Governor Hochul Announces Actions to Prepare New Yorkers for Rising Global Energy Costs This Winter

 

Public Service Commission Chair Sends Letters to State Utilities Requesting Actions To Mitigate Fuel Supply Disruptions

Governor Convenes Fuel Providers in New York State to Ensure Adequate Supplies are Available

Tips for Consumers To Maximize Energy Efficiency, Affordability, and Comfort

 Governor Kathy Hochul today announced new State actions to prepare New Yorkers for rising global energy costs and supply issues expected this winter. At Governor Hochul's direction, Public Service Commission Chair Rory M. Christian sent letters to Chief Executive Officers of New York State's largest utility companies, urging measures to mitigate the anticipated extreme commodity price increases over the winter and enhanced customer communications. The Governor also directed State agencies to convene fuel providers across the state to ensure adequate heating fuels are available this winter. New Yorkers can also take advantage of cost-efficient programs in anticipation of the winter to adopt energy efficiency and electrification solutions for homes and businesses.

"Just like the heat waves experienced earlier this summer, New Yorkers should be fully prepared this winter for rising global energy costs as temperatures drop and it takes more energy to heat their homes," Governor Hochul said. "My administration is working closely with partners across the state to make sure New Yorkers have access to assistance and programs that help manage these rising costs while keeping their homes warm during the colder months."

The global commodity costs of natural gas, heating oil, and propane have continued to rise, resulting in utility and heating cost increases, along with additional increases oil and gas prices. In his letter to utility companies, PSC Chair Christian is requiring that utilities enhance the reliability of the natural gas distribution systems during the upcoming winter heating season, which comes in response to the Governor's March directive for State agencies to find solutions to the expected increase in energy prices and potential supply issues related to home heating oil. Specifically, the state's utilities — including Con Edison, Central Hudson, Orange and Rockland, National Grid, NYSEG, RG&E, National Fuel Gas, and PSEG-LI — must undertake the following actions, among others, to mitigate the impact of potential oil supply disruptions:

1. Enhanced Communications: Utilities will immediately send letters to dual-fueled commercial customers, including interruptible customers, to advise them to fill their alternate fuel tanks now. 
2. Fuel Storage Inspections: Utilities will inspect the alternate fuel tanks of all dual-fuel customers where human needs are served (e.g. New York City Housing Authority housing, homeless shelters, schools, hospitals, etc.) by November 1 to ensure they have adequate supply on hand (full tanks or the equivalent of five days of supply) before the winter heating season begins. 
3. Alternative Supply Review: Utilities will review utility emergency plans to address alternate fuel supply disruptions during peak gas demand. If dual fuel customers cannot be served with natural gas and are unable to replenish alternate fuel supplies, the utility should be prepared to work with local and state government agencies to protect public health and safety when temperatures drop below 20 degrees. The plan should include the roles and responsibilities for setting up warming centers, providing hot meals, establishing lists of master plumbers in case pipes freeze in unheated buildings, and identify the company and other resources that might be needed.
4. Enhanced Coordination: In the event of an oil supply disruption, electric generators may have more difficulty procuring No. 2 Oil than home heating customers. Utilities are required to continue to have strong coordination with the New York Independent System Operator and major power generators to encourage the dual-fuel operators to fill tanks in advance of the winter heating season.  

PSC Chair Christian requested a response with recommendations for how each utility will execute on all of the actions by September 30, 2022.

New York State Public Services Commission Chair Rory M. Christian said, "Global commodity prices are likely to stay inflated and rise during the winter heating season. It is therefore essential that utilities continue to have ongoing, robust communication with customers to help them access available assistance programs and be able to manage their energy costs. In preparation for this winter, utilities must also work with their "interruptible" customers, who by system design help to meet reliability needs during any periods of extreme cold weather by using alternate fuels."

In addition, the New York State Department of Environmental Conservation issued an Enforcement Discretion letter to support efforts to address fuel supply and cost issues related to the new bioheating fuel law. The Enforcement Discretion letter alleviates the lack of compliant fuel, especially in northern regions of New York State, by providing a limited, one-year reprieve from the new bio-blending requirement. Enacted in late 2021, the new law establishes minimum levels of biodiesel in all heating oil for use in buildings to reduce air pollution and greenhouse gases.  

