Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - APRIL 21, 2022

 

18 Statewide Deaths Reported Yesterday        

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

"By using the tools, we can protect ourselves from subvariants and keep both ourselves and our loved ones healthy," Governor Hochul said. "Make sure to keep up to date on vaccine doses, get the second booster as soon as you are eligible, and make sure your children are fully vaccinated. Remember to get tested before traveling and ask your doctor about treatments if you test positive."   

Today's data is summarized briefly below:   

• Cases Per 100k - 34.77  
• 7-Day Average Cases Per 100k - 31.36  
• Test Results Reported - 93,758  
• Total Positive - 6,794  
• Percent Positive - 7.42**  
• 7-Day Average Percent Positive - 5.94%**
• Patient Hospitalization - 1,453 (+49)  
• Patients Newly Admitted - 267
• Patients in ICU - 168 (-2)
• Patients in ICU with Intubation - 59 (-7)
• Total Discharges - 294,173 (+235)
• New deaths reported by healthcare facilities through HERDS - 18
• Total deaths reported by healthcare facilities through HERDS - 55,348 

** Due to the test reporting policy change by the federal Department of Health and Human Services (HHS) and several other factors, the most reliable metric to measure virus impact on a community is the case per 100,000 data -- not percent positivity.  

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.   

Important Note: Effective Monday, April 4, the federal Department of Health and Human Services (HHS) is no longer requiring testing facilities that use COVID-19 rapid antigen tests to report negative results. As a result, New York State's percent positive metric will be computed using only lab-reported PCR results. Positive antigen tests will still be reported to New York State and reporting of new daily cases and cases per 100k will continue to include both PCR and antigen tests. Due to this change and other factors, including changes in testing practices, the most reliable metric to measure virus impact on a community is the case per 100,000 data -- not percent positivity.  

• Total deaths reported to and compiled by the CDC - 70,622        

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 - 38,092,465
• Total vaccine doses administered over past 24 hours - 31,933 
• Total vaccine doses administered over past 7 days - 194,811
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 92.3%  
• Percent of New Yorkers ages 18 and older with completed vaccine series - 83.6%  
• 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) - 86.6%  
• Percent of New Yorkers ages 12-17 with at least one vaccine dose (CDC) - 82.9%  
• Percent of New Yorkers ages 12-17 with completed vaccine series (CDC) - 72.9%  
• Percent of all New Yorkers with at least one vaccine dose - 81.8%  
• Percent of all New Yorkers with completed vaccine series - 74.0%  
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 90%  
• Percent of all New Yorkers with completed vaccine series (CDC) - 76.7%  

Each New York City borough's 7-day average percentage of positive test results reported over the last three days is as follows **:     

Borough	Monday, April 18, 2022	Tuesday, April 19, 2022	Wednesday, April 20, 2022
Bronx	1.72%	2.20%	2.41%
Kings	3.18%	3.37%	3.63%
New York	4.85%	4.97%	5.19%
Queens	3.08%	3.45%	3.90%
Richmond	3.45%	3.98%	4.37%

DEC COMMISSIONER SEGGOS ANNOUNCES STATEWIDE DIESEL TRUCK EMISSION ENFORCEMENT BLITZ DURING EARTH WEEK

 

Supports New York State’s Efforts to Reduce Harmful Air Emissions, Particularly in Environmental Justice Communities Disproportionately Overburdened by Pollution

 New York State Department of Environmental Conservation (DEC) Commissioner Basil Seggos today visited Albany’s South End neighborhood to announce a week-long truck enforcement detail happening in disadvantaged communities across the State as part of New York’s commemoration of Earth Week. Environmental Conservation Police Officers (ECOs) from DEC’s Division of Law Enforcement, in coordination with DEC’s Division of Air Resources staff, are conducting the details to protect public health and the environment by inspecting diesel vehicles to ensure compliance with the State’s stringent air regulations. This enforcement blitz will take place in approximately 30 locations to advance efforts to reduce harmful air emissions, especially in disadvantaged communities most impacted by transportation pollution. 

“New York State continues to lead the nation in taking bold action to reduce greenhouse gas emissions and other air pollutants that harm our environment, economy, and affect Environmental Justice communities that are disproportionately impacted by pollution,” Commissioner Basil Seggos said. “This latest diesel truck detail, happening as we commemorate Earth Week, will take dirty trucks off our roads and provides us with a great example of why we need to accelerate our transition from fossil fuels to prevent the damage they cause to our climate and the health of our communities.”

The detail will help identify non-compliant heavy-duty vehicles and reduce emissions of fine particulate matter in disadvantaged communities where there is often significant heavy-duty vehicle traffic. DEC’s Earth Week enforcement details are happening in and around Environmental Justice communities in Suffolk, Nassau, Queens, Bronx, Westchester, Rockland, Orange, Ulster, Dutchess, Schoharie, Delaware, Montgomery, Rensselaer, Clinton, Washington, Warren, Saratoga, St. Lawrence, Jefferson, Oneida, Cortland, Oswego, Broome, Seneca, Schuyler, Steuben, Allegany, Chautauqua, Niagara, and Erie counties.

In addition to conducting emissions inspections on diesel vehicles, ECOs will also engage in targeted enforcement of regulations restricting idling time for diesel vehicles. Reduced idling time cuts down on air pollution and noise, improves fuel economy, and saves diesel operators and consumers money. Officers will also monitor compliance of pesticide applications, solid waste transportation, and open burning as part of the Earth Week detail.

