Governor Hochul Announces Start of Construction on $49 Million Affordable Housing Development in the Bronx

The Plains Will Provide 98 Energy-Efficient Affordable Homes in Wakefield  

Development Will Offer On-Site Supportive Services from the Doe Fund for 49 Adults Experiencing Homelessness 

Part of Governor's $25 Billion, Five-Year, Comprehensive Housing Plan

 Governor Kathy Hochul today announced the start of construction on a $49 million affordable and supportive housing development in the Wakefield section of the North Bronx. The Plains will provide 98 affordable homes with supportive services, with 49 units reserved for adults experiencing homelessness and living with HIV/AIDS, and another 20 apartments set aside for seniors aged 62 and older.  

"Sustained investment in creating and preserving safe, affordable homes for New Yorkers is a cornerstone of my administration," Governor Hochul said. "This new development demonstrates our commitment to increasing the supply of quality homes across the Bronx and to keeping our most vulnerable residents active, engaged, and living healthier, more independent lives."

The Plains is part of Governor Hochul's sweeping plans to make housing more affordable, equitable, and stable. In the recently enacted State Budget, the Governor introduced and successfully secured a new $25 billion, five-year, comprehensive housing plan that will increase housing supply by creating or preserving 100,000 affordable homes across New York including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes. 

The Plains will consist of a single nine-story building with 98 apartments at 4519 White Plains Road. All apartments will be affordable to households earning at or below 80 percent of the Area Median Income.  

Forty-nine apartments will be reserved for adults experiencing homelessness who will have access to on-site supportive services funded through the Empire State Supportive Housing Initiative and administered by The AIDS Institute. The Doe Fund will deliver housing and clinical case management services to residents, including coordination of mental health and medical care. 

The project is designed to meet the New York State Energy Research and Development Authority's Multifamily New Construction Program Tier 2 and LEED for Homes Gold energy efficiency standards. The building will have a green roof and solar photovoltaic array. Additional energy-efficient features will include high-efficiency, electric, Variable-Rate-Flow HVAC systems; Energy-Star, bi-level, LED lighting with motion sensors; Energy-Star appliances; and low-flow plumbing fixtures. 

Residential amenities will include tenant storage, offices for program staff and a multi-purpose room for program and tenant uses alike, as well as 24/7 security and a live-in superintendent. The residence will also feature on-site laundry units, a fitness center and private outdoor recreation space. The Plains is conveniently located near subway, bus, and commuter rail stations.  

The development is a joint venture between The Doe Fund and Robert Sanborn Development.  

State financing for The Plains includes Federal Low-Income Housing Tax Credits that will generate $25 million in equity and $9.7 million in subsidy from New York State Homes and Community Renewal. The New York State Office of Temporary and Disability Assistance will provide $4.9 million through the Homeless Housing Assistance Program. NYSERDA will provide $78,800 in support.  

The Doe Fund obtained private sector construction and permanent loans through Merchant's Bank of Indiana and Freddie Mac, and tax-credit equity was syndicated by Richman Housing. The Corporation for Supportive Housing also provided a $4 million acquisition loan that included funds for pre-development. 

Executive Vice President of Housing of the Doe Fund John McDonald said, "New York is at a crossroads. Our city's recovery is held back by two things. First is the convergence of eroding public safety and filthy streets, both symptoms of rising homelessness that The Doe Fund's Ready, Willing & Able program is proven and prepared to address. Second is the city's lack of affordable and supportive housing. I'm proud to have overseen the growth of The Doe Fund's transitional, affordable, and supportive housing portfolio to over one million square feet. When completed, the Plains will join this essential continuum of care, providing high quality homes to 90 of our fellow New Yorkers most in need, as well as their families." 

Bronx Borough President Vanessa L. Gibson said, "It is a sad reality that we are in a housing crisis in New York City, which has only been further exacerbated by the COVID-19 pandemic. The need for affordable, quality, safe and supportive housing is at an all-time high and is essential in our fight to reduce homelessness. I want to thank the New York State Homes & Community Renewal and New York State Office of Temporary and Disability Assistance for their support of this important project that will provide amenities and wrap-around services to our residents living with HIV/AIDS, our older adults and other vulnerable New Yorkers in the North Bronx."

Assemblymember Jeffrey Dinowitz said, "There is no question that our city is in desperate need of truly affordable housing, especially for older adults and people who need additional support structures to help maintain housing stability. I am glad that HCR is continuing the effort to promote affordable housing development in the Bronx, and I look forward to this project's completion."

