Tuesday, March 2, 2021

Attorney General James and NYC Corporation Counsel Johnson Announce Recovery of $105 Million from Hedge Fund Manager Who Evaded Taxes

 

AG James and Corporation Counsel Johnson Deliver Largest New York False Claims Act Recovery Against an Individual Defendant in NYS History

 New York Attorney General Letitia James and New York City Corporation Counsel James E. Johnson today announced the recovery of $105 million in back taxes and damages from a hedge fund manager who defrauded New York state and New York City out of taxes on deferred-compensation income in 2017. Thomas E. Sandell through his firm, Sandell Asset Management Corporation (SAMC), recognized over $450 million in management and performance fees in 2017 from investment management services performed in New York City, but instead of paying the state and city proper taxes on those fees, Sandell tried to dodge liability for tens of millions of dollars in taxes.

“The greed that allowed one man to try to avoid paying his fair share of taxes is astonishing,” said Attorney General James. “Thomas Sandell and his company bilked New York taxpayers out of tens of millions of dollars in a single year — placing a tremendous burden on our system and forcing ordinary New Yorkers to bear that cost. My office remains committed to ensuring that those who knowingly commit tax fraud — and those who facilitate their misconduct — pay a steep price for doing so.”

“Tax revenues pay for vital city services. When a deadly pandemic has eviscerated the economy and severely strained our city’s budget, every dollar counts,” said Corporation Counsel Johnson. “Hedge funds are obligated to pay taxes just like everybody else, and when they don’t, we’ll use our legal tools and strategies to hold them accountable. Period.”

As the result of a 2008 change in deferred fee income recognition rules, Sandell was required to recognize approximately $450 million in deferred fee income in 2017 and pay taxes on that income in New York state and New York City. But, to avoid this liability, Sandell left New York to live in London from August 2016 until mid-2019, and, even though SAMC continued operating in New York City, Sandell and SAMC took steps to make it appear as though SAMC’s operations were no longer in New York City, often with the assistance of an international accounting firm (Accounting Firm A).

As part of this deception, Sandell opened a shell office with three back-office employees in Boca Raton, Florida, which Sandell and SAMC held out to New York’s tax authorities as SAMC’s sole U.S. operation — even after agreeing to a finding by the U.S. Securities and Exchange Commission (SEC) that SAMC’s principal place of business continued to be in New York City. To further conceal SAMC’s New York presence, Sandell also funneled SAMC’s payroll and property expenses through a third-party entity — which he owned — even though SAMC had incurred, remained responsible for, and, in fact, continued paying those expenses.

Despite being put on notice that his tax position was problematic by multiple advisors, including his long-time tax preparer (Accounting Firm B), Sandell nonetheless claimed that he owed no New York taxes on the fee income he recognized in 2017. Accounting Firm B made clear to Sandell that he could not claim to owe no New York taxes on his deferred-fee income — particularly in light of the SEC’s conclusion that SAMC’s principal place of business continued to be in New York City. In response, Sandell replaced Accounting Firm B with Accounting Firm A without conducting any further diligence into Accounting Firm A’s tax position, and wrongfully claimed no New York tax was due on returns filed for the 2017 year, depriving the state and city of tens of millions of dollars in tax revenues.

Sandell has already transmitted the full $105 million agreed upon in back taxes and damages.

Sandell and SAMC neither admit nor deny the allegations made by the Office of the Attorney General (OAG) and by the New York City Department of Law.

The investigation leading to today’s agreement began with a whistleblower lawsuit filed in October 2018 under the New York False Claims Act. The investigation found that Sandell performed the investment services that generated the deferred fees at issue exclusively in New York City and that his deferred fees were therefore taxable in New York state and New York City. 

The OAG expresses its appreciation to the whistleblower, without whose information the misconduct might not have been discovered, and to the whistleblower’s attorneys. Under the New York False Claims Act, whistleblowers are entitled to receive a percentage of settlement proceeds for bringing this misconduct to light. 

New Yorkers can learn more about filing a New York False Claims Act on the OAG website and can file an anonymous, secure transmission through the OAG’s whistleblower portal.

The OAG also thanks the New York state Department of Taxation and Finance and the New York City Department of Finance for their invaluable assistance in this matter. 

