Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - SEPTEMBER 12, 2022

Governor Encourages New Yorkers to Keep Using the Tools to Protect Against and Treat COVID-19: Vaccines, Boosters, Testing, and Treatment

Photos of Governor Hochul Receiving Bivalent COVID-19 Booster Shot Available Here and B-Roll Available Here

30 Statewide Deaths Reported on September 9

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

"As we continue to navigate the start of the school season, I urge all New Yorkers to take steps to better protect themselves against COVID-19," Governor Hochul said. "Take advantage of the latest tools and resources at our disposal in order to keep our families and our communities safe. Test before gatherings or travel and if you test positive, talk to your doctor about potential treatment options."

Last week, Governor Hochul announced the availability of bivalent COVID-19 vaccine boosters from Pfizer-BioNTech for anyone age 12 or older and from Moderna for those 18 or older. To schedule an appointment for a booster, New Yorkers should contact their local pharmacy, county health department, or healthcare provider; visit vaccines.gov; text their ZIP code to 438829, or call 1-800-232-0233 to find nearby locations.

To schedule an appointment for a booster, New Yorkers should contact their local pharmacy, local county health department, or healthcare provider. New Yorkers can also visit vaccines.gov, text their ZIP code to 438829, or call 1-800-232-0233 to find nearby locations.

In addition, Governor Hochul announced that masking will now be optional in multiple settings where they were previously required, including on public transportation, in for-hire vehicles, at airports, homeless shelters, correctional facilities, and detention centers. Masks will continue to be required at adult care and health care facilities regulated by the state Department of Health, and in clinical settings regulated by the Office of Mental Health, Office of Addiction Services and Supports, and Office for People With Developmental Disabilities.

Today's data is summarized briefly below:

• Cases Per 100k - 12.79
• 7-Day Average Cases Per 100k - 17.91
• Test Results Reported - 35,623
• Total Positive - 2,499
• Percent Positive - 6.95%**
• 7-Day Average Percent Positive - 6.56%**
• Patient Hospitalization - 2,143 (-36)
• Patients Newly Admitted - 392*
• Patients in ICU - 230 (-4)*
• Patients in ICU with Intubation - 84 (-2)*
• Total Discharges - 339,922 (+370)*
• New deaths reported by healthcare facilities through HERDS - 30*
• Total deaths reported by healthcare facilities through HERDS - 57,812*

** 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 - 73,897

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.

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

Borough	Friday, Sept.   9, 2022	Saturday, Sept. 10, 2022	Sunday, Sept. 11, 2022
Bronx	5.87%	5.83%	5.69%
Kings	3.46%	3.64%	4.15%
New York	5.17%	5.12%	5.11%
Queens	6.93%	6.86%	6.75%
Richmond	5.64%	5.74%	5.89%

NYC PUBLIC ADVOCATE'S STATEMENT ON HIS BILL BANNING SOLITARY CONFINEMENT AND COUNCIL SPEAKER ADAMS' CO-SPONSORSHIP

 

"I want to thank Speaker Adams for signing on in support of our legislation to finally, truly ban solitary confinement in New York City – a bill for which we now have a supermajority of Council Members as co-sponsors. Banning solitary confinement– not just in name, but a real end to this dangerous, torturous practice, is an urgent priority for my office and our city, and it is an honor to have her partnership and voice in the fight to get this done. 

"Our bill provides clear guidelines, based on the experiences of people who have endured solitary, to allow for short term separation when needed while preventing the deeply damaging practice and impact of punitive isolation. Together with a coalition of incredible advocates and the leadership of the Speaker and Chair Carlina Rivera, we are committed to imminently holding a hearing on the bill and moving toward a final vote to implement a real, enforceable ban on solitary."

Leader Of Tax Fraud And Identity Theft Scheme Sentenced To 12 Years In Prison

 

Ariel Jimenez Sold the Stolen Identities of Children to Thousands of His Customers, Triggering Tens of Millions of Dollars in Fraudulent Tax Loss

 Damian Williams, the United States Attorney for the Southern District of New York, announced that ARIEL JIMENEZ, a/k/a “Melo,” was sentenced to 12 years in prison in connection with his leading role in a broad tax fraud and identity theft conspiracy and his actions to launder the proceeds of his crimes.  United States District Judge Sidney H. Stein imposed today’s sentence.

