federal court:    

Between in or about January 2015 and March 2015, SARSHAR, a founder, former chief executive officer, and member of the board of directors of Auspex Pharmaceuticals, Inc. (“Auspex”), misappropriated material nonpublic information (“MNPI”) from Auspex relating to an anticipated tender offer for Auspex by Teva Pharmaceutical Industries Ltd. (“Teva”).  SARSHAR passed that MNPI on to friends and family – including a college friend, his then girlfriend, another long-time friend, and a close family relative  (collectively, the “Associates”) – so they could execute profitable securities trades based on that MNPI, and otherwise caused the Associates to execute trades based on the MNPI he misappropriated.  In turn, the Associates’ trading in the shares of Auspex generated an aggregate of more than approximately $700,000 in illicit profits.

To conceal his illegal scheme, SARSHAR later lied to the Financial Industry Regulatory Authority (“FINRA”) in an investigation conducted by FINRA into insider trading in Auspex securities during the period preceding Teva’s tender offer for Auspex.  Among other things, SARSHAR falsely stated that he could recall no contact with two of the Associates during the period preceding the tender offer whereas, in truth and in fact, SARSHAR had substantial communications with those individuals, including regarding the forthcoming tender offer.  

SARSHAR will be presented later today in federal court in San Diego.

SARSHAR, 53, of Encinitas, California, is charged with one count of securities fraud, one count of wire fraud, and one count of fraud in connection with a tender offer.  The securities fraud count carries a maximum sentence of 25 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.  The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.  The fraud in connection with a tender offer count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Ms. Strauss praised the investigative work of the FBI and thanked the Philadelphia Regional Office of the SEC, which has filed civil charges against SARSHAR in a separate action.  She added that the FBI’s investigation is ongoing.

The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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

Attorney General James Announces $85 Million Multistate Settlement with Honda Over Airbag Failures

 

Honda Agrees to Substantial Changes That Will Protect Consumers

New York State Awarded More Than $3 Million Alone

   New York Attorney General Letitia James today announced a $85 million multistate settlement with American Honda Motor Co., Inc. and Honda of America Mfg., Inc. (Honda), over allegations that Honda concealed safety failures in the airbags of certain Honda and Acura vehicles sold in the United States. The settlement — reached between a coalition of 48 attorneys general and Honda — concludes a multistate investigation into Honda’s alleged failure to inform regulators and consumers of issues related to the significant risk of rupture in the frontal airbag systems installed in certain model cars, which could cause metal fragments to fly into the passenger compartments of many Honda and Acura vehicles. The ruptures have resulted in at least 14 deaths and over 200 injuries in the United States alone.

“We’re holding Honda to account and sending a message that placing profits over safety will never be accepted,” said Attorney General James. “Airbags are supposed to keep drivers and passengers safe, but Honda’s manufacturing defect and their hiding of the facts led to deaths and injuries. Today’s settlement will not only guarantee Honda replaces all remaining defective airbags on the road, but that the company takes specific actions to ensure any future defect is thoroughly made public in the future to avoid this type of danger.”

In the complaint, the states alleged that Honda engineers suspected that the airbags’ propellant (ammonium nitrate) could burn aggressively and cause the inflator to burst. Despite these concerns, Honda delayed warning consumers or automobile safety officials, even as it began partial recalls of affected vehicles in 2008 and 2009. Further, despite these concerns, Honda continued to represent to consumers that its vehicles — including its airbags — were safe. Since 2008, Honda has recalled approximately 12.9 million Honda and Acura vehicles equipped with the defective inflators.

Under the terms of today’s consent judgment — filed in New York County State Supreme Court — Honda has agreed to strong injunctive relief, including:

• Taking steps to ensure that future airbag designs include “fail-safe” features to protect passengers in the event the inflator ruptures.
• Adopting changes to its procurement process for new frontal airbags to ensure that its suppliers have the appropriate industry certifications and satisfy key industry performance standards, as well as to improve record-keeping and parts tracking.
• Implementing recurrence prevention procedures — such as requiring that Honda approve all new frontal airbag designs before the company considers them for use in new Honda vehicles — in an effort to prevent tragedies that led to these deaths and injuries from happening again.
• Prohibiting misleading advertisements and point of sale representations regarding the safety of Honda and Acura’s vehicles, including in the automobiles’ airbags.
• Making improvements in critical areas for the company, including risk management, quality control, supplier oversight, and training and certifications, as well as implementing mandatory whistleblower protections at the company.

