U.S. Attorney Announces Settlement Of Civil Fraud Lawsuit Against Garment Manfacturer And Its Owner For Fraudulently Underreporting Value Of Imported Goods To Evade Customs Duties

 

Garment Manufacturer and Its Owner Admit to Repeatedly Underreporting the Value of Garments They Imported into the United States

 Damian Williams, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Frank Russo, Director, Field Operations, New York, U.S. Customs and Border Protection (“CBP”), announced today that the United States settled a civil fraud lawsuit against QUEEN APPAREL NY, INC. (“QUEEN”), a defunct manufacturer and importer of apparel, and HANK HYUNHO CHOI (“CHOI”), the sole owner of QUEEN, for defrauding the United States by knowingly evading customs duties owed on imported goods.  Specifically, the Government alleges that for years QUEEN, with CHOI’s knowledge, repeatedly falsified customs forms by undervaluing the garments it manufactured overseas and then imported into the United States.  As part of the settlement, approved today in Manhattan federal court by U.S. District Judge George B. Daniels, QUEEN and CHOI made admissions regarding their conduct, agreed to pay $50,000 to the United States, and agreed, among other things, to refrain from acting as the importer of record for the purpose of entering merchandise into the United States.

U.S. Attorney Damian Williams said: “Queen and its owner engaged in a fraudulent scheme to cheat the Government of customs duties owed on imported garments.  This Office remains committed to combatting customs fraud.  Manufacturers, importers, and their owners will be held responsible when they evade customs duties by lying about the value of the goods they bring into the United States.”

HSI Special Agent in Charge Peter C. Fitzhugh said: “Queen Apparel NY underreported the value of garments imported in the United States for the sole purpose of evading customs duties, resulting in a significant financial loss to the US government.  Import fraud affects the integrity of our economy and trade, so HSI makes a priority to investigate any organization who chooses profits over honesty.  Working closely with our partners at U.S. Customs and Border Protection, together we ensure anything that comes through our borders is in compliance with U.S. law.”

CBP Director of New York Field Operations Frank Russo said: “As global supply chains grow more complex, it is important for American businesses to know their suppliers and be confident of their integrity. The outcome of this case is a testament to the dedication of our partners in the United States Attorney’s Office, Homeland Security Investigations, and the men and women of CBP in enforcing our nation’s trade laws and holding accountable those perpetrating this type of fraud.”                    

QUEEN is a defunct New York-based manufacturer and importer of garments.  While in business, QUEEN manufactured and imported garments for third parties who would then sell those garments through department stores and national retail chains in the United States.  CHOI was the sole owner of QUEEN and was involved in the management and operations of the business.

The Complaint previously filed in Manhattan federal court alleges that from 2009 to 2013, QUEEN and CHOI manufactured garments overseas, imported those garments into the United States, and then repeatedly and falsely undervalued those garments on customs forms in order to evade the payment of lawful duties to the United States.

As part of the settlement, QUEEN and CHOI admit, acknowledge, and accept responsibility for the following conduct:

• QUEEN manufactured garments and imported them into the United States for various wholesalers.  CHOI was the sole owner of QUEEN and was involved in the management and operations of QUEEN, including the importing of goods.

• QUEEN was responsible for paying any import duties owed to the United States for garments manufactured abroad and imported into the United States by QUEEN. 

• During the relevant time period, and at CHOI’s direction, QUEEN repeatedly undervalued the garments it imported into the United States by making false statements in entry documents and commercial invoices that it presented to CBP.  As a result of these false valuations, QUEEN underpaid customs duties that were due and owing to the United States.  

On March 26, 2019, the United States settled a related civil fraud lawsuit against Byer California, Inc., a wholesaler that used QUEEN to manufacture and import garments from Vietnam.  The conduct in this matter was first brought to the attention of federal law enforcement by a whistleblower who filed a lawsuit under the False Claims Act. 