U.S. Attorney Damian Williams said: “Ariel Jimenez was the leader of a long-running fraudulent tax business that cheated the Government of tax refunds by stealing the identities of vulnerable children and using those identities to falsely claim tax credits on behalf of his clients.  Today’s sentence holds Jimenez accountable for brazenly selling the identities of children to his customers for his own profit.” 

According to the Indictment, evidence presented during trial, court documents, and statements in open court:

Beginning in or about 2007, JIMENEZ founded a tax business (the “Business”) in the Bronx, New York.  From the outset, JIMENEZ obtained stolen identities of hundreds of minors and, working with his co-conspirators, sold those identities to his customers for between $1,000 and $1,500 in cash so that customers could claim those minors as fraudulent dependents on their tax returns.  JIMENEZ personally received $1,000 in cash for every identity sold.  JIMENEZ and his co-conspirators callously referred to these stolen identities as “pollitos,” meaning “little chickens.”  In some years, JIMENEZ sold more than a thousand identities, resulting in personal profits to him of more than $1 million per year.  In addition, JIMENEZ made hundreds of thousands of dollars every year in the tax fees that the Business charged to prepare fraudulent tax returns.  In return for their participation in this scheme, the customers received thousands of dollars in inflated tax refunds.

JIMENEZ’s use of stolen identities harmed the actual caretakers of the children who were fraudulently claimed as dependents.  In some cases, the people actually taking care of these children had much-needed tax refunds delayed and were required to prove their actual connection to their own dependent children.

JIMENEZ used the profits from his tax preparation business to acquire millions of dollars of real estate in addition to funding his lavish lifestyle.  By his own admission, JIMENEZ spent more than $5.5 million of the Business’s proceeds on properties in the United States and abroad, jewelry, cars, and gambling.  In or about March 2016, JIMENEZ transferred several properties purchased with fraud proceeds to his parents for little to no value in order to conceal the criminal source of the funds used to purchase the properties. 

JIMENEZ was first arrested in November 2018 along with eight of his co-conspirators, including his sisters Evelin Jimenez and Ana Yessenia Jimenez, as well as additional co-conspirators Ireline Nunez, Leyvi Castillo, Cinthia Federo, Guillermo Arias Moncion, Marcos De Jesus Pantaleon, and Jose Castillo.  The remaining eight defendants pled guilty to fraud and other offenses.

ARIEL JIMENEZ, 38, of the Bronx, New York was previously convicted at trial of conspiracy to defraud the United States with respect to tax returns, conspiracy to commit wire fraud, aggravated identity theft, and money laundering.  In addition to his prison sentence, JIMENEZ was ordered to pay forfeiture in the amount of $14,580,000 and to forfeit three residential properties located in the Bronx.  JIMENEZ was also ordered to pay restitution in the amount of $44,769,906.

Evelin Jimenez was sentenced on August 12, 2022, to 52 months in prison; Ana Yessenia Jimenez was sentenced on August 9, 2022, to 24 months in prison; Leyvi Castillo was sentenced on October 27, 2021, to 20 months in prison; Cinthia Federo was sentenced on December 20, 2021, to time served; Guillermo Arias Moncion was sentenced on December 18, 2019, to 24 months in prison; Marcos De Jesus Pantaleon was sentenced on January 15, 2020, to 20 months in prison; and Jose Castillo was sentenced on February 20, 2020, to 24 months in prison.  Ireline Nunez has not yet been sentenced.

Mr. Williams praised the outstanding work of the IRS-Criminal Investigation. 