Governor Cuomo Announces Over 15 Percent of New Yorkers Have Received at Least One Dose of the COVID-19 Vaccine

 

New York to Receive Approximately 164,800 Doses of the Johnson & Johnson Vaccine this Week

As of 11AM today, New York Providers Have Administered 95% of First Doses

New Statewide Demographic Breakdown of Vaccine Acceptance Rate

Vaccine Dashboard Will Update Daily to Provide Updates on the State's Vaccine Program; Go to ny.gov/vaccinetracker

 Governor Andrew M. Cuomo announced 15.2 percent of New Yorkers have now received at least one dose of the COVID-19 vaccine. Additionally, over 3 million first doses have been administered by New York providers to date and 114,730 first and second doses were administered over the past 24 hours. As of 11:00 AM today, New York providers have administered 95 percent of first doses. New York expects to receive approximately 164,800 doses of the Johnson & Johnson vaccine this week. The added doses will supplement New York State's expected week 12 supply of Pfizer and Moderna, for a total of approximately 878,080 doses, the highest-ever weekly vaccine allocation. The week 12 allocation from the federal government will begin arriving mid-week.

"With the New York State Vaccine Taskforce unanimously recommending the single-shot Johnson & Johnson vaccine, we are one more step closer toward eradicating COVID from every corner of our state," Governor Cuomo said. "I'm confident that we will continue to see increases to our weekly allocation and in turn get even more shots in arms quickly and fairly, but it will take time. The war isn't won until every New Yorker has been vaccinated. I urge all qualifying New Yorkers to make an appointment and get the vaccine when their turn comes, and to continue to wear a mask and social distance even after being fully vaccinated."

Approximately 10 million New Yorkers are currently eligible to receive the vaccine. New York's vast distribution network and large population of eligible individuals still far exceed the supply coming from the federal government. Due to limited supply, New Yorkers are encouraged to remain patient and are advised not to show up at vaccination sites without an appointment.

The 'Am I Eligible' screening tool has been updated for individuals with comorbidities and underlying conditions with new appointments released on a rolling basis over the next weeks. New Yorkers can use the following to show they are eligible:

  • Doctor's letter, or
  • Medical information evidencing comorbidity, or
  • Signed certification

Vaccination program numbers below are for doses distributed and delivered to New York for the state's vaccination program, and do not include those reserved for the federal government's Long Term Care Facility program. A breakdown of the data based on numbers reported to New York State as of 11:00 AM today is as follows. Beginning week 9, allocation totals are inclusive of some excess vaccine doses that have been reallocated from the federal Long Term Care Facility program.

STATEWIDE BREAKDOWN

First Doses Received - 3,206,430

First Doses Administered - 3,033,922; 95%

Total Doses Received - 5,229,950

Total Doses Administered - 4,698,345


Mayor de Blasio's Daily Briefing Mentioning the Needs of Coop-City with Congressman Bowman and State Senator Bailey

 

Mayor Bill de Blasio: Good morning, everyone. Well in our battle against the coronavirus, we have an important milestone we marked today, and this is another example of what New York City can do to fight back against COVID, the strength of New Yorkers, the ability of New Yorkers to get things done. As of today, we have surpassed two million vaccinations since the beginning of our effort, the exact number 2,024,601 doses have been administered since we began, and the very beginning we had very little supply, but we knew the vaccine would be the difference maker. It was a shot of hope and now it's two million shots of hope that have been given and so much more to come. Look, I said weeks ago, we could hit five million New Yorkers fully vaccinated by June. This is further proof we're on target, we can get it done, so long as we get that supply. Well, I've said from the beginning, we need the manufacturers, we need the federal government, we need the State government to help us get it done. Get us the supply, free us up, free us to vaccinate, cut the red tape, give us local control, this is the way forward.     