As energy prices rise during the winter months, New Yorkers can take the following steps to protect against higher energy costs:

• Apply for HEAP. Apply for HEAP. Beginning November 1, applications will be accepted for the Home Energy Assistance Program (HEAP) which can provide up to $976 to eligible homeowners and renters depending on income, household size and how they heat their home. To qualify for heating assistance from HEAP, a family of four must have a maximum gross monthly income of $5,485, or an annual gross income of $65,829.
• Take immediate action to be more energy efficient. NYSERDA offers energy saving tips for residents and homeowners, as well as businesses that can lower energy usage. NYSERDA also offers a range of home energy efficiency programs that can help save energy and reduce costs over time. Income-eligible customers may qualify for reduced cost or free energy upgrades to their homes through EmPower New York and Assisted Home Performance with ENERGY STAR® programs. Homeowners should also check with their local gas and electric utility companies to access discounted products and services that can help them lower their energy costs all year long.
• Receive a customized list of energy-related assistance in the State. New York Energy Advisor can help income-eligible New Yorkers managers locate programs that help them spend less on energy and create healthier and more comfortable spaces. With the New York Energy Advisor, consumers answer simple questions and get connected with energy-saving offers in New York State. Sponsored by NYSERDA and utilities, qualified New Yorkers can get help paying utility bills, receive special offers on heating assistance, and more.
• Sign up for Community Solar. Community Solar allows New Yorkers, including renters, co-op and condo owners, and businesses to save money every month on their electric bills. Consumers can subscribe to a Community Solar project where available and start receiving credits on their electric bill for the clean energy produced by a solar farm. Find more information on how to sign up for a Community Solar project here.
• Get a free energy audit. Homeowners across New York are eligible for a free home energy assessment through NYSERDA's Residential Energy Audit Program. Home energy assessments are available both in-person and using remote technologies. Trained and qualified contractors who provide energy assessment services can help homeowners decide which energy improvements are worth investing in, install the improvements, and assist in connecting homeowners with NYSERDA's low-interest financing programs.
• Reduce your business or building's energy costs. Community Energy Advisors across New York State can help residents, businesses, and multifamily building owners reduce their energy use and costs.
• Join a Clean Heating and Cooling Campaign. Participating in a campaign eases the process of replacing a community member's current heating or cooling system with clean heating or cooling technology by connecting members with pre-qualified contractors and outlining potential incentives, tax breaks, financing, and payment options. Experienced contractors can give a home or business owner a holistic assessment to determine if their home or business space will also benefit from weatherproofing upgrades that can further increase comfort and reduce energy bills. Visit NYSERDA to see if your community is participating in a Clean Heating and Cooling Campaign.
• Know your rights and protections. The New York State Home Energy Fair Practices Act has comprehensive protections for residential customers regarding their utility services. These rights include the option to pay bills in installments, a cap on late fees, sufficient notice prior to shut-off of services, and protections for those on a fixed income or with medical conditions. Learn about these from the Department of Public Service at AskPSC.
• Consider bill payment options. When getting in touch with your utility provider, inquire about billing options that allow for deferred payments or "budget billing" options that balance out bills that are higher in one season and lower in another. This can structure your payments and make it easier to navigate costs.
• Better understand the energy management of your building. Put Energy to Work provides a deeper understanding of tools and programs for businesses that help in energy management for commercial and industrial buildings and includes resources that can increase profitability, create a competitive advantage, and achieve greater resiliency.

Visit NYSERDA for more information about the programs, funding and technical assistance available to assist homeowners, renters, and businesses manage their energy needs.

MAYOR ADAMS ANNOUNCES HUMANITARIAN EMERGENCY RESPONSE AND RELIEF CENTERS TO FURTHER SUPPORT ASYLUM SEEKERS ENTERING NYC

 

Centers to Provide Humanitarian Relief to Thousands of Asylum Seekers Arriving in NYC

 New York City Mayor Eric Adams today announced the city will open Humanitarian Emergency Response and Relief Centers to support the hundreds of asylum seekers arriving in New York City each day from Texas and other border states. As the number of asylum seekers sent to New York City continues to grow, these humanitarian relief centers will provide assistance to newly arriving individuals and families and ensure they continue to be connected to the full range of services and supports they need. Humanitarian relief centers will become the first touch point for arriving asylum seekers, helping people by immediately offering shelter, food, medical care, case work services, and a range of settlement options including through connections to family and friends inside and outside of New York City, in addition to, if needed, the possibility of direct referrals to alternative emergency supports or city shelter.

