Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - FEBRUARY 27, 2023

 

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

19 Statewide Deaths Reported on February 24

 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19 and outlined basic steps they can take to protect against the spread of viral respiratory infections that become more common in the winter season.

"I urge all New Yorkers to remain vigilant and continue to use all available tools to keep themselves, their loved ones and their communities safe and healthy," Governor Hochul said. "Be sure to stay up to date on vaccine doses, and test before gatherings or travel. If you test positive, talk to your doctor about potential treatment options."

Governor Hochul is urging New Yorkers to take common prevention measures — like staying up to date on vaccines and practicing proper hygiene — to protect from the flu and COVID-19 and reduce the patient burden on local hospitals. The Governor reiterated these basic steps when she updated New Yorkers on the state's health preparedness efforts this winter.

Last week, the New York State Department of Health launched a new 12-week campaign on television, social media and streaming services to encourage New Yorkers with underlying medical conditions to recognize the importance of getting and staying up-to-date with the recommended COVID-19 bivalent booster to avoid serious illness or death. These conditions including being 65 or older, pregnant, obese, diabetic, or suffering from heart or lung disease, or having a weakened immune system.

Additionally, the Department of Health released its weekly flu surveillance report for the week ending February 18 and showing influenza remaining geographically widespread throughout the state for a twentieth consecutive week, with a total of 315,732 positive cases reported across 57 counties. The report found that confirmed cases statewide decreased 5 percent to 2,471 for the week, while overall hospitalizations were up 3 percent from the previous week, at 144 hospitalizations across the state.

There were three outbreaks in acute care and long-term care facilities, the report determined. There were no influenza-associated pediatric death reported for the week, for a total of 10 statewide.

With flu season continuing, Governor Hochul reminds all New Yorkers that it's not too late to get their annual flu vaccine. The flu virus and the virus that causes COVID-19 are both circulating, so getting vaccinated against both is the best way to stay healthy and to avoid added stress to the health care system.

The Health Department is continuing its annual public education campaign, reminding adults and parents to get both flu and COVID-19 shots for themselves and children 6 months and older. For information about flu vaccine clinics, contact the local health department or visit vaccines.gov/find-vaccines/.

Governor Hochul also continues to urge New Yorkers to get their bivalent COVID-19 vaccine boosters. In December, the New York State Department of Health announced new guidance for bivalent COVID-19 booster doses, which are now available for eligible children down to 6 months of age.

The updated boosters are the first to be targeted to the original virus strain and recently circulating variants and are recommended for young New Yorkers and all those eligible. 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.

Today's data is summarized briefly below:

• Cases Per 100k - 5.04
• 7-Day Average Cases Per 100k - 8.17
• Test Results Reported - 37,976
• Total Positive - 985
• Percent Positive - 2.43%**
• 7-Day Average Percent Positive - 3.32%**
• Patient Hospitalization - 1,850 (-95)
• Patients Newly Admitted - 245
• Patients in ICU - 192 (-25)
• Patients in ICU with Intubation - 71 (-9)
• Total Discharges - 403,099 (+314)
• New deaths reported by healthcare facilities through HERDS - 19
• Total deaths reported by healthcare facilities through HERDS - 61,819

** Due to the test reporting policy change by the federal Department of Health and Human Services 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 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 - 78,627

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,   February   24, 2023	Saturday,   February   25, 2023	Sunday,   February   26, 2023
Bronx	2.33%	2.27%	2.14%
Kings	1.96%	1.81%	1.67%
New York	2.94%	2.93%	2.71%
Queens	2.78%	2.63%	2.56%
Richmond	2.46%	2.36%	2.31%

MAYOR ADAMS, DCWP COMMISSIONER MAYUGA SECURE REINSTATEMENT WRONGFULLY FIRED STARBUCKS WORKER AUSTIN LOCKE

 

Settlement Secures Reinstatement of Austin Locke, Who Returns to Work Today at Astoria Starbucks, Over $21,000 in Backpay and Penalties

New York City Mayor Eric Adams and New York City Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga today announced a settlement with coffee giant Starbucks over the wrongful termination of Austin Locke in violation of the “just cause” protections of New York City’s New York City’s Fair Workweek Law. Last fall, DCWP announced a lawsuit against Starbucks for illegally firing the longtime barista from one of its Astoria locations. Starbucks has now agreed to reinstate Locke to his former position at the Astoria Starbucks where he worked, pay over $21,000 in backpay and penalties, and comply with the city’s Fair Workweek Law going forward.

