Italian Citizen Arrested In Online Impersonation Scheme To Fraudulently Obtain Prepublication Manuscripts Of Novels And Other Books

 

 Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an indictment charging FILIPPO BERNARDINI with wire fraud and aggravated identity theft, in connection with a multi-year scheme to impersonate individuals involved in the publishing industry in order to fraudulently obtain hundreds of prepublication manuscripts of novels and other forthcoming books.  BERNARDINI was arrested this afternoon when he arrived at John F. Kennedy International Airport.  He will be presented tomorrow before United States Magistrate Judge Robert W. Lehrburger in Manhattan federal court.  The case is assigned to U.S. District Judge Colleen McMahon.

U.S. Attorney Damian Williams said:  “Filippo Bernardini allegedly impersonated publishing industry individuals in order to have authors, including a Pulitzer prize winner, send him prepublication manuscripts for his own benefit. This real-life storyline now reads as a cautionary tale, with the plot twist of Barnardini facing federal criminal charges for his misdeeds.”  

Assistant Director-in-Charge Driscoll said: “Unpublished manuscripts are works of art to the writers who spend the time and energy creating them. Publishers do all they can to protect those unpublished pieces because of their value. We allege Mr. Bernardini used his insider knowledge of the industry to get authors to send him their unpublished books and texts by posing as agents, publishing houses, and literary scouts. Mr. Bernardini was allegedly trying to steal other people's literary ideas for himself, but in the end he wasn't creative enough to get away with it."

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

Beginning in at least August 2016, BERNARDINI, who was based in London and worked in the publishing industry, began impersonating agents, editors, and other individuals involved in publishing to fraudulently obtain prepublication manuscripts.  These prepublication manuscripts are valuable, and the unauthorized release of a manuscript can dramatically undermine the economics of publishing, and publishing houses generally work to identify and stop the release of pirated, prepublication, manuscripts.  Such pirating can also undermine the secondary markets for published work, such as film and television, and can harm an author’s reputation where an early draft of written material is distributed in a working form that is not in a finished state. 

In carrying out this scheme, BERNARDINI created fake email accounts that were designed to impersonate real people employed in the publishing industry, including literary talent agencies, publishing houses, literary scouts, and others.  BERNARDINI created these accounts by registering more than 160 internet domains that were crafted to be confusingly similar to the real entities that they were impersonating, including only minor typographical errors that would be difficult for the average recipient to identity during a cursory review.  Among other things, BERNARDINI often replaced the lower-case letter <m> with the lower-case letters <r> and <n>, which, when placed together as <rn>, resemble an <m>.   For example, in or about September 2020, BERNARDINI utilized a fraudulent email address impersonating a well-known editor and publisher (“Editor-1”) who worked for an imprint of a U.S. publishing house (“Publisher-1”).  Impersonating Editor-1, BERNARDINI emailed a Pulitzer Prize winning author (“Author-1”) and requested a copy of a word version of Author-1’s forthcoming manuscript, which Author-1 sent to BERARDINI, believing him to be Editor-1.  Over the course of this scheme, BERNARDINI impersonated hundreds of distinct people and engaged in hundreds of unique efforts to fraudulently obtain electronic copies of manuscripts that he was not entitled to.

In addition, BERNARDINI engaged in a phishing scheme to surreptitiously gain access to a database maintained by a New York City-based literary scouting company (“Scouting Company-1”).  BERNARDINI created a webpage that impersonated Scouting Company-1’s website.  Then, in or about July 2020, BERNARDINI impersonated a Scouting Company-1 employee and emailed two individuals, directing them to BERNARDINI’s look-alike webpage and prompting the users to provide their usernames and passwords.  BERNARDINI’s webpage was programmed to automatically forward the input usernames and passwords to an email account controlled by BERNARDINI. 

FILIPPO BERNARDINI, 29, of London, United Kingdom is charged with (1) wire fraud, which carries a maximum sentence of 20 years in prison; and (2) aggravated identity theft, which carries a mandatory consecutive sentence of 2 years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Williams praised the investigative work of the FBI.  Mr. Williams also thanked the U.S. Customs and Border Protection for its assistance in this investigation.