New York prioritizes climate justice in several ways, including in the implementation of the ambitious Climate Leadership and Community Protection Act which requires the State to invest or direct resources to ensure that disadvantaged communities receive at least 35 percent, with the goal of 40 percent, of overall benefits of spending on clean energy and energy efficiency programs. Draft criteria developed by the Climate Justice Working Group will guide the equitable implementation of the Climate Act. The draft criteria include an interactive map and list of communities the criteria would cover for directing programs and projects to reduce air pollution and climate-altering greenhouse gas emissions, provide economic development opportunities, and target clean energy and energy efficiency investments. New Yorkers can comment on the draft disadvantaged communities criteria until July 7, 2022, by going to https://climate.ny.gov. In addition,  the Draft Scoping Plan, which describes recommended policies and actions to help New York meet its climate directives as part of the Climate Act, is available for public comment until June 10, 2022, at https://climate.ny.gov.

The transition to electric vehicles (EVs) is a critical component of improving the air quality in disadvantaged communities and will achieve the goals in the Climate Act. Earlier this year, Governor Kathy Hochul’s State of the State address included several initiatives to support New York’s transition to electric vehicles, including: the commitment to convert the State agency fleet to all zero-emission vehicles by 2035; require the purchase of zero-emission school buses by 2027; and invest $1 billion in electric transportation, mostly directed to charging infrastructure.

In addition, Governor Hochul signed legislation this past September requiring the sale of 100 percent zero-emission cars by 2035, and 100 percent zero-emission trucks and buses by 2045. DEC is also enacting regulatory requirements that are driving a transition to EVs as more and more electric vehicles are now available across the market, from passenger cars to SUVs and pickup trucks. This includes New York’s adoption of California rules requiring vehicle manufacturers to sell an increasing amount of zero-emission cars and light trucks, and issuing the Advanced Clean Truck Rule, which requires manufacturers of trucks and buses to sell a certain percentage of zero-emission trucks and buses.

Existing programs to help fund the transition to zero-emission vehicles include the New York Truck Voucher Incentive Program (NYTVIP), administered by the New York State Energy Research and Development Authority (NYSERDA), which helps make it easier for fleets to adopt zero-emission vehicle technologies while removing the oldest, dirtiest diesel engines from New York roads. NYTVIP provides vouchers, or discounts, to fleets across New York State that purchase or lease medium- and heavy-duty zero-emission battery electric or hydrogen fuel cell electric vehicles. The New York State Clean Diesel Grant Program (NYSCDGP) is another initiative designed to improve air quality by reducing harmful diesel exhaust emissions that usually come from older trucks, marine vessels, and other diesel-powered equipment. NYSCDGP has received funding through the Diesel Emission Reduction Act since 2008 to provide opportunities and incentives to public and private entities with eligible projects. DEC also administers the Municipal ZEV Rebate through the Climate Smart Communities Program to provide rebates to cities, towns, villages, counties, and New York City to purchase or lease eligible new zero-emission vehicles for fleet use.

For more information visit Heavy Duty Vehicles - NYS Dept. of Environmental Conservation.

Former Brooklyn Supreme Court Justice Sentenced To 15 Months In Prison For Obstructing Federal Investigation Of Misconduct At Municipal Credit Union

 

 Damian Williams, United States Attorney for the Southern District of New York, announced that SYLVIA ASH, a former justice of the New York State Supreme Court and chair of the Board of Directors of Municipal Credit Union (“MCU”), was sentenced today in Manhattan federal court to 15 months in prison for conspiracy to obstruct justice, obstruction of justice, and making a false statement to a federal agent.  These charges arose from a scheme to impede the federal criminal investigation into fraud and corruption at MCU, a non-profit, multibillion-dollar financial institution, including misconduct committed by Kam Wong, the former chief executive officer (“CEO”), and Joseph Guagliardo, a former New York City Police Department Officer and member of MCU’s Supervisory Committee.  Wong and Guagliardo were charged separately and previously pled guilty to embezzlement from MCU.  ASH was convicted in December 2021 after a two-week jury trial before U.S. District Judge Lewis A. Kaplan, who imposed today’s sentence. 

U.S. Attorney Damian Williams said: “While serving as a sitting state judge, Sylvia Ash took repeated steps, over multiple months, to seek to obstruct the federal criminal investigation into misconduct at MCU that took place during Ash’s tenure as chair of its Board of Directors.  Ash agreed to do so with the now imprisoned former CEO of the credit union, who provided her with a steady stream of benefits from MCU, including after she was directed to resign from MCU’s board.  Today’s sentence sends a clear message that those who attempt to thwart a federal investigation face serious consequences for that corrosive conduct.”

In pronouncing the sentence, Judge Kaplan said ASH’s “crimes struck at the heart of the criminal justice system.”

According to the Complaint, Indictment, Superseding Indictment, publicly available information, court filings, and evidence presented during the trial in Manhattan federal court:

Municipal Credit Union

MCU is a non-profit financial institution headquartered in New York, New York, which is federally insured by the National Credit Union Administration (“NCUA”).  MCU is the oldest credit union in New York State and one of the oldest and largest in the country, providing banking services to more than 590,000 members, and with more than $4.2 billion in member accounts, each of which is insured for at least $250,000 by the National Credit Union Share Insurance Fund, which is administered by the NCUA.  Membership in MCU is generally available to employees of New York City and its agencies, employees of the federal and New York state governments who work in New York City, and employees of hospitals, nursing homes, and similar facilities located within New York State.