 

“New York’s workers should know that we will always fight to protect their rights” said Mayor Adams. “Thanks to the efforts of our administration, Austin Locke will be returning to his job today at Starbucks — and with thousands of dollars in backpay in his pocket. We will not stand by when an employee is unlawfully terminated, and I commend DCWP for its quick work in this case.”

 

“Our city’s equitable economic recovery depends on our ability to protect workers across the five boroughs,” said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer. “The administration is proud to have secured Mr. Locke’s reinstatement, and we will continue to be vigilant against violations of the city’s Fair Workweek Law.”

 

“We are pleased to see Mr. Locke — who never should have been fired — reinstated with full backpay,” said DCWP Commissioner Vera Mayuga. “DCWP will not hesitate to take legal action to put someone back to work after an unlawful termination. Any fast food worker who believes they’ve been fired unfairly should contact us immediately.”

 

“Getting reinstated is not just a win for me but a win for the working class,” said Austin Locke. “Let this be an example to all: In New York City, you can’t mess with workers.” 

 

In July 2022, DCWP received a complaint from Locke alleging that Starbucks had unlawfully fired him from his job. DCWP quickly launched an investigation and found that Starbucks did in fact terminate Locke unlawfully. DCWP gave Starbucks an opportunity to reinstate Locke at the conclusion of the investigation. When Starbucks failed to do so, DCWP filed a petition on September 1, 2022 with the New York City Office of Administrative Trials and Hearings. The petition requested an order of reinstatement and backpay for Locke, which he will now receive under this settlement.

 

Under the Fair Workweek Law, it is illegal for fast food employers to fire or lay off workers who have completed a probation period of 30 days, or reduce their hours by more than 15 percent, without just cause or a legitimate economic reason. Whenever an employee is discharged or has their hours reduced by 15 percent or more without their consent, the employer must give the worker a notice of discharge in writing within five days that explains the reason. A discharged employee who loses a scheduled shift is entitled to premium pay for each lost shift. Employers and employees can visit the city’s workers’ rights page or call 311 (212-NEW-YORK outside New York City) for more information about the law, including an overview of the law, information about the required progressive discipline policy, different templates for signage that must be posted, and FAQs. 

 

Since the Fair Workweek Law went into effect in November 2017, DCWP has received more than 520 complaints about potential Fair Workweek violations, closed more than 230 investigations, and obtained resolutions requiring nearly $27.1 million in combined fines and restitution for more than 20,100 workers.

 

Queens Man Arrested For Defrauding Former Employer Of $4.4 Million In Fake Invoice Scheme

 Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of BHASKARRAY BAROT for engaging in a years-long scheme to defraud his former employer out of approximately $4.4 million.  BAROT was arrested in Queens, New York, on a criminal Complaint and was presented before a magistrate judge in the Southern District of New York. 

U.S. Attorney Damian Williams said: “As alleged, over the course of years, Barot created fraudulent invoices and processed them for payment at the Manhattan-based company where he used to work as a procurement manager.  Barot designed the invoices to closely resemble the invoices that the company received from real vendors and other entities owed payment from the company.  But the fraudulent invoices differed in a crucial way:  they directed payment into Barot’s pocket.  This arrest demonstrates that this Office will seek justice for companies that fall victim to corporate theft.”

According to the allegations contained in the Complaint, which was unsealed today in Manhattan federal court:[1]

From at least in or about July 2018, up to and including at least August 2022, BAROT engaged in a scheme to defraud his former employer (the “Company”) of approximately $4.4 million through fake invoices designed to resemble those received from legitimate vendors of the Company.  BAROT used his position as a procurement manager at the Company to process the fraudulent invoices for payment.  When doing so, he often affixed the fake invoices to email messages that he, in some cases, sent in the names of employees of the Company’s real vendors so that it would appear as though the real vendors were seeking payment on the fake invoices.   

