Governor Hochul Signs Legislation Extending Virtual Public Meeting

 

Legislation (S.50001/A.40001) Allows New Yorkers to Participate in State and Local Government Meetings Virtually to Reduce the Risk of COVID-19 Spread; Helps People with Disabilities Participate in Their Government

 Early this morning, Governor Kathy Hochul signed legislation (S.50001/A.40001) extending virtual access to public meetings under New York State's Open Meetings Law, which allows New Yorkers to virtually participate in local government meetings during the COVID-19 pandemic. The legislation, which was initially implemented by Executive Order during last year's State of Emergency, allows state and local government meetings that are normally held in person to be held remotely instead, as long as the public has the ability to view or listen to the meeting and as long as the meeting is recorded and later transcribed. This statutory change will reduce the need for congregation at public meetings while the Delta variant is prevalent, while ensuring public business can continue.

"Let's be clear—the COVID-19 pandemic is not over, and I've heard from government officials across the state who are concerned about the inability of their constituents to access public meetings virtually," Governor Hochul said. "This commonsense legislation extends a privilege that not only helps New Yorkers participate safely in the political process, but also increases New Yorkers' access to their government by allowing for more options to view public meetings. This law will continue to bolster the open and transparent style of government that we're committed to maintaining in the Empire State."

Meetings can be held either over a video service such as Zoom or by phone. There is no change to the requirement that Public Bodies must provide notice to constituents that a meeting is taking place, and they are required to inform constituents how to access the public meeting virtually.

On March 12, 2020, Executive Order 202.1 suspended the portion of New York State law requiring meetings to take place in person, and authorized public meetings to be held virtually. On June 25, 2021, the State Disaster Emergency ended, removing the provision suspending the law.

Attorney General James and DOI Commissioner Garnett Announce Indictment of Four Asbestos Investigators for Filing Fraudulent Inspection Reports

 

Defendants Filed Reports Claiming to Be Inspecting Residential and Commercial Sites While They Were Out of the State and Country, Jeopardizing New Yorkers’ Health and Safety

 New York Attorney General Letitia James and New York City Department of Investigation (DOI) Commissioner Margaret Garnett today announced the indictment of four Certified Asbestos Investigators (CAI) for repeatedly filing false asbestos inspection reports, putting the health and safety of workers and New York City residents at risk. A joint investigation conducted by the Office of the Attorney General (OAG) and the DOI found that over several years, the defendants — who were independent contractors certified by the New York state Department of Labor (DOL) and the New York City Department of Environmental Protection (DEP) — submitted fraudulent reports for inspections that took place on days when they were out of the state and country. 

The defendants — Valentino Buono (50), Jeff Ezulike (48), Russell Goss (42), and Kostas Kamberis (54) — were arraigned before Supreme Court Judge Toni Cimino in Queens County on a total of 19 counts, including Offering a False Instrument for Filing in the First Degree, a Class E Felony, which carries a maximum jail sentence of up to four years.

“By filing these blatantly false health and safety reports, the defendants violated the public trust, as well as the law,” said Attorney General James. “These individuals failed to do their jobs to properly inspect sites for asbestos, putting the health of New Yorkers at risk, while exploiting the state and the system. No matter how big or small, we will continue to root out corruption at every level. I thank the DOI for its commitment to this cause.”

“Filing fraudulent asbestos reports with New York City is a crime and, as these charges show, can also threaten New Yorkers' health and safety,” said DOI Commissioner Garnett. “The reason the city requires certified asbestos inspectors to file reports with the city is to confirm that dangerous asbestos is identified and abated correctly. The DEP reported allegations of potential fraudulent filings to DOI and we worked hand-in-hand with the state attorney general to uncover this charged illegal conduct. This kind of collaboration within the city and with our law enforcement partners is crucial in holding accountable those who seek to defraud New York City.”

Asbestos is a naturally occurring mineral that is hazardous to human health and is known to cause a type of cancer known as mesothelioma. The DOL authorizes CAIs to conduct field inspections of residential and commercial sites to determine if dangerous asbestos is present, where it is located, and how much there is. Upon conducting their inspections, CAIs are required to file an Asbestos Assessment Report with the DEP. The report requires the inspector to certify that the inspection took place at the location, date, and time listed on the report, and whether asbestos was present. Asbestos survey records must accurately reflect the site conditions at the time of investigation.