Honda also agreed to pay the participating 48 attorneys general a total of $85 million in fines, of which New York’s share is $3,385,945.

The systems subject of today’s settlement were designed and manufactured by Takata Corporation, a long-time Honda supplier, and were first installed in Honda vehicles in the 2001 model year.

The states specifically allege that Honda’s actions — or its failures to act — as well as its misrepresentations about the safety of its vehicles, were unfair and deceptive, and that Honda’s conduct violated state consumer protection laws, including New York’s Executive Law § 63(12) and New York General Business Law § 349.

Under a separate class action settlement, Honda customers are entitled to full restitution for any damages or injuries that occurred as a result of the defective airbags, or to reimburse for the cost of previous replacement of Honda or Acura airbags at a non-authorized Honda dealer. Customers can learn more about the class action settlement by visiting the class action settlement website at www.AutoAirbagSettlement.com/en/Honda. Consumers who own a Honda or Acura vehicle are strongly encouraged to visit Honda’s airbag recall website at HondaAirbagInfo.com or call its customer service toll-free number at (888) 234-2138 to see if their vehicle is subject to a recall. Consumers may also check for open recalls by going to www.SaferCar.gov. All safety recall repairs are FREE at authorized Honda dealers. Consumers can also contact the Office of the Attorney General with any questions about this settlement by calling (800) 771-7755.

Governor Cuomo Announces New York Fashion Week to Take Place in September with Limited or No Spectators

 

NYFW Scheduled for September 13-17, 2020 Featuring Live and Virtual Programming in Strict Compliance With New York State Health and Safety Guidelines, Including Outdoor Events Capped at 50 Persons and Indoor Events at 50 Percent Capacity and No Spectators

Live-Streamed Fashion Shows and Virtual Programs to Showcase Top Industry Designers and Artists

 Governor Andrew M. Cuomo today announced New York Fashion Week to take place September 13-17, 2020 in strict compliance with New York State health and safety guidelines, including outdoor events capped at 50 persons and indoor events at 50 percent capacity and no spectators. New York Fashion Week will feature a mix of live and virtual fashion shows, presentations, and programming including live-streamed runway shows, exclusive designer-related content and cultural programming.

"New York City is the fashion capital of the world and New York Fashion Week celebrates the ingenuity of this city, and our unmatched creative talent," Governor Cuomo said. "When COVID-19 hit New York, so many of our cherished events were forced to cancel or be postponed. The pandemic is far from over, but we're proud to support event organizer IMG in moving forward with NYFW, in adherence with strict state public health guidance. Safety, as always, is our top priority and we commend the hosts, and all participating designers, for their innovative, New York Smart solutions to bring this event to life."

New York Fashion Week will operate in full compliance with the existing State Department of Health's issued standards for public health and safety during the COVID-19 public health emergency. These measures include policies, procedures, precautions and screenings, including: restrict all gatherings to 50 or fewer people and less than 50 percent of the maximum occupancy for a particular area as set by the certificate of occupancy; adhere to social distancing at all times; ensure all personnel, vendors, designers, models and guests comply with the provisions of the State's travel advisory; diagnostic testing and health screening procedures, including temperature checks prior to admittance; limit in-person workforce to only essential personnel on site; and require face coverings at all times.

IMG, the owner and producer of NYFW: The Shows, is working closely with New York State officials and key event stakeholders to ensure full compliance with all applicable health and safety requirements. Current event plans for NYFW reflect the State's New York Forward Phase 4 reopening guidelines and adjustments will be made as required. NYFW will follow specific guidance regarding low-risk indoor arts and entertainment, media production and outdoor food service. Further, there will be no spectators for any NYFW-affiliated indoor events; and a limited number of private events held outdoors on the Spring Place rooftop will adhere to reduced capacity guidelines of no more than 50 people.

Executive Vice President of IMG's Fashion Events Group Leslie Russo said, "We are grateful to Governor Cuomo and his leadership for their swift, successful response in fighting the spread of the coronavirus, which has now set the standard of excellence for our nation. The past six months have been exceedingly difficult for the fashion industry, and we are proud to offer an avenue for designers, models, stylists, hair and makeup artists, photographers, production teams - ­and the innumerable other professionals who work in, or adjacent to, the fashion industry during New York Fashion Week - to safely get back to work this September."