 

“More than 100 years ago, Ellis Island opened its doors to welcome in those ‘yearning to breathe free.’ Now, more than ever, it’s clear that we are again dealing with a humanitarian crisis created by human hands. While other leaders have abdicated their moral duty to support arriving asylum seekers, New York City refuses to do so,” said Mayor Adams. “This is not an everyday homelessness crisis, but a humanitarian crisis that requires a different approach. That’s why the Humanitarian Emergency Response and Relief Centers will be the first touchpoint for asylum seekers that will provide them with a range of services and support as families determine their next steps. This emergency response represents what we know must be done during this humanitarian crisis, as we continue to seek assistance from our federal and state partners to continue this work. Like the generations that came to our city before, New York will provide the thousands now coming to our city with the foundation to build a better life.” 

A past example of what the outside of a Humanitarian Emergency Response and Relief Center will look like. New York City’s setups will likely have some differences. Above and below.

 

“This is a humanitarian crisis that requires a new approach designed specifically to best assist those coming to our city,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “The Humanitarian Emergency Response and Relief Centers will have services tailored to the asylum seeker population, including providing settlement options, as well as legal information and health and safety supports. In this unprecedented time, we’re laser focused on supporting the parents, children and individuals who deserve compassion and support, and these centers are one piece of our work to do just that.”

 

“We need to assess and address asylum seekers’ needs as soon as they arrive, and connect them with services as quickly as possible,” said Deputy Mayor for Public Safety Philip Banks. “The relief centers will be a crucial piece of our overall response to help these asylum seekers get their necessary assistance.”

 

“As hundreds of migrants continue to enter New York City each day, we must take steps to ensure their health and safety as well as maintain our ability to provide essential services; that’s why we’re proud to announce the launch of the Humanitarian Emergency Response and Relief Centers. These centers will provide services such as wellness checks and temporary shelter when individuals and families first come to the city,” said New York City Department of Emergency Management (NYCEM) Commissioner Zach Iscol. “This is a true interagency effort, and we look forward to continuing this work with our partner agencies to ensure asylum seekers are receiving the resources they need after a long and difficult journey.”

 

“The mayor has made it clear that New York City takes care of its own, and NYC Health + Hospitals is proud to step up, answer this humanitarian crisis and help those in need,” said Mitchell Katz, MD, president and CEO, NYC Health + Hospitals (H+H). “Once again we will show cities around this country the value of a municipal health care system, and our commitment to the health of all our patients regardless of their immigration status.”​

 

“NYC Health + Hospitals has always been committed to caring for all those who call New York City home. We are proud to now extend our mission to help all individuals and families seeking asylum by operating the city’s first Humanitarian Emergency Response and Relief Centers,” said Ted Long, MD, MHS, senior vice president, Ambulatory Care and Population Health, NYC Health + Hospitals. “We look forward to working together, as one city, to ensure that all asylum seekers receive the proper welcome, care, and respect they deserve.”

​

NYCEM and H+H will operate the Humanitarian Emergency Response and Relief Centers and partner with other city agencies, as well as contracted partners and providers, to provide comprehensive on-site services and referrals. Two humanitarian relief centers will open in the coming weeks: Orchard Beach will open first serving adults, and a second location is still being finalized. Additional humanitarian relief centers may be opened in the coming weeks, as needed. All humanitarian relief centers will be expertly designed and built climate-controlled, safe spaces.

 

To the extent possible, buses will arrive directly at Humanitarian Emergency Response and Relief Centers or be directed there from the Port Authority. Once arriving, all asylum seekers who want them will be provided with settlement options, as well as immediate health, safety, and legal information. Asylum seekers who do not or cannot find immediate housing will stay at humanitarian relief centers for approximately 24 to 96 hours (these times are subject to change depending on the situation). The additional assessment time will ensure asylum seekers understand their options and can get to their desired destination quickly and smoothly.

 

New Jersey Man Sentenced to 48 Months in Prison for Actions Related to Capitol Breach

 

Defendant, an Army Reservist, Used Tactical Hand Signals and Commands as He and Other Rioters Entered the Building

  An Army reservist from New Jersey was sentenced today to 48 months in prison on felony and misdemeanor charges stemming from his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His and others’ actions disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.

Timothy Louis Hale-Cusanelli, 32, of Colts Neck, New Jersey, was sentenced in the District of Columbia.