In February 2020, the OAG and the DOI began the investigation following the DEP identifying and reporting potentially fraudulent filings to the DOI. The investigation uncovered the fraudulent reports by comparing inspection dates to domestic and international travel dates recorded by U.S. Customs and Border Protection. The OAG and the DOI then reviewed airline records, such as ticket purchases and boarding documentation, as well as bank records, to confirm the discrepancies. On days that the defendants claimed to have inspected sites throughout the city for asbestos, Buono was actually in Mexico, Ezulike was in Nigeria and Texas, Kamberis was in Italy and Greece, and Goss was in Bermuda, Denmark, Puerto Rico, and Italy.

The charges are merely accusations and the defendants are presumed innocent unless and until proven guilty in a court of law. 

Attorney General James and DOI Commissioner Garnett would like to thank the New York City Department of Environmental Protection and the New York state Department of Labor for their assistance during this investigation.

Permits Filed For 1677 Townsend Avenue In Tremont, The Bronx

 

Permits have been filed for a seven-story residential building at 1677 Townsend Avenue in Tremont, The Bronx. Located between Walton and Jerome Avenues, the 3,333-square-foot lot is close to the 174-175th Streets subway station, serviced by the B and D trains, and the Mt. Eden Avenue station, serviced by the 4 train. Yaakov Lefkowitz of Lefko Capital Group is listed as the owner behind the applications.

The proposed 74-foot-tall development will yield 23,173 square feet designated for residential space. The building will have 35 residences, most likely rentals based on the average unit scope of 662 square feet. The steel-based structure will also have a cellar but no accessory parking.

Boaz M. Golani Architect is listed as the architect of record.

Demolition permits were filed last month for the two-story commercial building on the site. An estimated completion date has not been announced.

DOB ADVISES NEW YORKERS AFTER HISTORIC CITYWIDE FLOODING

 

 The Department of Buildings today is advising building owners and property managers to take added precautions when surveying damage at their properties, after historic and deadly floods inundated neighborhoods across the city overnight. Heavy flooding conditions have the potential to cause structural damage, undermining concerns, hazardous mold, and deterioration of building electrical and gas plumbing systems, which can all pose a serious hazard to New Yorkers entering flood-damaged buildings. 

“While the worst of the flooding has thankfully subsided, that doesn’t mean that the potential for hazards is over,” said Buildings Commissioner Melanie E. La Rocca. “Flood-damaged buildings can still pose a serious danger to New Yorkers. Take precautions, and if you spot any unsafe conditions, report it immediately.”

 

Building owners and property managers are advised:

 

·         Check your property for any structural stability issues or unsafe conditions due to flooding, and contact the Department of Buildings by calling 311 if there are concerns. For building-related emergencies call 911.

·         When surveying flood damage in a building look out for mold, any newly formed cracks along the wall, and signs of foundation damage including bulging walls.

·         Heavy flooding can have a significant effect on the structural stability of outdoor structures such as decks, porches and retaining walls. Take extra precaution near these outdoor structures, due to the potential for collapse.

·         Flooding can also cause the soil around buildings to shift. Be cautious of sink holes forming on your property, especially near septic systems. Avoid areas around large trees if the surrounding soil is soft.

·         Do not wade into standing flood water in basements and cellars to survey damage. The water may be contaminated, contain hazardous debris, or be electrically charged.

·         Floods can cause damage to electrical wiring and gas plumbing systems inside of a building, creating an imminent hazard to anyone inside of the building. Extreme caution should be taken if there are concerns that standing water in a building may be electrified. Never attempt to turn off power or operate a circuit breaker while standing in water.

·         When investigating and cleaning flood damage in your building, wear gloves, boots, a mask and other protective clothing, to protect yourself from mold and other contaminants.

·         If your basement or cellar is flooded, use caution when pumping out the water. Pumping out flood water from a building too quickly could cause serious structural damage. The water must be drained slowly to equalize pressure on both sides of building walls.