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

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

MAYOR ADAMS ANNOUNCES ADDITIONAL RESOURCES TO FIGHT OMICRON SURGE

 

Adding $33 Million to COVID-19 Hospital Loan Fund to deepen support for New York City safety net hospitals’ pandemic response 

 

$111 Million investment will immediately expand Department of Health and Mental Hygiene and NYC Health + Hospitals staffing needs, reinforcing heath care front lines

 Mayor Eric Adams announced committing nearly $145 million in resources to support safety net hospitals, and allow NYC Health + Hospitals (H+H) and the Department of Health and Mental Hygiene (DOHMH) to increase staffing and fight the Omicron surge. The City has added $33 million to the COVID-19 Hospital Loan Fund, for a total of $45 million, through a public-private partnership with Goldman Sachs that is accessible to safety net hospitals, the not-for-profit facilities that typically serve the most vulnerable New Yorkers and fall outside the H+H system. The administration is also directing $111 million towards expanding DOHMH and H+H staffing needs, as part of the administration’s COVID-19 response master plan.

 

“This is 2022, not 2020, and New Yorkers should be confident that we are stepping up the fight against the Omicron surge to keep them safe,” said Mayor Eric Adams. “This plan will ensure our frontline healthcare heroes have the resources they need to address staffing shortages, and continue providing top-quality care to every person who walks through their doors.”

 

"New Yorkers deserve world class health care no matter where they go for treatment. This loan program and additional funding for our City agencies will give hospitals across the five boroughs the resources they desperately need, better staff our City’s healthcare facilities, and ultimately save lives,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “We must support our City’s critical healthcare partners, especially those non-profit hospitals serving communities of color that have been suffering from decades of healthcare disparities. I am proud of the Adams Administration for taking bold action in our very first week to fight the Omicron variant and thank Mayor Adams for his leadership.”

 

“The additional COVID-19 funding secured by Mayor Adams will help us further secure necessary staff that will not only help care for New Yorkers during our Omicron surge, but also provide relief to our healthcare heroes who have been on the frontline of this pandemic for nearly two years,” said NYC Health + Hospitals President and CEO Mitchell Katz, MD. “Our public health system’s extraordinary COVID-19 response would not have been possible without the continued support and advocacy of our city-wide leaders and partners.”

“As cases and hospitalizations rise, we must do all we can to shore up our hospitals and COVID-19 response now,” said Health Commissioner Dr. Dave A Chokshi. “I thank Mayor Adams for his leadership and ongoing commitment to public health.”

 

“We are proud to continue to support they City’s efforts in combatting COVID-19, setting us up for a stronger recovery. This loan program is one more way we can make sure New York City’s public health apparatus remains strong through this challenging time,” said Rachel Loeb, President and CEO, NYCEDC.

 

“We appreciate Mayor Adam’s recognition that we are in this fight together, and that addressing the surge in every  NYC neighborhood  requires financial support for all of the safety net hospitals”, said LaRay Brown, CEO of One Brooklyn Health.

 

New York City's public health and safety-net hospitals are in crisis. Nurses and healthcare professionals have been overworked and understaffed for nearly two years on the frontlines. Today's announcement of additional funding is critical to supporting our healthcare workers and delivering the care that all our patients need. We applaud Mayor Adams for securing this critical funding to invest in the City's staffing needs, support the current healthcare workforce, and support hospitals to safely provide care to all communities in NYC,” said NYSNA Executive Director Pat Kane, RN.

 

The City-negotiated COVID-19 Hospital Loan Fund provides loans to safety net hospitals needs by covering pandemic response costs while hospitals apply for FEMA reimbursements and has already funded over 2,400 safety net hospital staff members serving over 26,000 patients. The Fund was established by and will be operated by NYCEDC.

 

Resources totaling $111 million for DOHMH and H+H will ease staffing needs to increase temporary staff, including nursing, providers, and other clinical teams. This will ease staffing needs across the health system, specifically within the ICUs, med-surg units, emergency rooms, and skilled-nursing facilities. ​​

 

New York League of Conservation Voters President Julie Tighe issued the following statement in response to Governor Hochul’s State of the State address:

Governor Hochul delivered a historic State of the State for the environment, with a bold agenda to combat climate change and make major investments in clean energy infrastructure. The Governor is advancing critical policies to meet our ambitious goals to reduce greenhouse gas emissions; increase clean energy generation and storage; invest in Clean Green Schools; decarbonize our homes; strive toward zero waste; support clean air and water; and much more.  We are thrilled to see the proposal to increase the Clean Water, Clean Air and Green Jobs Bond Act to $4 billion to create green jobs and invest in our communities.  We are especially excited to hear priorities that we have advocated for years: a commitment to electric school buses, and offshore wind to support clean energy goals.

