NYS Office of the Comptroller DiNapoli: State Pension Fund Valued at $233.2 Billion at End of Second Quarter

 

New York State Comptroller Thomas P. DiNapoli today announced that the estimated value of the New York State Common Retirement Fund (Fund) was $233.2 billion at the end of the second quarter of the state’s fiscal year. For the three-month period ending Sept. 30, 2022, Fund investments returned an estimated -3.85%.

“The recent volatility in the markets and concerns over the state of the economy have hit investors hard,” DiNapoli said. “Inflation and supply chain issues are continuing to impact the financial world and we expect a challenging investment environment for the foreseeable future. Still, the Fund is highly diversified and built to weather the ups and downs of the markets. Our pensioners and members can remain confident that their benefits are safe.”

The Fund's value reflects retirement and death benefits of $3.745 billion paid out during the quarter. Its audited value was $272.1 billion as of March 31, 2022, the end of the state fiscal year.

As of Sept. 30, the Fund had 42.33% of its assets invested in publicly traded equities. The remaining Fund assets by allocation are invested in cash, bonds, and mortgages (22.62%), private equity (15.29%), real estate and real assets (13.53%) and credit, absolute return strategies, and opportunistic alternatives (6.23%).

The Fund’s long-term expected rate of return is 5.9%.

Every three years the Fund is required to undergo an independent Fiduciary and Conflict of Interest Review. The review, most recently performed by Kroll LLC, found the Fund “continues to be a leader amongst its peers for management and operational transparency.”

DiNapoli initiated quarterly performance reporting by the Fund in 2009 as part of his on-going efforts to increase accountability and transparency.

Brooklyn Woman Pleads Guilty To Multifaceted COVID-19 Fraud Scheme

 

TATIANA DANIEL Conspired to Commit Pandemic Fraud by Defrauding New York City’s COVID-19 Hotel Room Isolation Program, Selling Fabricated COVID-19 Test Results, Committing Unemployment Benefits Fraud, and Obtaining Fraudulent COVID-19 Loans

 Damian Williams, the United States Attorney for the Southern District of New York, announced that TATIANA DANIEL pled guilty today to conspiracy to commit wire fraud.  DANIEL participated in a scheme to commit COVID-19 pandemic fraud by (1) defrauding New York City’s COVID-19 Hotel Room Isolation Program; (2) selling fabricated COVID-19 test results, both positive and negative; (3) committing unemployment benefits fraud; and (4) obtaining fraudulent COVID-19 loans from both the United States Small Business Administration’s Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program.  DANIEL pled guilty before United States Magistrate Judge Ona T. Wang.  DANIEL’s case is assigned to United States District Judge Lewis A. Kaplan.

U.S. Attorney Damian Williams said: “As she admitted today, Tatiana Daniel repeatedly took advantage of resources offered to aid people and businesses in crisis.  Daniel’s misconduct included selling fabricated COVID-19 test results, which likely put members of the public at risk of contracting the deadly virus from one of Daniel’s customers.  Daniel now faces possible prison time for her illegal and dangerous actions.”

According to the allegations contained in the Superseding Information, court filings, and statements made during plea proceedings:

From March 2020 through September 2021, DANIEL conspired to commit COVID-19 pandemic fraud through a variety of different means.

First, DANIEL defrauded the COVID-19 Hotel Room Isolation Program (the “Program”).  In response to the COVID-19 pandemic, New York City created the Program.  Funded by New York City and the Federal Emergency Management Agency, the Program provided free hotel rooms for qualifying individuals throughout New York City.  The Program was open to (a) healthcare workers who needed to isolate because of exposure to COVID-19; (b) patients who had tested positive for COVID-19; (c) individuals who believed, based on their symptoms, that they were infected with COVID-19; and (d) individuals who lived with someone who had COVID-19.  As stated on the City’s website describing the Program, such individuals “may qualify to self-isolate in a hotel, free of charge, for up to 14 days if you do not have a safe place to self-isolate.”  Those who wished to book a hotel room through the Program could either call a phone number or use an online hotel booking platform. 