According to the government’s evidence, Hale-Cusanelli drove to Washington on the morning of Jan. 6, 2021. He joined a mob of rioters that illegally breached a police line attempting to secure the Capitol grounds. He commanded others in the mob to “advance” on the Capitol, a command he continued once inside. Hale-Cusanelli was among the first rioters to enter the Capitol Building, moving inside shortly after the breach that took place at 2:12 p.m. at the Senate Wing Door. He made harassing and derogatory statements toward Capitol Police officers, saying that a “revolution” was coming. He remained in the building for approximately 40 minutes. Days after the incident, Hale-Cusanelli told a friend that being in the Capitol was “exhilarating,” he was hoping for a “civil war,” and that the “tree of liberty must be refreshed with the blood of patriots and tyrants.”

At the time of the Capitol breach, Hale-Cusanelli was enlisted in the U.S. Army Reserves. Hale-Cusanelli worked as a contractor at a naval weapons station, where he had a “secret” security clearance, and has since been barred from the facility.

Hale-Cusanelli was arrested on Jan. 15, 2021. He was found guilty by a jury on May 27, 2022, of a felony charge of obstruction of an official proceeding, and four related misdemeanors: entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, disorderly conduct in a Capitol Building, and parading, demonstrating, or picketing in a Capitol Building. At sentencing today, the Court found that Hale-Cusanelli obstructed justice during the trial, when he made certain statements under oath, and applied an enhancement to the sentence. Following his prison term, Hale-Cusanelli will be placed on three years of supervised release. He also must pay $2,000 in restitution.

The case was investigated by the Northeast Field Office of the U.S. Naval Criminal Investigative Service and the FBI’s Newark and Washington Field Offices. Valuable assistance was provided by the Metropolitan Police Department and the U.S. Capitol Police.

In the 20 months since Jan. 6, 2021, more than 870 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 265 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing. 

Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

Just Home Supportive Housing Development Coming To 1900 Seminole Avenue In Morris Park, The Bronx

 

NYC Health + Hospitals and the Department of Housing Preservation & Development (HPD) recently announced Just Home, a forthcoming housing project for formerly incarcerated New Yorkers with life-threatening medical conditions. Located at 1900 Seminole Avenue in the Morris Park section of The Bronx, the initiative will create approximately 70 studio and two-bedroom apartments.

The existing property at 1900 Seminole Avenue currently sits vacant on the NYC Health + Hospitals/Jacobi Medical Center campus. Tenants will have access to intensive on-site social services provided by licensed clinical social workers, peer workers, and specialists, as well as health services at Jacobi Hospital. The Fortune Society, a non-profit organization focused on individuals impacted by the criminal justice system, will act as the developer, manager, and social service provider for the project.

“New York City has a dire need for supportive housing for our most vulnerable citizens, and few are more vulnerable than those exiting the justice system with serious health conditions,” said HPD commissioner Adolfo Carrión Jr. “Fortune Society has a long, proven record of helping justice-involved New Yorkers reintegrate with their communities, while NYC Health + Hospitals has the expertise to ensure residents receive the level of care and attention we all deserve.”

Just Home will be modeled after The Fortune Society’s Castle Gardens, an 11-story mixed-use property at 625 West 140th Street in West Harlem. Opened in 2011, the 114 apartments at Castle Gardens were also envisioned as transitional supportive housing for formerly incarcerated adults. Today, the property provides features 63 supportive apartments for formerly incarcerated and formerly homeless individuals, 50 units of affordable housing for members of the community, and one apartment for a live-in superintendent.

The Just Home project will ultimately require a ground lease between NYC Health + Hospitals and Fortune. Following a public hearing, the ground lease will need to be approved by the NYC Health + Hospitals board of directors and the New York City Council. Stakeholders are currently contending with fierce backlash from local residents who fear how an influx in formerly incarcerated residents will impact the safety of the Morris Park neighborhood.

“Housing is foundational to a person’s well-being, especially for people in the process of reentry from prison or jail,” said Stanley Richards, deputy CEO, The Fortune Society. “We know from our decades of safely housing people with conviction histories that they can be good neighbors. The neighborhoods that are home to our developments can attest to that.”

The Fortune Society does not expect to open the property until 2025 at the very earliest.

EDITOR'S NOTE:

The Castle Gardens property and Just Home are two different ideas. Castle Gardens is for healthy people who have served their time and are on parole, while the other Just Home has to be on a hospital campus with people who have not fully served their time and have not been paroled, but will be in the program because of their health conditions, and the community will not know what crimes those people may have been convicted of. Just Home will also include inmates in jail waiting for trial who may have been seriously injured in their alleged crime. 