·         If you need to use a gas-powered generator, never use it indoors. Keep generators outside, away from open windows, and always follow the user instructions in the owner's manual.

·         Concerns about drinking water contamination in a building should be reported to 311.

·         Extensive repair work in a building may require the services of a registered contractor as well as DOB-issued work permits. Electrical Wiring repairs will require the services of a licensed electrician. Gas plumbing system repairs will require the services of a licensed plumber. Check the license status of these construction professionals here.

·         Licensed Master Plumbers performing emergency work to address a hazardous situation, restore essential services, and maintain sanitary conditions, have the ability to file an Emergency Work Notifications with the Department online, allowing them to start repairs immediately with no wait time from DOB. The plumber can then submit the paperwork for any required permits with the Department after the job is already completed. 

·         Before starting any major repairs at your building, contact a construction professional or the Department of Buildings.

 

All New Yorkers are encouraged to call 311 to report any unsafe building conditions in their neighborhood. Call 911 for emergencies. For more information about building safety, please visit the Department’s website at www.nyc.gov/buildings.

Executive Order # 2 by Governor Hochul -DECLARING A DISASTER IN THE COUNTIES OF BRONX, DUTCHESS, KINGS, NASSAU, NEW YORK, ORANGE, PUTNAM, QUEENS, RICHMOND, ROCKLAND, SUFFOLK, SULLIVAN, ULSTER, WESTCHESTER AND CONTIGUOUS COUNTIES

 

No. 2

E X E C U T I V E  O R D E R

DECLARING A DISASTER IN THE COUNTIES OF BRONX, DUTCHESS, KINGS, NASSAU, NEW YORK, ORANGE, PUTNAM, QUEENS, RICHMOND, ROCKLAND, SUFFOLK, SULLIVAN, ULSTER, WESTCHESTER AND CONTIGUOUS COUNTIES

 WHEREAS, on September 1, 2021 and continuing thereafter, Post-Tropical Depression Ida created hazardous conditions in New York State which pose an imminent danger to public transportation, utility service, public health, and public safety systems within the countiesof Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Sullivan, Ulster, Westchester, and contiguous counties.

WHEREAS, Tropical Storm Ida has produced torrential rainfall, and flooding. These conditions caused in excess of 31,300 power outages, downed trees, localized flash flooding, road closures, travel disruptions, and damage to public and private property throughout the impacted areas, which continue to pose a threat to the public health and safety.

NOW, THEREFORE, I, KATHY HOCHUL, Governor of the State of New York, by virtue of the authority vested in me by the Constitution of the State of New York and Section 28 of Article 2-B of the Executive Law, do hereby find that a disaster is imminent for which the affected local governments are unable to respond adequately.  Therefore, I hereby declare a State Disaster Emergency effective September 2, 2021 within the territorial boundaries of the counties of Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Sullivan, Ulster, Westchester, and contiguous counties. This Executive Order shall be in effect through October 2, 2021; and

FURTHER, pursuant to Section 29 of Article 2-B of the Executive Law, I direct the implementation of the State Comprehensive Emergency Management Plan and authorize, effective September 2, 2021, the Division of Homeland Security and Emergency Services, the Division of Military and Naval Affairs, the Department of Environmental Conservation, the Department of Corrections and Community Supervision, the Public Service Commission, the Department of Labor, the Office of Parks, Recreation and Historic Preservation, the Office of General Services, the Department of Transportation, Thruway Authority, other State agencies as necessary, and the American Red Cross to take appropriate action to protect State property and to assist affected local governments and individuals in responding to and recovering from this disaster, and to provide such other assistance as necessary to protect the public health and safety.

IN ADDITION, this declaration satisfies the requirements of 49 C.F.R. 390.23(a)(l)(A), which provides relief from Parts 390 through 399 of the Federal Motor Carrier Safety Regulations (FMCSR). Such relief from the FMCSR is necessary to ensure that crews can clear vital roadways and hasten the movement of utility power restoration crews into New York State.