The fake invoices, however, stated that payment should be made to entities with names that often differed slightly from those of the real vendor companies.  BAROT then incorporated companies and opened bank accounts in the names of some of the entities listed for payment on the fake invoices so that he could collect the payments that the Company made on the fake invoices.

BAROT repeated these fraudulent tactics with more than a dozen fictitious entities and caused payment to be made by the Company on approximately 40 fake invoices, totaling approximately $4.4 million.

BAROT, 32, of Queens, New York, is charged with one count of wire fraud, which carries a maximum potential sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.

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

Mr. Williams praised the outstanding investigative work of the FBI.

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

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

Governor Hochul, Senate Majority Leader Schumer, and MTA Chair and CEO Lieber Celebrate Start of Full-Scale Long Island Rail Road Service to Grand Central Madison Beginning Monday, February 27

Senate Majority Leader Schumer Joins Governor Hochul and MTA Chair and CEO Lieber at Ceremony at Grand Central Madison

New LIRR Timetables Effective Tomorrow Increase Weekday Service by 41 Percent

Largest LIRR Service Expansion with Trains Arriving/Departing Manhattan Terminals Every Three Minutes During Peak Periods

Combo Ticket Available Tomorrow with Implementation of New Schedules

Schedules Available via TrainTime App and on MTA Website 

 Governor Kathy Hochul, Senate Majority Leader Charles Schumer and MTA Chair and CEO Janno Lieber, along with federal and local elected officials today celebrated the official opening of Grand Central Madison with full Long Island Rail Road service to begin tomorrow, Monday, February 27. The new schedules provide increased service levels by a historic 41 percent and offer direct access to Midtown east, the biggest job hub in the country, provide more frequent, reliable service, including in Queens and Brooklyn, and true reverse-peak service on the Port Jefferson and Ronkonkoma Branches for the first time.   

"Grand Central Madison is a public transportation feat that will shorten commutes, giving commuters time back in their busy lives to spend with their families, friends and communities," Governor Hochul said. "Grand Central Madison will dramatically expand service and operate more reliably for commuters and reduce overcrowding at Penn Station. Thanks to our continued partnership with Senator Schumer and the New York Congressional delegation, we will continue building safe and efficient public transportation worthy of New Yorkers."

The new schedules add 271 LIRR trains per day and increase LIRR systemwide service to 936 trains per day, of which 296 will be to or from Grand Central Madison. The Grand Central Madison project, funded in part by USDOT, follows two other significant LIRR capital projects: the Double Track Project, which installed a second track for 13 miles between Farmingdale and Ronkonkoma; and the Third Track Project, which installed a 9.8-mile third track between Floral Park and Hicksville. These once-in-a-generation investments alleviated certain capacity constraints, enabling the railroad to increase service and comprehensively rewrite the schedules for the first time in decade.

With implementation of the new schedules, there will be more than 500 additional station stops in Brooklyn and Queens and during the peak period, an LIRR train into Penn Station or Grand Central every 3 to 6 minutes and service to Atlantic Terminal approximately every 12 minutes. Grand Central Madison is the first major new rail terminal to open in the United States in 67 years and the first extension of the LIRR in 112 years, since service began to Penn Station in 1910. 

The new schedules provide rush-hour through-service to Brooklyn from Freeport, Hempstead and West Hempstead. The MTA encourages all riders to consult the new schedules before traveling via the highly rated TrainTime app or at mta.info, where users can find pdf timetables. 

The Combo Ticket  

The beginning of service now enables the possibility of transferring directly between the LIRR and Metro-North Railroad. To provide a seamless connection between the systems, the MTA has introduced the "Combo Ticket" - a single ticket that enables customers to travel between Long Island, Manhattan's northern suburbs and Connecticut all with one fare.  

The Combo Ticket enables riders to buy a LIRR ticket in Huntington for a trip to White Plains or a Metro-North ticket in Poughkeepsie for a trip to Montauk. Riders choose their origin station with Grand Central as their destination and pay the regular fare plus a flat rate of eight dollars for a continuing trip to any destination on the other railroad. For more on the combo ticket, visit https://new.mta.info/fares/combo-ticket.  