NYFW will support designers including Adeam, Aknvas, Alice + Olivia, Amen, Badgley Mischka, Bibhu Mohapatra, Bronx and Banco, C+ plus Series, Chloe Gosselin, Chocheng, Christian Cowan, Christian Siriano, Cinq a Sept, Claudia Li, Concept Korea, Faith Connexion, Frere, Jason Wu, Jonathan Simkhai, Kim Shui, Lavie by CK, Libertine, Marina Moscone, Maxhosa Africa, Monse, Nicole Miller, Oqliq, PH5, Private Policy, Proenza Schouler, Raisavanessa, Rebecca Minkoff, Rvng Couture, Studio One Eighty Nine, Tadashi Shoji, Tanya Taylor, Tiffany Brown Designs, Veronica Beard, Victor Glemaud and Vivienne Hu, among others, in various capacities including shows, presentations, virtual content and programming.  

Comptroller Stringer Calls on Mayor de Blasio to Restore Checks and Balances to the Procurement Process

 

Mayor’s Executive Order suspended laws and regulations related to procurement in New York City since March 17, when the City needed to quickly purchase ventilators and personal protective equipment (PPE) at the height of the pandemic

As City emerges from the height of the pandemic and demand for COVID-related emergency contracts decreases, Comptroller demands oversight powers be reinstated

In April 2020, 19 percent of registered COVID-19 emergency contracts were for PPE, whereas in June 2020, PPE comprised only three percent of all contracts

  New York City Comptroller Scott M. Stringer sent a letter to Mayor Bill de Blasio calling on the City to restore checks and balances to the emergency procurement process by rescinding Emergency Executive Order (E.E.O.) 101, Section 2. The Executive Order suspended laws and regulations related to procurement in New York City – including the Comptroller’s office’s Charter-mandated role in approving and registering contracts related to the COVID-19 pandemic – since March 17, when the City needed to quickly purchase ventilators and personal protective equipment (PPE) at the height of the pandemic.

Citing the City’s decreasing demand for COVID-related emergency contracts as New York City enters Phase 4 of reopening, its failure to comply with the terms of the order, and other issues arising from the suspension of procurement oversight, Comptroller Stringer called on the City to reinstate standard procurement laws and regulations. The Comptroller’s office stands ready to resume its Charter-mandated role of safeguarding taxpayer funds and requested the City turn over information and documents about these emergency contracts without delay.

“As we emerge from the darkest days of the pandemic and build our city back, it’s time to restore full oversight and accountability to city contracting. The Mayor needs to rescind this executive order so we can ensure that every dollar we spend is delivering for New Yorkers,” said New York City Comptroller Scott M. Stringer. “With billions of dollars at stake amid an economic crisis that has hit vulnerable New Yorkers the hardest, every penny counts. We need to restore checks and balances, scrutinize and ask tough questions, and provide the transparency and accountability New Yorkers deserve from their government.”

The City has already paid out over $1 billion on the emergency contracts registered under the E.E.O. In April 2020, contracts for PPE comprised 19 percent of registered COVID-19 emergency contracts, compared to June 2020 when PPE comprised only three percent of all contracts.

The full text of the letter can be viewed below and here.

Dear Mayor de Blasio:

I am writing to urge you to swiftly rescind Emergency Executive Order (“E.E.O.”) 101, Section 2, which has suspended laws and regulations related to procurement in New York City since March 17, 2020. E.E.O. 101 may have seemed justified at the height of the COVID-19 pandemic when the City’s ability to quickly purchase ventilators and personal protective equipment (PPE) meant life or death for New Yorkers, but now that our city is in Phase 4 of reopening, the suspension of the checks and balances that govern our emergency procurement process can no longer be maintained.

Under normal circumstances, Chapter 13 of the New York City Charter allows the City to enter into emergency contracts in cases of unforeseen danger to life, safety, property or a necessary service with the prior approval of my office. My office’s legally mandated role in approving and registering emergency contracts was suspended by E.E.O. 101, Section 2 “to the extent necessary for the City to procure necessary goods, services and construction in response to the emergency”.

As New York City emerges from the acute phase of the COVID-19 pandemic, the number of COVID-related emergency contracts has steadily decreased. Yet the Mayor’s Office of Contract Services continues to register both emergency and non-emergency contracts, defying the intention of the E.E.O. and bypassing the safeguard of Comptroller registration established in the City Charter. As of August 20, the City had already paid out $1,526,391,92 on the emergency contracts registered under the E.E.O. Moreover, it is not readily apparent that the terms of the suspension of Chapter 13 under the E.E.O. have been adhered to since the required documentation for these contracts has not been routinely submitted to my office.