FURTHER, by virtue of the authority vested in me by Section 29-a of Article 2-B of the Executive Law to temporarily suspend or modify any statute, local law, ordinance, order, rule, or regulation, or parts thereof, of any agency during a State disaster emergency, if compliance with such statute, local law, ordinance, order, rule, or regulation would prevent, hinder, or delay action necessary to cope with the disaster emergency or if necessary to assist or aid in coping with such disaster, I hereby temporarily suspend or modify, for the period from the date of this Executive Order through October 2, 2021, the following laws:

* Section 97-G of the State Finance Law, to the extent necessary to purchase food, supplies, services, and equipment or furnish or provide various centralized services to assist affected local governments, individuals, and other non-State entities in responding to and recovering from the disaster emergency;

* Section 112 of the State Finance Law, to the extent consistent with Article V, Section I of the State Constitution, and to the extent necessary to add additional work, sites and time to State contracts;

* Section 163 of the State Finance Law and Article 4-C of the Economic Development Law, to the extent of allowing the purchase of necessary commodities, services, technology and materials without following the standard notice and procurement processes;

* Section 136-a of the State Finance Law, to the extent necessary to combine design and construction services in one contract and/or to obtain design and construction inspection services;

* Section 38 (1),(2) and (3) of the Highway Law to the extent necessary to authorize the award of emergency contracts; and

* Sections 375, 385 and 401 of the Vehicle and Traffic Law to the extent that exemption for vehicles validly registered in other jurisdictions from vehicle registration, equipment and dimension requirements is necessary to assist in preparedness and response to the emergency.

FURTHER, I hereby temporarily modify, for the period from the date of this Executive Order through October 2, 2021, the following laws:

* Section 24 of the Executive Law; Sections 104 and 346 of the Highway Law; Sections 1602, 1630, 1640, 1650, and 1660 of the Vehicle and Traffic Law; Section 14(16) of the Transportation Law; Sections 6-602 and 17-1706 of the Village Law; Section 20(32) of the General City Law; Section 91 of Second Class Cities Law; Section 19-107(ii) of the New York City Administrative Code; and Section 107.1 of Title 21 of the New York Codes, Rules and Regulations, to the extent necessary to provide the Governor with the authority to regulate traffic and the movement of vehicles on roads, highways, and streets.

G I V E N   under my hand and the Privy Seal of the State in the City of Albany this 2nd day of September in the year two thousand twenty-one.

 

BY THE GOVERNOR          

Secretary to the Governor

Pelham Parkway Neighborhood Association September 14th meeting. 7 PM at 2134 Barnes Avenue, Corner Lydig Avenue.

 

There is a Community meeting on Tuesday Sept. 14 at 7:00 pm hosted by the Pelham Parkway Neighborhood Association being held at 2134 Barnes Ave, corner of Lydig Avenue. This meeting will specifically target the subject of E-Scooters. Our featured speaker will be Nivardo Lopez, Commissioner of Transportation for the Bronx. Please bring your issues ,concerns ,questions and problems to this important meeting. You are urge to attend.

MAYOR DE BLASIO DELIVERS REMARKS WITH GOVERNOR HOCHUL TO PROVIDE UPDATE ON NEW YORK CITY’S STORM RECOVERY EFFORTS

 Governor Kathy Hochul: Good morning. I want to thank the individuals who have joined us here this morning, Senator Schumer, Mayor Bill de Blasio, Congressman Meeks, our Borough President Donovan Richards, as well as Borough President Adams. We're here today because of a devastating storm that shocked the people of this city and to even the morning after we're still uncovering the true depth of the loss, the human loss, which is hard to imagine that people simply in their cars, in their homes and their basements succumb to the ravages of a brutal storm and their families must just be in such pain this morning. So, to all of them, we offer our love, our condolences, and our wishes for their healing, and we'll be there to support them. And this was all precipitated by last night's record shattering rainfall, and what's so fascinating is that the records that were broken in Central Park, for example 3.15 inches in one hour, it broke a record literally set one week earlier. That says to me that there are no more cataclysmic, unforeseeable events, we need to foresee these in advance and be prepared. And we learned a lot of lessons from Sandy, we built back resiliency, our coastal shorelines are in much better shape than they had been, but where we have a vulnerability is in our streets with the higher elevations now, where the flash floods - which were unknown before - this is the first time we've had a flash flood event of this proportion in the City of New York and in the outlying areas. We haven't experienced this before, but we should expect it the next time, and that means we have to continue investments in infrastructure, working in partnership with our federal government, and support from Senator Schumer and President Biden, we're working so hard, so hard to get the infrastructure dollars back to our states. We can build this up, working in partnership with the Mayor and other officials, to work collaboratively and get this done, so we can take care of the drainage shortcomings in our streets because when the streets get flooded, what happens next? The water rushes down, not just through the highways, but also finds its way to penetrate our subway system, and as a result, what happened yesterday, trains were shut down, people were stranded. The fear that they must've experienced when this occurred, I cannot imagine, and I don't want this to happen again.  