Mr. Williams praised the investigative work of HSI on this case.  He also thanked CBP for its assistance.

Governor Hochul Announces $33 Million in Federal Funding to Strengthen Security for Nonprofits Facing High Risks of Terrorism

 

Funding Will Help Nonprofit Organizations Strengthen Facility Security and Overall Preparedness

 Governor Kathy Hochul today announced more than $33 million in federal funding to support the efforts of 198 nonprofit organizations facing an increased risk of terrorism. These funds will allow nonprofits to strengthen the security of their facilities, as well as enhance their overall preparedness. This funding, provided by the Federal Emergency Management Agency through its Nonprofit Security Grant Program, is being allocated to New York through two separate awards. Organizations within the New York City Metro Area will receive $27 million, and organizations throughout the rest of the State will receive $6.4 million. The FEMA grants complement the additional $25 million in state funding recently announced by Governor Hochul for New York's nonprofits to bolster security and enhance preparedness against hate crimes and related attacks.

"Hate crimes continue to plague the nonprofit community and these funds will help organizations strengthen their security against individuals and groups who have trouble accepting the fact that our diversity is what makes New York State stronger," Governor Hochul said. "Those who perpetrate hate crimes will never win and they will not divide us. New York is the most diverse state in the nation, one of our best attributes, and we must continue to help these organizations protect themselves so they can flourish and continue to serve their communities."

Nationwide, a total of $180 million is being provided through the Nonprofit Security Grant Program in FY 2021. Of this amount, $90 million in funding was made available to nonprofit organizations located within one of the Urban Area Security Initiative (UASI)-designated high-risk urban areas. The remaining $90 million was reserved for jurisdictions outside of the UASI-designated areas.

Allowable costs include:

• Planning, including security risk management plans, continuity of operations plans, and response plans
• Equipment such as physical security enhancement equipment, and inspection and screening systems
• Training, including active shooter training, and security training for employees, members, or a congregation
• Response exercises
• Contracted Security Personnel

In New York, the state's UASI-designated high-risk urban area is the New York City Metro Area. Specifically, this consists of New York City, and Westchester, Nassau and Suffolk counties. In 2021, New York leads the nation in both total funding and number of awardees in an UASI-designated area. A total of 182 UASI awards were given to 158 separate nonprofit organizations, for a total of $27 million.

The New York State Division of Homeland Security and Emergency Services manages these programs in close coordination with local stakeholders. A total of 230 awards were given to 198 organizations since some organizations operate multiple sites.

This federal funding will bolster ongoing efforts led by Governor Hochul to ensure non-public schools and cultural centers, including religious-based institutions, have the resources they need to protect against the threat of hate crimes.

Representative Adriano Espaillat said, "In the 285 days since January 6th, we have learned that we simply cannot take anything for granted - especially when it comes to the security of our most crucial institutions. We are living in a new world, and our communities are facing never-before-seen threats from actors wishing to sow chaos and disrupt the fabric of our neighborhoods. I commend Governor Hochul on today's announcement allocating this vital funding to ensuring our non-profit organizations have the resources they need to strengthen the security of their facilities so they will be able to prepare, react, and rebuild from any crisis and keep our communities safe."

About the Division of Homeland Security and Emergency Services

The New York State Division of Homeland Security and Emergency Services provides leadership, coordination and support for efforts to prevent, protect against, prepare for, respond to, and recover from terrorism and other man-made and natural disasters, threats, fires and other emergencies. For more information, visit the DHSES Facebook page, follow @NYSDHSES on Twitter, or Instagram, or visit dhses.ny.gov.

WILLIAMS RESPONDS TO JAY JACOBS REFUSING TO ENDORSE INDIA WALTON FOR MAYOR OF BUFFALO

 

"I knew that the systems of the status quo, and the people dedicated to preserving them, were entrenched to the point of absurdity. But I have to admit even I did not expect the Chair of the New York State Democratic Party to compare the Democratic nominee for Mayor of Buffalo, a Black woman who has spent years fighting for her city, to a neo-Nazi Grand Wizard of the KKK. Do the people that Jay Jacobs is trying to shield with this bizarre, offensive statement agree with it? Does the Governor, who he endorsed before a primary even began?