Dwindling Need for the Suspension of Local Procurement Laws and Regulations

New York City is in a new phase of managing the COVID pandemic. With hospitalizations down 98 percent from their peak in April, the sweeping emergency procurement powers enacted in E.E.O. 101 are no longer justified. For example, in April 2020, contracts for PPE comprised 19 percent of registered COVID-19 emergency contracts, whereas in June 2020, PPE comprised only three percent of all contracts. Additionally, the City registered nine ventilator contracts in April 2020, but only one in July 2020. It also registered nine emergency staffing contracts in April 2020, but only two in July 2020.

Moreover, the continued suspension of local procurement laws and regulations is permitting the registration of contracts that are not appropriately related to the State of Emergency caused by COVID-19. Under the executive order, the City has registered contracts from every mayoral agency, contracts with expiration dates years away, and contracts with purposes that have unclear direct relevance to the fight against COVID-19. These registrations indicate a trend away from goods and services contracts that relate to immediate COVID-19 prevention and treatment and corresponds to the vast decrease in infections over the same period.

Noncompliance of Terms Associated with the Emergency Executive Order

When E.E.O. 101 was issued, it was done with the requirement that the suspension of procurement rules be done only “when an agency head determined in writing that the procurement is necessary to respond to the emergency”.[1] My office has yet to receive evidence of such determinations for the vast majority of contracts registered pursuant to the E.E.O., or criteria used by the Mayor’s Office of Contract Services to evaluate such determinations, assuming such a process exists. Additionally, complete contract files for the procurements have not been submitted to my office.

To comply with the terms of E.E.O 101, please submit the following items for each contract registered under the E.E.O. to my Office’s Bureau of Contract Administration for filing purposes within two weeks from the date of this letter:

1. The complete emergency contract file as required by NYC Charter Section 93 that includes but is not limited to:

a) The agency head determinations for the need of the emergency contracts that are required under E.E.O. 101; and

b) The written determination for emergency contracts (including contractual information and vendor past performance) required by Mayor’s Office of Contract Services Guidance issued March 18, 2020.

Issues Arising from the E.E.O. 101 and Suspension of Local Procurement Laws and Regulations

I am also concerned that the City may be circumventing the Charter-mandated role of my office. The Charter places the responsibility on the Comptroller to review emergency contract submissions and to provide oversight over contract procurement, vendor integrity, agency accountability and registration generally.

It has been reported that a number of COVID-19 related contracts worth tens of millions of dollars have been canceled or not fulfilled. These same reports also indicate that many of these contracts were with vendors that lack the necessary capacity or relevant experience, or even have criminal backgrounds. Given these facts, it is imperative that my office resume its Charter-mandated role of safeguarding taxpayer funds.

Based on these concerning reports, please provide the following items to my office within two weeks of the date of this letter:

2. A complete list of the contracts registered under the E.E.O. that have either been canceled or not fulfilled; and

3. The status of the City’s efforts to recoup the funds paid to the vendors for any contract where an advanced payment was issued and goods or services were not received.

COVID-19 still presents an economic and public health threat; however, the need for E.E.O. 101, Section 2 no longer exists, and a return to the original emergency procurement framework provided by the City Charter is in order. Please notify my office of the date that E.E.O 101 will lapse or be terminated, and submit the above materials without delay.

Thank you for your prompt attention to this issue.

Sincerely,

Scott M. Stringer

New York City Comptroller

SCHUMER, GILLIBRAND, MALONEY ANNOUNCE OVER $204 THOUSAND IN FEDERAL EMERGENCY TRANSIT FUNDING FOR PUTNAM COUNTY

 

During Negotiations For Cares Act, Leader Schumer Prioritized & Secured $$$ For Upstate New York Transit; Gillibrand, Maloney Shepherded Legislation To Final Passage 

Putnam County Will Receive $204K To Support Transit Operations As County Responds To & Recovers From COVID-19 Pandemic 

Reps: Federal Funding Will Keep Putnam County Moving Forward

  U.S. Senator Charles E. Schumer, U.S. Senator Kirsten Gillibrand, and U.S. Congressman Sean Patrick Maloney today announced $204,195 in CARES Act, emergency federal funding for Putnam County’s transit systems. This federal funding was secured in the CARES Act, allocated by the Federal Transit Administration (FTA), and will allow transit services to continue in the Putnam County area during the coronavirus (COVID-19) pandemic by mitigating the devastating financial impact of the crisis on local transit systems.