At all relevant times, MCU was overseen by a Board of Directors (the “Board”) and a Supervisory Committee, each of which was composed of members of MCU, who were not supposed to be compensated.  As a result of severe deficiencies in the Board’s and the Supervisory Committee’s oversight of the credit union, which came to light in connection with the federal investigation, the New York Department of Financial Services (“DFS”) removed the members of the Supervisory Committee in May 2018 and the Board in June 2018.  Subsequently, DFS appointed NCUA as the conservator for the credit union.  In or about February 2022, MCU successfully emerged from conservatorship under new leadership.

ASH

ASH served as a judge in the New York State court system from approximately 2006 through March 2022, first as a Kings County Civil Court Judge, and then, starting in 2011, as a Kings County Supreme Court Justice.  In or about January 2016, ASH was appointed as the presiding judge in the Kings County Supreme Court’s Commercial Division.  After the charges in this case were unsealed, ASH was suspended from her position.  In or about March 2022, after ASH was convicted, she vacated her judicial office. 

ASH served on MCU’s Board from in or about May 2008 until on or about August 15, 2016, when she resigned.  From in or about May 2015 until her resignation, ASH served as the chair of the Board.  ASH resigned after a complaint was filed against her by the New York State Commission on Judicial Conduct arising from a conflict of interest between her position as a state judge and her membership on MCU’s Board.  More than a year before her resignation, ASH had been instructed to resign from MCU’s Board by the Advisory Committee on Judicial Ethics, which instruction she disregarded.

From at least in or about 2012 through 2016, while serving as an MCU Board member and while Wong was CEO, ASH received annually tens of thousands of dollars in reimbursements and other benefits from MCU, many of which were personal in nature, and not business-related, including airfare, hotels, food and entertainment expenses for her and a guest to attend conferences both domestically and abroad, annual birthday parties at a minor league baseball stadium, payment for phone and cable bills, and electronic devices.  Even after her resignation from the Board, Wong continued to provide or cause MCU to provide ASH with benefits, such as Apple devices and sports tickets.  As a sitting state judge, ASH was required to report both her board service and gifts and benefits she received from any outside sources on an annual state disclosure form.  But between at least 2012 and 2018, ASH never reported her board service nor any gifts or benefits from MCU.

ASH’s Obstruction of Justice

In January 2018, after Wong, MCU’s then-CEO, had been approached by federal law enforcement agents investigating apparent financial misconduct by Wong, in an attempt to protect Wong, ASH agreed to and did sign a false and misleading memorandum purporting to explain and justify millions of dollars Wong had received from MCU.  Wong subsequently provided that false and misleading memorandum to federal agents in an attempt to demonstrate that the millions of dollars had purportedly been orally approved for him to receive by ASH in June 2015, when she was chair of the Board.  However, in truth, neither ASH nor the Board had approved the payment of those funds.

On March 1, 2018, shortly after Wong was placed on administrative leave by MCU, ASH was interviewed about the memorandum she signed for Wong.  During that interview, ASH admitted that the memorandum was not accurate, but attempted to justify the money that Wong received by stating that MCU’s then-current general counsel had told her that Wong’s employment contract gave him the option of receiving such money.  That statement was false.

On March 13, 2018, ASH was served with a federal grand jury subpoena (the “First Subpoena”), which required the production of documents related to various matters, including Wong’s compensation, and any communications with Wong through the date of the First Subpoena.  On April 6, 2018, during a telephonic interview with a federal agent, ASH falsely stated that she did not have any materials responsive to the First Subpoena.

On June 8, 2018—after Wong was charged with embezzlement from MCU and the Government executed a judicially-authorized search of the residence of Guagliardo—ASH was interviewed by telephone for a second time about the First Subpoena.  During that interview, ASH again falsely stated that she did not have any materials responsive to the First Subpoena. 

On June 18, 2018, ASH was served with a second federal grand jury subpoena (the “Second Subpoena”), which required the production of, among other things, all correspondence with Wong and Guagliardo; all documents regarding any criminal investigation, internal investigation, or audit related to Wong; and all documents regarding items of value ASH received from MCU, Wong, or Guagliardo.  Shortly afterward, ASH went to an Apple store and wiped an iPhone X that Wong had provided her in January 2018.  In addition, ASH deleted emails from her Gmail account, including all of her emails with Guagliardo, none of which she produced in response to either of the two federal grand jury subpoenas directed to her.  ASH also later wiped two MCU-issued iPads she had received.

On July 6, 2018, on ASH’s behalf, her then-counsel produced materials to the Government in response to the Second Subpoena.  This production was materially incomplete, and did not contain text messages, emails, and other documents ASH possessed or had under her custody or control that were responsive to the Second Subpoena.

On July 9, 2018, ASH attended a voluntary interview with the U.S. Attorney’s Office.  During this interview, while accompanied by her then-counsel, ASH made multiple false statements, including repeating false statements regarding her purported conversations with MCU’s former general counsel about Wong’s receipt of cash payments and falsely claiming that she and her aunt took a trip to Las Vegas paid for by MCU, including airfare, lodging, and entertainment expenses, after she resigned because all of her travel arrangements were paid for by MCU before she resigned, when in truth all of the expenses were paid for after she resigned.  