City Councilmember Eric Dinowitz said, "Affordable housing for vulnerable populations, including low-income, formerly homeless people and older adults, needs to come with support systems in place. That is exactly what The Plains is doing, and the wraparound services they will provide ensures that new tenants will not just have a roof over their heads, but all of their needs are met. The housing crisis is affecting New Yorkers all over the city, which is why I am so grateful and encouraged that this development will serve my constituents in Wakefield."

EDITOR'S NOTE:

If both Assemblyman and Councilman Dinowitz are in favor of this project in the Wakefield section of their districts, why are they opposed to a similar project in the Riverdale section of their districts?

BOROUGH PRESIDENT GIBSON ON PASSAGE OF FIRE SAFETY LEGISLATION INSPIRED BY TRAGIC TWIN PARKS FIRE

 

“After the horrific fire at Twin Parks North West where we lost 17 people, among them eight children, I joined my colleague Council Member Oswald Feliz to discuss steps to prevent a tragedy of this magnitude from happening again. The result was a legislative package dedicated to strengthening fire safety laws to protect our residents and families. Last week, those bills were passed by the New York City Council.

That package makes amendments to existing local laws and introduces new legislation:

•   The time that property owners have to correct self-closing door violations will be lowered.
•   NYC Department of Housing will re-inspect all self-closing door violations.
•   Fines and penalties for self-closing door violations will be increased.
•   The definition of self-closing will include doors that fully shut and latch.

I am grateful to Council Member Feliz, the Members of the Twin Parks Citywide Task Force, NYC Housing, Preservation and Development (HPD) and the New York City Council for their collaboration and partnership to ensure there are protections for our tenants. We will honor those we have lost by working to prevent another horrific tragedy from happening again.”

Former United Nations Employee Pleads Guilty To Assault And False Statements Charges, Admits To Sexually Assaulting Thirteen Victims And Drugging Six More Victims

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced today that KARIM ELKORANY, a former communications specialist with the United Nations (“UN”) in Iraq, pled guilty before United States District Judge Naomi Reice Buchwald to sexually assaulting an internationally protected person and making false statements to cover up another sexual assault.  In connection with the plea, ELKORANY also admitted that he drugged and/or sexually assaulted seventeen additional victims. 

U.S. Attorney Damian Williams said:  “Karim Elkorany admitted today to drugging at least 19 victims, and sexually assaulting at least 13 of them while they were unconscious after he drugged them.  He committed many of his heinous crimes while employed by the United Nations.  Nothing can reclaim what Elkorany stole from his victims, but we hope the victims will take some measure of comfort in knowing that Elkorany has admitted to and been convicted of his abominable crimes.   We again urge anyone who thinks they may be victim of Elkorany to please contact the FBI at 1-800-CALL-FBI or tips.fbi.gov.”

According to the Indictment, public court filings, and statements during court proceedings:

Since at least in or about 2005 up to at least in or about April 2018, ELKORANY worked in international aid, development and/or foreign relations.  From in or about October 2013 up to in or about April 2016, ELKORANY worked for the UN Children’s Fund in Iraq.  From in or about July 2016 up to in or about April 2018, ELKORANY worked as a Communications Specialist for the UN in Iraq. 

In or about November 2016, ELKORANY drugged and sexually assaulted a woman (“Victim-1”) in Iraq, where he was stationed while working for the UN.  ELKORANY drugged Victim-1 and brought Victim-1 to his apartment.  While at ELKORANY’s apartment, ELKORANY sexually assaulted Victim-1 while she was unconscious.  In or around December 2016, Victim-1 reported the sexual assault to the UN.  The UN initiated an investigation, through which ELKORANY was notified of the substance of Victim-1’s allegations against him.

On or about November 3, 2017, special agents working with the New York Field Office of the Federal Bureau of Investigation (“FBI”) conducted a voluntary interview of ELKORANY outside of his residence in New Jersey.  During that interview, ELKORANY expressed familiarity with the nature and substance of the allegations made by Victim-1 to the UN, but falsely stated that the drugging and sexual assault by ELKORANY that Victim-1 had reported to the UN did not occur. 