DANIEL defrauded the Program in at least two respects.  First, she secured free Program hotel rooms for herself by falsely claiming to be a healthcare worker — specifically, a respiratory therapist.  Second, she sold at least approximately 144 nights’ worth of fraudulently obtained hotel rooms to customers who were ineligible for the Program.  In connection with this scheme, DANIEL used Facebook to advertise the sale of Program hotel rooms, to communicate directly with potential purchasers of Program hotel rooms, and to communicate with a co-defendant who worked at a call center that handled phone calls and certain reservations for the Program for several months in 2020.  For instance, at one point, DANIEL wrote to her co-defendant, “We gotta relocate that bitch they keep asking for employee ID.”

Second, DANIEL operated a fraudulent document mill, through which DANIEL sold, among other things, fabricated COVID-19 test results, both positive and negative, in July and August 2021.  These fabricated test results included the names of purported medical personnel, and contained misspellings (e.g., “postive”).

Third, between May 2021 and September 2021, DANIEL submitted fraudulent applications for COVID-19 loans, through both the PPP and EIDL programs, resulting in the disbursement of thousands of dollars in pandemic loan funding to DANIEL and a co-conspirator.

Fourth, between March 2020 and September 2021, DANIEL conspired to fraudulently obtain more than approximately $97,000 in unemployment benefits in New York State for both herself and others.  She did so by making misrepresentations about herself, and by stealing the identities of more than 10 individuals and collecting unemployment benefits issued for the benefit of those individuals.  In addition, DANIEL filed unsuccessful unemployment benefits applications in other states.

DANIEL, 28, of Brooklyn, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison.  Under the terms of her plea agreement, DANIEL has agreed to forfeit $109,655 and to pay restitution of $401,206. 

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  DANIEL is scheduled to be sentenced by Judge Kaplan on March 29, 2023, at 2:30 p.m.

DANIEL’s three co-defendants are currently scheduled to proceed to trial before Judge Kaplan on January 17, 2023.

Mr. Williams praised the outstanding efforts of agents, investigators, and analysts from the New York City Department of Investigation, the New York Regional Office of the U.S. Department of Labor – Office of Inspector General (“DOL-OIG”), and the U.S. Attorney’s Office for the Southern District of New York.  Mr. Williams also thanked the New York/New Jersey High Intensity Drug Trafficking Area Intelligence Analysts for their support and assistance in this investigation.  He also expressed gratitude to the New York City Police Department, the New York State Department of Labor, and the DOL-OIG Atlanta Regional Office for their assistance.

Governor Hochul Urges New Yorkers to Take Steps to Reduce Risk of Respiratory Illnesses this Holiday Season

 

Encourages Proven Prevention Measures to Prevent Severe Illness, Including Vaccinations and Good Respiratory Hygiene

Respiratory Virus Cases, Including RSV and Flu, Have Increased at a Rapid Pace; COVID-19 Continues to be a Significant Threat

 Governor Kathy Hochul today urged New Yorkers to take precautions this holiday season to protect young children, older individuals and those with underlying health conditions from respiratory viruses like RSV, influenza and COVID-19 as infections continue to rise nationwide. With statewide travel and indoor gatherings prevalent around the Thanksgiving holiday, Governor Hochul asked New Yorkers to take common prevention measures - like staying up to date on vaccines and practicing proper hygiene - to protect from these viruses and reduce the patient burden on local hospitals.

"As many New Yorkers look forward to gathering with friends and family during the Thanksgiving holiday, we should also embrace the commonsense measures we know to be effective at reducing the spread of respiratory illnesses," Governor Hochul said. "Be sure to stay up to date on vaccines - including flu shots and COVID-19 boosters. And if you do fall ill or develop symptoms, stay home and first seek treatment from your primary care provider."

RSV, influenza and COVID-19 can be especially dangerous for very young children, New Yorkers 65 and older and those with underlying health conditions. As a result of this threat, the state Department of Health issued a Health Advisory Notice this fall to alert hospitals, local health departments, laboratories, emergency rooms, and other health care providers to remain vigilant against rising respiratory illnesses.