Statement from Speaker Adrienne Adams on the Council’s Legislation to Ban Solitary Confinement

Speaker Adrienne Adams announced support for legislation to ban solitary confinement and the scheduling of a hearing on the bill for next week. The Speaker released the following statement:

“The Department of Correction’s stated mission is to create a safe and supportive environment while providing individuals in its care with a path to successfully re-enter their communities. Solitary confinement does not line up with this objective and New York City must be smarter by relying on evidence-based practices to keep New Yorkers and our neighborhoods safe. The research is clear: solitary confinement is a counterproductive and harmful practice that causes immense damage to the health of those subjected to it. It disproportionately leads to suicide and worsens the mental health of those subject to it. This can exacerbate the safety challenges within the jail system and outside of it when individuals are released. The Council will hold a hearing on legislation to ban solitary confinement, advancing a comprehensive and sensible legislative process to gather input from all stakeholders. New York City is better than solitary confinement, and the Council intends to pass a law to restrict this practice.” 

Governor Hochul Announces $10 Million in Funding for Fashion Innovation Center During New York Fashion Week

 

Center Will Support the Sustainable Development of New York State Textiles for Wearable Technologies and Fashion Industry Use

Will Establish a Physical Center To Connect Upstate Agriculture and Downstate Fashion Industries Focused on a More Sustainable Future

 Governor Kathy Hochul today announced $10 million in State funding for the Fashion Innovation Center, which will promote a collaborative approach to utilizing New York State-produced smart and sustainable textiles. Empire State Development will spearhead the creation of a consortium-led FIC, which will utilize expertise from New York State universities, farms, fashion industry leaders, and non-profit organizations. The FIC will focus on addressing fashion industry needs, utilizing New York State-produced crops for fiber materials, and cultivating technology that advances sustainability and innovation through wearable technologies in the fashion and textile industries. The FIC will also include a Sustainable Fashion Innovation Center Accelerator, focused on the creation of smart and sustainable alternatives that solve large scale industry problems, create green jobs, promote state-sourced textiles, and support sustainable fashion.

Governor Hochul announced the new FIC during New York Fashion Week, which lasts from September 7 through September 14. In recognition of the industry-wide event, the Governor attended the Coach fashion show in New York City.

"As the fashion capital of the world, New York is the perfect fit for cutting-edge solutions to make this booming industry more innovative and more sustainable," Governor Hochul said. "The Fashion Innovation Center will foster collaboration across fashion, agriculture, and other industries to to reduce our environmental footprint, limit waste and create opportunity across New York State."

Globally, the fashion and textile industry contributes 1.2 billion tons of greenhouse gas emissions annually — more than all international flights and maritime shipping combined. This is due to the heavy reliance on fossil fuels, decentralized supply chains, and improper end of life product disposal. New technologies and material processing approaches offer the potential for more "smart" and "sustainable" fashion, and New York's farms currently produce the needed raw materials, such as linen, flax, cotton, and hemp that can transformed into textiles that can be used in these applications on a larger scale.

Sustainable textiles are the future of fashion, and New York State is poised to lead the way in the ecologically responsible production of these materials. Smart textiles are a cutting-edge industry that have applications for countless professions, from athletes to first responders and medical professionals.

Empire State Development's Division of Science, Technology and Innovation will issue a Request for Proposals to select the consortium, which will include universities, businesses, farmers, fashion industry leaders, and non-profits. The Accelerator, housed within the FIC, will provide space to early-stage companies working on promising developments in the field, which are strong candidates for commercialization and can be challenged with solving the real issues of industry partners.

The FIC will solicit, evaluate, and oversee projects focused on addressing industry challenges and opportunities, with priority given to those involving the use of New York State crops and material inputs, and cultivating technology that accelerates sustainability in the fashion and textile industry. Through a competitive process, the FIC will provide grant funding to New York State small businesses in the fashion industry, offering a critical connection between industry leaders and innovation and supporting projects that aim to improve industry sustainability.

MAYOR ADAMS, ELECTED LEADERS HAIL ISO’S APPROVAL OF APPLICATION TO CREATE NEW MERCHANT CATEGORY CODE FOR GUN AND AMMUNITION SELLERS

 

 New York City Mayor Eric Adams today released the following statement after the International Standards Organization (ISO) voted to approve the creation of a new merchant category code for gun and ammunition sellers on Friday, September 9^th.