PUBLIC ADVOCATE SPOTLIGHTS DEPARTMENT OF EDUCATION FAILURES TO SUPPORT STUDENTS WITH DISABILITIES

 

 As the 2022-23 school year is underway, New York City Public Advocate Jumaane D. Williams highlighted the ways in which city schools are failing to meet the needs of disabled students, including legal requirements under the Americans with Disabilities Act. At a hearing of the Committee on Education Wednesday, he discussed the consequences of both inadequate services and inaccessible infrastructure for students, and pushed for passage of his legislation to require the Department of Education to report annually on the degree to which indoor and outdoor school facilities comply with the Americans with Disabilities Act.

"The accessibility of our school buildings is embarrassingly lacking," said Public Advocate Williams, who himself went through public school with a disability, during the hearing. "For disabled students, picking a high school means not only considering their choices based on academics and their interests, but finding out whether they can fit into bathroom stalls, use water fountains, if they have access to an elevator, or whether the school can provide the services mandated by their IEPs. With their options drastically limited, it is no surprise that only 58 percent of students with disabilities graduated from high school last year, compared to 81 percent citywide."

He also highlighted insufficiencies in transportation to schools as well as remote options during the height of the pandemic, and demonstrated that the reporting required by his legislation would be an invaluable tool, saying "This information is critical for students with disabilities and their families when deciding which school to attend, and provides us with additional data to target needed accessibility upgrades in our school system."

The Public Advocate’s full statement to the committee is below.

STATEMENT OF PUBLIC ADVOCATE JUMAANE D. WILLIAMS

TO THE NEW YORK CITY COUNCIL COMMITTEE ON EDUCATION

SEPTEMBER 21, 2022

Good afternoon,

My name is Jumaane D. Williams, and I am the Public Advocate for the City of New York. I would like to thank Chair Joseph and the members of the Committee on Education for holding this hearing.

In the 2021-2022 school year, 20.6 percent of New York City’s more than one million students had a disability. Despite being legally mandated to provide disabled students with the services they required, even before the COVID-19 pandemic, the Department of Education (DOE) did not meet mandated accessible education requirements. The pandemic has made it even more difficult for disabled students to get the support that they need, especially for students of color and those who live in low-income communities.  

The Americans with Disabilities Act (ADA) prohibits discrimination based on disabilty status. In schools, compliance with the ADA includes permitting accommodations including accessible education services, transportation to and from school, additional services to address a student’s Individualized Education Program (IEP), extra time between classes, and modifying testing, as well as physical changes to buildings, including grab bars in bathrooms, installing ramps and elevators, and widening doorways.

The accessibility of our school buildings is embarrassingly lacking. While students without disabilities can attend their local zoned schools or another school of their choice, students with disabilities often must choose their school based on whether they can physically navigate the building. For disabled students, picking a high school means not only considering their choices based on academics and their interests, but finding out whether they can fit into bathroom stalls, use water fountains, if they have access to an elevator, or whether the school can provide the services mandated by their IEPs. With their options drastically limited, it is no surprise that only 58 percent of students with disabilities graduated from high school last year, compared to 81 percent citywide.

According to the School Construction Authority, 73 percent of DOE schools are accessible. However, this includes not only schools that are fully accessible, but also those that are “partially” accessible. A partially accessible school is not accessible if a student cannot fit their wheelchair through classroom doors or fit into the bathroom stalls. Likewise, a school may be classified as fully accessible for those with mobility disabilities, but unable to accommodate a student who requires accessible education services due to, for example, a lack of qualified staff. 

The DOE must also address and resolve the transportation issues that have students missing school because their seat on a bus is not confirmed or their travel companion has not been assigned. I know there are parents who have missed work to stay home with the student or have used their grocery money to pay for a cab to take the child to school. No family should have to pay out of pocket for their child to get to school simply because their child has a disability.

For these reasons, I have introduced Intro 0582-2022, which would require the DOE to report annually on the degree to which indoor and outdoor school facilities comply with the Americans with Disabilities Act. This bill would also make public the contact information for each school’s ADA coordinator, the protocol for requesting an accommodation, and information regarding the extent to which zoned schools have the capacity to accommodate students and employees with disabilities. This information is critical for students with disabilities and their families when deciding which school to attend, and provides us with additional data to target needed accessibility upgrades in our school system.