 

So, what we're doing is yesterday in preparation, we directed all of our state resources to be prepared, our DOT, Throughway Authority, MTA, Port Authority, all of our first responders embedded with the local teams here and throughout Long Island, Nassau, Suffolk Westchester, Putnam, Rockland Counties, all of those have suffered some form of loss. We wanted to make sure our crews were on the ground. We also have pumping systems in place taking care of the subways, literally removing the water physically, and I want to thank first of all, everyone who was involved last night, but our transit workers are heroes, especially all the bus operators who had to be deployed to literally take people from stations to where they needed to go. So, as an extraordinary rescue operation just a few short hours ago. Moments ago, I was on the phone with the White House, President Biden called, offered any assistance, he repeated, any assistance that the State of New York needs, I told him we'll take him up on that, and what happens next, we'll be doing on the ground assessments of the damage with the FEMA teams, our local partners, and making sure we get a true accounting of the loss, but he promised that he'll guarantee - he said, I’ll guarantee you I will approve any declaration you need, emergency declaration, so we can get the money flowing to New York, to our municipalities, to our cities, to our citizens, the businesses affected, and certainly to the homeowners. And also, with respect to the homeowners who have experience the flooding in their own basements. I've directed the Department of Financial services to be in contact immediately with their insurance providers, so they get people on the ground show up in these neighborhoods, get your claims adjusters, let them start filing to get reimbursed for the damages. We have mobile units on the ground to this end as well.  

 

So, right now we still have limited services on the subway. I'll be heading out to Long Island to see some damage that occurred up there shortly, but the Metro-North, LIRR, and the subway systems are not fully functioning at this time, but I want people to stay engaged, following the information, and to make sure that they stay safe. I want to conclude by saying once again, New Yorkers show what they're made out of, the collaboration that was going on, that constant communication between our teams is something that perhaps you don't see in the public, but it's real, it makes a difference, and it helps save lives. And literally, I want to thank our partners at the State level as well, State Police and our rescue teams had a rescue over 100 people in Westchester and Rockland County alone. So, this is a scenario as we speak today, but I'll be giving continuing reports. What I wanted to do first was assess where we are today, but my next question is where are we going next? How do we prevent this from happening? How do we get money and resources to the places we can build up the resiliency in streets, before we worried about the coastal areas, now it's about what's happening in the streets, the drainage systems that need to be enhanced and all the resiliency we can because of climate change, unfortunately this is something we're going to have to deal with great regularity, and we want to assure all New Yorkers that we're prepared for this, and we'll do everything we can in our power to protect human life and property. Thank you very much. With that, I'd like to introduce Senator Schumer who's been very engaged as we spoke this morning already, and I want to thank him for his partnership. 

 

