Wednesday, May 11, 2022
State Senator Gustavo Rivera - Dakota’s Law Passes the Legislature
Statement From Governor Kathy Hochul on Call to Revoke Firearms License of Nation's Largest Supplier of Ghost Guns
"I fully support the call from Mayor Adams, NYPD Commissioner Sewell, and the Everytown for Gun Safety Action Fund to revoke the federal firearms license of Polymer80 the largest source of ghost guns used in crimes. Gun violence is a public health and public safety crisis, and all levels of government must continue working together on aggressive action to crack down on the distribution and possession of dangerous weapons.
"To combat the rise of ghost guns, I took action in October to criminalize the sale of ghost guns and require gunsmiths to register firearms they assemble. I also established a nation-leading Interstate Task Force on Illegal Guns, bringing together ten states, federal agencies, and local law enforcement agencies. The Task Force is having an immediate impact, taking hundreds of guns off the streets, and the State Police has specifically seized more than 50 ghost guns this year to date, working with local and interstate jurisdictions. I am grateful to all of the law enforcement partners who are working together on these vital efforts.
"While we have made progress, my team and I have been taking a close look at all of our gun laws to ensure we have every tool at our disposal and close every loophole to protect New Yorkers. I pledge that we will continue to work with our partners at the local, state and federal levels to crack down on the distribution and possession of dangerous weapons, get guns off our streets, and save lives."
New York Racehorse Veterinarian And Standardbred Trainer Plead Guilty In Federal Doping Case
Veterinarian Louis Grasso and Racehorse Trainer Richard Banca Used Their Positions to Acquire, Distribute and Administer Prohibited Performance Enhancing Drugs
Damian Williams, the United States Attorney for the Southern District of New York, announced that defendants LOUIS GRASSO and RICHARD BANCA pled guilty to their respective roles in the distribution of adulterated and misbranded drugs with the intent to defraud and mislead, in connection with the charges filed in United States v. Grasso et al., 20 Cr. 163 (OKC). Both GRASSO and BANCA pled guilty before U.S. District Judge P. Kevin Castel. GRASSO and BANCA will each be sentenced by Judge Castel on September 6, 2022.
U.S. Attorney Damian Williams said: “Grasso and Banca represent the corruption and greed of those in the racehorse industry looking to win at any cost. In peddling illegal drugs and selling prescriptions to corrupt trainers, Louis Grasso abdicated his responsibilities as a medical professional to ensure the safety and health of the racehorses he “treated.” By injecting horses with unnecessary and, at times, unknown drugs, Grasso risked the lives and welfare of the animals under his care, all in service of helping corrupt racehorse trainers like Banca line their pockets through fraud. These latest convictions demonstrate the commitment of this Office and of our partners at the FBI to hold accountable individuals seeking to profit from animal abuse and deceit.”
According to the allegations contained in the Superseding Indictment, the Superseding Information charging GRASSO and BANCA, prior charging instruments and other filings in this case[1], and statements during court proceedings:
The charges in the GRASSO case arise from an investigation of widespread schemes by racehorse trainers, veterinarians, PED distributors, and others to manufacture, distribute, and receive adulterated and misbranded PEDs and to secretly administer those PEDs to racehorses competing at all levels of professional horseracing. By evading PED prohibitions and deceiving regulators and horse racing officials, participants in these schemes sought to improve race performance and obtain prize money from racetracks throughout the United States, all to the detriment and risk of the health and well-being of the racehorses. GRASSO, a veterinarian, not only accepted payment in exchange for prescriptions for powerful and medically unnecessary performance-enhancing drugs, he also created, distributed, and administered custom-made performance-enhancing drugs that were all misbranded and adulterated substances designed solely to improve racehorse performance. Through this fraudulent scheme, GRASSO helped corrupt trainers collect over $47 million in ill-gotten purse winnings. As a racehorse trainer, BANCA purchased and administered adulterated and misbranded drugs to his racehorses, and as a result of his crimes, his horses earned over $16 million in purse winnings. BANCA stood to profit from the success of racehorses under his control by earning a share of his horses’ winnings, and by improving his horses’ racing records, thereby yielding higher trainer fees and increasing the number of racehorses under his control.
U.S. Attorney Williams praised the outstanding investigative work of the FBI New York Office’s Eurasian Organized Crime Task Force and its support of the Bureau’s Integrity in Sports and Gaming Initiative. Mr. Williams also thanked the Food and Drug Administration for their assistance.