“As the Hudson Valley reopens, it’s imperative that it gets all the federal tools it needs to support the recovery process, including help for our vital public transportation systems in Putnam County” said Senator Schumer. “This federal funding will offset the devastating financial impacts of COVID-19 on transit operations throughout the region and allow the Putnam County Area to keep the bus systems clean, safe, timely and efficient for Hudson Valley riders. I’m proud to have fought for this imperative funding to be included in the CARES Act and will continue to fight to make sure that New York has every dollar it needs to recover.”

“New York State’s transportation systems are at the center of our economy,” said Senator Gillibrand. “As Putnam County reopens and returns to daily life, we must ensure that New Yorkers can rely on safe and sanitary transit to get to their jobs, the grocery store, and schools. This funding is great news for the Hudson Valley and I will keep working to secure the resources our communities need to recover.”

“Folks in Putnam County rely on public transit every day — before, during and long after this pandemic. This investment will help keep our public transit clean and running as we continue to reopen our communities. I’m proud the transportation funding I fought for as a proud member of the Transportation and Infrastructure Committee was included in the CARES Act, and will continue to advocate for more emergency relief and transit funding for Hudson Valley communities,” said Congressman Sean Patrick Maloney.

Putnam County’s transit system includes the Putnam Area Rapid Transit (PART), which serves the Putnam County region, and operates four fixed routes year round in addition to a seasonal trolley in Cold Spring and a commuter shuttle to the Metro North Station at Croton Falls. Additionally, PART Paratransit offers a transportation system for those Putnam residents who are unable to use the PART public transportation due to a physical or mental disability.

The FTA funding for Putnam County is a 100% federal fund grant and no local match is required. Funding announced today is in addition to the $2.8M in CARES Act funding awarded to Putnam County earlier this month.

EDITOR'S NOTE:

Keep up the good work Chuck, but what about New York City and the MTA?

MAYOR DE BLASIO AND SHERIFF FUCITO VISIT COVID-19 TRAVEL CHECKPOINT

 

Mayor Bill de Blasio: Everybody, we are here at the Bayonne Bridge. You can see this operation by the Sheriff's Office and you can see immediately the impact it’s making. I want to thank – you are going to hear from Sheriff Joe Fucito in a moment. But I want to thank you Sheriff and your whole team. You know a lot of New Yorkers before the pandemic didn’t know a lot about the Sheriff's Office but they have been heroes throughout these last six months. They have been there for New York City in so many ways, helping us to address this pandemic, saving lives, protecting people, dealing with all sorts of problems in neighborhoods. And really making a lot of problems stop because of the dedication of the team at the Sheriff’s Office. So I really want to thank them for their great work.

 

And now with this important work, with these checkpoints, making sure they people visiting New York City understand, if they come from one of the states that requires a quarantine, if you come here from one of the states that’s had a big problem recently with the coronavirus, you need to quarantine when you get to New York City, if you are staying here. It doesn’t matter if you are from the other state or you are from New York City, if you’ve spent time in one of those states that’s in the middle of this crisis, when you get back here you have got to quarantine. And these checkpoints are making the point very clear. They are helping everyone to realize their responsibility to their fellow New Yorkers. They are helping everyone to understand what the law is. And a lot of information is being spread in this process and I really want to thank you Sheriff. Because I think the word – this has been one of the best ways we’ve helped to educate people about the quarantine law. And everybody, I want you to understand about 20 percent of the cases we are seeing now in New York City are from people who have traveled out of state to one of the areas experiencing a problem with the coronavirus. So this is a driving force in the level of infections we have right now. And we have seen in other parts of the world, that if the travel situation is not addressed dramatically and aggressively it becomes one of the biggest causes of spread. So we can’t let that happen in New York City. So we are doing this work with the Sheriff’s Office, with the travel companies, the hotels, a lot of participation to help us get this done.