 

There is more that must be done that we will fight for in the upcoming State budget, such as a clean fuel standard and the direct sales of electric vehicles, two priorities that are crucial to reduce our transportation system’s reliance on polluting fossil fuels across New York, and a $500 million Environmental Protection Fund critical to supporting a broad swath of environmental and climate programs. The upcoming budget, bond act, and federal funding from the Infrastructure Investment and Jobs Act create vital opportunities for investments in climate and the environment.

 

In totality, this is a bold, ambitious, and much-needed agenda to move us toward a green economy. We look forward to working with the Governor, State Senate, and Assembly to deliver results for all New Yorkers in 2022.

 

Major Highlights from the State of the State Address Include:

 

• An additional $1 billion added to the $3 billion Environmental Bond Act, bringing the total to $4 billion. The new funding will include an enhanced Clean Green Schools initiative to serve more than 1,000 schools in disadvantaged communities hosting 1 million school children.
• 100% electric school buses statewide by 2035, with all new purchases required to be electric starting in 2027.
• $500 million investment in ports, manufacturing, and supply chain infrastructure for offshore wind.
• A new procurement of at least 2 GW of offshore wind coming later this year and a planning process to build an offshore wind transmission network capable of delivering at least 6 GW to NYC.
• Incentives for early retirement of New York City’s dirtiest fossil fuel power plants.
• Requiring all new construction to have zero on-site GHG emissions no later than 2027, and have 2 million electrified or electrification-ready homes by 2030.
• $1 billion for electric vehicle adoption and infrastructure.
• Extender producer responsibility legislation for paper and packaging products, and restricting PFAS chemicals and other toxic substances in packaging.
• Enhanced wetlands protections.
• More funding for state parks.
• Multiple projects to reconnect neighborhoods that were harmed by environmental racism in highway siting, including the Cross Bronx Expressway.
• Extension of the Second Avenue subway and Interborough Express train line to connect Brooklyn and Queens, plus other MTA capital projects that will allow more New Yorkers to get around without cars.

The full State of the State book is available here.

NYC Public Advocate WILLIAMS’ STATEMENT ON THE ELECTION OF SPEAKER ADRIENNE ADAMS

 

"Congratulations to Speaker Adrienne Adams on being officially selected to serve as the leader of the City Council. Achieving this position requires earning the trust of your colleagues in government and the people of the city. I know from our years of partnership that she will be a strong steward of both, advancing justice and equity in our city’s laws and systems.

"To finally have a Black Speaker, a Black woman, leading the body and setting the course for the Council and the City, is as powerful as it is overdue. It is important to have diverse leadership in which New Yorkers can see themselves, leadership ready to take on this moment; and in Speaker Adams, the Council will have a leader that meets both needs. This is a momentous day in the history of the body and of our city. To hear Speaker Adams’ voice in the chamber sends a powerful message, echoing from Southeast Queens to neighborhoods around the city, empowering the New Yorkers we represent and serve. 

"Assuming leadership in a time of immense challenges requires courage, and it is critical that we simultaneously overcome new obstacles, ongoing issues, and longstanding systems that have perpetuated many problems that our city faces. I am confident that under Speaker Adams’ leadership, with unity and resolve, we can create transformational change, and I look forward to joining her in leading our city through recovery and renewal."

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - JANUARY 5, 2022

 

104,713 Vaccine Doses Administered Over Last 24 Hours    

96 COVID-19 Deaths Statewide Yesterday

 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19.      

“I know New Yorkers are exhausted, but we can't let up against this winter surge,” Governor Hochul said. “Let's continue to use the tools that will protect ourselves, our children and our vulnerable loved ones from getting severely sick or hospitalized from COVID. Please get fully vaccinated, get the booster, wear a non-cloth well-fitting mask and exercise caution while indoors."

