Manhattan U.S. Attorney Settles Fraud Suit Against Tower Maintenance Corp. For False Statements About Disadvantaged Business Participation On Two Federal Construction Projects

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that the United States has settled civil fraud claims against TOWER MAINTENANCE CORP. (“TOWER”), a Long Island-based steel painting company.  The settlement resolves the United States’ allegations that TOWER fraudulently obtained payments on two federally funded construction projects by causing misrepresentations of compliance with Disadvantaged Business Enterprise (“DBE”) rules, which require participation of businesses owned by women and minorities.  Specifically, the United States alleged that TOWER, a certified DBE, caused the prime contractors on the projects to misrepresent that TOWER, as a DBE, was solely performing work on the two projects, when in fact the work was managed and supervised by codefendant Spectrum Painting Corp. (“Spectrum”), a non-DBE.   

Under the settlement approved by U.S. District Judge Analisa Torres, TOWER admits and accepts responsibility for conduct alleged in the Government’s amended complaint and agrees to pay $150,000 to the United States.  The settlement amount is based on the Office’s assessment of TOWER’s ability to pay based on the financial information it provided.  The Office previously reached settlements to resolve its fraud claims against the codefendants in the lawsuit, Spectrum and Ahern Painting Contractors Co. (“Ahern”), under which Spectrum and Ahern were required to pay a total of $3.4 million.

Manhattan U.S. Attorney Audrey Strauss said: “With this settlement, my Office paints a clear picture that we will pursue any contractor that participates in an unlawful scheme to exploit the Disadvantaged Business Enterprise program.  All contractors are on notice that we are committed to rooting out public works contracting fraud.”

As alleged in the amended complaint filed in Manhattan federal court in August 2019, TOWER performed steel painting work on two federally funded projects to renovate the Brooklyn Bridge and Queens Plaza.  Contracts for both projects required Ahern to hire DBEs to perform a percentage of the work and to adhere to the DBE regulations.  The DBE regulations require DBEs to manage and supervise their own work.  Yet TOWER hired Spectrum, a non-DBE painting subcontractor, to manage and supervise the DBE work that was supposed to be performed solely by TOWER.  Further, to conceal this scheme, TOWER passed off Spectrum employees as its own in project documents.  

As part of the settlement, TOWER admits, acknowledges, and accepts responsibility for the following conduct alleged in the amended complaint:

• In early 2010, TOWER knew that Ahern entered into an agreement with Skanska Koch Inc. (“Skanska”) for industrial painting and rehabilitation work on the Brooklyn Bridge Project.  TOWER understood that as a subcontractor on the Brooklyn Bridge Project, Ahern was obligated to meet or exceed Ahern’s DBE participation goal on the project.  TOWER also knew that Ahern expected to use TOWER, a certified DBE, to fulfill a substantial part of Ahern’s DBE participation goal for the Brooklyn Bridge Project.  In mid-2010, TOWER in fact entered into a subcontract with Ahern to perform painting and blasting work on the Brooklyn Bridge Project, which TOWER expected would be counted toward Ahern’s DBE participation goal for the project.
   
• In connection with the Brooklyn Bridge Project, TOWER signed and submitted to Ahern various documents stating that the DBE work subcontracted to TOWER would be performed by TOWER alone. 
   
• In mid-2011, TOWER knew that Ahern entered into a contract with the MTA to provide overcoat painting on the elevated structure at the Queens Plaza subway station, and that Ahern was obligated to meet or exceed its DBE participation goal for the Queens Plaza Project.  TOWER also knew that Ahern was going to use TOWER as the DBE contractor on the Queens Plaza Project to meet Ahern’s DBE participation goal.  In 2011, TOWER entered into a subcontract with Ahern to perform painting and blasting work on the Queens Plaza Project, which TOWER expected would be counted toward Ahern’s DBE participation goal for that project.
   
• In May and June 2011, TOWER and Spectrum memorialized two “consulting agreements” for painting and blasting work on the Brooklyn Bridge and Queens Plaza Projects.  The key terms of the consulting agreements between TOWER and Spectrum – including TOWER’s agreement to pay Spectrum 50% of all of its profits from the two projects, Spectrum’s agreement to provide project management support, and Spectrum’s agreement to furnish equipment to TOWER for the projects – were not formally disclosed in writing to Ahern, nor were they disclosed in any way to Skanska, NYC-DOT, or MTA.
   
• Consistent with the consulting agreements, TOWER requested that Spectrum provide project management support for the DBE work that TOWER was retained to perform on the Brooklyn Bridge and Queens Plaza Projects.
   
• In addition to the Spectrum employee who assisted TOWER in preparing the bid TOWER submitted to Ahern for its anticipated work as a DBE subcontractor on the Brooklyn Bridge project (the “Spectrum Manager), Spectrum had two other employees providing project management support to TOWER for the DBE work subcontracted to TOWER on the Brooklyn Bridge and Queens Plaza Projects: a superintendent (the “Spectrum Superintendent”) and a health and safety supervisor (the “Spectrum Safety Supervisor”).
   