    

Now, back in January, I think it was January 26th, I said, look, we need the federal government to use the Defense Production Act, we need to get all the pharmaceutical companies in America into this effort. Three companies only is not the way to defeat this virus, three companies only is not how we overcome COVID this year and into the future, nor how America leads the world and serve the rest of the world in fighting this virus. And talk about further proof that we're all interconnected, if this virus is raging at one part of the world, we know it will eventually reach us. So, actually getting everyone vaccinated everywhere is in America's interest, in New York City's interest. That's where I said, let's get all the companies who can participate involved, and at that point specifically, I said, look at Merck, giant pharmaceutical, they tried to make their own vaccine, couldn't, they were moving on to other things. At that point, weeks ago, I said, hey, let's get them to participate in creating the vaccine. Well today the White House is announcing that that is in fact what is happening, that Merck will cooperate and partner with Johnson & Johnson to greatly expand their production capacity so we can get more vaccines. We can get what we need, supply, supply, supply. This is an example of getting it right and as a result of this partnership, now, the projection is a 100 million doses of the Johnson & Johnson vaccine available nationwide by June. What a difference that would make, what a difference that will make here, but let's not stop there. I'm going to appeal again to the pharmaceutical industry, to the federal government, go farther, use the defense production act even more, bring more companies into this, we'll be at this all year into next year in this country, globally, let's defeat COVID as quickly as possible. We need every company to be a part of this effort.     

    

Okay, now, the sheer numbers are crucial. Everything runs through the question of supply. Our ability to recover depends on supply, a recovery for all of us, a fair, equitable recovery depends on supply. Fighting disparity requires supply. We need to build momentum up in the communities that have suffered the most and then hit hardest by COVID. We've got to get supply of vaccine to these communities so more and more people get vaccinated, then tell their family, their friends, their neighbors, their coworkers, and that builds trust, and then more and more people come forward. That's what we need, and so the supply will allow us to do all these things. But even without the supply we fully need, we're focused on equity every day, and we're focused on getting the supply where it's needed most. Today we make a major announcement. A part of this city, a really wonderful part of this city, built by working people for working people, Co-Op City in the Bronx, some place that I feel is an example of the goodness in New York City, a place for every kind of person, a place where people work together, literally a co-op. That cooperative spirit is strong in Co-Op City and Co-Op City has not had its own vaccination site until now. Today we announce that a new site will be open on Thursday in Co-Op City and let's face it, the Bronx has been very hard hit by the COVID crisis. Hospitals in the Bronx were amongst the hardest hit in the entire city. Communities felt deep, deep losses from the coronavirus in the Bronx. The Bronx is too often overlooked. We can't let that happen. So, we're going to bring the vaccine to the people of the Bronx, to the people Co-Op City. This is going to be a key part of reaching that five-million-person goal by June.     

    

I want to thank my colleagues in government who pushed hard for this to happen, and I want you to hear from a couple of them now, and first a man who's really made his voice heard during this crisis on this call for equity, and specifically reached out to me and said, Co-Op City needs our help and we're doing it because we'd heard his call for help and justice. Great pleasure to introduce Congress Member Jamaal Bowman.    

    

[…]   The transcript does not have Congressman Bowman's comments

    

Thank you so much, Congress Member, thank you for being such a strong voice for equity, not only in terms of the coronavirus but on so many other fronts as well, we're going to keep working with you because I keep saying a recovery for all of us means doing things differently, not repeating the status quo that existed before COVID, but doing something very different, and you've been such a powerful voice for that. And I look forward to seeing you in a few days up in Co-Op City as we celebrate this step forward, and I want to bring in another voice who's been fighting for equity for the Bronx, and to make sure that we're there for the people of the Bronx who have been so hard hit, and not only is he fighting for that in the Bronx, he also fights in Albany to protect the Bronx and New York City, and he's been right there with us in our efforts to make sure that the State provides us our fair share. And I'm going to keep talking about this, New York City is still not getting our fair share of the vaccine, we need it, and the Bronx in particular needs it. So, it's my great pleasure to introduce State Senator Jamaal Bailey.   

  

[…]  The transcript does not have Senator Bailey's comments

  

Mayor: Thank you very much, Senator. And, you know, you said an important point there at the end – when people see the vaccine site in their community, some place they know, some place they trust, it encourages people to come forward and encourages people to feel more comfortable, and they know they'll get answers from people they know in their own community. That's what we’ve got to do more and more of. My goal is to get this vaccination effort to the grassroots more and more all the time. That's how we're going to reach the incredible numbers that we're shooting for to make sure we can bring back the city strong. So, thank you, Senator. Also, special thanks to a new Council Member from the community, from Co-Op City and the surrounding area, Kevin – surrounding area, Kevin Riley, thank you. You've been working hard already to make sure the vaccine reaches the people of your district. So, thank you.   