Senator Charles Schumer: Okay. Thank you, Governor, and first my condolences and heart and prayers to all of the families who have lost loved ones. Imagine the horror of you're sitting in your own basement apartment and the water just floods in all of a sudden with no notice and you struggle to get out, but you can't. It's an awful, awful situation, and our hearts go out to them. I too want to thank all of our New Yorkers at the city and the state level, as well as the other localities who always go all out. Unfortunately, we in New York have experienced too many emergencies in the last decade, and the one thing we've learned through these emergencies is how strong New Yorkers are and how much our public servants want to go all out and risk their lives to preserve other people's lives, and we thank them. I'm going to make two points here. Number one, we will do everything we can to get all of the federal aid that's needed. We did this after Sandy, we've done it after many other storms, upstate, the Governor knows when we worked together on these storms upstate. And I spoke this morning to FEMA Administrator Deanne Criswell, the good news here is, you know what her job was before she was FEMA Administrator, she was the city's OEM Commissioner. So, she knows New York well. We will fight and make this - make New York declared a disaster area, spoken to the White House as well. And that will mean money, money for homeowners and individuals, money for small businesses that may have been lost, and money to our city, state, and other local governments for the amount of money that they've had to lay out to deal with this crisis. And I will make sure as I have in the past that no stone is left unturned and all of the federal largesse. In the federal government, we know, when a disaster hits one area, the whole country comes together and helps, and that's what we're going to ask here for New York, just as we are helping in California with the fires, and out west with the fires, et cetera.  

 

And that relates to my second and final point, global warming is upon us. When you get two record rainfalls in a week, it's not just coincidence. When you get all the changes that we have seen in weather, that's not a coincidence. Global warming is upon us, and it's going to get worse and worse and worse unless we do something about it, and that's why it's so imperative to pass the two bills, the infrastructure bill, and the budget reconciliation bill, the second deals with climate change, and we'll reduce the amount of carbon we put in the atmosphere by 50 percent by 2030. The first bill dilly deals with infrastructure and built into that infrastructure is something I stead started fostering with Sandy, that we don't just build infrastructure, but we build resilient infrastructure, so when these floods or fires or anything else occurs, they are much more resistant. And you saw some results of that from the Sandy money, but we need much more of it, and these bills do that. Woe is us, if we don't recognize these changes are due to climate change. Woe is us if we don't do something about it quickly, both in building resilient infrastructure and going to clean power, whether it's in homes, in electricity, and transportation to stop the global warming or at least reduce its awful effects on this country. I want to thank the Governor, for being here right on the spot. I want to thank the Mayor. He's always available. Our Borough President, our great Congressmen, who I worked with on these federal issues, Greg Meeks, John Liu, Daneek Miller and everyone who is here. Thank you. And now it's my honor to call on Mayor de Blasio.

 

Mayor Bill de Blasio: Thank you, Senator. Senator Schumer's right. We are in a whole new world now. Let's be blunt about it. We saw a horrifying storm last night, unlike anything we have seen before. And this is a reality we have to face. And unfortunately, the price paid by some New Yorkers was horrible and tragic. We have now lost nine New Yorkers to this storm. Nine people who were alive at this exact moment yesterday. No idea that such a horrible fate could befall them. Families in mourning right now. We need to be there for them and for all the New Yorkers who right now are dealing with the results of this horrifying storm. I want to thank Senator Schumer. We spoke earlier today. I know he will get us to maximum federal aid. Our homeowners need it. Our business owners need it. People are going through hell right now. They need help. I thank President Biden and Senator Schumer for being willing immediately to help. Governor Hochul, we spoke repeatedly last night, this morning. Thank you for your leadership. Thank you for the way the State of New York responded.

 

We are truly all in this together. And storms affect all of us. But what we've got to recognize is the suddenness, the brutality of storms now, it is different. A record set two weeks ago, another record set now, rainfall like we haven't seen ever before. This is the biggest wakeup call we could possibly get. We're going to have to do a lot of things differently and quickly. But what is a constant is our first responders. I want to thank the men and women of the FDNY, EMS, NYPD, Environmental Protection, all the agencies that were out in force last night, rescuing hundreds and hundreds of New Yorkers. So many lives were saved because of the fast courageous response of our first responders. People helped from a subway train safely. People helped out of a car in the flooded area. This happened literally hundreds of times last night. And God bless our first responders who were there. Got a lot of work to do right now to help New Yorkers recover. But we also have a lot of work to do to change the very approach. I agree with the Governor. It's time for an entirely different approach because we're getting a signal here. And it's not going to be easy. We're going to need all that help possible from the federal government. But in our time we have to make this change. We've gotten the message. We have to make a change to protect the lives of the people of this city. Thank you. And now I'd like to call on someone who has been tremendously helpful and always make sure that we get help in the city, Congress Member Gregory Meeks.