[1] As to Grasso and Banca’s co-defendants, the entirety of the texts of the Indictments and the descriptions of the Indictments set forth herein constitute only allegations and every fact described should be treated as an allegation.
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"After previously committing to “multiple debates,” Governor Hochul has only agreed to the bare minimum–at the latest possible moment in the campaign– because she knows that her administration cannot stand up to the scrutiny.
"Several additional major media outlets invited us to participate in statewide syndicated debates beginning as early as two weeks from now. And while I’m grateful to WCBS and WNBC/Telemundo for hosting debates, the Governor’s refusal to accept additional invitations demonstrates an aversion to transparency and an unwillingness to speak openly about her own record. This is what we have come to expect from her– another way in which she follows the Cuomo model. In the 2018 Lieutenant Governor’s race, she was only willing to have one, pre-taped debate on a borough-based public access channel, and based on her performance it was clear why.
"New Yorkers have a lot of questions for the Governor, and she should have to answer to more than just her donors. I urge the Governor to accept the invitations for these additional statewide syndicated debates, instead of ducking this critical opportunity and obligation."
Independent Proxy Advisor Glass Lewis Joins New York City and State Pension Funds in Urging Shareholders to VOTE NO on the Re-election of Amazon Board Director Judith McGrath
Growing campaign highlights investor dissatisfaction with the Amazon board’s failures of oversight of human capital management amidst high injury rates, employee turnover, and workers’ rights violations.
New York City Comptroller Brad Lander today welcomed the recent report by Glass Lewis, one of the leading independent proxy advisory firms, recommending that Amazon (NYSE:AMZN) shareholders vote against the re-election of Board Director Judith McGrath, who chairs the Leadership Development and Compensation Committee, at the company’s May 25, 2022 annual meeting.
Last month, a group of institutional investors led by Comptroller Lander, on behalf of the five New York City Retirement Systems, New York State Comptroller Thomas P. DiNapoli and the Office of Illinois State Treasurer Michael Frerichs, launched a “vote no” campaign calling on Amazon shareholders to oppose the re-election of Directors Judith McGrath and Daniel Huttenlocher for failing to provide independent oversight of workforce issues at the company. Both directors are long-standing members of Amazon’s Leadership Development and Compensation Committee.
Brooklyn High School Paraprofessional Charged with Production of Child Pornography and Sextortion Scheme
Defendant Allegedly Enticed a Minor to Send Sexually Explicit Videos on WhatsApp and Threatened to Publicly Release Them – “I’m Ready to Make U Famous. Any Last Words?”
An 11-count indictment was unsealed today in federal court in Brooklyn charging Brian Quinones, a paraprofessional at Midwood High School, with sexual exploitation of a child, distribution of child of pornography, cyberstalking, and related offenses. The charges relate to sexually explicit videos of a child that the defendant allegedly requested and received from a boy he met over the Internet, as well as other sexually explicit images and videos that the defendant possessed and distributed. Quinones was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Peggy Kuo.
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, New York City Police Department (NYPD), announced the arrest and charges.
“As alleged, Quinones was a prolific trader of child pornography who posed as a woman in order to solicit sexually explicit videos from a minor boy, then blackmailed the victim with cruel threats to post the material on the Internet,” stated United States Attorney Peace. “This Office is working diligently with our law enforcement partners to address the online exploitation of minors and protect our children from predators like Quinones. Today’s prosecution should also serve as a reminder to parents and caregivers to remain vigilant about your children’s communications over the Internet and the importance of educating our children about the dangers of communicating online with strangers.”
Mr. Peace thanked the FBI/NYPD Child Exploitation and Human Trafficking Task Force for its investigative work on the case.
“Sexual predators often prey on the terror children experience when they are coerced and manipulated into creating explicit photos and videos,” stated FBI Assistant Director-in-Charge Driscoll. “We allege Quinones threatened to expose the images his victim created if the child didn't continue to send him more. Children often fear going to an adult to report what's happened because they're humiliated, and they believe the threats. The FBI Child Exploitation and Human Trafficking Task Force believes Quinones may have more victims, and we ask anyone with information to contact us at 1-800-CALL-FBI or tips.fbi.gov so we can hold him fully accountable for his actions.”