Today's data is summarized briefly below: 

• Test Results Reported – 348,911
• Total Positive – 77,859
• Percent Positive - 22.31%
• 7-Day Average Percent Positive - 22.45%
• Patient Hospitalization - 10,867 (+456)
• Patients Newly Admitted - 1,968
• Patients in ICU - 1,359 (+57)
• Patients in ICU with Intubation - 657 (+32)
• Total Discharges - 236,684 (+1,439)
• New deaths reported by healthcare facilities through HERDS - 96
• Total deaths reported by healthcare facilities through HERDS - 48,898

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only. 

• Total deaths reported to and compiled by the CDC - 61,749

This daily COVID-19 provisional death certificate data reported by NYS DOH and NYC to the CDC includes those who died in any location, including hospitals, nursing homes, adult care facilities, at home, in hospice and other settings. 

• Total vaccine doses administered - 33,974,613
• Total vaccine doses administered over past 24 hours – 104,713
• Total vaccine doses administered over past 7 days - 605,909
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 89.4% 
• Percent of New Yorkers ages 18 and older with completed vaccine series - 80.7% 
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 95.0%
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 83.1%
• Percent of all New Yorkers with at least one vaccine dose - 78.3%
• Percent of all New Yorkers with completed vaccine series - 70.0% 
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 84.6% 
• Percent of all New Yorkers with completed vaccine series (CDC) - 72.0%

Statement by New York City Comptroller Brad Lander on Property Tax Commission Final Report

 

 Following the release of recommendations from the New York City Advisory Commission on Property Tax Reform last week, Comptroller Brad Lander issued the following statement:

“Our property tax system today is both regressive and opaque. Reform is urgent.

“I welcome the recommendations of the Commission on Property Tax Reform, and I agree with their approach to reforming New York City’s property tax system so that similar properties are taxed similarly, while ensuring that owners are not overly burdened by bills that exceed their ability to pay. Our current system is inequitable, and we must fix it – even where that means that my neighbors and I will need to pay more.

“Comprehensive property tax reform must also address the imbalances in how multifamily properties are taxed, so that we don’t continue to disadvantage the development of rental buildings relative to condos. With the 421-a property tax exemption program expiring this year, we have a real opportunity to achieve comprehensive, fair, and efficient reform. The 421-a program has long been an obscenely excessive giveaway to developers masquerading as an affordable housing program. My office will endeavor to provide analysis and policy guidance to achieve comprehensive property tax reform that meets the principles of fairness and predictability, that protects the most vulnerable, and that makes wise use of New Yorkers’ tax dollars.”

Attorney General James Alerts 17 Companies to “Credential Stuffing” Cyberattacks Impacting More Than 1.1 Million Consumers

 

 New York Attorney General Letitia James today announced the results of a sweeping investigation into “credential stuffing” that discovered more than 1.1 million online accounts compromised in cyberattacks at 17 well-known companies. Attorney General James released a “Business Guide for Credential Stuffing Attacks” that details the attacks — which involve repeated, automated attempts to access online accounts using usernames and passwords stolen from other online services — and how business can protect themselves. Credential stuffing has quickly become one of the top attack vectors online. Virtually every website and app use passwords as a means of authenticating its users. Unfortunately, users tend to reuse the same passwords across multiple online services. This allows cybercriminals to use passwords stolen from one company for other online accounts. Following discovery of the attacks, the Office of the Attorney General (OAG) alerted the relevant companies so that passwords could be reset and consumers could be notified. Today’s guide shares lessons learned over the course of the OAG’s investigation, including concrete guidance on steps businesses can take to better protect against credential stuffing attacks. 

“Right now, there are more than 15 billion stolen credentials being circulated across the internet, as users’ personal information stand in jeopardy,” said Attorney General James. “Businesses have the responsibility to take appropriate action to protect their customers’ online accounts and this guide lays out critical safeguards companies can use in the fight against credential stuffing. We must do everything we can to protect consumers’ personal information and their privacy.”

What is Credential Stuffing?

Credential stuffing is a type of cyberattack that involves attempts to log in to online accounts using username and passwords stolen from other, unrelated online services. It relies on the widespread practice of reusing passwords as, chances are, a password used on one website was also used on another. 

In a typical credential stuffing attack, an attacker may submit hundreds of thousands, or even millions, of login attempts using automated, credential-stuffing software and lists of stolen credentials downloaded from the dark web or hacking forums. Although only a small percentage of these attempts will succeed, through the sheer volume of login attempts, a single attack can nevertheless yield thousands of compromised accounts.   