 

Congress Member Gregory Meeks: First, let me give my condolences to the family members, to the friends, the relatives, the neighbors on this block who have to be devastated. One day, it's a beautiful day. And we know that in Queens, neighborhoods are families. Block associations, working together, neighbors protecting neighbors’ homes. This is absolutely devastating. And my heart reaches out to each and every one on this block and in this family. A mother, a son, gone from us because of climate change and these record storm. Storms that were once in 500 years I'm told. Now that we've got to look at them to be storms in a regular manner. More intense as indicated. And so I want to thank – I spoke to Speaker Pelosi to make sure that we work very closely with Senator Schumer so there's no separation between the House and the Senate. And I thank all of the members of the United States Congress in bringing the resources here to the City of New York. Let me thank the Mayor and the Governor for their working on this instantaneously.

 

Now we happened to be here in Southeastern Queens in the Fifth Congressional District, knowing that we need infrastructure. It is absolutely, crucial and important that we pass reconciliation. One of the reasons why it's important, I know for flooding in Southeastern Queens, I have a request in now that was passed in the House, but it's got to be passed in the reconciliation bill, for some close to $4 million just for blocks like these. To improve the infrastructure and to stop the flooding that we know takes place here. If you just looked at what this place looked like, and there's pictures now at 10:00 pm last night, it was devastated. And finally, let me just say thank you to all of the men and women working and all of our emergency services and the heroes and sheroes as the Governor indicated from our transportation. And when I looked at the number of bus drivers and the people in the subway systems, getting people out into safety, also rescuing people that were stuck in their cars, they are really heroes, putting themselves at risk for the rest of us. So again, thank you. I want to thank my City Councilman, who had been working here for a long period of time in this very block, trying to make a difference for the people of this district, for all the hard work that you do in the City Council. And our former borough president, now DA Melinda Katz for all that she does. So, I now want to bring up the current borough president, who is working very hard to make sure that this borough receives all the infrastructure dollars and the attention that it rightfully needs, Donovan Richards.

 

Queens Borough President Donovan Richards: Thank you, Congress Member. And thank you to both the Governor and the Mayor for their support this morning, went into the wee early morning hours. I want to thank all of the agencies. First off, let me start by saying that we mourn, all 2.4 million Queens residents more than the lives of those lost on the early morning hours due to this catastrophic storm. Let me also just say that we've surveyed a lot of different communities across the borough, and I'm happy to say that Rosedale and The Rockaways because of the investment by the City, I want to thank the Mayor for his $2 billion investment into Southern Queens. We definitely saw a lot – a different story this time around, based on that investment. But we know that's still not enough and that's why we're here today. We need Washington D.C. to move with a level of urgency. We've been here before in Hurricane Sandy. We still are waiting for the Rockaway Reformulation Plan. We have a Howard Beach plan. There are many parts of this borough that historically have flooded and it's only going to get worse. And unfortunately, if we do not address climate change, we will continue to lose lives across not just this borough, but across this country and state. And we don't have to look any further than Louisiana to see what also happened there as well.

 

A few things I want to mention to homeowners out there today. Please document all of your losses. I've spoken to some homeowners here, put a claim in with the Comptroller as well as with your insurance companies as well. I know that a lot of residents struggle with flood insurance, but these are some key things to do. I'm also asking companies to allow their workers to work remote on today. And if you're not an essential worker, to really stay off of the roads as well. For the neighborhoods of Whitestone, College Point, and parts of Flushing, Lefrak, I want you to know that we are here. I've asked the Governor on today, for assistance to our small businesses and to our homeowners as well. And she's given her stamp of approval on all of those things. So, there's a lot of work that needs to be done. We are not out of the woods. Queens needs to see much more infrastructure investment. We cannot wait until tomorrow. We need it today. These lives could have been saved if we had investment that we solely needed a long time ago. With that being said, it brings me great honor to bring up my colleague, someone who worked with me from my time being the Environmental Protection Chairman in the Council, him being Civil Service and Labor, someone who worked to secure $2 billion for South Queens, I. Daneek Miller. Thank you.