"Jay Jacobs and other Democratic leaders have preached party unity above all else, until it was inconvenient for them. They are standing with a candidate backed by Trump Republicans, rather than with the democratic values they claim to uphold. This is the toxicity that has long plagued New York’s politics and prevented New York’s progress – and it cannot be ignored."

Attorney General James Directs Unregistered Crypto Lending Platforms to Cease Operations In New York, Announces Additional Investigations

 

Today’s Announcement Follows Previous Warnings to Virtual Currency Platforms That Unlawful Activity Will Not Be Tolerated in New York

 New York Attorney General Letitia James today announced new efforts she is taking to protect New York investors, and the trading markets more generally, from exploitation by high-risk virtual currency schemes. Virtual or “crypto” currency lending platforms are essentially interest-bearing accounts that offer investors a rate of return on virtual currencies that are deposited with them. In New York, these lending platforms must register with the Office of the Attorney General (OAG) if they are operating within the state or offering their products to New Yorkers. Today, Attorney General James directed two of these lending platforms to immediately cease their unregistered and unlawful activities in New York and directed three other platforms to immediately provide information about their activities and products.

“Cryptocurrency platforms must follow the law, just like everyone else, which is why we are now directing two crypto companies to shut down and forcing three more to answer questions immediately,” said Attorney General James. “My office is responsible for ensuring industry players do not take advantage of unsuspecting investors. We’ve already taken action against a number of crypto platforms and coins that engaged in fraud or that illegally operated in New York. Today’s actions build on that work and send a message that we will not hesitate to take whatever actions are necessary against any company that thinks they are above the law.”

New York’s Martin Act sets forth a broad list of instruments that are declared to be securities and thus subject to its provisions: “any stocks, bonds, notes, evidences of interest or indebtedness or other securities…or negotiable documents of title, or foreign currency orders, calls or options therefor hereinafter called security or securities.” As courts have stated for almost a century, the Martin Act is a remedial statute, intended to protect the investing public, which means that its provisions — including those setting forth the definition of a “security” — are to be given a broad reading. Indeed, those defined categories of instruments are not exhaustive; other instruments or arrangements can, and have been, deemed securities under the law.

The nature and function of the most common virtual currency lending products or services demonstrate that they fall squarely within any of several categories of “security” under the Martin Act.

The virtual currency lending products at issue in today’s actions promise a fixed or variable rate of return to investors, and claim to deliver those returns by, among other things, trading with, or further lending those virtual assets. The most common virtual currency lending products or services are therefore securities under the Martin Act, including, in particular, those that accept virtual currencies in exchange for a rate of return. As a result, entities offering such products from New York or to New Yorkers must be registered with the OAG as brokers, dealers, or salespersons, unless exempted.

In 2021, the OAG’s Investor Protection Bureau continued the modernization of its registration operations, and updated its commodities personnel registration forms to collect information regarding virtual currencies. In March 2021, the OAG specifically notified the industry that those dealing in virtual currencies directly (such as trading platforms) must register with the Investor Protection Bureau, unless exempted.

In the past, Attorney General James has not hesitated to hold cryptocurrency trading platforms and token issuers accountable. Just last month, Attorney General James shut down the  cryptocurrency trading platform Coinseed, Inc. after she filed a lawsuit against the company earlier this year.

On that same day last month, Attorney General James secured a recovery of nearly half a billion dollars unlawfully obtained from investors who financially backed GTV Media Group, Inc. and its parent company, Saraca Media Group, Inc. In addition to unlawfully selling stocks, the company was selling two digital instruments promoted as cryptocurrencies without registering in New York state.