 

“Keeping New Yorkers safe is my top priority — and that is why we are taking every possible step to dam the many rivers leading to the sea of gun violence. We are grateful that the International Standards Organization has heeded our call to create a new merchant category code for firearms and ammunition sales. This is a smart, commonsense measure that will track suspicious gun and ammunition sales — saving lives and making our city safer.”

 

Credit card companies use a four-digit merchant category code to classify businesses by the types of goods and services sold. Such codes have existed for several types of retailers — but not gun and ammunition sellers. Merchant category codes are set by the International Organization on Standardization. Last month, Amalgamated Bank submitted an application to the ISO to create a merchant category code for gun and ammunition sellers, which was supported by Mayor Adams, New York City Comptroller Brad Lander, trustees of the New York City Employees’ Retirement System, Teachers’ Retirement System and Board of Education Retirement System.

 

Tippee Pleads Guilty In First Ever Cryptocurrency Insider Trading Case

 

Nikhil Wahi Traded Based on Tips From a Former Coinbase Employee Regarding Crypto Assets That Were Going to be Listed on Coinbase Exchanges

 Damian Williams, the United States Attorney for the Southern District of New York, announced today that NIKHIL WAHI, the brother of a former product manager at Coinbase Global, Inc. (“Coinbase”), pled guilty to one count of conspiracy to commit wire fraud in connection with a scheme to commit insider trading in cryptocurrency assets by using confidential Coinbase information about which crypto assets were scheduled to be listed on Coinbase’s exchanges.  WAHI was arrested in July of this year and pled guilty before U.S. District Judge Loretta A. Preska.

U.S. Attorney Damian Williams said:  “Less than two months after he was charged, Nikhil Wahi admitted in court today that he traded in crypto assets based on Coinbase’s confidential business information to which he was not entitled.  For the first time ever, a defendant has admitted his guilt in an insider trading case involving the cryptocurrency markets.  Today’s guilty plea should serve as a reminder to those who participate in the cryptocurrency markets that the Southern District of New York will continue to steadfastly police frauds of all stripes and will adapt as technology evolves.  Nikhil Wahi now awaits sentencing for his crime and must also forfeit his illicit profits.”

According to the allegations in the Indictment, and statements made in public court proceedings:

At all relevant times, Coinbase was one of the largest cryptocurrency exchanges in the world.  Coinbase users could acquire, exchange, and sell various crypto assets through online user accounts with Coinbase.  Periodically, Coinbase added new crypto assets to those that could be traded through its exchange, and the market value of crypto assets typically significantly increased after Coinbase announced that it would be listing a particular crypto asset.  Accordingly, Coinbase kept such information strictly confidential and prohibited its employees from sharing that information with others, including by providing a “tip” to any person who might trade based on that information.

Beginning in approximately October 2020, ISHAN WAHI worked at Coinbase as a product manager assigned to a Coinbase asset listing team.  In that role, ISHAN WAHI was involved in the highly confidential process of listing crypto assets on Coinbase’s exchanges and had detailed and advanced knowledge of which crypto assets Coinbase was planning to list and the timing of public announcements about those crypto asset listings. 

On multiple occasions between July 2021 and May 2022, after getting tips from ISHAN WAHI as to which crypto assets Coinbase was planning to list on its exchanges, NIKHIL WAHI used anonymous Ethereum blockchain wallets to acquire those crypto assets shortly before Coinbase publicly announced that it was listing these crypto assets on its exchanges.  Following Coinbase’s public listing announcements, on multiple occasions NIKHIL WAHI sold the crypto assets for a profit. 

To conceal his purchases of crypto assets in advance of Coinbase listing announcements, NIKHIL WAHI used accounts at centralized exchanges held in the names of others, and transferred funds, crypto assets, and proceeds of their scheme through multiple anonymous Ethereum blockchain wallets.  NIKHIL WAHI also regularly created and used new Ethereum blockchain wallets without any prior transaction history in order to further conceal his involvement in the scheme.