 

Director and Promoter of BitConnect Pleads Guilty in Global $2 Billion Cryptocurrency Scheme

 

 Glenn Arcaro of Los Angeles pleaded guilty today in federal court for his participation in a massive conspiracy involving BitConnect, a cryptocurrency investment scheme, which defrauded investors from the United States and abroad of over $2 billion. The BitConnect scheme is believed to be the largest cryptocurrency fraud ever charged criminally.

As admitted in documents entered today before U.S. Magistrate Judge Mitchell D. Dembin, Arcaro conspired with others to exploit investor interest in cryptocurrency by fraudulently marketing BitConnect’s proprietary coin offering and digital currency exchange as a lucrative investment. 

Arcaro further admitted that he and others conspired to mislead investors about BitConnect’s purported proprietary technology, known as the “BitConnect Trading Bot” and “Volatility Software,” as being able to generate substantial profits and guaranteed returns by using investors’ money to trade on the volatility of cryptocurrency exchange markets. In truth, BitConnect operated a textbook Ponzi scheme by paying earlier BitConnect investors with money from later investors. 

“Arcaro and his confidantes preyed on investor interest in cryptocurrency. As a result, a staggering number of individuals lost an enormous amount of money,” said Acting U.S. Attorney Randy S. Grossman of the Southern District of California. “The Department of Justice will continue to protect the investing public and scrutinize the burgeoning cryptocurrency industry. To those who would be the next in line to defraud the investing public, let this action by the Department of Justice stand as a stark cautionary tale. To the investing public, let this also serve as a cautionary tale to safeguard your money and invest it wisely.”

It was through the use of social media, Arcaro acknowledged in his plea agreement, that he and others made materially false and misleading statements, while concealing material facts, all to persuade investors that BitConnect was a lucrative investment. During the scheme, Arcaro posted videos that mocked those who questioned whether BitConnect had a Trading Bot and Volatility Software, doubted the true identity of BitConnect’s owner, and complained about losing their money in BitConnect.

According to the documents filed today, Arcaro sat atop a large network of promoters in North America, forming a pyramid scheme known as the BitConnect Referral Program. Arcaro earned as much as 15 percent of every investment into another part of the scheme—the BitConnect “Lending Program”—either from investors he recruited directly or those recruited by others beneath Arcaro in the pyramid.  Arcaro further received portions of all investments from a concealed “slush” fund.

“Arcaro has accepted responsibility for his actions of defrauding thousands of individuals worldwide to invest in BitConnect,” said Special Agent in Charge Eric Smith of the FBI’s Cleveland Field Office. “He lined his pockets with millions of dollars, money from victims that believed their funds were being invested into a new cryptocurrency with a high rate of return. Those choosing to engage in financial criminal deception should know the FBI will not stop until all fraudsters are identified and held accountable.”

“Arcaro capitalized on the emergence of cryptocurrency markets, enticing innocent investors worldwide to get in early by promising them guaranteed returns, and exploiting the internet and social media to reach a larger pool of victims with greater ease and speed,” said Special Agent in Charge Ryan L. Korner of the IRS Criminal Investigation’s (IRS-CI) Los Angeles Field Office. “To conceal and further their scheme, Arcaro and his accomplices circumvented reporting regulations by the SEC and FinCEN, U.S. agencies that were created to protect investors and safeguard our financial systems. IRS-CI will pursue and root out these scams to protect investors and bring these financial fraudsters to justice.”

Arcaro admitted that he earned no less than $24 million from the BitConnect fraud conspiracy, all of which, according to court documents, he must repay to investors.

Acting U.S. Attorney Randy S. Grossman thanked the FBI’s Cleveland Field Office, IRS Criminal Investigation and law enforcement partners in India, Slovenia, and around the world for their efforts now and in the future, who assisted, and continue assist on this investigation. Grossman also thanked Assistant U.S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti, and Carl Brooker and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section who are handling this investigation. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.

In a parallel action, the U.S. Securities and Exchange Commission today announced civil charges against Arcaro and 3 others in connection with the same conduct.

Sentencing is scheduled to occur on November 15, 2021 at 9:30 a.m. before U.S. District Judge Todd W. Robinson.

If you believe you are a victim of this fraud, please contact the FBI at bccinvestor@fbi.gov.