• In documents that TOWER submitted to Ahern in 2010, TOWER identified the Spectrum Manager as a “Tower VP” or as a TOWER employee working on the Brooklyn Bridge Project.  And in documents TOWER submitted to Ahern in 2011 in connection with the Queens Plaza Project, TOWER identified the Spectrum Manager as a “Director” of TOWER.  In addition, the Spectrum Manager, the Spectrum Superintendent, and the Spectrum Safety Supervisor identified themselves to others working on the Brooklyn Bridge and Queens Plaza Projects as TOWER employees.
   
• In addition to informing Ahern that Spectrum would perform work on the Brooklyn Bridge and Queens Plaza projects, TOWER should have disclosed Spectrum’s work to the NYC-DOT and MTA DBE officers designated on the projects, and it should have sought clarification from Ahern regarding whether Ahern disclosed Spectrum’s involvement in accordance with Ahern’s obligations.

• TOWER should have proactively disclosed to the relevant DBE officer the details of its financial arrangement with Spectrum relative to the Brooklyn Bridge and Queens Plaza Projects, including that TOWER and Spectrum’s agreements relative to the projects included profit sharing and provisions for Spectrum to provide TOWER financing for TOWER’s performance of work on the projects.

Ms. Strauss praised the outstanding investigative work of the United States Department of Transportation Office of Inspector General, the New York City Department of Investigation, and the Inspector General of the Metropolitan Transportation Authority. 

Third Avenue Business Improvement District - We 💙 The Bronx Concert

 

 

 NYC Health + Hospitals/Jacobi (Jacobi) CEO Christopher Mastromano announced today that Drs. John McNelis and Srinivas Reddy have been appointed Honorary Police Surgeons by NYPD Commissioner Dermot Shea. Dr. McNelis is Chairman of the Department of Surgery at Jacobi while Dr. Reddy is the Associate Director of Trauma Services and Director of Pediatric Trauma. 

Honorary police surgeons are medical doctors who act as consultants to the New York City Police Department (NYPD). They lend their professional opinions, expertise and if needed, medical care to members of the service and their families.  Applicants go through a strict selection process similar to NYPD officers before being appointed by the NYPD Commissioner.  Furthermore, they must display expertise in six fields including: Cardiology, Neurology, Neurosurgery, Orthopedics, Internal Medical and Vascular Surgery.

 

“I deeply appreciate this appointment by Commissioner Shea. We’re a trauma center so we are often dealing with the aftermath of tragic situations, side by side with the police,” said Dr. McNelis. “This appointment reaffirms that partnership.”

 

“I am privileged to join the NYPD in this honorary capacity. I truly believe we are all on the same team keeping our city safe,” said Dr. Reddy.

 

“Drs. McNelis and Reddy are two of Jacobi’s frontline healthcare heroes,” said Mr. Mastromano. “It’s great to see both getting recognized beyond our hospital for the work they do.”

 

Additionally, this is not the first Jacobi surgeon to be appointed for this prestigious honor.  In 2005, Dr. Sheldon Teperman was appointed an Honorary Police Surgeon by Commissioner Raymond W. Kelly.  Dr. Terperman has been a longtime advocate for anti-gun violence efforts throughout the country, often speaking from the first-hand experiences he’s had treating traumatic injuries at Jacobi.

 

Jacobi continues to serve first responders and all patients as the Bronx’s Level 1 Trauma Center.

About NYC Health + Hospitals/Jacobi

 

NYC Health + Hospitals/Jacobi is a 457-bed teaching hospital affiliated with the Albert Einstein College of Medicine. The facility has earned numerous Center of Excellence designations, accreditation, and recognition for its renowned Level 1 Trauma Center, Burn Center, Surgical Intensive Care Unit, regional Stroke Center, Snakebite Treatment Center, Breast Health Center, Bariatric Surgery Center, and Cancer Service. The facility also offers the region’s only multi-person hyperbaric chamber, allowing up to nine patients to dive together at one time. Jacobi’s Ambulatory Care Pavilion is a stunning complement to its inpatient acute care, allowing staff to provide patients with high-quality service in a modern, state-of-the-art environment. For more information visit http://www.nyc.gov/hhc/jacobi/.

 

Newburgh Man Charged With Transporting A Minor For Criminal Sexual Activity

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, and Bruce Campbell, Chief of the Town of Newburgh Police Department, announced that VERNON E. COPELAND III, was indicted today for transporting a minor from Bridgeport, Connecticut, to Newburgh, New York, with the intent to engage in criminal sexual activity with the minor.  COPELAND was charged by criminal complaint on November 20, 2020, and arrested on August 3, 2021, in Tampa, Florida.  COPELAND will be transported to the Southern District of New York for arraignment and prosecution.

U.S. Attorney Audrey Strauss said: “As alleged, Vernon Copeland preyed on a 13-year-old, whom he transported from Bridgeport to Newburgh to engage in sex.  Thanks to the FBI and the Town of Newburgh Police, Copeland is in custody and facing this serious federal charge.”