  

And, everyone, look, the good news is we see steady progress on the vaccine supply. We need a lot more, I want to see a lot more progress, but we definitely keep seeing improvement each week. That's really good news. The good news is we obviously see some progress in terms of the case numbers and the positivity. But we keep cautioning, we’ve got to know a lot more about the variance. The variants are the X-factor here. I don't want people to think of the variants as something bigger than they are. I don't want people to give them mythological powers, but I do want us be sober and clear about the variants. We need to know more. We need to constantly tell you what we learn. So, New York City continues to deepen our efforts to test and evaluate the variants. We are doing that more than any other city in the nation. We're going to intensify our capacity for doing that testing. In fact, we plan to quadruple our capacity in the month of March, because we need more and better data and the public needs more and better data. And we've said from the beginning, the coronavirus, unlike the vast majority of crises we deal with, this is literally ever-changing. I can't remember a single week where it was the same as the week before – everything changes all the time when you're battling the coronavirus, that's a particular challenge. But the answer is more research, more facts, more data, more science, more transparency, and that's what helps people to understand, and to feel comfortable, and to believe that we can move forward together.   

  

So, now, we're going to hear from Dr. Varma. There'll be a more detailed technical briefing. So, for our colleagues in the media, if you have a lot of detailed questions, you'll certainly have that opportunity after this press availability to talk in greater detail with Dr. Varma. But I want the public as a whole to hear what he has to say, because he has an incredible ability to make things plain and clear for all of us, and it's something I value greatly, and he's done a great service to this city. So, to tell us about the latest on the variants, and sort of to frame the larger discussion about the variants, Dr. Jay Varma.  

  

Senior Advisor Jay Varma: Great. Thank you very much, Mr. Mayor. There's been a lot of discussion in the media about the danger of variants and people are worried very naturally whether or not they should be doing something different. It's a very reasonable thing to worry about. There may be a day when we have to do something different because of this. But, right now, so far, the answer is clear, there's nothing different that we need people to do in New York. The single most important message is that don't change what you're doing right now, keep wearing a well-fitting mask, even consider wearing two masks, maintain distance, wash your hands, get tested, and when your turn comes ready, get vaccinated. This is the same message being delivered in the U.K., South Africa, and Brazil, the places where you've heard about variants being widespread. You know, when the news about new variants in New York City was reported last year, my college-aged daughter asked me is the vaccine still going to work, you know, when it's my turn to get vaccinated? I have a friend from college who's now a medical school professor who texted me and said, is it true that these variants are all over New York City and our vaccines don't work anymore? So, I want to be really clear – everything we know about the virus and our vaccines right now says getting vaccinated is the single best way to prevent getting severe illness and dying from this virus. And it's the single best path all of us have together to get back to doing the things we love.   

  

Now, here in New York City, we're testing for these variants more than any other city in the country. And we're not just tracking the spread of the variants that we know about. We're also testing so that we can find new ones that might emerge in the future. Specifically, we have the capacity to sequence over 2,000 specimens a week at our pandemic response laboratory and our City Health Department laboratory. And we have the capacity that's being quadrupled of that just in those City laboratories alone. In addition to that, we have all of the tremendous academic partners who are now ramping up their testing as well. And we're really the only city or state in the country that's continuously reporting estimates about how common these are. And you'll hear more about that during the technical briefing afterwards.   

  

So, I really just want to emphasize to everybody that, you know, we're studying these actively. We're all hoping and wishing together that we don't want to find anything too alarming, but we assure you that we're going to tell you what we know, what we don't know, what we're working to do to find out, and whether anything should change in what you're doing, even if it's difficult. Thank you.  