In February, Attorney General James announced an agreement with Bitfinex, Tether, and related entities that ended all of their trading activity in the state of New York, imposed an $18.5 million penalty on the companies, and increased transparency.

Governor Hochul Announces Completion of $91 Million Affordable Housing Development in the Bronx

 

Sustainable Arthur Avenue Apartments Includes 177 Affordable Homes for Seniors in Health-Oriented, Energy-Efficient Community 

 Governor Kathy Hochul today announced the completion of Arthur Avenue Apartments, a new $91 million affordable housing development with 177 apartments in the Belmont neighborhood of the Bronx. The development includes 54 apartments reserved for formerly homeless seniors in need of support services. The sustainably designed building features 4,500 square feet of health-oriented community space including an interior greenhouse with a teaching kitchen, a working vegetable garden for tenant use, and two landscaped outdoor terraces.  

"New Yorkers deserve access to safe, affordable housing — especially seniors and those struggling to make ends meet," Governor Hochul said. "The Arthur Avenue Apartments will bring much-needed affordable housing to The Bronx, helping the most vulnerable New Yorkers live with dignity and security."

“Affordable and supportive housing not only strengthens a community, it brings the keys of opportunity to residents and businesses alike,” said Lieutenant Governor Brian Benjamin. “I’m proud to work with Governor Hochul and Commissioner RuthAnne Visnauskas as we announce 177 affordable new homes for seniors in Belmont, with health, social, and wellness services and facilities especially for seniors, including 52 units reserved for homeless and medically frail seniors.”

Arthur Avenue Apartments consists of a single nine-story building with 177 homes for households age 62 or older. Seventeen apartments are available to households earning at or below 30 percent of the Area Median Income and 105 apartments are available to households earning at or below 50 percent of the AMI. 54 apartments are reserved for formerly homeless seniors with chronic health conditions, who will receive on-site supportive services and rental subsidies funded through the Empire State Supportive Housing Initiative and administered by the NYS Department of Health.  

Supportive services include activities that promote socialization, life skills training, education and fitness-based instruction groups, nutritional education and cooking, and music therapy. The supportive service provider is the Hebrew Home at Riverdale, also the project's co-developer along with Foxy Management. 

The building was designed to meet the requirements of the U.S. Environmental Protection Agency Energy Star programs. Energy-efficient features include low-flow bathroom fixtures; motion-sensor LED lighting in common areas; EnergyStar appliances; a rooftop solar array; efficient irrigation/water reuse system; highly efficient boiler and water heater; and low volatile organic compound "VOC" finishes throughout. 

Residents of Arthur Avenue Apartments have access to a working vegetable garden where they can grow their own food and share with the community, an interior greenhouse linked to a teaching kitchen, and two outdoor terraces on the 8th floor connected to two large multipurpose community rooms. Additional amenities include 24-hour security, on-site laundry, bicycle storage, and an office suite for support services.  

Nearby neighborhood services include the Bronx-Lebanon Hospital, St. Barnabas Hospital, several urgent care clinics, three libraries with senior programming, grocery and retail, a subway station, and a Metro-North train station. 

State Financing for Arthur Avenue Apartments includes $19.2 million in tax-exempt bonds, federal Low-Income Housing Tax Credits that generated $36 million in equity, and an additional $13.2 million in subsidy from New York State Homes and Community Renewal. The New York City Department of Housing Preservation and Development provided $13.3 million through its Senior Affordable Rental Assistance Program and 122 Project-Based Section 8 vouchers. New York City Council awarded the project $500,000.  

HCR Commissioner RuthAnne Visnauskas said, "This $91 million highly energy-efficient and sustainable development provides a healthy and affordable home for at-risk senior households. Arthur Avenue Apartments will provide important supportive services to residents while also cultivating active living and a wellness-oriented environment. In addition, the building's extensive energy-efficiency and sustainability features will support the state's goal of reducing carbon emissions, especially in underserved neighborhoods like the Bronx. Congratulations to Foxy Management and our partners in government for this accomplishment that will improve the lives of so many New Yorkers."  