ELKORANY also engaged in a pattern of similar conduct involving many other women.  Between in or around 2014 and in or around 2019, ELKORANY drugged and sexually assaulted a woman (“Victim-2”), who was a contractor for a UN organization at relevant times, in the United States and Iraq, among other locations, on multiple occasions.  In addition to Victim-1 and Victim‑2, ELKORANY drugged and sexually assaulted eleven additional victims between in or around 2002 and in or around 2016, and drugged six additional victims between in or around 2007 and 2016.

ELKORANY, 38, of West Orange, New Jersey, pled guilty to one count of making false statements to special agents of the FBI, and one count of assault of an internationally protected person.  The total maximum term of prison on these two counts is 15 years.  

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as sentencing of the defendant will be determined by the court.  ELKORANY is scheduled to be sentenced by Judge Buchwald on September 29, 2022.

Mr. Williams praised the outstanding work of the Federal Bureau of Investigation.  Mr. Williams also thanked the United States Department of State and the UN for their assistance.  Any individuals who believe they have information concerning ELKORANY or any similar conduct should contact the FBI at 1-800-CALL-FBI or tips.fbi.gov.

California Executive Compensation Consultant Charged In Insider Trading Scheme

 

Defendant Allegedly Misappropriated Information He Obtained While Advising Kadmon Holdings, Inc. in Connection with Its Sale to Sanofi

 Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a complaint charging FRANK GLASSNER, a principal of an executive compensation consulting firm based in Novato, California (the “Consulting Firm”), with securities fraud in connection with a scheme to commit insider trading based on material, nonpublic information regarding the upcoming public announcement that Kadmon Holdings, Inc. (“Kadmon”) – which GLASSNER and the consulting firm were advising – would be acquired by Sanofi, S.A. (“Sanofi”).  GLASSNER was arrested this morning in Novato, California and will be presented today in the United States District Court for the District of Northern California.

U.S. Attorney Damian Williams said:  “As an advisor to Kadmon Holdings, Frank Glassner is alleged to have illegally taken advantage of his access to nonpublic information regarding the company’s acquisition to front run trades for himself.  Glassner’s alleged attempts to illegally game the markets may have given him a profitable edge, but they also exposed him to a much riskier downside — criminal liability for insider trading.”

FBI Assistant Director-in-Charge Michael J. Driscoll said:  “We allege Glassner used confidential information he was privy to as a consultant to trade in advance of a company’s acquisition and then to cash in after the deal was publicly announced. This type of illicit action makes markets unfair and creates an atmosphere of distrust. Our work investigating insider trading hopefully restores faith for investors who need to believe in the process.”

As alleged in the Complaint unsealed today in Manhattan federal court:[1]

Prior to its acquisition by Sanofi, Kadmon was a publicly-traded biopharmaceutical company that engaged in the discovery, development, and commercialization of small molecules and biologics with a focus on inflammatory and fibrotic diseases. Kadmon’s stock was traded under the ticker symbol “KDMN” on the NASDAQ.

Between July 2021 and September 2021, Kadmon engaged GLASSNER and the Consulting Firm to provide executive compensation consulting services related to the potential acquisition of Kadmon. In connection with this engagement, GLASSNER had access to material, non-public information, which he misappropriated and, in violation of the duties that he owed to Kadmon, used to trade Kadmon stock and call options. 

GLASSNER engaged in this trading between on or about August 3, 2021 and on or about August 23, 2021 – at the same time he was advising Kadmon about its potential acquisition. On September 8, 2021, Kadmon publicly announced that it had agreed to be acquired by Sanofi for a per-share price significantly above the share price at which Kadmon was trading. That day, Kadmon’s share price increased by approximately 71% and GLASSNER earned approximately $405,000 of realized and unrealized profits on the Kadmon stock and call options he had previously purchased. 

GLASSNER, 68, of Novato, California is charged with two counts of securities fraud, one of which carries a maximum sentence of 20 years in prison and one of which carries a maximum sentence of 25 years in prison. 

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Williams praised the outstanding work of the FBI. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action. 

The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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

NYS OASAS Announces Award of More Than $475,000 to Support Addiction Prevention Workforce

 

Funding Will Support Paid Internship Programs at Prevention Providers in Every Region of NYS

The New York State Office of Addiction Services and Supports today announced the award of $478,874 to 23 prevention providers across New York State to support the creation of paid internship positions. This program is designed to provide individuals a pathway into the prevention field, and to increase diversity within the prevention workforce.