The education disruption of the pandemic and remote learning has been hard on all of our students, but especially those with disabilities. We must be doing everything we can to ensure that disabled students are provided with equitable, high-quality education with all of the supports they need to succeed and thrive. I look forward to working with the Committee on Education and the City Council to achieve this goal.

Thank you.

President Of Queens-Based Construction Company Charged With Fraud In Connection With Homeless Shelter Contracts Worth $12 Million

 

Four Other Employees of Construction Company Also Charged in Connection with Years-Long Fraud and Money Laundering Scheme

 Damian Williams, the United States Attorney for the Southern District of New York, Jonathan Mellone, Special Agent-in-Charge of the New York Region of the United States Department of Labor Office of Inspector General (“DOL-OIG”), and Jocelyn Strauber, the Commissioner of the New York City Department of Investigation (“NYC-DOI”), announced today the arrest of LIAQUAT CHEEMA and ALI CHEEMA on charges of wire fraud conspiracy, aggravated identity theft, and money laundering conspiracy for their role in a scheme to defraud New York City (the “City”) in connection with public contracts to perform general contracting work at City homeless shelters.  Three other participants in the money laundering scheme, IRFAN BAJWA, SHOUKET CHUDHARY, a/k/a “Muhammad Shakoor Chudary,” a/k/a “Mohammad Shakoor Chudary,” and KHIZAR HAYAT were also arrested for their role in using bank accounts to receive proceeds of the fraud scheme and conducting financial transactions to conceal, among other things, the illegal source of the funds.  In addition, LIAQUAT CHEEMA, BAJWA, CHUDHARY, and HAYAT were each charged in a separate scheme to fraudulently obtain tens of thousands of dollars-worth of Medicaid benefits.  The defendants were arrested this morning in East Elmhurst and New Hyde Park, New York, and will be presented today before a magistrate judge in the Southern District of New York.

U.S. Attorney Damian Williams said: “The defendants entered into public contracts so that they could provide vital maintenance to homeless shelters to aid New York City’s most vulnerable residents; however, instead of honoring these contracts, the defendants allegedly concocted multiple schemes to steal public funds.  Today’s arrests signal this Office’s continued commitment to combat any and all fraud and money laundering schemes.”

Special Agent-in-Charge Jonathan Mellone said: “An important mission of the U.S. Department of Labor Office of Inspector General is to investigate allegations of certain illicit and fraudulent employment practices.  We will continue to work with our law enforcement partners to investigate these types of allegations.”

NYC-DOI Commissioner Jocelyn Strauber said: “As alleged, these defendants, contractors who work on New York City homeless shelters, used their contractor status to fraudulently siphon funds from the City.  The charged scheme was vast and involved overbilling for material, false claims to prompt the issuance of paychecks to purported workers and the diversion of those paychecks to defendants, and the submission of false certifications that enabled defendants to wrongfully obtain Medicaid benefits.  DOI thanks the City Department of Social Services for initially referring allegations of fraud to DOI and the United States Attorney's Office for the Southern District of New York and the U.S. Department of Labor Office of the Inspector General for their partnership on this investigation.”

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

LIAQUAT CHEEMA and ALI CHEEMA were the President and, at least as of in or about 2015, the Vice President, respectively, of AFL Construction Co. Inc. (“AFL”), located in Queens, New York.  AFL entered into public contracts with the City worth approximately $12 million to perform general contracting work at homeless shelters located in the City, including in the Southern District of New York.  Pursuant to the contracts, AFL would perform, among other things, general maintenance, landscaping, roofing, and snow removal at shelter sites. 

From at least in or about 2014 through at least in or about 2018, LIAQUAT CHEEMA and ALI CHEEMA used the contracts to fraudulently enrich themselves and steal from the City.  In furtherance of the scheme, LIAQUAT CHEEMA and ALI CHEEMA, among other things, submitted fraudulent invoices and other documentation in support of requests for payment on the contracts, which falsely claimed that certain workers had performed work on certain projects and falsely inflated amounts paid by the defendants for materials purportedly used on such projects.  These fraudulent invoices and supporting documentation contained, without authorization, the identities of other persons, including the names, and in at least one case, the social security number, of purported workers who in fact had not worked on the projects specified in the requests for payment submitted by LIAQUAT CHEEMA and ALI CHEEMA.  To date, AFL has been paid at least $8 million for work purportedly performed pursuant to these contracts.