On or about October 11, 2019, ASH was arrested, and her cellphone was seized.  After obtaining a judicially authorized search warrant, ASH’s phone was searched, which revealed, among other things, numerous text messages, including with Wong and Guagliardo, that were concealed in response to the First and Second Subpoenas.

In addition to her prison term, ASH, 64, of Brooklyn, New York, was sentenced to a $80,000 fine, and two years of supervised release, including a special condition of twenty hours of community service per week while on supervised release.  The court reserved the decision on restitution to MCU. 

On June 4, 2019, Wong was sentenced to 66 months’ imprisonment for embezzlement from MCU and was ordered to forfeit $9,890,375 and to pay restitution in the same amount to MCU.

On July 23, 2020, Guagliardo was sentenced to 27 months’ imprisonment for embezzlement from MCU and was ordered to forfeit $425,514 and to pay $468,189 in restitution to MCU. 

U.S. Attorney Williams praised the outstanding work of the Special Agents of the United States Attorney’s Office.  Mr. Williams also thanked the New York County District Attorney’s Office and DFS for their assistance.

MAYOR ADAMS AND ATTORNEY GENERAL JAMES FIGHT OPIOID CRISIS WITH FIRST OF $256 MILLION IN PAYMENTS FOR NEW YORK CITY

 

Nearly $89 Million to Be Distributed to New York City This Year From Historic Opioid Settlements

 

Funds Will Be Used for Opioid Treatment and Prevention Across All Five Boroughs

  New York City Mayor Eric Adams and New York Attorney General Letitia James today announced the first of up to $256 million coming to New York City, beginning this week, to combat the opioid crisis that continues to ravage communities across the city. To address record overdose rates, New York City will receive $88.9 million this year — $11.5 million this week alone — to fund opioid prevention and treatment programs in all five boroughs. The funds are the first round of payments from the approximately $1.5 billion that Attorney General James has secured for the state from the historic settlements with manufacturers and distributors of opioids.

 

“Big Pharma raked in billions of dollars while people’s lives were lost and destroyed from opioids,” said Mayor Adams. “One New Yorker dies from an opioid overdose every four hours. Too many New Yorkers have suffered from death and addiction and too many families and communities have been torn apart. It’s time to end this public health crisis, and the $256 million New York City will be receiving thanks to Attorney General James’ good work will be critical in funding opioid treatment programs, education efforts, and other support programs across all five boroughs. This money will help us save lives and I thank Attorney General James for her partnership in fighting to end the opioid crisis.”

 

“Pharmaceutical companies that flooded New York communities with opioids are finally paying for the harm and devastation they caused,” said Attorney General James. “For far too long, opioid makers and distributors created more pain and suffering than they claimed to cure. The settlements my office secured from these companies are a result of our unwavering commitment to hold the powerful accountable and protect New Yorkers. Mayor Adams has been a dedicated partner in this fight, and we will not rest until our communities are free from the scourge of opioids. The money distributed today will help us turn the tide on the opioid crisis and ensure that every New Yorker struggling with addiction gets the help they need.”

 

Today’s payments are the first of many to New York City to tackle the opioid crisis. The first payments come from settlements with opioid distributors — AmerisourceBergen Corporation, Cardinal Health, Inc., and McKesson Corporation. Later this year, New York City will receive additional payments from the settlements with Endo Health Solutions, Janssen Pharmaceuticals, and Allergan.

 

As a result of these historic opioid settlements, New York City will receive $88,943,457.57 in 2022, and up to $256,458,972.37 over the course of the payout of the different settlements. More funds could possibly be awarded from a trial victory against Teva Pharmaceuticals USA, where a dollar figure has not yet been determined.

 

Today’s announcement also goes hand-in-hand with an announcement made by U.S. President Joseph Biden today, where he reiterated his commitment to fighting the opioid epidemic. The new strategy announced today tackles two major drivers of overdoses — untreated addiction and drug trafficking — and seeks to remove barriers to effective treatment, as well as to harm reduction services. At the same time, the president’s strategy lays out actions that will disrupt drug traffickers’ financial networks, supply chains, and delivery routes.

 

“So many fellow New Yorkers across the city have been touched by the opioid epidemic,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “Families have lost a mom, a dad, a sister, or a brother to addiction or overdose. Today’s announcement gives us hope though; it is about holding pharmaceutical companies accountable and about investing in programs and systems that work to support individuals and families to work toward a healthier tomorrow. Thank you to the mayor and to the attorney general for their advocacy and commitment to these issues and to the wellbeing of every New Yorker.”

 

“We have lost too many New Yorkers — family members, friends, and neighbors — to overdose,” said New York City Department of Health and Mental Hygiene (DOHMH) Commissioner Dr. Ashwin Vasan. “It’s critical that we continue to invest in bold and innovative solutions to this crisis and help more New Yorkers get connected to harm reduction and treatment services. I thank Mayor Adams and Attorney General James for their leadership on this important public health issue.”

 

“Mayor Eric Adams and Attorney General Letitia James have long fought to address the opioid epidemic that has ravaged this city, and I’m thankful for this settlement that will go to help our patients,” said Dr. Mitchell Katz, president and CEO, NYC Health + Hospitals. “From our Street Health Outreach and Wellness vans to our inpatient behavioral health services, we take care of all New Yorkers no matter where they are and offer whatever treatment they need.”