“The prevention workforce and our certified prevention providers are both a critical part of the system of addiction care that is available throughout New York State,” OASAS Commissioner Chinazo Cunningham said. “This program will attract new, dedicated workers to the prevention field and give them a path towards a rewarding career, while also helping our providers to further support the critical services that they deliver every day.”

The Paid Prevention Internship Opportunity (PPIO) program offers those interested in a career in the prevention field a way to receive valuable on the job experience, and provides an entry-level path towards a professional credential, such as Certified Prevention Professional (CPP) or Certified Prevention Specialist (CPS).

In addition, it allows prevention providers an opportunity to recruit talented and dedicated staff to the field. A key objective of the program is also to foster diversity within the prevention workforce in order to best meet the needs of the communities they serve.

Funding for this initiative was provided to New York State through the federal Supplemental Substance Abuse Prevention and Treatment (SAPT) Block Grant. Each of the providers below is receiving between $18,000 and $21,000, depending on the amount requested. All eligible providers who applied were awarded the full requested funding amount.

Capital Region

• New Choices Recovery Center
• University at Albany, Center for Behavioral Health Promotion and Applied Research

Central New York

• Farnham, Inc

Finger Lakes

• DePaul Community Services, Inc.
• CASA-Trinity, Inc.

Long Island

• Huntington Youth Bureau Youth Development Research Institute, Inc.
• Youth Environmental Services, Inc.
• Riverhead Community Awareness Program, Inc

Mid-Hudson

• Warwick Community Bandwagon
• Family Services, Inc.
• Catholic Charities of Orange, Sullivan & Ulster
• Student Services Assistance Services Corp.

Mohawk Valley

• LEAF, Inc.

New York City

• Elmcor Youth & Adult Activities, Inc.
• Sports Foundation, Inc
• Hebrew Educational Society of Brooklyn
• The Children's Aid Society

North Country

• Champlain Valley Family Center for Drug Treatment and Youth Services, Inc.
• Seaway Valley Council for Alcohol Substance Abuse Prevention

Southern Tier

• Hornell Area Concern for Youth, Inc.
• Alcohol and Drug Council of Tompkins County, Inc
• Catholic Charities of the Diocese of Rochester dba Catholic Charities Steuben Livingston

Western NY

• Western New York United Against Drug and Alcohol Abuse, Inc.

New Yorkers struggling with an addiction, or whose loved ones are struggling, can find help and hope by calling the state’s toll-free, 24-hour, 7-day-a-week HOPEline at 1-877-8-HOPENY (1-877-846-7369) or by texting HOPENY (Short Code 467369). 

Available addiction treatment including crisis/detox, inpatient, residential, or outpatient care can be found using the NYS OASAS Treatment Availability Dashboard at FindAddictionTreatment.ny.gov or through the NYS OASAS website. 

If you, or a loved one, have experienced insurance obstacles related to treatment or need help filing an appeal for a denied claim, contact the CHAMP helpline by phone at 888-614-5400 or email at ombuds@oasas.ny.gov.

MAYOR ADAMS, CHANCELLOR BANKS ANNOUNCE GIFTED & TALENTED APPLICATION OPENING, NEW PROGRAM SITES

 

New York City Mayor Eric Adams and New York City Department of Education (DOE) Chancellor David C. Banks today announced that applications for the expanded kindergarten and third grade Gifted & Talented programs will open next Tuesday, May 31, 2022.

 

“By expanding our Gifted & Talented program to all New York City districts, we are giving every young person an opportunity to grow, to learn, to explore their talents and imagination, and we are making sure no child is left behind,” said Mayor Adams. “Working with families, teachers, and community leaders, we were able to make this expansion happen, and now students from every school district will be able to access a Gifted & Talented program.”

 

“Family and community engagement is critical to the success of our students and of this program,” said Chancellor Banks. “Thank you to our superintendents, community leaders, and families for working together with us to ensure there is access to the Gifted & Talented program in every community. We are also grateful to our pre-K teachers for undertaking this enormous effort to ensure that each and every student is screened for this opportunity.”

 

As part of the city’s ongoing commitment to center families in this process, the DOE’s Office of Student Enrollment is hosting virtual information sessions on May 24, May 26, and June 1 with live interpretation in Arabic, Bangla, Chinese, French, Haitian Creole, Korean, Russian, Spanish, and Urdu. Through these sessions, families will learn about Gifted & Talented program types, eligibility, and how to apply, and they will have the opportunity to ask questions.

 

Registration for these events can be found online.