FBI Assistant Director Michael J. Driscoll said: “A 13-year-old child should be spending time playing sports and going to school, not worrying about being used by an alleged criminal for his own sexual gratification. We must do better as adults in protecting these innocent children because even one being victimized by a predator is too many. A first step in helping someone who may be a victim - call 1-800-CALL-FBI if you have any information about Mr. Copeland.”

According to the allegations contained in the Indictment returned today[1]:

On or about February 7, 2020, COPELAND transported a 13-year-old minor (“Victim-1”) from Bridgeport, Connecticut, to Newburgh, New York, where he engaged, and attempted to engage, in illegal sexual activity with Victim-1.

COPELAND 36, of Newburgh, New York, is charged with one count of transporting a minor with intent to engage in criminal sexual activity, which carries a minimum sentence of 10 years in prison and a maximum sentence of life in prison.  The statutory minimum and maximum sentences 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 efforts of the FBI and the Town of Newburgh Police Department.  She added that the investigation is ongoing.

Any individuals who believe they have information that may be relevant to this investigation should contact the FBI at 1-800-CALL-FBI (225-5324) or https://tips.fbi.gov/.

The charge contained in the Indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.

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

MAYOR DE BLASIO AND LIEUTENANT GOVERNOR HOCHUL ISSUE JOINT STATEMENT

 

 Following their meeting today, Mayor Bill de Blasio and Lieutenant Governor Kathy Hochul released the below statement:

 

“We had a productive conversation today discussing issues that are important to New Yorkers, from fighting the Delta variant to getting our kids back to school safely this fall to keeping our communities safe. We look forward to working with each other to continue New York City's recovery and end the fight against COVID.”

 

NYS Office of the Comptroller DiNapoli: July Statewide Local Sales Tax Collections Up More Than 21 Percent

 

Strong Rebound Continues After Large Decline in 2020

 Local government sales tax collections in July increased by 21.2% over the same month in 2020, marking the fourth consecutive month that collections exceeded 2020 results, State Comptroller Thomas P. DiNapoli announced today. Collections totaled close to $1.6 billion, up $276 million from July of last year.

“Last month’s impressive sales tax performance reflects this year’s strengthening economy and positive jobs numbers,” DiNapoli said. “Overall collections around this time last year were severely weakened by the effects of the COVID-19 pandemic. New York’s local governments are seeing much stronger collections in 2021. However, with recent increases in infection rates occurring across the state, local officials must continue to monitor changing economic conditions and maintain vigilance when it comes to their finances.”

July’s significant growth in local sales taxes reflects the fact that collections during the same month of 2020 were weak, with sales activity still recovering from the first wave of the pandemic. However, collections were also strong even by comparison with pre-pandemic 2019, growing 11.2%, or $159 million, over July of that year.

New York City’s collections totaled $649 million, an increase of 14.2% or $81 million compared to July 2020. Every county outside of New York City also saw year-over-year collections for July grow by double digits, ranging from 17.3% in Lewis County to 35.7% in Wayne County.

During the last month of each calendar quarter, the state Department of Taxation and Finance reconciles quarterly distributions against what had been reported by sales tax vendors for the reporting quarter and adjusts payments to local jurisdictions in those months upward or downward accordingly.

During the other months, including July, the payments are based on estimates. The next reconciliation will be reported in mid-October and will provide more information on the regional picture of sales tax collections for the third quarter (July-September) of 2021. 

Table

Monthly Local Sales Tax Collections by County and Region (for detailed monthly breakdown)

WILLIAMS, HOCHUL JOINT STATEMENT AFTER NEW YORK CITY MEETING

 

 New York City Public Advocate Jumaane D. Williams and incoming New York Governor, current Lieutenant Governor, Kathy Hochul released the following joint statement after their Tuesday afternoon meeting in New York City. 

"We had an important dialogue this evening discussing issues that are of vital and immediate importance to New Yorkers, including expanding and escalating COVID-19 vaccination efforts, reframing how we address public safety while reducing gun violence, and expediting distribution of relief funding for renters and owners alike. We also discussed the need to remove unnecessary barriers and fund excluded workers -  largely immigrants - who have been blocked from federal aid. These must and will be immediate priorities of this new Administration."

"We look forward to working together, upstate and downstate, to help New Yorkers recover from this pandemic and renew New York City."

141 Days and Counting

 

I need more caffeine in my coffee these reporters questions are about the same thing, and are putting me to sleep. COVID-19 this, and COVID-19 that, I'm surprised one of them haven't asked me if the city is going to make sure those who want to go inside have to show their vaccination ID, why then don't people who want to vote not have to show their voter ID. 

 Anyone who decides to be Kathy Hochul's Lt. Governor has to be crazy, because I am going to be the governor of New York State after next years election. I understand there is going to be a fight for the soon to be vacant 86th Assembly seat of Victor Pichardo between Yudelka Tapia, and Adolfo Abreu. Good luck at Montefiore Hospital Victor.