 

“Our work on the frontlines of the opioid crisis puts us in direct touch with families affected by unimaginable loss, and we must leverage those special bonds of trust to prevent additional overdose deaths,” said New York City Chief Medical Examiner Dr. Jason Graham. “This funding can support and expand our critical activities to provide real-time data to partner agencies, generate a comprehensive picture of what led to each overdose fatality, and connect surviving family members in need with life-saving services. This is how we can honor the lives lost to the opioid epidemic.” 

 

“NYC Health + Hospitals is the leading provider of substance use disorder treatment for women and families with addiction,” said Dr. Machelle Allen, chief medical officer, NYC Health + Hospitals. “We will invest these dollars in the development of family centered models of prevention and care, initiated during pregnancy, and continuing throughout early childhood development. I thank Mayor Adams and Attorney General James for their continued fight for our patients.”

 

“This funding couldn’t come at a more critical time for our patients and for our workforce,” said Rebecca Linn-Walton, PhD, LCSW, senior assistant vice president in the Office of Behavioral Health, NYC Health + Hospitals. “Substance Use Disorder is pain shared not just between patients, but families, communities, and the health care workers who treat them. This much-needed resource will save lives. What a meaningful thanks to those who have worked so tirelessly to treat substance use throughout the crisis, in the middle of a pandemic. We thank you. As someone whose life was saved by treatment, I thank you too.”

 

The New York City Department of Health and Mental Hygiene (DOHMH) recently released data showing a record number of overdose deaths citywide — 1,233 in just the first six months of 2021 compared to 965 over the same period in 2020 — which also match nationwide trends. Funds from these opioid settlements will help support citywide addiction prevention, treatment, recovery and harm reduction programs for all New Yorkers.

 

Pursuant to the new law establishing the opioid settlement fund, all funds collected by the state from opioid settlements or litigation victories will be allocated specifically for abatement efforts in communities devastated by the opioid epidemic and will not go towards the state’s general fund. In the years to come, the state’s Opioid Settlement Board will help distribute the up to $1.5 billion to communities across New York state to fight the opioid crisis. DOHMH Commissioner Dr. Vasan was appointed as a member of the Opioid Settlement Board by Mayor Adams earlier this month.

Former NYPD Police Officer Sentenced to 97 Months' Imprisonment for Bribery and Drug Trafficking Offenses Robert Smith Referred to Himself as “One of the Most Corrupt Cops” in the 105

 

Robert Smith Referred to Himself as “One of the Most Corrupt Cops” in the 105th Precinct

 In federal court in Brooklyn, Robert Smith, a former New York City Police Department (“NYPD”) police officer, was sentenced by United States District Judge Rachel P. Kovner to 97 months of imprisonment for using interstate facilities to commit bribery and attempting to transport heroin. During the relevant period, Smith was a NYPD police officer assigned to the 105th Precinct in Queens, retiring in March 2020. Smith pleaded guilty to the charges in October 2021. Smith’s co-defendant, Heather Busch, also a former NYPD police officer, was sentenced in February 2022 to six months’ imprisonment, after pleading guilty in August 2021 to using interstate facilities to commit bribery. Another co-defendant, Robert Hassett, also a former NYPD police officer, pleaded guilty in October 2021 to conspiracy to violate the Travel Act and is awaiting sentencing.

Breon Peace, United States Attorney for the Eastern District of New York; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Keechant L. Sewell, Commissioner, NYPD, announced the sentence.

“Corruption not only endangers the communities that police officers are sworn to serve, but it also corrodes the public’s trust in law enforcement and the criminal justice system. Robert Smith and his co-defendants were corrupt officers who sold out their badges for personal gain without regard for the betrayal and the harm they caused the NYPD and their fellow officers,” stated United States Attorney Peace. “For his crimes, Smith, self-described as ‘one of the most corrupt cops in the 105’, deservedly will spend years in prison. Today’s sentence should send a message that this Office, together with our law enforcement partners, will work diligently to investigate and prosecute corrupt public servants who exploit their positions of power for profit.”

“We have zero tolerance for corruption of any kind within the NYPD,” stated NYPD Commissioner Sewell. “We and our law-enforcement partners will continue to vigorously pursue corrupt public servants who exploit their positions for personal gain. In addition to eroding public trust in law enforcement, their disgraceful actions tarnish the reputation of the many thousands of police officers who honorably serve our communities each day.”

Smith engaged in several corrupt schemes to solicit and receive bribes while employed by the NYPD. Upon his retirement from the NYPD, Smith agreed to transport illegal drugs while armed with a gun in exchange for cash payments. In recordings obtained by the government during the investigation, Smith repeatedly referred to himself in criminal terms as, for example, “one of the most corrupt cops in the 105,” a “perp[] that got away,” and someone who, had he not been an NYPD officer, would have been “locked up so many times.”

The Tow Truck Scheme

Beginning in September 2016, NYPD Officers Smith and Hassett responded to automobile accidents by directing the damaged vehicles to a licensed tow trucking and automobile repair business (the “Business”) operated by an individual (the “Individual”), instead of using the NYPD’s Directed Accident Response Program (“DARP”), which requires NYPD officers to identify an appropriate licensed tow trucking business to respond to the scene of the automobile accident and remove the damaged vehicles from the scene. Smith and Hassett bypassed DARP and directed damaged vehicles directly to the Business in exchange for thousands of dollars in cash bribe payments. Smith and Hassett continued to participate in the scheme until at least June 2017.