Department of Health Commissioner Dr. Mary T. Bassett said, "While the simplest thing to do is regularly wash your hands and practice good respiratory hygiene, like covering your cough, one of the key things we learned in our battle against COVID-19 is that wearing a well-fitting mask can also dramatically reduce the spread of other respiratory viruses, including flu and RSV. This holiday season, we can protect our children and elderly, keep our family out of the hospitals and reduce the pressure on our local healthcare system by taking many of the same protective measures that became commonplace from the outset of the pandemic more than two years ago, including masking in public indoor spaces."

The Department of Health's statewide surveillance of influenza found activity levels were geographically widespread for six consecutive weeks. The number of laboratory-confirmed flu cases reported to the agency has nearly tripled over the past three weeks, while hospitalizations have more than doubled.

The agency's weekly flu tracker displays the number of cases and hospitalizations cases across the state. This site is updated throughout flu season, which is typically October through May of the following calendar year.

Nationally, the federal Centers for Disease Control and Prevention estimates that between 1.6 million and 3.7 million people were sick with the flu in October; with between 760,000 and 1.8 million seeking a healthcare provider; and between 13,000 and 28,000 being hospitalized. Between 730 and 2,100 people died from the flu or flu-related causes last month, the federal agency estimates.

Simultaneously, RSV cases continue to emerge with more frequency than recent years and can strain pediatric hospital capacity. A common respiratory virus, RSV can be especially harmful to older adults and very young children - particularly those under one year of age or born preterm.

To increase public awareness of RSV and to provide information for parents, guardians, and pediatricians, the Department of Health produced three videos to be shared on social media: A short clip and a longer version geared toward parents; and a version aimed specifically at health care providers. The videos encourage New Yorkers to recognize the best measures for preventing the spread of RSV spread, managing symptoms and care, and how to protect loved ones at the greatest risk of getting very ill.

Meanwhile, COVID-19 continues to pose a significant threat, particularly for unvaccinated or under-vaccinated New Yorkers. COVID-19 is one of the leading causes of death in the United States; all New Yorkers 6 months of age and older should stay up to date with their shots, particularly those who are older or immuno-compromised, as well as everyone 5 years and older who are eligible for the updated, bivalent booster dose.

This fall, New York State prepared for a potential increase in COVID-19 infections, which spiked during the fall and winter months for two consecutive years. Case levels remain at moderate levels as of now - between about 5 and 25 per 100,000 people in every region -and hospital admissions due to COVID-19 have been similarly steady and are now between approximately 0.6 and 2.3 per 100,000 in every region.

On November 16, 2,686 New Yorkers who tested positive for COVID-19 were hospitalized. The Department of Health also continues to conduct wastewater surveillance to check transmission levels in communities, enabling the agency to detect prospective surges statewide.

New Yorkers who test positive for COVID-19, but don't have a health care provider, can call a new hotline or submit an online form to be evaluated for treatment. All New Yorkers are eligible regardless of income or health insurance coverage. Outside of New York City: Call 888-TREAT-NY (888-873-2869) or complete an evaluation at the NYS COVID-19 ExpressCareTherapeutics Access website. New York City residents should call 212-COVID-19.

To protect against respiratory viruses, the Department of Health recommends commonsense precautions, including:

• Staying up to date on vaccines, including Flu and COVID-19.
• Washing your hands often with soap and hot water for least 20 seconds.
• Not coughing or sneezing into your hands.
• Regularly washing hands and using good hygiene.
• Staying home when sick or symptomatic.
• Wearing a well-fitting, high-quality mask when in public indoor spaces.

Individuals who have someone in their home who is higher risk, including those under 1 year of age, over 65 years of age, or with a compromised immune system, should be especially vigilant with mask wearing when outside the home or when others come into your home, with scientific evidence supporting this simple, precautionary measure.

Resources are also available to help New Yorkers make informed decisions about these viruses:

• Information about RSV.
• Information about the flu, including fact sheets and other downloadable materials.
• The COVID-19 website has resources for the public, schools, adult care facilities and medical laboratories.
• Information about vaccine efficacy.