More on Recent Long Island Rail Road Improvements 

Grand Central Madison, Double Track, and Main Line Third Track are part of an unprecedented $17.7 billion investment to transform and modernize the Long Island Rail Road with 100 projects throughout the system including construction of a more spacious LIRR Concourse at Penn Station with a new entrance at 33rd Street and Seventh Avenue, renewal and upgrading of 36 stations and 17 bridges, elimination of eight at-grade railroad crossings, activation of the Positive Train Control safety system, upgrades to 15 electrical substations, parking capacity increases, and yard expansions.   

Additionally, following the opening of Moynihan Train Hall in 2021, the MTA, together with Empire State Development, NJ Transit and Amtrak, is transforming Penn Station into a world-class, single-level terminal with abundant natural light, high ceilings, and enhanced wayfinding. 

DEC Adds Seven New Locations to New York State Birding Trail, Announces Updated Site Nomination Process

 

New Locations Bring Total Number of Sites Statewide to 332

Trail Provides Birding Opportunities for All New Yorkers, Regardless of Age, Ability, Identity, or Background

New York State Department of Environmental Conservation (DEC) Commissioner Basil Seggos today announced the addition of seven new locations to the New York State Birding Trail. These new locations bring the total number of birding trail locations across the state to 332, providing a variety of quality birding experiences for New Yorkers and visitors to enjoy.

“The New York State Birding Trail provides access to exceptional birding and a high-quality, sustainable opportunity to experience nature,” said Commissioner Seggos. “These seven new sites enhance access to the more than 330 diverse and unique birding opportunities we are so fortunate to have here in New York.”

Birdwatching has become one of New York’s fastest-growing recreation and tourism activities. DEC manages the New York State Birding Trail in collaboration with partners that include the Office of Parks, Recreation and Historic Preservation. The statewide trail network includes promoted birding locations that can be accessed by car or public transportation, providing an inclusive experience for all visitors to enjoy birds amid beautiful natural settings with little or no cost or investment in equipment.

State Parks Commissioner Erik Kulleseid said, “It’s great to see the Empire State Birding Trail continue to expand. With these new sites, New York residents and visitors have more options to get outside and enjoy nature and our state’s abundant wildlife.”

Empire State Development Vice President and Executive Director of Tourism Ross D. Levi said, "New York State is a birdwatcher's paradise, and the Birding Trail provides unique ways to watch our feathered friends in their natural habitats. The seven new sites - from the majestic Mohonk Preserve to the Dunkirk Harbor waterfront - offer new opportunities for beginning birdwatchers to expert ornithologists, and can complement any New York State getaway."

The newly added locations are located on public and private lands across the state: 

• Adirondacks/North Country: Up Yonda Farm Environmental Education Center, Bolton
• Central – Finger Lakes: Finger Lakes Museum & Townsend-Grady Wildlife Preserve, Branchport
• Greater Niagara: Hunters Creek Park, East Aurora
• Greater Niagara: Mossy Point, Wales
• Hudson Valley: Mohonk Preserve, Gardiner
• Southern Tier: Point Gratiot Park, Dunkirk
• Southern Tier: Dunkirk Harbor, Dunkirk

The new additions feature a diversity of habitats including deep woods where birders may observe a variety of woodland warblers, shoreline and harbors attracting many wintering waterfowl, and riparian areas where birders may observe spotted sandpipers and flycatchers.

In addition to state-owned and managed locations for the Birding Trail, publicly and privately managed sites can complete a simple self-nomination process to be considered for inclusion on the trail. As DEC moves towards long-term management of the trail, nominations will now be reviewed and added to the Birding Trail on a quarterly basis. Deadlines for nomination submissions for each quarter are as follows:

Quarter one: March 30
Quarter two: June 30
Quarter three: September 30
Quarter four: December 31

Selected sites meet criteria to help ensure a positive experience for visitors throughout the state. Additionally, sites post signage noting them as official locations on the Birding Trail. For information on the nomination process and the updated form and guidelines, see www.ibirdny.org.