In November 2019, Smith resumed his participation in the scheme and continued to steer vehicles damaged in automobile accidents to the Business in exchange for cash. Beginning in January 2020, Smith discussed his plan to recruit Busch to participate in the scheme in advance of his retirement from the NYPD. In March 2020, Busch, at Smith’s invitation, met with Smith and the Individual and agreed to participate in the scheme. Thereafter, Busch began steering vehicles damaged in automobile accidents to the Business in exchange for cash bribe payments, instead of utilizing DARP as required.

The Victim Database Scheme

Beginning in January 2020, Smith and Hassett obtained the names and identifying information of recent automobile accident victims from NYPD databases and provided that information to the Individual in exchange for cash. Smith and Hassett understood that the Individual would sell that information to physical therapy businesses and personal injury attorneys so that they could seek to solicit the automobile accident victims as customers.

Hassett accessed NYPD databases on numerous occasions in violation of NYPD regulations for the purpose of obtaining the names and identifying information of victims of automobile accidents. Hassett then arranged for that information to be delivered to the Individual, sometimes through Smith. In total, between January 2020 and March 2020, Smith and Hassett sold the names and identifying information of more than 100 victims to the Individual, in exchange for more than $7,000 in cash.

The Armed Drug Trafficking Scheme

Beginning in January 2020, Smith sought opportunities from the Individual to transport illegal narcotics, in exchange for payment, upon Smith’s retirement from the NYPD. In June 2020, Smith met with two undercover law enforcement officers posing as narcotics traffickers to discuss his interest in participating in a scheme to traffic drugs and told them he could carry a firearm and his retired NYPD identification while he was transporting the drugs. In July 2020, Smith met with a third undercover law enforcement officer and accepted a bag containing what Smith believed to be a kilogram of heroin. Smith transported the bag to a location in Queens where he delivered it to another undercover law enforcement officer in exchange for a payment of approximately $1,200 in cash.

The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Ryan C. Harris and Nicholas J. Moscow are in charge of the prosecution.

New York City and State Pension Funds Launch “VOTE NO” Campaign Against Against the Re-election of Two Amazon Board Directors Responsible for Oversight of Human Capital Management

 

Citing Unresponsiveness to Shareholder Concerns About High Injury Rates, Unsustainable Turnover, and Labor Rights Violations, NYC and NYS Pension Trustees Urge Votes ‘AGAINST’ Amazon Directors Huttenlocher and McGrath.

 New York City Comptroller Brad Lander, New York State Comptroller Thomas P. DiNapoli, and trustees of all five of the New York City Retirement Systems launched a campaign urging shareholders to vote against the re-election of two Amazon board directors responsible for human capital management. The New York City Retirement System and New York State Common Retirement Fund are leading an institutional investor group with 1.7 million combined shares as of February 28, 2022 currently valued at approximately $5.3 billion dollars.

In a letter to shareholders filed today with the U.S. Securities and Exchange Commission, Comptrollers Lander and DiNapoli detailed concerns regarding the unresponsiveness and insufficient oversight by the board of Amazon’s human capital management challenges. The two retirement systems urged shareholders to vote against the re-election of Daniel Huttenlocher and Judith McGrath, longstanding members of Amazon’s Leadership Development and Compensation Committee. They cited Amazon’s high injury rate relative to peers, unsustainable turnover, and labor rights violations, as well as high executive compensation as evidence of the Committee’s misplaced priorities.

Comptrollers Lander and DiNapoli sought to meet with the Committee in March 2022 to discuss how the board exercises oversight over management’s performance with respect to their employees, particularly in the areas of health and safety, freedom of association, and diversity, equity and inclusion. Amazon declined to make board directors available for a meeting. This follows a request that New York City made to engage with the Committee back in 2020, which was similarly denied. For more on the campaign, visit: http://deliveraccountability.com/.

“As long-term investors, we are deeply concerned about the lack of independent oversight by Amazon’s board over serious workforce concerns that threaten both the well-being of their employees and the long-term value of the company. High rates of injury, rapid turnover, and aggressive anti-union activity that violates workers’ rights have created an unsustainable workplace for Amazon’s 1.6 million workers. A thriving, growing Amazon in the years ahead will require doing right by their workers. I urge shareholders to join us in voting against directors Huttenlocher and McGrath who have failed to provide adequate oversight of the company’s management of workforce issues,” said New York City Comptroller Brad Lander.

“We have continuously seen significant concerns about how Amazon protects its workers health and safety, and upholds its own policies on human rights and freedom of association. Shareholders need effective, independent board oversight of the company’s policies and practices related to its workforce, but unfortunately, these two directors have repeatedly failed to provide it. It’s time for responsible and engaged directors to take their place on Amazon’s board,” said New York State Comptroller Thomas P. DiNapoli. 