MAYOR ADAMS’ STATEMENT ON STATE’S APPROVAL OF FIRST ROUND OF CANNABIS RETAIL DISPENSARY LICENSES, PROPOSED CANNABIS REGULATION PACKAGE

 

New York City Mayor Eric Adams released the following statement after New York State’s Office of Cannabis Management (OCM) approved the first round of Conditional Adult-Use Retail Dispensary (CAURD) licenses and proposed their adult-use cannabis regulation package:

 

“Today, OCM took a massive stride towards ensuring that social and economic equity will be infused throughout all facets of the emerging cannabis industry. This is just the beginning of a multibillion-dollar opportunity for our city, and I am proud that the first legal retail sales will be made by entrepreneurs who were most harmed by previous cannabis criminalization. In addition to prioritizing ‘justice-involved’ applicants, I commend OCM for making the unprecedented decision to offer a portion of licenses to non-profit organizations — like LIFE Camp, Housing Works, and The DOE Fund — that have been working to improve outcomes for marginalized people in New York City for decades. This unique approach accomplishes multiple major milestones: Those directly harmed by cannabis criminalization are given the opportunity to better themselves through entrepreneurship, while also providing funding to non-profit organizations that have historically supported underserved New Yorkers.”

 

“I am also pleased to see that the regulatory framework proposed by OCM holds the line on the equity-driven goals of the Marijuana Regulation & Taxation Act (MRTA), with clear guardrails to prevent oligopolistic consolidation of the market along with much-needed flexibility for responding to unexpected shifts in the market as it develops.”

 

“I have instructed the Cannabis NYC office to host a series of policy review workshops in the coming weeks for external and internal stakeholder groups to help break down the proposed regulations, provide opportunities to capture stakeholder feedback, and support submission of public comment to OCM during the 60-day period. My administration looks forward to supporting New York City’s first adult-use retail dispensaries and helping them grow from seed to shop window.”

Attorney General James and DEC Commissioner Seggos Announce Convictions of Kentucky Corporation and its Principal for Illegal Disposal of Hazardous Railroad Ties

 

New York Attorney General Letitia James and Department of Environmental Conservation (DEC) Commissioner Basil Seggos announced the convictions of Cross Tie Disposal, Inc. (Cross Tie), a Kentucky-based freight shipping and trucking company, and its Vice President, Harold Young, 48, for illegally dumping contaminated railroad ties treated with hazardous materials in Chenango County and creating fake receipts to conceal the illegal disposal. Cross Tie pleaded guilty to Grand Larceny in the Second Degree (a Class C felony) and Endangering Public Health, Safety, or the Environment in the Third Degree (a Class E felony), while Young pleaded guilty to one count of Endangering Public Health, Safety, or the Environment in the Third Degree. Both Cross Tie and Young were sentenced in Chenango County Court to three-year conditional discharges. As part of their respective sentences, both Cross Tie and Young agreed to pay over $117,000 in penalties and fines and are financially responsible for removing and properly disposing the illegally dumped railroad ties.

“Exposure to hazardous materials puts New Yorkers and our environment at risk,” said Attorney General James. “Not only did Harold Young and his company jeopardize the health of New Yorkers, they also violated state law and tried to cover their tracks. I will continue to use every tool at my disposal to investigate and halt fraud and punish offenders, and I thank DEC and Commissioner Seggos for their collaboration and shared commitment to this cause.”

“Dumping hazardous materials is illegal and has the potential to destroy natural resources and impact the health of New York’s communities,” said DEC Commissioner Seggos. “Creosote is a group of dangerous chemicals and DEC’s joint enforcement action with Attorney General James, which resulted in a conviction, demonstrates that the state of New York will hold Cross Tie Disposal, Inc., accountable for its unlawful actions to the full extent of the law.”

The convictions are the result of a joint investigation by the Office of the Attorney General (OAG) and DEC. In 2015, the County of Chenango Industrial Development Agency (IDA) created the Chenango County Rail Revitalization project to repair and improve railroad tracks in Chenango County. The IDA selected Frontier Railroad Services, LLC (Frontier), a Pennsylvania-based railroad contractor, to oversee the project. In February 2016, Frontier hired Cross Tie as a subcontractor to properly dispose old cross ties, which are hazardous old wood beams that hold railroad tracks in place and ensure there is proper distance between rails. The cross ties contain a variety of wood preservative called creosote, which comes from the high temperature treatment of wood and coal tar. Since 2008, New York state Creosote Law banned the manufacturing, sale, and use of creosote and required all products containing it to be disposed of in a landfill permitted by DEC.