NIKHIL WAHI, 26, of Seattle, Washington, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. 

The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.  NIKHIL WAHI is scheduled to be sentenced by Judge Preska on December 13, 2022, at 12:00 p.m.

Mr. Williams praised the investigative work of the Federal Bureau of Investigation.  He also acknowledged the assistance of the Justice Department’s National Cryptocurrency Enforcement Team, as well as that of the Securities and Exchange Commission, which separately initiated civil proceedings against WAHI.

Attorney General James Recovers $50 Million from Cigarette Companies

 

Canadian Cigarette Manufacturer and Western New York Distributor Evaded State Taxes on Millions of Cigarettes Sold in New York

New York Attorney General Letitia James today announced a $50 million agreement with two companies that allegedly sold cigarettes without paying the required state excise taxes. Today’s agreement resolves allegations that Grand River Enterprises Six Nations, Ltd. (Grand River) based in Canada, and its wholesaler, Native Wholesale Supply Company, Inc. (Native Wholesale), located in Western New York, violated state and federal laws by shipping, selling, and distributing cigarettes in New York without paying state taxes. The two companies brought millions of cartons of unstamped cigarettes into New York from Canada. In addition to paying $50 million, the agreement also permanently prevents the companies from selling unstamped cigarettes in New York.

“Hardworking New Yorkers pay taxes and so should multi-million-dollar companies,” said Attorney General James. “Regulating and taxing cigarettes is a critical tool to protect public health from the deadly dangers of tobacco. Today’s agreement enforces New York’s laws and will stop the overflow of unstamped cigarettes into New York. I will continue to enforce the law against companies and individuals who flout New York state laws and put our residents in jeopardy.”

New York imposes state taxes on cigarettes to curtail the usage of tobacco products that are known to have serious and sometimes deadly health effects and significant related economic costs. State excise taxes on tobacco products have been proven to prevent smoking imitation among adolescents and young adults, reduce cigarette consumption, and increase the number of smokers who quit. When state excise taxes are evaded, cigarette prices become artificially low, making them more attractive and accessible to young people. Moreover, the sale of contraband cigarettes also reduces valuable tax revenue used to pay for essential state services and public infrastructure. 

Grand River manufactures the cigarette brands Seneca, Couture, and Opal. Grand River’s primary distributor and wholesaler of cigarettes in New York is Native Wholesale. The two companies are alleged to have operated as a joint venture to manufacture, transport, and sell cigarettes and other tobacco products in New York.

As alleged in the complaint, Native Wholesale purchased cigarettes and tobacco products from Grand River, imported them into New York, and distributed the cigarettes to retailers in the state. Native Wholesale was not licensed by New York to distribute or sell cigarettes. Grand River knew that the cigarettes it sold to Native Wholesale would be sold into New York without going through a New York state licensed stamping agent for pre-payment of state taxes and would be neither stamped nor taxed as required by New York law.

These unstamped cigarettes then ended up on shelves in New York retailers throughout the state. On multiple occasions, investigators from the Office of the Attorney General (OAG) were able to purchase these unstamped cigarettes from retailers in the state.

As a result of today’s agreement, New York will be paid $50 million. In addition, the companies must:

•   Create and maintain records of all of the Grand River cigarettes that enter New York and make those records available to OAG upon request;
•   Obtain statements from out-of-state customers indicating that they do not intend to reimport any unstamped cigarettes back into New York;
•   Cooperate with OAG when OAG is conducting an investigation into sales of unstamped Grand River cigarettes, or the sale of any unstamped cigarettes made by defendants;
•   Utilize authorized common carriers to transport unstamped cigarettes while they are transiting through New York; and,
•   Restrict sales of unstamped cigarettes to licensed cigarette stamping agents, federally bonded facilities, and other specified entities.

Attorney General James would like to thank the New York state Department of Taxation and Finance and the Ontario Ministry of Finance for their assistance and cooperation with this matter.