 

For kindergarten nominations, pre-K program leadership and staff were provided guidance — including curiosity and approaches to learning, as well as guidance that reminds teachers that children who demonstrate gifted behaviors often come from diverse backgrounds and have different abilities — in alignment with the National Association for Gifted Children in advance of the nomination process. All educators were provided with coaching to answer any questions about the nomination tool and assessment criteria. Currently, 89 percent of all pre-K programs have submitted their nominations, and DOE staff are working with programs to resolve any pending nominations.

 

Using grades in the four core subject areas — English language arts, mathematics, science, and social studies — the top 10 percent of second graders at each school will be invited to apply for the third grade Gifted & Talented program. This method ensures that district programs are representative of the district’s population and that the DOE is using multiple measures to determine eligibility.

 

As part of the previously announced Gifted & Talented program expansion, this process was flexible and responsive to the needs and voices of families and communities. Now — for the first time ever — students in every district will have at least one entry point into this program in both kindergarten or third grade, with the possibility for additional programs particularly in third grade based on community interest.

 

Superintendents worked in close partnership with their Community Education Councils and community stakeholders to determine local needs and the best locations for expanded Gifted & Talented sites. In all districts, community interest and geographic access to programs weighed heavily into these decisions.

 

The new sites indicated below with an asterisk (*) were selected based on a host of criteria, including interest, geography, ease of transportation, historical access to the program, and community feedback.

 

Kindergarten Gifted & Talented Entry Programs:

• 01M015 - P.S. 015 Roberto Clemente
• 01M110 - P.S. 110 Florence Nightingale
• 01M539 - New Explorations into Science, Technology and Math
• 02M011 - P.S. 011 William T. Harris
• 02M003 - P.S. 033 Chelsea Prep
• 02M077 - P.S. 77 Lower Lab School
• 02M111 - P.S. 111 Adolph S. Ochs
• 02M124 - P.S. 125 Yung Wing
• 02M130 - P.S. 130 Hernando De Soto
• 02M198 - P.S. 198 Isador E. Ida Straus
• 02M217 - P.S./I.S. 217 Roosevelt Island
• 03M165 - P.S. 165 Robert E. Simon
• 03M166 - P.S. 166 The Richard Rodgers School of The Arts and Technology
• 03M334 - The Anderson School
• 04M012 - Tag Young Scholars (city-wide)
• 04M102 - P.S. 102 Jacques Cartier
• 05M128 - P.S. 129 John H. Finley
• 05M175 - P.S. 175 Henry H Garnet*
• 06M153 - P.S. 153 Adam Clayton Powell
• 07X49 - P.S. 049 Willis Avenue*
• 08X072 - P.S. 072 Dr. William Dorney
• 09X199 - P.S. 199X – The Shakespeare School
• 10X007 - Milton Fein School
• 10X024 - P.S. 024 Spuyten Duyvil
• 11X121 - P.S. 121 Throop
• 11X153 - P.S. 153 Helen Keller
• 12X458 - Samara Community School*
• 13K056 - P.S. 056 Lewis H. Latimer
• 13K282 - P.S. 282 Park Slope
• 14K132 - P.S. 132 The Conselyea School
• 15K032 - P.S. 032 Samuel Mills Sprole
• 15K038 - P.S. 038 The Pacific
• 16K081 - P.S. 081 Thaddeus Stevens*
• 16K243 - P.S. 243K- The Weeksville School*
• 17K316 - P.S. 316 Elijah Stroud
• 18K115 - P.S. 115 Daniel Mucatel School
• 19K149 - P.S. 149 Danny Kaye
• 20K102 - P.S. 102 The Bayview
• 20K104 - P.S./I.S. 104 The Fort Hamilton School
• 20K164 - P.S. 164 Caesar Rodney
• 20K200 - P.S. 200 Benson School
• 20K205 - P.S. 205 Clarion
• 20K229 - P.S. 229 Dyker
• 20K686 - Brooklyn School of Inquiry
• 21K095 - P.S. 095 The Gravesend
• 21K099 - P.S. 099 Isaac Asimov
• 21K215 - P.S. 215 Morris H. Weiss
• 22K052 - P.S. 052 Sheepshead Bay
• 22K193 - P.S. 193 Gil Hodges
• 22K195 - P.S. 195 Manhattan Beach
• 22K197 - P.S. 197 - The Kings Highway Academy
• 22K236 - P.S. 236 Mill Basin
• 23K137 - P.S./I.S. 137 Rachel Jean Mitchell*
• 24Q119 - P.S./I.S. 119 The Glendale
• 24Q153 - P.S. 153 Maspeth Elem
• 24Q229 - P.S. 229 Emanuel Kaplan
• 24Q290 - A.C.E. Academy for Scholars at the Geraldine Ferra
• 25Q021 - P.S. 021 Edward Hart
• 25Q032 - P.S. 032 State Street
• 25Q079 - P.S. 079 Francis Lewis
• 25Q165 - P.S. 165 Edith K. Bergtraum
• 25Q209 - P.S. 209 Clearview Gardens
• 26Q115 - The James J. Ambrose School
• 26Q133 - P.S. 133 Queens
• 26Q188 - P.S. 188 Kingsbury
• 26Q203 - P.S. 203 Oakland Gardens
• 27Q108 - P.S. 108 Captain Vincent G. Fowler
• 27Q042 - P.S./M.S. 042 R. Vernam*
• 28Q121 - P.S. 121 Queens
• 28Q174 - P.S. 174 William Sidney Mount
• 28Q220 - P.S. 220 Edward Mandel
• 29Q176 - P.S. 176 Cambria Heights
• 29Q118 - P.S. 118 Lorraine Hansberry*
• 30Q085 - P.S. 085 Judge Charles Vallone
• 30Q122 - P.S. 122 Mamie Fay
• 30Q150 - P.S. 150 Queens
• 30Q166 - P.S. 166 Henry Gradstein
• 30Q300 - The 30th Avenue School (G&T Citywide)
• 31R003 - P.S. 003 The Margaret Gioiosa School
• 31R008 - P.S. 8 Shirlee Solomon
• 31R042 - P.S. 042 Eltingville
• 31R045 - P.S. 045 John Tyler
• 31R050 - P.S. 050 Frank Hankinson
• 31R053 - The Barbara Esselborn School
• 32K376 - P.S. 376