In addition, during the same period, LIAQUAT CHEEMA and ALI CHEEMA, as well as IRFAN BAJWA, SHOUKET CHUDHARY, and KHIZAR HAYAT used several bank accounts to receive the proceeds of the fraudulent scheme and conducted financial transactions to conceal, among other things, the illegal source of the funds.  Those transactions included transfers of illicit proceeds into the defendants’ personal and business bank accounts via fraudulent checks in order to conceal the scheme.  For example, certain of the defendants caused AFL to issue hundreds of checks to purported workers fraudulently listed in documentation submitted to the City in support of payment on the contracts but never delivered those checks to the purported workers; instead, the defendants deposited the checks into their own personal and business bank accounts. 

LIAQUAT CHEEMA, IRFAN BAJWA, SHOUKET CHUDHARY, and KHIZAR HAYAT also fraudulently obtained tens of thousands of dollars-worth of Medicaid benefits by repeatedly submitting fraudulent certifications, which underreported their actual incomes and accordingly enabled them to obtain Medicaid benefits for which they were not eligible.  In support of requests for Medicaid benefits, LIAQUAT CHEEMA, BAJWA, CHUDHARY, and HAYAT repeatedly submitted nearly identical employment letters, which, among other misrepresentations, contained the name and purported signature of a purported “Project Manager” who, in fact, was deceased.

LIAQUAT CHEEMA, 62, of East Elmhurst, New York, is charged with one count of wire fraud conspiracy, which carries a maximum potential sentence of 20 years in prison; one count of money laundering conspiracy, which carries a maximum potential sentence of 20 years in prison; one count of health care fraud conspiracy, which carries a maximum potential sentence of 10 years in prison; and two counts of aggravated identity theft, each of which carry a mandatory sentence of two years in prison.

ALI CHEEMA, 31, of East Elmhurst, New York, is charged with one count of wire fraud conspiracy, which carries a maximum potential sentence of 20 years in prison; one count of money laundering conspiracy, which carries a maximum potential sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.

IRFAN BAJWA, 42, of New Hyde Park, New York, SHOUKET CHUDHARY, 64, of East Elmhurst, New York, and KHIZAR HAYAT, 46, of East Elmhurst, New York, are each charged with one count of money laundering conspiracy, which carries a maximum potential sentence of 20 years in prison; one count of health care fraud conspiracy, which carries a maximum potential sentence of 10 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.

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

Mr. Williams praised the outstanding investigative work of DOL-OIG and NYC-DOI.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorney Timothy V. Capozzi is in charge of the prosecution.

The allegations 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 constitutes only allegations, and every fact described herein should be treated as an allegation.

Governor Hochul Announces Work to Redesign Penn Station Anticipated to Begin in the Coming Months

 

Penn Station's Future as World-Class, Spacious Facility to Come into Focus with MTA Contract for Design and Engineering of New Station

Redesign Set to Relieve Overcrowding and Improve Safety and Accessibility

 Governor Kathy Hochul today announced the Metropolitan Transportation Authority, in partnership with NJ TRANSIT and Amtrak, approved a contract for the redesign of Penn Station to a joint venture led by FXCollaborative Architects LLP and WSP USA Inc., with the acclaimed British architect John McAslan + Partners as collaborating architect. McAslan + Partners designed the 2012 transformation of London's historic King's Cross Station, creating a 165-yard-long semi-circular departures concourse that integrates regional and intercity railroads with each other and with the London Underground while welcoming natural light from the sky through 1,000 glazed and translucent triangular roof panels.

"Since crews took a wrecking ball to the original Penn Station in 1963, generations of New Yorkers have been united in their call to build a new station worthy of New York," Governor Hochul said. "By approving the contract for the redesign of Penn Station, we move another step closer to getting it done. The transformation of Penn cannot come soon enough, and we look forward to building a world-class station that puts New Yorkers first, delivers a rider-focused transit experience, and a great neighborhood they deserve."  