 

Everybody, the other thing I want to say is the Sheriff’s Office, they are going wherever the need is. We are here in Staten Island because obviously this is where people are coming in from I-95, from a lot of different states in the country. So this is one of the most sensitive entry points in the whole of the five boroughs. But the Sheriff’s Office will be out all over the city in the weeks to come. And the important thing is for people to realize they got to take this seriously. New York City has had a lot of success keeping the infection level low. We've done that with a lot of vigilance and with making sure we are educating people all the time. And what the Sheriff is doing is a key part of that for sure. So now my pleasure to introduce one of the – he used to unsung. He’s getting more sung now. And well deserved, one of the heroes fighting back the coronavirus, Sheriff Joe Fucito.

 

New York City Sheriff Joseph Fucito: Thank you Mr. Mayor. It’s always a hard follow up because I got to pull the mic down when the Mayor speaks. But very quickly, as the Mayor indicated, we are very proud of the Sheriff’s Office, the deputy sheriffs and detectives of the Sheriff’s Office that have been doing this work today. They do a tireless job every day. One of the most important things to remember is, the Sheriff’s Office is 394 years old. I think the second oldest office is the Mayor. So there is a long time partnership between the Sheriff and the Mayor. And I think it’s also important to note, you see more of the Sheriff when there are problems. When there are emergencies the laws of the state say the Sheriff has to step up and take action. And that’s what we are doing over the pandemic. And that’s what we are going to be doing in the future days. Stepping up to help New Yorkers. It’s very, very important.

 

So, some quick tips – obviously avoid travel to quarantine states if you can. If you must travel then complete the travelers form and follow the quarantine guidelines. Failure to comply with these provisions of law can result in criminal charges and civil penalties. The Sheriff’s Office and the Taxi and Limousine Commission police, we want to give them a very big thank you. They have been helping us with this project, have conducted over 3,000 vehicle stops and issued over 12,000 masks to motorists. Compliance at vehicle checkpoints is very high with only two individuals receiving summonses for failure to comply. And in a few days vehicle checkpoint compliance will include bus traffic arriving in New York City that originated from other quarantine states. And we will be moving and looking at how we can reduce the numbers of travelers coming into the city who are not filling out the form. Education is the biggest part of it. So if you see this message, please fill out the form and follow the quarantine.

 

Mayor: Excellent. Thank you, everybody.

 

MAYOR DE BLASIO AND CHANCELLOR CARRANZA ANNOUNCE COMPREHENSIVE SCHOOL AIR SAFETY MEASURES

 

 Mayor de Blasio and Schools Chancellor Carranza today announced a multi-pronged approach to addressing, monitoring, and reporting air quality and ventilation in every building by the first day of school. Beginning today, every space occupied by students, teachers and staff in a school building will be inspected by a citywide team of independent professional engineers to assess each space and determine adequate ventilation. Inspection criteria and standards were developed based on a thorough review of guidance from the CDC and WHO, as well as expert review by the New York City Department of Health and Mental Hygiene. Building inspection results will be publicly shared on a rolling basis beginning this week through Friday, September 4^th. 

 

“With our record-low infection rates, New York City is the safest city in America,” said Mayor Bill de Blasio. “The verdict is clear: our plan to reopen schools is the strongest in the country and among the most rigorous in the world. I want all students and staff to enter our school buildings this fall with full reassurance that they will be safe.”

 

“We're leaving no stone unturned when it comes to our school buildings, and a robust approach to ventilation is a critical piece of our health and safety plan,” said Schools Chancellor Richard A. Carranza. “The science is clear: well-ventilated buildings are safer buildings--and we're going to make sure that's true for every school by the first day." 

 

For the last several weeks, custodial engineers have been inspecting school buildings to identify repairs that will ensure proper ventilation.  Now, every school building in New York City will also be inspected by teams of independent, certified professional engineers contracted by the School Construction Authority (SCA) to ensure that mechanical and natural air circulation and ventilation systems are in place prior to reopening. These School Ventilation Action Team inspections will provide a highly-qualified, third-party determination and documentation of how the building is providing air circulation and ventilation and the current status of those mechanisms. SCA will be joined by sister agencies, like the Department of Buildings and FDNY, as well as DOE custodial engineers to make sure every space inside a building is ready for occupancy. 

 

The DOE will use the assessments to ensure sufficient ventilation by the first day of school. In instances where that is not possible, the room or building will not be used until repairs can be made. 