  

Mayor: Thank you so much, Dr. Varma. And, everyone, look, we're going to constantly report what we learn. We believe that is the single best thing we can do. Dr. Varma is going to constantly give updates – Dr. Chokshi, Dr. Katz – you're going to hear exactly what's going on. But what we can tell you right now, all those basics work, and getting vaccinated works, and getting tested works. And so, we remind everyone, I'm going to say it again – it’s Get Tested Tuesday. It's a great reminder, every Tuesday, if you haven't been tested in the last month, get tested. It is one of the ways we protect New Yorkers. Why? Because it gives us a lot of information. But for you, it tells you, if you test positive that you can turn to our test and taste – Test and Trace Corps. The Test and Trace Corps. is there for you, can help you safely separate, if you need, from your household, can get you the support you need, the guidance you need, connect you with medical support, whatever it is. We’ve got to keep testing, because that is a key part of how we know the next steps to take person-by-person and as a city. So, please, everyone, just make it a point – if you haven't been tested once a month, it's free, it's easy, let's keep doing that.   

  

Okay. Now, when we talk about the way forward, it's always, first and foremost, vaccines and a central question always with vaccine is supply, supply, supply. But we do see improvement, as we see improvement on the supply front, it's a reminder, we've got to reach all the folks we really need to be reaching and for very strategic reasons. Look, there are so many people who support us, take care of us, make things happen for all of us. They need to be protected. Not all of them have been made eligible. So, I'm calling upon the State of New York to update the eligibility once again. There are folks who need to be included – our Sanitation workers, who have been heroes, just did amazing jobs during the snowstorms. We depend on them. We need them to be healthy. We need to protect them. They should be included. Also, looking at the folks who go out there and protect our health and wellbeing all the time – City inspectors from variety of departments, go out and protect us, make sure things work, make sure things are safe – they need to be protected. The folks that literally protect our lives – by the way, not so long from now, it's going to be warm weather again, we're going to need our lifeguards back. We need to start training them now. They need to be protected. All of these types of New Yorkers, all these categories should be on the State list of those eligible for vaccination.   

  

Further, we need to do more to make the city safe to turn the page from 2020. That means getting our court system back. Our court system is still not functioning, that is holding back the entire justice system. What should we do? Vaccinate. Vaccinate everyone who works in the courtrooms. Vaccinate the court officers. Vaccinate the district attorney’s staff. Vaccinate everyone who serves on a jury. If you're willing to serve on a jury, thank you, God bless you, but you should know you'll be safe. The best way to do that, if you're coming into work on a jury, you get vaccinated and you know you're going to be safe. This will allow us all to be safe, because our justice system can come back strong. But the State of New York is not keeping up with the need to update this category, to update these eligibility categories. So, calling on the State, do the right thing, give these folks the ability to vaccinate and to be vaccinated. Give us the freedom to vaccinate. Give us the freedom to vaccinate sanitation workers. Give us the freedom to vaccinate the folks who work in our court system and those who serve on juries. Give us that freedom and we can move this city forward.   

  

All right, everybody, let's go over today's indicators. Number one, daily number of people admitted to New York City hospitals for suspected COVID-19 – today's report, 211 patients. And I'm going to just stop there and note, despite the qualifiers we're talking about today, and our focus constantly on the data and the science, well here's data – this number is actually getting close to that 200 threshold that we say is the key indicator we're looking for. Actually, this number is finally getting back down there, that's a good sign. But on the other fronts with hospital admissions, 65 percent confirmed positive, that's still high. Hospitalization rate, 4.3 per 100,000, that's still high. So, we're watching all that carefully. New reported cases on a seven-day average – today's report, 3,558 cases. And percent of people positive tested citywide for COVID-19 – today's report, seven-day rolling average, 6.09 percent. Also good to see that number, but a long way to go for sure.   

Congressman Adriano Espaillat - Get Vaccinated Today! COVID-19 Vaccine Hotline for District Residents


Launched this week, the Northern Manhattan, Harlem, and South Bronx Community COVID-19 Vaccination Scheduling Hotline is now open for appointments at the Washington Heights Armory for individuals who live in eligible zip codes and are age 65 and over.

The hotline, which is fully bilingual in English and Spanish, can be reached by dialing 646-838-0319 Monday through Friday 9:00 a.m. to 4:45 p.m.

Depending on call volumes, individuals may not reach someone immediately, but please call back if you are not successful in reaching a hotline specialist. Please also note that appointment availability is dependent on vaccine availability.