“The conditions in Amazon warehouses are unsafe, inhumane, and unsustainable for Amazon’s workers and cannot be tolerated by its shareholders,” said Public Advocate Jumaane D. Williams. “Coupled with Amazon’s hostile relationship with its workforce and unethical anti-union activity, it’s clear that something needs to change operationally, culturally, and in senior management. Amazon must invest in its own employees if it is to remain a strong, stable investment for New York City’s employees. As a voting member of the New York City Employees’ Retirement System Board of Trustees, I ask Amazon shareholders to vote against the re-election of Daniel P. Huttenlocher and Judith A. McGrath as they have proven time and time again to overlook serious and grave issues in Amazon’s warehouses, both in New York City and across the country.”

“As Executive Director of District Council 37, New York City’s largest municipal union, and as  a NYCERS Trustee, DC 37 stands in support of New York City and State Pension Funds’ launch of a “Vote No” campaign against two Amazon Board members responsible for oversight of human capital management.  Amazon has an appalling record with regards to  anti-union actions and suppressing workers’ rights, has high injury rates relative to its industry and excessively high employee turnover.   As a NYCERS trustee, I look to NYCERS and the other New York City Retirement Systems, City Comptroller Lander and State Comptroller DiNapoli to move Amazon to respect its workers by providing them with safe working conditions and a living wage, and recognizing their right to organize.  DC 37 supports all workers’ efforts to improve their lives,” said Henry Garrido, Executive Director of District Council 37.

Trustees of the New York City Retirement Systems are as follows:

New York City Employees’ Retirement System (NYCERS): New York City Comptroller Brad Lander; Mayor Eric Adams’ Representative Preston Niblack (Chair); New York City Public Advocate Jumaane Williams; Borough Presidents: Mark Levine (Manhattan), Donovan Richards (Queens), Antonio Reynoso (Brooklyn), Vito Fossella (Staten Island), and Vanessa L. Gibson (Bronx); Henry Garrido, Executive Director, District Council 37, AFSCME; Tony Utano, President Transport Workers Union Local 100; and Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.

Teachers’ Retirement System (TRS): New York City Comptroller Brad Lander; Mayor Eric Adams’ Appointee Philip Dukes; Chancellor’s Representative, Lindsey Oates, New York City Department of Education; and Debra Penny (Chair), Thomas Brown and David Kazansky, all of the United Federation of Teachers.

New York City Police Pension Fund (PPF): New York City Comptroller Brad Lander; Mayor Eric Adams’ Representative Philip Dukes; New York City Finance Commissioner Preston Niblack; New York City Police Commissioner Keechant Sewell (Chair); Chris Monahan, Captains Endowment Association; Louis Turco, Lieutenants Benevolent Association; Vincent Vallelong, Sergeants Benevolent Association; Paul DiGiacomo, Detectives Endowment Association; and Patrick Lynch, John Puglissi, Joseph Alejandro, and Thomas Gilmore, all of the NYC Police Benevolent Association.

New York City Fire Pension Fund (Fire): New York City Comptroller Brad Lander; Mayor Eric Adams’ Representative Philip Dukes; Acting New York City Fire Commissioner Laura Kavanagh (Chair); New York City Finance Commissioner Preston Niblack; Andrew Ansbro, President, Robert Eustace, Vice President, Edward Brown, Treasurer, and Eric Bischoff, Staten Island Representative and Chair, Uniformed Firefighters Association of Greater New York; Liam Guilfoyle, Captains’ Rep.; Paul Mannix, Chiefs’ Rep., and Christopher Jensen, Lieutenants’ Rep., Uniformed Fire Officers Association; and Peter Devita, Marine Engineers Association.

Board of Education Retirement System (BERS): Schools Chancellor David C. Banks, Represented by Lindsey Oates; Mayoral: Tom Allon, Vasthi Acosta, Gregory Faulkner, Dr. Angela Green, Anthony Lopez, Alan Ong, Gladys Ward, Karina Tavera; Thomas Sheppard (CEC); Geneal Chacon (Bronx), Tazin Azad (Brooklyn), Kaliris Salas-Ramirez (Manhattan), Jaclyn Tacoronte (Staten Island), and Deborah Dillingham (Queens); and employee members John Maderich of the IUOE Local 891 and Donald Nesbit of District Council 37, Local 372.

Attorney General James and Consumer Financial Protection Bureau Sue Major International Money Transfer Provider for Violating Consumer Protection Laws

MoneyGram Repeatedly Failed to Deliver Funds to Loved Ones Abroad in a Timely Manner, or Provide Timely Refunds 

 New York Attorney General Letitia James and the Consumer Financial Protection Bureau (CFPB) today filed a lawsuit against one of the largest international money transfer providers in the nation — MoneyGram International, Inc. and MoneyGram Payment Systems, Inc. (MoneyGram) — for repeatedly violating consumer protection laws. MoneyGram failed to deliver funds to recipients in a timely manner or refund consumers when transfers were delayed. MoneyGram’s unfair practices largely impacted immigrant communities who relied on the company to send money back home to loved ones. The lawsuit alleges that MoneyGram did not accurately notify consumers when their transfers would be available to recipients abroad and failed to implement required policies and procedures designed to help protect consumers, essentially leaving consumers in the dark about their money transfers when something went wrong. Attorney General James and the CFPB’s lawsuit seeks to protect consumers by stopping MoneyGram from continuing its unfair and unlawful practices.

“Our immigrant communities trusted MoneyGram to send their hard-earned money back home to loved ones but MoneyGram let them down,” said Attorney General James. “Consumers deserve to know where their money went. Companies have an obligation to be transparent with consumers, treat them fairly, and follow the law, but MoneyGram repeatedly failed to do so. Today we are suing MoneyGram to correct their unlawful practices and prevent them from further harming consumers. New Yorkers can trust that my office will always protect them from unscrupulous companies.”