State Health Commissioner Dr. Howard Zucker said, "Reliable, affordable and safe housing is essential for good health, and I am confident that Arthur Avenue Apartments are equipped to provide their residents with the services and support they need. I am proud of our continued efforts to move our state forward and provide New Yorkers with the security they need for a bright and healthy future."   

HPD Commissioner Louise Carroll said, "Senior housing is not just about affordability - it's about making sure our elders can thrive. Arthur Ave Apartments provide more than 170 senior households the opportunity to do just that by providing services and space to boost their wellness: a community garden, teaching kitchen, two roof terraces and more. 

Congressman Ritchie Torres said, "As the Bronx continues to grow, it is crucial to see increased direct investment in affordable housing to support vibrant neighborhoods like Belmont. I am proud to celebrate the groundbreaking on 177 units that will provide stability and opportunity for Bronx residents. I look forward to seeing continued investment in affordable housing in the Bronx in order to lift up working families.

Comptroller Stringer: Annual Making the Grade Report Reveals City Fails to do Business with More Than 80 Percent of M/WBEs

 

Out of $30.4 billion in contracts awarded by the City in FY 2021, only $1.166 billion (3.8 percent) was awarded to M/WBEs

The City falls to a “C-” Grade for M/WBE Spending in FY 2021 after two consecutive passing “C” grades

Comptroller Stringer calls on incoming City leaders to prioritize diversity, equity, and inclusion within their first 100 days in office and to eliminate the gap between M/WBE certification and receiving City spending

Today, New York City Comptroller Scott M. Stringer released the eighth annual “Making the Grade: New York City Agency Report Card on M/WBEs” report, finding that 84 percent of M/WBEs still do not have access to City spending. The share of M/WBEs receiving City dollars has never exceeded 22 percent since FY 2015. The Comptroller announced that the City fell to a “C-” Grade for M/WBE Spending in FY 2021 after two consecutive passing “C” grades. This year’s report examined the rollout of Chief Diversity Officers across the country, after years of advocacy led to an Executive Order appointing Chief Diversity Officers within every New York City agency.

“Over the last eight years, my office has given voice to solutions from M/WBEs directly on how the City can better connect them with opportunities, which has led to real change. But there is still room for significant improvement,” said Comptroller Stringer. “As this administration prepares to leave office, it is clear that the City, from the next Mayor and Comptroller to the next City Council, have abundant opportunities to address the systemic inequities experienced by communities of color especially as we continue to rebuild our economy amid the COVID-19 pandemic.”

“Making the Grade,” published annually since 2014 by the New York City Comptroller, evaluates the performance of the City’s M/WBE program and makes recommendations for its improvement. “Making The Grade” assesses 32 City agencies – and the City overall – on progress in spending with minority and women-owned businesses (M/WBEs) and is a diagnostic tool for agencies to improve performance and transparency in M/WBE spending, increase competition in City procurement and save taxpayer dollars.

Highlights in the 2021 “Making the Grade” report include:

• The City awarded $30.4 billion in contracts in FY 2021, of which only $1.166 billion (equal to 3.8 percent) were awarded to M/WBEs.
• The City has nearly tripled the number of certified M/WBE firms since FY 2015. However, of more than 10,500 certified M/WBEs, 8,886—84 percent—did not receive City spending in FY 2021. The share of certified M/WBEs receiving City dollars has never exceeded 22 percent since FY 2015.
• The City spent $1.27 billion with M/WBEs, an additional $261 million from FY 2020 and an increase of more than $900 million since FY 2014. The City earned a “C-” grade for M/WBE spending in FY 2021.
• Since 2014, the City has improved its grades with Asian Americans, Hispanic Americans, and women-owned businesses, but it has been unable to improve its “F” grade with African American-owned businesses over the last eight years. In FY 2021, the City earned a “B” grade with Asian American-owned businesses, a “D” with Hispanic American- and women-owned businesses, and an “F” with African American- owned businesses.
• Two mayoral agencies: The Commission on Human Rights and Department for the Aging earned their fifth consecutive “A” grades; both spent more than 50 percent of their Local Law 1-eligible dollars with M/WBEs.
• The Department of Transportation received an “F” grade, spending less than five percent of its Local Law 1-eligible dollars with M/WBEs.
• In FY 2021, eleven grades remained the same, three agencies improved their grades, and 18 agency grades- over half- declined from FY 2020.
• The Comptroller’s Office earned its third consecutive “A” grade. Over the last eight years, the Comptroller’s Office increased its M/WBE spending from 13 percent in FY2013 to approximately 53 percent in FY2021.
• In 2020, Comptroller Stringer announced that the Office’s registration process would now include a rigorous review of M/WBE goals on City contracts. Between November 2020 and May 2021, the Comptroller’s Office registered 63 contracts subject to Local Law 1. Of these, 42 contracts, or about 67 percent, had M/WBE goals below 30 percent.

The Future of Chief Diversity Officers in the Public and Private Sectors

For six years, Comptroller Stringer called for a Chief Diversity Officer (CDO) in City Hall and every City agency to serve as executive-level strategists, driving the representation of people of color and women across government. In July 2020, Mayor Bill de Blasio signed an executive order to appoint Chief Diversity Officers in every City agency. Although there is still no CDO with a citywide portfolio in City Hall, Comptroller Stringer finds growing implementation of the role across the public and private sector:

• Thirty-six of the 50 most populous cities across the U.S. have appointed CDOs, and more than half of them report to the Mayor or City Manager.
• Several federal agencies and the Executive Office of the U.S. President have implemented executive-level equity efforts.
• Hiring of CDOs tripled between December 2019 and March 2021 within the S&P 500.
• However, just 14 of the City’s top 50 vendors—which have collectively received over $5 billion from the City of New York—have publicly announced CDOs.

Utilization of M/WBEs during COVID-19

In July 2020, Comptroller Stringer’s Office surveyed 500 M/WBEs on the impact of COVID-19, finding that 85 percent of M/WBE firms projected less than six months of survival. A follow up survey from the Comptroller’s Office found that 50 percent of M/WBEs were forced to lay off or furlough employees. This report examines City spending with M/WBEs, finding that:

This report follows up on that survey, finding that:

• Between March 2020 and July 2021, the City spent over $3.5 billion in COVID-19-related goods and services, and just 16 percent, or $554 million, went to M/WBEs.
• Specifically, the City spent about $308 million, or about nine percent with women-owned businesses; $161.2 million, or about five percent, with Asian American-owned businesses; $43.2 million, or about one percent, with African American-owned businesses, and $41.2 million, or about one percent, with Hispanic American-owned businesses.
• Two agencies alone made up more than 40 percent of the City’s total pandemic-related dollars. The Department of Citywide Administrative Services spent over $803 million and just ten percent went to M/WBEs. By contrast, the Department of Sanitation spent more than $732 million, and M/WBEs received 25 percent of those dollars.

Recommendations

Each year, Comptroller Stringer puts forth recommendations meant to reduce barriers and increase opportunities for M/WBEs. These recommendations are informed by needs identified by the Comptroller’s COVID-19 survey, the City’s M/WBE spending data, a series of focus groups with M/WBEs, and the Comptroller’s Advisory Council on Economic Growth through Diversity and Inclusion. As this administration prepares to leave office, we urge the next cohort of citywide leadership to prioritize diversity, equity, and inclusion within their first 100 days of office.