“Any kind of sexual exploitation of a minor is absolutely detestable behavior,” stated NYPD Commissioner Sewell. “But when the suspect has also been entrusted with our communities’ children, it is especially disturbing. Decades ago, predators would go to a playground or a park to find young victims. Now, there’s an entire virtual world full of potential targets. These types of crimes have devastating effects on children and their families, and I commend and thank all of the investigators at the NYPD, FBI, and the U.S. Attorney’s Office for the Eastern District who are dedicated to identifying and bringing to justice those who commit such offenses.”
As set forth in court filings, between September 2019 and January 2020, Quinones used an instant messaging mobile application to trade dozens of videos and images depicting child pornography with another individual who has since been charged with child pornography-related offenses. Following a court-authorized search of Quinones’s residence and the seizure of his electronic devices, FBI Special Agents discovered a series of sexually explicit messages between Quinones, who was impersonating a woman, and a minor male victim (John Doe), who Quinones lured into creating and sending sexually explicit videos. Quinones then threatened to post the victim’s material on the Internet unless the victim agreed to make additional sexually explicit content. The defendant stated in a WhatsApp message: “I got everything you sent,” adding that he would “ruin” John Doe. The defendant directed John Doe to do “[e]verything I tell u to do” and to “behave.” He then wrote, “Get on your hands and knees.” When John Doe declined to do so, the defendant threatened, “I’m ready to make u famous[.] Any last words?’
If convicted of sexual exploitation of a child, Quinones faces a mandatory minimum of 15 years’ imprisonment.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department of Justice Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Governor Hochul Announces New Watchdog Bureau to Tackle Prescription Drug Costs
New Pharmacy Benefits Bureau to Supervise Unregulated Pharmacy Benefit Manager Industry
Directs the Department of Financial Services to Establish Standards to Protect Consumers and Independent Small Businesses
Pharmacy Benefit Managers Required to Register with New Bureau by June 1st and Submit Annual Report by July 1st
Guidance on PBM Registration and Reporting now available on the DFS website
Governor Kathy Hochul today announced the first-in-the-nation approach to bring much needed oversight to Pharmacy Benefit Managers with the creation of the Department of Financial Services' Pharmacy Benefits Bureau. Pharmacy Benefit Managers are key intermediaries in the prescription drug supply chain that have, without regulatory oversight, long controlled the price of drugs for health plans and reimbursement rates for pharmacies. The new bureau will be tasked with licensing and supervising the industry, keeping a watchful eye on Pharmacy Benefit Managers' impact on consumers and the cost of health care.
"As we continue our comeback from the COVID-19 pandemic, it's crucial that we take every opportunity to improve the health care system and reduce costs for New Yorkers," Governor Hochul said. "This landmark regulatory body will provide careful oversight to protect consumers from predatory practices in the largely unregulated Pharmacy Benefits Managers industry. My administration remains committed to doing everything in its power to reduce the burden of health insurance and prescription drug costs on New Yorkers."
Earlier this year, Governor Kathy Hochul signed into law the most comprehensive regulatory regime for Pharmacy Benefit Managers (PBMs) in the country, assigning DFS new authority to license and supervise the industry. DFS now has the power to address the widely reported problematic practices in the PBM industry which in turn will help lower drug and health insurance costs, protect New Yorkers accessing those drugs, and support New York's pharmacies, many of which are independent small businesses.
Additionally, with the passage of the enacted 2023 State Budget, Governor Hochul secured a $5 million appropriation to fund and staff the new bureau. As the program fully develops, costs to administer this initiative will be offset through the application of fees, assessments, and penalties directly on the PBM industry, ensuring the cost of regulating this industry will fall on the PBMs, not on the taxpayers.
In addition to the regulation of PBMs, DFS' existing authority to investigate drug price spikes now falls under the supervision of the new Pharmacy Benefits Bureau. DFS will continue to review reporting, monitor the market conduct and ensure proper enforcement of consumer protections in New York.
DFS has met with external stakeholders in preparation for the registration deadlines. DFS reminds all PBMs of their requirement to register with the Bureau by June 1, 2022 and to submit their first annual report by July 1, 2022. The bureau has releases guidance on both registration and the annual report on the DFS website.
DFS will soon file regulatory amendments reflecting the creation of this Bureau. More information will be available in the State Register.