Cross Tie was supposed to dispose of this waste at a regulated site in Erie County, but under the supervision and direction of Young, it instead dumped the contaminated railroad ties on a property in Chenango County. To conceal this illegal disposal, Young created 30 fraudulent receipts, known as scale tickets, to falsely show that the ties were properly disposed at a facility in Erie County. Relying on these fake tickets, Frontier paid Cross Tie more than $50,000 for the disposal, unaware that the railroad ties were dumped illegally. In March of this year, Cross Tie and Young were arraigned and charged with crimes for their roles in the scheme.

In March 2020, DEC Environmental Conservation Police Officers and OAG detectives collected samples of the railroad ties that were dumped in Chenango County while they were testing for the presence of hazardous substances. Subsequent laboratory analysis revealed that the ties were contaminated with more than 100 gallons each of 11 different hazardous substances.

Pursuant to New York Environmental Conservation Law, it is illegal to release hazardous substances that may enter the environment. According to DEC’s regulations, a substance is hazardous if it may cause physical injury or illness in humans, a potential threat to the environment, or a demonstrated threat to biological life cycles when improperly managed. To prevent potential harm from hazardous substances, they can only be legally disposed of at a DEC-permitted solid waste management facility. The DEC requires solid waste management facilities to follow strict guidelines to avoid potentially harmful impacts to public health and the environment, and it is illegal to operate such facility without a permit from the agency. According to DEC records, the Chenango County property was not lawfully permitted to accept railroad ties for disposal.

Attorney General James thanks DEC for their invaluable assistance in this investigation, including DEC Lieutenants Neil Stevens and Dave DiPasquale; Investigators Claude Stephens, Matt Harger, Ed Piwko, and Robert Johnson; and Chemist Malissa Kramer.

Statement from NYC Comptroller on Vacancy Reduction Letter from Office of Management and Budget

 

 In response to the letter sent to City agencies today from Budget Director Jacques Jiha, New York City Comptroller Brad Lander issued the following statement:

“When the Administration announced the Program to Eliminate the Gap in September, my office raised concerns regarding the impact on the ability of agencies to serve New Yorkers. While we agree that savings are critical as New York City faces economic headwinds, confronting those risks cannot come at the expense of diminishing the City’s capacity to get stuff done. Today’s directive to agencies furthers our concerns about recruiting and retaining the staff needed to implement critical programs from traffic safety improvements to processing housing applications.”

The Comptroller’s September 16 letter to the Office of Management and Budget is available here.

Governor Hochul Announces State Police Traffic Safety Campaign During 2022 Thanksgiving Weekend

 State Police and Local Law Enforcement to Increase Patrols to Prevent Impaired and Aggressive Driving During the Holiday Period

Construction-Related Lane Closures Limited from 6 a.m. Wednesday, November 23 through 6 a.m. Monday, November 28 to Ease Holiday Travel

 Governor Kathy Hochul today announced that the New York State Police and local law enforcement agencies will participate in a special traffic safety initiative to prevent unsafe driving behaviors as the winter holiday season kicks off. The Thanksgiving weekend initiative runs from Wednesday, November 23, through Monday, November 28.  

"Thanksgiving is traditionally one of the busiest travel times of the year, and our top priority is to make sure everyone gets to and from their destinations safely," Governor Hochul said. "There is zero tolerance for drunk and impaired drivers who risk the lives of everyone on our roadways. If your Thanksgiving celebrations include alcohol, plan for a safe ride home with a sober driver." 

In an effort to ease travel during the busy Thanksgiving weekend, temporary lane closures for road and bridge construction projects on New York State highways will be suspended beginning at 6 a.m. on Wednesday, November 23 through 6 a.m. on Monday, November 28. Motorists are advised that some work may continue behind permanent concrete barriers for emergency repairs. The construction suspension aligns with New York State's Driver's First initiative, which prioritizes the convenience of motorists to minimize traffic congestion and travel delays due to road and bridge work. 