Eligible zip codes:

10026, 10027, 10029, 10030, 10031, 10032, 10033, 10034, 10035, 10037, 10039, 10040, 10451, 10452, 10453, 10454, 10455, 10456, 10459, 10460, 10461, 10462, 10463, 10464, 10465, 10472, 10473, and 10474

For assistance with appointments, constituents are encouraged to contact the offices of Congressman Espaillat at any of the following locations:  Bronx office at 646-740-3632; Harlem office at 212-663-3900; Washington Heights office at 212-497-5959.

Representative Adriano Espaillat (NY-13) continues his push to urge constituents throughout New York's 13th congressional district to sign up to get the COVID-19 vaccine.

Housing Lottery Launches For Park Haven At 345 St. Ann’s Avenue In Mott Haven, The Bronx

 

Park Haven at 345 St. Ann’s Avenue in Mott Haven, The Bronx. Courtesy of NY Housing Connect

The affordable housing lottery has launched for Park Haven, a ten-story mixed-use building at 345 St. Ann’s Avenue in Mott Haven, The Bronx. The 180,155-square-foot development is designed by SLCE Architects and developed by The Community Builders and BronxWorks. Available on NYC Housing Connect are 178 units for residents at 30 to 80 percent of the area median income, ranging in eligible income from $14,915 to $112,800.

Residential amenities include an on-site resident superintendent, a shared laundry room, gym, community room, and a landscaped terrace. Units include energy-efficient appliances and granite countertops with backsplash. The ground floor will have a 14,000-square-foot grocery store and 7,000-square-foot community facility where BronxWorks will open a workforce development program.

At 30 percent of the AMI, there are six studios with a $362 monthly rent for incomes ranging from $14,915 to $27,300; seven one-bedrooms with a $465 monthly rent for incomes ranging from $18,789 to $30,720; two two-bedrooms with a $569 monthly rent for incomes ranging from $23,246 to $36,840; and two three-bedrooms with a $650 monthly rent for incomes ranging from $26,949 to $42,300.

At 40 percent of the AMI, there are six studios with a $522 monthly rent for incomes ranging from $20,400 to $36,400; seven one-bedrooms with a $665 monthly rent for incomes ranging from $25,646 to $40,960; two two-bedrooms with a $809 monthly rent for incomes ranging from $31,475 to $49,120; and two three-bedrooms with a $927 monthly rent for incomes ranging from $36,446 to $56,400.

At 50 percent of the AMI, there are six studios with a $683 monthly rent for incomes ranging from $25,920 to $45,500; seven one-bedrooms with a $865 monthly rent for incomes ranging from $32,503 to $51,200; two two-bedrooms with a $1,050 monthly rent for incomes ranging from $39,738 to $61,400; and two three-bedrooms with a $1,205 monthly rent for incomes ranging from $45,978 to $70,500.

At 60 percent of the AMI, there are five studios with a $843 monthly rent for incomes ranging from $31,406 to $54,600; nine one-bedrooms with a $1,065 monthly rent for incomes ranging from $39,360 to $61,440; eight two-bedrooms with a $1,290 monthly rent for incomes ranging from $47,966 to $73,680; and four three-bedrooms with a $1,482 monthly rent for incomes ranging from $55,475 to $84,600.

At 70 percent of the AMI, there are five studios with a $1,003 monthly rent for incomes ranging from $36,892 to $63,700; nine one-bedrooms with a $1,265 monthly rent for incomes ranging from $46,218 to $71,680; eight two-bedrooms with a $1,530 monthly rent for incomes ranging from $56,195 to $85,960; and three three-bedrooms with a $1,760 monthly rent for incomes ranging from $65,006 to $98,700.

At 80 percent of the AMI, there are five studios with a $1,163 monthly rent for incomes ranging from $42,378 to $72,800; nine one-bedrooms with a $1,465 monthly rent for incomes ranging from $53,075 to $81,920; eight two-bedrooms with a $1,770 monthly rent for incomes ranging from $64,423 to $98,240; and three three-bedrooms with a $2,037 monthly rent for incomes ranging from $74,503 to $112,800.

Prospective renters must meet income and household size requirements to apply for these apartments. Applications must be postmarked or submitted online no later than April 26, 2021.