The FXCollaborative and WSP joint venture developed the Penn Station Master Plan unveiled last year that evaluated alternatives and created the preferred redesign plan for Penn Station as a single-level facility centered around a grand train hall with a 450-foot long sky-lit atrium between Madison Square Garden and 2 Penn Plaza. The design called for by the MTA's contract will advance that preferred alternative and will:  

• Relieve overcrowding and improve passenger flow and orientation  
• Improve safety by increasing platform and station egress and accessibility  
• Alleviate the cramped, disjointed circulation areas with widened concourses and high ceilings  
• Create a clear street presence that integrates with the surroundings  
• Optimize retail and other revenue generation  
• Integrate Penn Station with Moynihan Train Hall and the planned Penn Station Expansion  

Janno Lieber, MTA Chair and CEO said, "Awarding the design contract is a huge step forward in Governor Hochul's effort to make Penn Station - once again! - a safe, world-class transit facility. The work will take place on an aggressive timetable. The opening of Grand Central Madison in just a few months provides us with a once-a-century opportunity to rebuild Penn Station. With a sizeable percentage of LIRR riders expected to shift their trips to Grand Central Madison, Penn Station will have five years with lower customer volumes before a new influx of customers arrives on Metro-North Railroad by 2027. The MTA wants to get most disruptive the work done before then, so I'm thrilled we are moving forward quickly with the design phase of this massive, long-delayed effort."  

The recommendation for the design joint venture follows an open, competitive request-for-proposals process that was widely advertised and sent to 106 prequalified firms and attracted five proposals from firms and joint ventures that were reviewed and scored by representatives from MTA Construction & Development,  Amtrak, and NJ TRANSIT, and assisted by a Technical Advisory Committee with additional representatives from the Long Island Rail Road, Empire State Development and the New York City Economic Development Corporation.  

The base contract of up to $57.9 million would develop the preliminary station design and would last for one year. This contract includes options covering preliminary design for improvements to nearby subway stations and design and engineering support as the station reconstruction moves forward.  

In keeping with the MTA's aggressive nation-leading program to encourage the growth and development of certified Disadvantaged Business Enterprises (DBE), the MTA's Department of Diversity and Civil Rights has assigned a 22.5 percent DBE goal to the contract.  

SENATOR GUSTAVO RIVERA AND NEW YORK HEALTH COMMUNITY COMMEND GOVERNOR HOCHUL FOR PROCLAIMING SEPTEMBER AS SEPSIS AWARENESS MONTH IN NEW YORK

 

Governor Kathy Hochul has issued a proclamation recognizing September as Sepsis Awareness Month in New York. Affecting nearly 50,000 New Yorkers annually, sepsis is a potentially life-threatening condition that occurs when the body's response to an infection damages its own tissues. 

“I commend Governor Hochul for proclaiming September as Sepsis Awareness Month in New York. This important step will allow our State to continue to lead the national fight against this life-threatening condition that affects thousands of New Yorkers annually,” said Senator Gustavo Rivera, Chair of the Senate Health Committee. “I look forward to continue working with our government and advocacy partners to further support sepsis education, prevention, screening, early treatment in honor of those who survived and in legacy of those whose lives were lost.”

When the infection-fighting processes turn on the body, organs function poorly and abnormally. Certain population groups are more vulnerable to developing sepsis, such as the young, elderly, individuals with chronic illness, those with compromised immune systems, and those facing systemic healthcare disparities. Patients who develop and survive sepsis have an increased risk of complications and death later, as well as higher healthcare costs and longer treatment.

New York continues to be at the cutting edge of efforts to combat sepsis, developing and implementing policies and innovations across the healthcare system. Hospitals across the state are incorporating “Rory’s Regulations” and sepsis protocols and schools have implemented NY’s “Rory’s Law.” For over five years, home care agencies have been implementing a home care sepsis screening and intervention tool and protocol, developed by the state Home Care Association assisted by Sepsis Alliance and ENDSEPSIS, which adds a critical layer of screening in the home and community.

“HCA applauds Governor Kathy Hochul and Senate Health Chairman Senator Gustavo Rivera for proclaiming September Sepsis Awareness Month,” said HCA President and CEO Al Cardillo. “The collaborative work of all health sectors, public educators and government officials is imperative to combatting this health and life-threatening medical emergency, which 87 percent of the time occurs in home and community. We at HCA and in home care stand as a critical and committed partner in this cause with fellow health sectors and under the national sepsis leadership of the Sepsis Alliance, and END SEPSIS-Legacy of Rory Staunton.”

“Sepsis Alliance is grateful to New York for honoring Sepsis Awareness Month in 2022 at the state level. Observances like this one can help to achieve increased sepsis awareness, which can improve time to recognition and treatment, ultimately saving lives and limbs from this devastating condition.” Thomas Heymann, President & CEO, Sepsis Alliance.