 

The DOE has also purchased 10,000 portable air purifiers to be placed in schools by the first day. These devices are designed to remove particles from the air and reduce the risk of viruses being transmitted through the use of high efficiency particulate air (HEPA) filters. Schools will be allocated portable air purifiers first for their isolation rooms and nurses’ offices, and then based on need identified during building inspections as an added layer of defense against airborne particles. More will be purchased if needed. 

 

Every building will also be provided a CO₂ testing device for custodial engineers to measure the level of fresh air. When a room is occupied, elevated levels of CO₂ in an enclosed space are evidence of poor air circulation and ventilation. Every Custodial Engineer is being provided with a CO₂ testing device to provide quick, on-the-spot information regarding indoor air quality. School leaders and staff can request a CO₂ reading to ensure that air circulation is being maintained in a room. If a room falls outside of the parameters for what is safe, the issue will be elevated to the Division of School Facilities, and the room will not be used until air circulation is remedied and improved.

 

Proper air ventilation is a key component of stopping the spread of COVID-19. Per CDC guidance, it is highly recommended that schools:

 

·         Increase the amount of fresh air in classrooms – whether by natural or mechanical means, 

·         Inspect, repair, and increase air filtration, 

·         Inspect and repair supply and exhaust fans, 

·         Deploy portable High-Efficiency Particulate Air (HEPA) filters.

·         Ensure ventilation systems operate properly and provide acceptable indoor air quality for the current occupancy level for each space.

 

With its blended learning model, socially distanced classrooms, mandatory masks, widely available testing, and contact tracing program, the City's plan for reopening schools is the strongest in the country and among the most rigorous in the world. The City will only open schools if transmission stays below 3%, exceeding the 5% standard set by the World Health Organization and New York State.

 

EDITOR'S NOTE:

We wonder who is making how many millions of dollars off this idea?

State Labor Department Releases Preliminary July 2020 Area Unemployment Rates

 

 The New York State Department of Labor today released preliminary local area unemployment rates for July 2020. Rates are calculated using methods prescribed by the U.S. Bureau of Labor Statistics. The State’s area unemployment rates rely in part on the results of the Current Population Survey, which contacts approximately 3,100 households in New York State each month.

From July 2019 to July 2020, the State’s private sector employment count decreased by 1,184,500. The State’s seasonally adjusted private sector job count increased over the month by 244,200, or 3.6%, to 7,116,200 in July 2020.The State’s private sector job count is based on a payroll survey of 18,000 New York employers, which is conducted by the U.S. Bureau of Labor Statistics. In addition, the State’s seasonally adjusted unemployment rate increased from 15.6% to 15.9% in July 2020.  

Local Area Unemployment Rates* (%) 

July  2019 and July 2020

(not seasonally adjusted)

*Data are preliminary and subject to change. The data in the preceding table are not seasonally adjusted, which means they reflect seasonal influences (e.g., holiday and summer hires). Therefore, the most valid comparisons with this type of data are year-to-year comparisons of the same month, for example, July 2019 versus July 2020.   See County Unemployment Rates (opens in new window) for current unemployment rates for all 62 counties in New York State. Labor force data for the current month are preliminary and subject to revision as more information becomes available the following month. Revised estimates for prior months are available at: labor.ny.gov/stats/LSLAUS.shtm Labor force statistics, including the unemployment rate, for New York and every other state are based on statistical regression models specified by the U.S. Bureau of Labor Statistics. These are the most up-to-date estimates of persons employed and unemployed by place of residence. Estimates are available for New York State, labor market regions, metropolitan areas, counties and municipalities with population of at least 25,000. See State and Area Unemployment Rates (opens in new window) See Unemployment Rate Map (opens in new window) See Jobs and Unemployment Fact Sheet (opens in new window)
July         July                                                                           2020        2019
Metro Areas                                             16.3        4.2
Albany-Schenectady-Troy                   11.5         3.8
Binghamton                                         12.5         4.8
Buffalo-Niagara Falls                           14.1        4.6
Dutchess-Putnam                                12.5        3.8
Elmira                                                   12.5       4.4
Glens Falls                                           11.1       3.6
Ithaca                                                     9.9       4.2
Kingston                                              12.4        4.0
Nassau-Suffolk                                    13.8       3.8
New York City                                      20.0       4.3
Orange-Rockland-Westchester           14.0       4.0
Rochester                                            13.9       4.3
Syracuse                                             13.0       4.3
Utica-Rome                                         12.2       4.4
Watertown-Fort Drum                         12.3       4.9
Non-metro counties                              11.7        4.4