 

Third Grade Gifted & Talented Entry Programs:

• 01M034 - District 1: P.S. 034 Franklin D. Roosevelt*
• 02M126 - P.S. 126 Jacob August Riis*
• 03M191 - The Riverside School for Makers and Artists
• 04M083 - P.S. 083 Luis Munoz Rivera*
• 05M161 - P.S. 161 Pedro Albizu Campo*
• 06M028 - P.S. 028 Wright Brothers*
• 07X043 - P.S. 043 Jonas Bronck*
• 07X359 - Concourse Village Elementary School
• 08X075 - P.S. 75 School of Research and Discovery*
• 09X204 - P.S. 204 Morris Heights
• 10X340 - P.S. 340*
• 11X106 - P.S. 106 Parkchester*
• 12X314 - Fairmont Neighborhood School*
• 12X214 - P.S. 214
• 13K287 - P.S. 287 Bailey K. Ashford*
• 14K084 - P.S. 084 Jose De Diego*
• 15K024 - P.S. 024*
• 16K021 - P.S. 021 Crispus Attucks*
• 17K289 - P.S. 289 George V. Brower*
• 17K241 - P.S. 241 Emma L. Johnston*
• 18K235 - P.S. 235 Janice Marie Knight School*
• 19K065 - P.S. 065*
• 19K346 - P.S. 346 Abe Stark*
• 20K127 - P.S. 127 Mckinley Park*
• 21K188 - P.S. 188 Michael E. Berdy*
• 22K203 - P.S. 203 Floyd Bennett School*
• 22K361 - P.S. 361 East Flatbush Early Childhood School*
• 23K599 - Brooklyn Landmark Elementary School
• 23K446 - Riverdale Avenue Community School*
• 24Q088 - P.S. 088 Seneca*
• 24Q007 - P.S. 007 Louis F. Simeone*
• 24Q087 - P.S./I.S. 087 Middle Village*
• 25Q024 - P.S. 024 Andrew Jackson*
• 26Q376 - P.S. 376*
• 27Q056 - P.S. 056 Harry Eichler*
• 27Q183 - P.S. 183 Dr. Richard R. Green*
• 28Q086 - P.S. Q086*
• 28Q140 - P.S. 140 Edward K Ellington*
• 29Q251 - P.S. 251 Queens
• 30Q092 - P.S. 092 Harry T. Stewart Sr.*
• 30Q151 - P.S. 151 Mary D. Carter*
• 30Q171 - P.S. 171 Peter G. Van Alst*
• 31R022 - P.S. 022 Graniteville*
• 32K274 - P.S. 274 Kosciusko*