Public Advocate Jumaane Williams Endorses Council Member Vanessa L. Gibson for Bronx Borough President

 

“I'm proud to endorse Vanessa Gibson for Bronx Borough President. Having worked together with her on the City Council, I know she's what the Bronx needs to help address disparities that have been exacerbated by the pandemic, including access to healthcare, food insecurity, affordable housing and gun violence. I am confident that Vanessa will make an excellent Borough President and I am happy to endorse her candidacy for Bronx Borough President. We need to continue elevating strong leaders as we work towards an equitable recovery from the pandemic. I'm excited to be on #TeamGibson,” said Public Advocate Jumaane Williams.

“I am grateful to have the support of our NYC Public Advocate Jumaane Williams, for Bronx Borough President. Jumaane has dedicated his life to being a powerful voice for tenants and families in New York City as an organizer, housing advocate, community leader and public servant. During our time in the City Council, we worked together to expand the NYC Crisis Management System, focused on anti-gun violence programs and led efforts to create the first ever Mayor’s Office to Prevent Gun Violence. We believe in addressing the root causes of gun violence in our communities with a holistic and wraparound services approach. We recognized June as Gun Violence Awareness Month each year and Peace Week in New York City. I am proud of our work to invest in youth with employment opportunities, provide safe spaces and pathways to college and careers for young adults. Jumaane is a proven leader with a record of activism and success and I am proud to have him on #TeamGibson. I look forward to our continued partnership on behalf of the Bronx and New York City,” said Council Member Vanessa L. Gibson, candidate for Bronx Borough President.

In her campaign for Borough President, Gibson is focused on recovering from the COVID-19 pandemic, bringing new jobs and opportunities to the borough, and ending the distinction of being the least healthy County in New York State. She has been endorsed by Congressman Ritchie J. Torres, Senator Jose M. Serrano, Assembly Member Latoya Joyner, Council Member Diana Ayala, former Council Member James Vacca, former Deputy Bronx Borough President Aurelia Greene, and the Jim Owles Liberal Democratic Club.

Gibson was first elected to the State Assembly in 2009 and City Council in 2013, where she currently serves. While in office she has made affordable housing, criminal justice reform and education her priorities. More information can be found on her website: www.gibsonbp2021.com

Governor Cuomo Announces State Vaccine Task Force Unanimously Recommends J&J Vaccine on One Year Anniversary of First COVID Case in New York State

 

164,800 Doses of Johnson & Johnson Vaccine Expected in New York State This Week

Single-Dose Vaccine Has Less Restrictive Storage Requirements

 Governor Andrew M. Cuomo today announced that the New York State Clinical Advisory Task Force unanimously recommended use of Janssen Pharmaceuticals/Johnson & Johnson's COVID-19 vaccine in New York State, following the FDA's advisory committee's recommendation for emergency use authorization. New York expects to receive approximately 164,800 doses of the Johnson & Johnson vaccine this week, pending final FDA authorization. The added doses will supplement New York State's expected Week 12 supply of 422,780 first doses and 290,500 second doses from Pfizer and Moderna, for a total of approximately 878,080 doses. This will be New York State's highest-ever weekly vaccine allocation.  

"One year ago today, the unimaginable tragedy of COVID-19 began for New Yorkers. We've faced great pain and loss over the last 365 days, but there's reason to be hopeful for the future, and the state's Clinical Advisory Task Force's recommendation of the next vaccine for COVID is part of that ongoing convalescence," Governor Cuomo said. "Johnson & Johnson's single-shot vaccine with less restrictive storage requirements will make it easier for the state to reach more New Yorkers, faster. There's a lot of work ahead, but this vaccine's approval gives us cause for optimism as we move forward to a post-COVID future." 

The Johnson & Johnson vaccine is single dose and there are fewer restrictions on its storage. New York State is finalizing plans for the vaccine's prioritization and distribution with partners. 

On September 24, 2020, Governor Cuomo announced that New York State would form an independent Clinical Advisory Task Force comprised of leading scientists, doctors, and health experts who will review every COVID-19 vaccine authorized by the federal government, and will advise New York State on the vaccine's safety and effectiveness in fighting the virus. The task force later recommended the Pfizer and Moderna vaccines.