An attacker that gains access to an account can use it in any number of ways. The attacker can, for example, view personal information associated with the account, including a name, an address, and past purchases, and use this information in a phishing attack. If the account has a stored credit card or gift card, the attacker may be able to make fraudulent purchases. Or the attacker could simply sell the login credentials to another individual on the dark web.

Credential stuffing is one of the most common forms of cyberattack. The operator of one large content delivery network reported that it witnessed more than193 billion such attacks in 2020 alone.

The OAG’s Investigation

In light of the growing threat of credential stuffing, the OAG launched an investigation to identify businesses and consumers impacted by this attack vector. Over a period of several months, the OAG monitored several online communities dedicated to credential stuffing. The OAG found thousands of posts that contained customer login credentials that attackers had tested in a credential stuffing attack and confirmed could be used to access customer accounts at websites or on apps. From these posts, the OAG compiled credentials to compromised accounts at 17 well-known online retailers, restaurant chains, and food delivery services. In all, the OAG collected credentials for more than 1.1 million customer accounts, all of which appeared to have been compromised in credential stuffing attacks. 

The OAG alerted each of the 17 companies to the compromised accounts and urged the companies to investigate and take immediate steps to protect impacted customers. Every company did so. The companies’ investigations revealed that most of the attacks had not previously been detected.

The OAG also worked with the companies to determine how attackers had circumvented existing safeguards and provided recommendations for strengthening their data security programs to better secure customer accounts in the future. Over the course of the OAG’s investigation, nearly all of the companies implemented, or made plans to implement, additional safeguards.

The OAG’s Recommendations

Credential stuffing attacks have become so prevalent that they are, for most businesses, unavoidable. Every business that maintains online customer accounts should therefore have a data security program that includes effective safeguards for protecting customers from credential stuffing attacks. Safeguards should be implemented in each of four areas:

1. Defending against credential stuffing attacks,
2. Detecting a credential stuffing breach,
3. Preventing fraud and misuse of customer information, and
4. Responding to a credential stuffing incident.

Attorney General James’ guide presents specific safeguards that have been found to be effective in each of these areas. Some highlights from the guide include the following:

• Three safeguards were found to be highly effective at defending against credential stuffing attacks when properly implemented: 1) bot detection services, 2) multi-factor authentication, and 3) password-less authentication.

• Because no safeguard is 100 percent effective, it is critical that businesses have an effective way of detecting attacks that have bypassed other defenses and compromised customer accounts. Most credential stuffing attacks can be identified by monitoring customer traffic for signs of attacks (for example, spikes in traffic volume of failed login attempts).

• One of the most effective safeguards for preventing attackers from using customers’ stored payment information is re-authentication at the time of purchase by, for example, requiring customers to re-enter a credit card number or security code. It is critically important that re-authentication be required for every method of payment that a business accepts. The OAG encountered many cases in which attackers were able to exploit gaps in fraud protection by making a purchase using a payment method that did not require re-authentication.

• Businesses should have a written incident response plan that includes processes for responding to credential stuffing attacks. The processes should include investigation (e.g., determining whether and which customer accounts were accessed), remediation (e.g., blocking attackers’ continued access to impacted accounts), and notice (e.g., alerting customers whose account were reasonably likely to have been impacted).

State Comptroller Thomas P. DiNapoli Statement on Gov. Hochul's State of the State Address

 

"Kathy Hochul took over as governor at a time of great challenge in New York state and immediately demonstrated her leadership, competence and more collaborative style. Her State of the State message today continued her thoughtful, common-sense approach to governing.

"My office has detailed the stronger-than-expected economic recovery taking place here in New York. Local sales tax receipts continue to improve, the unemployment rate continues to fall and the state, with the addition of important federal funding, has a relatively strong fiscal footing. These are positive developments for New York as we begin 2022, but my office has also identified economic sectors that are still struggling and will need the state to continue its role addressing the health and economic effects of the pandemic.

The pandemic is stretching into a third year and the need for real, hands-on leadership is crucial at this point in our history to beat back the virus and to safely get us back to a more normal way of life. Based on what I’ve seen in these last four months and from what I heard today from her State of the State, I’m confident Governor Hochul can help us achieve this. I look forward to working with her and moving New York forward."