New York State Police Acting Superintendent Steven A. Nigrelli said, "As motorists drive throughout the state to see their family and friends during the Thanksgiving holiday weekend, we encourage them to make safe driving practices their top priority. Impaired and aggressive driving, speeding, not using safety restraints and texting while driving all cause scores of senseless injuries and deaths. The State Police is committed to making our roadways safer and together, we can make sure everyone has a safe and happy Thanksgiving." 

The Thruway Authority reminds motorists that nine service areas are closed and under construction as part of the $450 million private investment and modernization project. Fuel services remain open at all locations. To ensure continuity of services to Thruway customers during construction, no two consecutive service areas in the same direction of travel will be closed for renovations at the same time. Motorists can view the service areas and plan their stops on the Thruway Authority's website and on the free mobile app.     

The State Police will supplement regular patrols statewide with dedicated impaired driving patrols including Drug Recognition Experts, fixed sobriety checkpoints, underage drinking enforcement, speed enforcement, and the use of Concealed Identity Traffic Enforcement patrol vehicles to better locate drivers talking or texting on handheld devices. These unmarked vehicles blend in with everyday traffic but are unmistakable as emergency vehicles once the emergency lighting is activated.  

Elevated traffic volumes typically occur during the Thanksgiving holiday weekend. It's also a time when alcohol consumption is widespread. During the 2021 Thanksgiving holiday period, a total of 12,975 tickets were issued. Troopers arrested 183 drivers for DWI, issued 4,609 speeding tickets and 340 tickets for distracted driving.  

To discourage impaired driving, the Governor's Traffic Safety Committee and its partners will participate in a nationwide social media blitz using the hashtag #BoycottBlackoutWednesday. 

The Thanksgiving impaired driving enforcement initiative is funded by the Governor's Traffic Safety Committee. The Governor's Traffic Safety Committee and the New York State STOP-DWI Foundation remind motorists that their "Have a Plan" mobile app, is available for Apple, Android and Windows smartphones. The app enables New Yorkers to locate and call a taxi or rideshare service and program a designated driver list. It also provides information on DWI laws and penalties, and provides a way to report a suspected impaired driver. 

Driving drunk or drugged puts not only the driver's life and the lives of others, but could result in arrest, jail time and substantial fines and attorney fees. The average drinking and driving arrest costs up to $10,000. 

Arrested drunk and drugged drivers face the loss of their driver's license, higher insurance rates and dozens of unanticipated expenses from attorney fees, fines and court costs, car towing and repairs, and lost time at work. 

The New York State Police, the Governor's Traffic Safety Committee and National Highway Traffic Safety Administration recommend these simple tips to prevent impaired driving: 

• Plan a safe way home before the fun begins. 
• Before drinking, designate a sober driver. 
• If you're impaired, use a taxi or ride sharing service, call a sober friend or family member, or use public transportation. 
• Use your community's sober ride program.  
• If you suspect a driver is drunk or impaired on the road, don't hesitate to contact local law enforcement. 
• If you know someone who is about to drive or ride while impaired, take their keys and help them make other arrangements to get to where they are going safely.  

Permits Filed For 2274 Morris Avenue In Fordham Heights, The Bronx

 

Permits have been filed for a six-story residential building at 2274 Morris Avenue in Fordham Heights, The Bronx. Located between East 182nd Street and East 183rd Street, the lot is two blocks from the 183rd Street subway station, serviced by the 4 train. Moses Ostreicher under the 2274 Morris Avenue LLC is listed as the owner behind the applications.

The proposed 67-foot-tall development will yield 7,667 square feet designated for residential space. The building will have 20 residences, with an average unit scope of 383 square feet. The masonry-based structure will also have a 30-foot-long rear yard.

Oleg Ruditser of Engineering Professional Service is listed as the architect of record.

Demolition permits were filed this August for the two-story building on the site. An estimated completion date has not been announced.