“MoneyGram spent years failing its customers and failing to follow the law, ignoring customer complaints and government warnings in the process,” said CFPB Director Rohit Chopra. “MoneyGram’s long pattern of misconduct must be halted.”

MoneyGram is a non-bank financial services company that enables consumers to send money, known as remittances, from the United States to more than 200 countries and territories. The company has 430,000 locations in the U.S. and worldwide, and also operates through a digital platform. A significant portion of the company’s money-transfer transactions are initiated by immigrants or refugees in the U.S. sending money back to their native countries. Hundreds of thousands of New Yorkers use MoneyGram every year for millions of transactions. For example, in 2020, more than 600,000 individuals sent and received money at MoneyGram locations in New York over 3.8 million times. People who send remittances are often low-income or facing other financial constraints and are less likely to have extra money to replace delayed money intended for family or other recipients abroad.

MoneyGram violated federal and state consumer protection laws. Specifically, the Office of the Attorney General (OAG) and the CFPB allege that MoneyGram:

• Left its customers empty handed when funds were not made available to recipients on time: As a money transfer provider, MoneyGram has to comply with the Bank Secrecy Act and anti-money laundering laws and therefore has to conduct screening before transactions are complete. But even after completing the necessary screenings, MoneyGram held remittance transfers in limbo after they were cleared, which in some instances resulted in needless delays of days or even weeks before it completed the transfers or refunded the money to the sender.

• Failed to accurately disclose the date of availability of funds: MoneyGram repeatedly failed to provide fund availability dates that were accurate. Dates disclosed to consumers, repeatedly, were wrong such that there were delays in making funds available to recipients.

• Failed to follow error-resolutions requirements: MoneyGram failed to promptly investigate errors, to make a determination of whether an error occurred within a required time period, to report the result of an error investigation to the consumer within a required time period, to provide a sufficient written explanation of findings or provide required notice of the sender’s right to request documents related to the investigation, and to provide fee refunds to remedy certain errors.

• Failed to develop and maintain policies and procedures: MoneyGram failed to put in place policies and procedures designed to ensure compliance with the law, including error-resolution requirements and document retention obligations. And, accordingly, MoneyGram failed to retain certain evidence.

MoneyGram is a repeat offender of consumer protection and anti-fraud laws. In 2009, the company agreed to pay $18 million to settle fraud charges brought by the Federal Trade Commission, and was required to implement a comprehensive anti-fraud and agent-monitoring program. In 2012, MoneyGram agreed to forfeit $100 million and enter into a deferred prosecution agreement with the U.S. Department of Justice, admitting it criminally aided and abetted wire fraud and failed to maintain an effective anti-money laundering program. In 2016, MoneyGram agreed to pay $13 million to 48 states, including New York, and the District of Columbia, to compensate defrauded consumers and resolve a multi-state investigation into MoneyGram’s anti-fraud practices. In 2018, MoneyGram agreed to pay $125 million, again to the FTC, to settle allegations that it failed to take steps required under the agency’s 2009 order. According to the FTC, that payment was also part of a global settlement that resolved allegations that MoneyGram violated the 2012 deferred prosecution agreement with the DOJ. In March of 2022, MoneyGram agreed to pay $8.25 million for failing to adequately monitor agents engaging in suspicious transactions to China.

Attorney General James and the CFPB’s lawsuit seeks monetary relief for impacted consumers, an injunction to stop future violations, and imposition of civil money penalties.

Governor Hochul Announces Playbook for Advancing Carbon Neutrality in High Rise Buildings

 

Playbook Created in Partnership with NYSERDA and Four Leading Real Estate Developers - Empire State Realty Trust, the Durst Organization, Hudson Square Properties, and Vornado

Supports Climate Leadership and Community Protection Act Goals to Reduce Greenhouse Gas Emissions 40 Percent by 2030 and 85 Percent by 2050

 Governor Kathy Hochul today, joined by President Bill Clinton and Mayor Eric Adams announced "The Empire Building Playbook: An Owner's Guide to Low Carbon Retrofits" - a free online resource to support building owners advancing carbon neutrality in high rise buildings. The Playbook was created in partnership with the New York State Energy Research and Development Authority, Empire State Realty Trust, The Durst Organization, Hudson Square Properties, a joint venture comprised of Trinity Church Wall Street, Norges Bank Investment Management, and Hines, and Vornado. This joint venture is four of ten real estate partners participating in New York State Energy Research and Development Authority's $50 million Empire Building Challenge. This guiding framework includes information from the partners who share their processes and lessons learned to develop the business case for profitable investment in significant energy and carbon reducing technologies, in support of the State's nation-leading Climate Leadership and Community Protection Act goal of reducing carbon emissions 40 percent by 2030 and 85 percent by 2050.

"Through public-private partnerships like the Empire Building Challenge, we are reducing New York's reliance on fossil fuels by introducing low-carbon solutions that will advance our state's nation-leading climate agenda," Governor Hochul said. "The Empire Building Playbook will be a critical tool to combat climate change and reduce harmful emissions across our state, all while moving forward with the green economy, creating clean energy job opportunities, and making the most iconic buildings in the New York skyline more sustainable."