Attorney General James Sues to Protect St. Clare’s Hospital Retirees

 

Mismanagement and Neglect Caused 1,100 Former Hospital Workers to Lose Retirement Benefits

 New York Attorney General Letitia James today took action to protect Capital Region retirees by filing a lawsuit against the Roman Catholic Diocese of Albany, its leadership, and others, for their negligent and intentional actions that deprived more than 1,100 former employees of St. Clare’s Hospital of their pensions. Attorney General James alleges that the Diocese shirked its fiduciary and legal responsibilities to the former hospital workers when it failed to preserve and protect the hospital's pension. The decision of the Diocese to remove the pension plan from the protections available under federal law, its failures to adequately fund, monitor, or insure the pension, and its resulting failure to administer the pension violate New York Not-for-Profit Corporations Law and New York Estates, Powers & Trusts Law. In her suit, Attorney General James seeks to hold the Diocese liable for the misconduct and recover the pensions that the former hospital workers lost.

“These former hospital workers nobly served their community and cared for the sick, elderly, and vulnerable. But when they retired, they were left with nothing,” said Attorney General James. “No one should ever have to deal with the financial and emotional trauma of losing the resources they were counting on to survive. With this action, we're standing up for New Yorkers who deserve to retire with dignity, and I will do everything in my power to make sure they get the pension benefits they’re owed."

In her suit, filed in the New York State Supreme Court of Schenectady County, Attorney General James argues that the Diocese’s breaches in fiduciary duty led to its failure to properly administer the pension that was entrusted to their care. As a result of its actions, the Diocese was unable to fulfill its mission and honor its commitments to the former hospital employees. More than 1,100 former employees lost their retirement benefits, including 650 retirees who lost all their pension rights, and nearly 450 retirees who received a single payment equal to 70 percent of the value of their pension. These former employees served St. Clare’s Hospital as nurses, lab technicians, social workers, EMTs, orderlies, housekeepers, and other essential workers and ranged between 10 and 50 years of service.

St. Clare’s Hospital was co-founded by the Diocese in 1948 and was managed primarily by the St. Clare’s Corporation, a not-for-profit corporation created by the Diocese to oversee operations of the hospital. In 2019, Attorney General James launched an investigation into the Diocese after it terminated the pension that had been in place since 1959. That investigation found repeated and pervasive violations of the Diocese’s fiduciary duties of care, loyalty, obedience, and disclosure to St. Clare’s Corporation, which resulted in failure to pay the promised retirement benefits to its former employees and vested pensioners.

In 1992, the Diocese used its religious status to obtain a federal exemption in order to avoid the required federal protections for pensioners, such as pension insurance and minimum funding contributions. After obtaining the exemption, the Diocese violated their fiduciary duties under New York law by failing to make any annual contributions to the pension for all but two years from 2000 to 2019 — causing the pension to be underfunded by $43 million — and by hiding the collapse of the pension plan from the federal government and former hospital workers who were vested in the plan. Diocese leadership rejected all attempts to address the deficit, including applying for pension insurance to protect the pensioners’ benefits, efforts to combine the St. Clare’s pension plan with other Diocesan pension plans, and allowing the Diocese to provide direct financial assistance to the pension.

In 2007, the Diocese requested $28.5 million in Medicaid funds from the state of New York to eliminate the pension’s deficit, which the state provided. However, the Diocese knew the funds were not sufficient to fully fund the pension, despite representing that they were. Leadership for the St. Clare’s Corporation knew that the pension would continue to be underfunded even with the state grant, but they never sought additional funds to fully fund the pension.

The Diocese also failed to fulfill its fiduciary duties by:

• Failing to monitor or safeguard the pension, its related investments, and pension administrator;
• Failing to require yearly audits and accounting of the St. Clare’s Corporation's finances and pension, as required by the St. Clare’s Corporation’s bylaws;
• Failing to attend regularly scheduled board meetings as leadership was required;
• Permitting a non-director, Vicar General David LeFort, to assume the role of director and to vote as a director, although not permitted by St. Clare’s Corporation’s bylaws;
• Appointing a diocesan employee, Joseph Pofit, to leadership roles despite Pofit’s own admission of his lack of expertise in pension matters; and
• Failing to adequately review IRS Form 990s to ensure that they were accurate, thus filing IRS Form 990s that were inaccurate and misleading.