Attorney General James Secures $500,000 for New York Homeowners in Need of Mortgage Assistance

 

Agreement with Champion Helps to Fund AG’s New Reverse Mortgage Assistance Program Benefiting Senior Citizens

 New York Attorney General Letitia James today announced a $500,000 settlement with Champion, the reverse mortgage servicing division of Nationstar Mortgage LLC, over allegations that Champion failed to provide homeowners with the clear, accurate information they needed to help protect their homes. As part of the agreement, Champion is required to pay $500,000 to the Attorney General’s Equitable Reverse Mortgage Assistance (ERMA) program, a $3 million pilot program launched in 2020 using settlement funds obtained by the Office of the Attorney General (OAG). The ERMA program will help customers, specifically senior citizens, from Champion and other reverse mortgage servicers in New York avoid default and foreclosure due to missed property payment, and the additional $500,000 in ERMA funds will be earmarked to assist Champion customers. 

In partnership with Enterprise Community Partners, Inc. (Enterprise) and the Center for NYC Neighborhoods (the Center), OAG developed the ERMA program in 2020 to offer low-cost loans to reverse mortgage holders who are at risk of defaulting or are in default on their reverse mortgages due to overdue municipal property taxes, property insurance obligations, or other charges stemming from a temporary inability to pay. The ERMA program will assist borrowers in every New York City borough, Nassau, Suffolk, Albany, Broome, Dutchess, Erie, Monroe, Onondaga, Orange, and Westchester Counties. 

“This pandemic is harming all Americans, but our senior citizens are especially at risk,” said Attorney General James. “No one should have to experience the threat of losing their home, and companies have a responsibility to provide transparency and fairness to at-risk borrowers and homeowners. These funds will provide much needed assistance to ensure our seniors have access to permanent housing, and this action puts companies on notice that we are holding them to their obligations to their customers.”

A reverse mortgage is a special mortgage product only offered to senior citizens, and unlike with traditional mortgages, reverse mortgage borrowers are not required to make monthly payments to their mortgage servicer. The loan is only due to be repaid when the borrower passes away or otherwise no longer lives in the home. Homeowners with a reverse mortgage are required to pay recurring property taxes and homeowners insurance. This puts homeowners at risk of default and foreclosure if they cannot afford those payments or if those obligations were not adequately explained when they acquired the reverse mortgage. Reverse mortgage servicers like Champion are responsible for communication with reverse mortgage borrowers who have defaulted, or in certain situations borrowers who are at risk of defaulting on their loan terms. These servicers are also responsible for providing loss mitigation to reverse mortgage borrowers who are in default or at risk of default, pursuant to the U.S. Department of Housing and Urban Development guidelines.

The OAG’s investigation concluded that Champion provided misleading information to borrowers, or failed to provide clear, accurate, and non-misleading information needed to assist homeowners who are at risk of losing their homes. For example, OAG found instances where Champion did not provide clear communications with homeowners around the payment of property taxes, resulting in homeowners making such payments twice or interfering with homeowners’ ability to make other payment arrangements that could avoid the costs (or risk of default) associated with tax payments made by their loan servicer. The OAG also found instances where Champion mailed letters to homeowners that gave the appearance that the homeowner had already been sued in foreclosure when in fact the homeowner had not. Champion has ceased sending these letters as a result of OAG’s investigation.

In addition to providing $500,000 towards the ERMA program, under the terms of today’s settlement, Champion has agreed to:

  • Improve its notifications to New York borrowers prior to paying property taxes on their behalf.
  • Communicate with New York borrowers in plain language regarding any actions they must take to avoid default or foreclosure.
  • Provide a direct contact for not-for-profit housing counselors, government representatives, legal services organizations, and attorneys for the purpose of helping homeowners to understand and take advantage of all available loss mitigation opportunities.
  • Comply with New York law when making property payments and communicating with at-risk homeowners.

“We’re grateful to the Office of the Attorney General for its leadership in ensuring senior homeowners in New York have access to trustworthy help and accurate information,” said Christie Peale, CEO/Executive Director of the Center for NYC Neighborhoods. “The Equitable Reverse Mortgage Assistance Program is an innovative tool to stabilize seniors' finances and help them keep their homes. We are proud to be working with Enterprise Community Partners on this effort.”