All incoming Citywide officials should appoint executive-level Chief Diversity Officers. The mayoral CDO should oversee the rollout of the City’s programs designed to increase diversity and inclusion within the City, and they should also play a role in the City’s Budget and should have oversight over agency Chief Diversity Officers to ensure a unified citywide inclusion effort In addition, the City Council should consider implementing CDOs, who should conduct racial impact analyses when legislation being considered, where appropriate. Other city officials should also consider implementing CDOs, including the Borough Presidents, the New York Public Advocate, and District Attorneys.

The next City leaders should adopt the Rooney Rule to ensure that their cabinets are diverse, and that they engage with communities of color, including M/WBEs, to develop their administrations’ goals. The Comptroller’s Office worked with more than 30 public companies to adopt the Rooney Rule, which requires them to include women and people of color in every future CEO search, as first adopted by the National Football League. In light of the success of this policy, the City should consider adopting the Rooney Rule for every cabinet-level position.

The next Comptroller should conduct a racial equity audit of the City’s agencies. With the signing of President Biden’s Executive Order On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, all federal agencies have been mandated to perform an equity assessment to address systemic barriers erected by government which have adversely impacted communities of color.  The next Comptroller should mirror this federal effort citywide through an audit of all City agencies. The audit should examine supplier diversity gaps, workforce diversity gaps, pay equity gaps, and agency policies and practices that are systemically biased against communities of color.

The next Mayor should create a plan to close the gap between certification and receiving City spending for M/WBEs. Over the course of the last eight years, the City has almost tripled its list of certified M/WBEs from just 4,000 to almost 11,000 businesses. However, no more than 2,000 M/WBEs have ever received City contract dollars in a given year. Within their first 100 days, the next Mayor should create a plan to close the gap between the number of people in the program and the number of M/WBEs that win contracts.

The New York City Council should reassess M/WBE legislation with a targeted focus on goals. One of New York City’s most powerful tools in creating opportunities for M/WBEs is subcontracting. However, this report has shown that almost 70 percent of Local Law 1-eliglble contracts in FY 2021 were assigned goals below the City’s standard of 30 percent. This translated into just 437 M/WBEs receiving subcontracting dollars in FY 2021 – less than five percent of all certified firms. The next City Council should reassess M/WBE legislation with a targeted focus on goals. The Council should review ways that the City can use its full purchasing power to set aggressive M/WBE goals wherever there is M/WBE availability. For example, it should also explore more flexibility when it comes to criteria for granting waivers, including considerations of market availability of M/WBEs and industry standards around subcontracting. In addition, City Council should also utilize the next disparity study to expand the universe of businesses able to participate in the goals program, such as firms with LGBTQIA+ and disabled owners, immigrant-owned firms, and cooperatives.

To read Comptroller Stringer’s eighth annual “Making the Grade: New York City Agency Report Card on M/WBEs” report, click here.

RECOVERY FOR ALL OF US: MAYOR DE BLASIO AND COMPTROLLER STRINGER ANNOUNCE HUDSON YARDS INFRASTRUCTURE CORPORATION HAS RECEIVED CREDIT RATINGS UPGRADES AND WILL SELL THE FIRST GREEN BOND ISSUED BY A CITY-RELATED ENTITY

$450 million green bond sale is linked to expansion of the subway system and supports zero-direct emissions, clean transportation 

 

Credit Rating Upgrades reflect pace of development in Hudson Yards and confidence in New York City’s recovery and economic outlook

 Mayor Bill de Blasio and Comptroller Scott M. Stringer today announced that Hudson Yards Infrastructure Corporation (HYIC) will sell the first green bond issued by a City-related entity. Last week, Moody’s Investors Services (Moody’s) upgraded HYIC’s credit rating from Aa3 to Aa2, with a stable outlook, S&P Global Ratings raised its long-term rating from A+ to AA-, with a positive outlook, and Fitch Ratings upgraded its credit rating on HYIC bonds from A to A+, with a stable outlook. 