In 2018, the leadership of the St. Clare’s Corporation learned that their liability insurance coverage for directors and officers would not be extended, so to avoid exposing themselves to the risk of personal liability, they unanimously voted to terminate the pension and dissolve the Corporation. In the petition for dissolution, filed with the court in 2019, the Corporation admitted that it owed more than $50 million to the retirement plan and its members and had no means or intention to fully fund the pension. New York law requires the Office of the Attorney General (OAG) to approve voluntary dissolutions of New York not-for-profit corporations. Due to unresolved questions and concerns regarding the outstanding benefits owed to more than 1,100 New Yorkers, Attorney General James opposed the Corporation’s petition and immediately sought discovery to determine why the pension failed to provide the promised and earned benefits, what happened to the $28.5 million in Medicaid funds received by St. Clare’s from New York state, and to ensure the Corporation fulfilled its obligation to the pensioners.

“This is very exciting news for all the pensioners,” said Jerry and Kathy Adach, St. Clare’s pensioners. “Hopefully, this will result in a very positive outcome for all of us. We are so appreciative and thrilled to have Attorney General James fighting for us!”

“On October 18, 2018, a letter was sent to over 1100 hardworking and devoted health care workers, abruptly ending or limiting their pension,” said Mary Hartshorne, a St. Clare’s pensioner. “There was no notice and no explanation. More importantly, no one consulted any of these hardworking and devoted hospital workers on this monumental decision. We have fought to regain our rightful pension for more than three years. We have endured a pandemic and skyrocketing inflation that limited our already depleted resources. We had almost given up on multiple occasions. Today, Attorney General Letitia James has proven that her word is true. She told us that she would do everything that she could to get our pension back for us. I am humbly grateful to our attorneys and to the attorney general for supporting us in this manner. It means the world to us to know that we have them all on our side. We finally have light at the end of the tunnel.”

“Justice requires that St. Clare’s Corporation and the Roman Catholic Diocese of Albany hold up their end of the bargain and restore the financial security earned by and promised to their employees. We applaud the attorney general for filing this lawsuit,” said William Alvarado Rivera, senior vice president of litigation, AARP Foundation, whose attorneys, along with several legal aid groups and pro bono attorneys, filed a case against the Diocese and others in 2019. “We look forward to continue fighting for the St. Clare’s pensioners with the Office of the Attorney General.”

“We are pleased that OAG has taken this step, which can only benefit our clients and the other hardworking pensioners who are simply seeking the money they were promised as a part of their employment,” said Victoria Esposito, advocacy director, Legal Aid Society of Northeastern New York (LASNNY). “We remain grateful for OAG’s ongoing work to enforce fundamental fairness on behalf of St. Clare’s pensioners.” 

The defendants named in today’s suit are the Roman Catholic Diocese of Albany, the St. Clare's Corporation, Bishop Emeritus Howard Hubbard, Bishop Edward Scharfenberger, Joseph Pofit, and Very Reverend David Lefort, Vicar General, and an officer of the Diocese. In her lawsuit, Attorney General James is seeking to hold the defendants accountable for all debts owed to pensioners.

NYC PUBLIC ADVOCATE'S RESPONSE TO THE TEXAS MASS SCHOOL SHOOTING

 

"On my way to services for a child shot and killed in the Bronx, during a vigil for ten people shot and killed in Buffalo, a few days before a man was shot and killed on the train, news of another mass shooting breaks, along with the hearts of families in Texas and across the country.

"Fourteen children and a teacher in Texas are not coming home from school today.

"Outside a salon. In a supermarket. A subway. A school. Gun violence pervades every corner of our communities because guns are perversely fetishized and endlessly accessible in our country. There will be explanations uncovered and excuses put forward for this inexcusable violence, but all are enabled by the weapons in the hands of a shooter, and the people and systems that put them there. 

"Conservative politicians will try to conceal this crisis, and the Supreme Court is poised to make it easier to carry concealed weapons of war, to further facilitate mass murder of our kids and neighbors. And we cannot allow them to deny their role in either the mass shootings that make national news or the daily reality of gun violence that makes communities ache.

"As we pray for those who have had so many years of their young lives stolen, as we comfort the families and community who survive, forever scarred, we must confront the reality that without bold actions which put the lives of victims over an ideology of violence, we will be here again and again. Shamed, shaken, but never shocked."