HYIC is a local development corporation created by the City in 2005 to finance the extension of the Number 7 Subway Line to the 34th Street - Hudson Yards station and the creation of a public park. Proceeds from the $450 million green bond sale will be used to refinance bonds issued in 2012 to fund the subway extension, a project that was completed in 2015. The subway extension has helped mitigate the impact of climate change by encouraging low-carbon transportation and has fostered the development of Hudson Yards, a pedestrian-friendly, mixed-use district. By 2019, 6.1 million passengers passed through the station annually, making it one of the top 16% of stations system-wide by annual total use.

 

"For the sake of both current New Yorkers and future generations of residents, the climate crisis must be met head on,” said Mayor Bill de Blasio. “The sale of Green Bonds is part of our national-leading climate strategy to lower our emissions, reduce our reliance on fossil fuels and build a recovery centered around climate justice.” 

 

“With this historic green bond sale, the first of its kind by a New York City-related entity, the City is safeguarding its future—financially and environmentally,” said Comptroller Scott Stringer. “We must use all the tools at our disposal to address the existential crisis of climate change, and New York City can and should be a leader for cities around the world to reduce carbon emissions by promoting sustainable public transportation and parks. I am pleased that these bonds are being issued as Green Bonds in recognition of the benefits of mass transit and continue to urge the creation of a robust, City-wide Green Bond program.”

 

Subject to market conditions, the pricing is expected to take place on Wednesday, October 20, 2021 via negotiated sale through HYIC’s underwriting syndicate, led by joint lead managers Goldman Sachs & Co. and Ramirez & Co. Inc.

 

There will be a retail order period on Tuesday, October 19, 2021.

 

Credit Rating Upgrades

 

Moody’s upgrade to Aa2 with a stable outlook brings HYIC to Moody’s second highest level, the same rating that it has assigned to City and New York State bond offerings. The upgrade reflects robust development in the Hudson Yards area, which has led to strong growth in the recurring revenues that support bond repayment, and is projected to eliminate the need for City support payments for the life of the bonds. The upgrade also reflects confidence that the city will not experience a prolonged real estate recession.

 

S&P’s upgrade to AA- reflects its view of the progress and ongoing development in Hudson Yards and the termination of the 2006 indenture.  S&P also cites the City’s general creditworthiness and status as a global economic and employment center as a factor in its rating.

 

Fitch’s upgrade to A+ is based on the continued strong growth of pledged revenues generated from development in the project area and the termination of the 2006 indenture.

 

This is not an offer to sell or a solicitation of an offer to buy bonds. Bonds may only be purchased through a broker. Please carefully review the Preliminary Official Statement which describes the bonds.

75 Days and Counting Monday Morning Media Availability

 

What was that question, 

Question: I wanted to ask you about the DOI report on your police detail. You know, in past responses, you've talked about, a lot about the security of your family and how important that is to you, how that’s a priority. And I wanted to just shift from that focus to an incident in February of 2021 in which the DOI reported, you asked the detail to take a guest at Gracie across town to the Upper West Side? And so, I was wondering why didn't you guys just ask for a cab or an Uber? And can you talk about, I mean, this is the sort of thing I think that, you know, erodes trust. I mean, does that kind of factor in at all? I mean, do you kind of feel like that's kind of a bad look in hindsight now?

  

Mayor: First of all, what I try to do every, literally every day for eight years, was do what was appropriate. Do what I understood to be the right thing to do, follow the guidance I was given. And I tried to make decisions in the interest of the people. And I don't think it erodes trust, if I thought, for example, if someone had come for an interview for a job in New York City, this I know is an example, came for a job interview. We wanted someone to come join us in public service. And did them the courtesy of dropping them off where they were staying. I think that's a professional courtesy. It's in the public's interest because it's about showing someone we value them and we want them to come join us. That's the kind of example. I just think that's appropriate given the mission of getting the very best people to serve New York City.

You reporters seem to be trying to kill any chance of me becoming governor. Who is paying you to do this, Kathy Hochul?