New segments of the Birding Trail were opened in a phased approach from October 2021 through August 2022. With 332 locations, the Statewide Birding Trail provides birding opportunities for everyone, regardless of age, ability, identity, or background, across New York State. DEC continues to solicit input from a wide range of New Yorkers and organizations that represent Black, Indigenous, and People of Color (BIPOC) communities and is making trail information available in both English and Spanish. Bird walks will be held in collaboration with organizations working with BIPOC communities.

The New York State Birding Trail map is available at www.ibirdny.org and provides valuable information on each site such as location, available amenities, species likely to be seen, directions, and more. Digital information on the Birding Trail will be updated periodically, so budding outdoor enthusiasts are encouraged to check back often. DEC encourages birding enthusiasts to visit I Bird NY for more information on where and how to observe birds, upcoming bird walks, a downloadable Beginner's Guide to Birding (available in Spanish), and additional resources.

Audubon Connecticut and New York Executive Director Mike Burger said, “The New York State Birding Trail is an incredible outdoor resource that is helping to make birding more welcoming and accessible for all people. The seven new sites have been added just in time for spring migration, when we welcome back ‘early birds’ like the Common Yellowthroat and Osprey. These next few months are the ideal time for beginners to hit the trails, as you are certain to see or hear a tremendous variety of species.”

New York State Tourism Industry Association President and CEO Bob Provost said, “The best of America's great outdoors is right here in New York State! The launch and ongoing expansion of the Birding Trail is a major step forward to provide a more accessible and friendly outdoor resource for New York State's residents. It is a relatively new asset in worldwide outreach for New York's tourism industry. In the U.S. alone, 'birders' spend nearly $20 billion annually on travel! We look forward to promoting the trail to both domestic and international travelers.”

DEC manages and oversees five million acres of public lands and conservation easements and plays a vital role in both protecting New York’s natural resources and providing opportunities for people to enjoy the outdoors. From fishing on scenic streams, hiking and rock climbing, swimming and boating, birding, and nature study, or simply relaxing in a tent under the stars, there are endless adventures to be found. Visit http://www.dec.ny.gov/outdoor/.

DASHBOARD UPDATE: NYC Comptroller Releases New Monthly Data on Department of Correction Operations

 

Data from the end of January shows a rise in people admitted to Rikers Island

The New York City Comptroller’s Office released its monthly update to the Department of Correction (DOC) Dashboard, available here. The dashboard monitors pervasive issues in the City’s jails, including staff absenteeism, missed medical appointments, and incidents of violence among detained people and staff. It also tracks the jail population every month, which increased to 5,970 people in custody. The detained population on Rikers Island remains well above the 3,300 person capacity of the borough-based jails intended to replace the notorious complex by 2027. 

The DOC data from January shows limited progress on the key metrics available for the dashboard: 

• As of February 1, the jail population increased to 5,970 people, with 222 more people detained than January 3rd. People admitted to Rikers Island increased to 1,868 in January (+326 from December) while people discharged decreased to 1,606 (-127). 
• Judges assigned cash bail to over 1,000 people in December, for the eighth consecutive month in a row. 
• In January, the average length of stay rose to 112 days—a 3 day increase from the month before.  
• The number of people with serious mental illness held at Rikers continued to trend slowly upwards, increasing slightly from 1,108 in November to 1,111 in December.  
• The Department’s total number of staff on sick leave declined to 692 in January from 754 in December. This number remains about 4% higher than pre-pandemic levels.  
• Certain violent incidents trended upwards in January: assaults on staff increased to 61, and stabbings increased to 38. Other violent incidents declined: use of force decreased in the second quarter of FY 23, and fights decreased to 356 in January down from 388 in December. 

This month’s findings show that although DOC made some limited improvements  with regard to use of force, stabbings, and staff on sick leave, violence in jails and staffing management remain challenges.  Most concerning, the number of people admitted to jails is rising and hinders the City’s compliance with the plan to close Rikers Island by 2027.     

To address violence in the City’s jail system and increase transparency between the public and city agencies, the Comptroller’s office has been publishing DOC data to this dashboard since August 2022. 

Civil Forfeiture Complaint Filed Against Six Luxury Real Estate Properties Involved In Sanctions Evasion And Money Laundering

 

Complaint Seeks Forfeiture of Properties Worth Approximately $75 Million Owned by Viktor Vekselberg and Maintained by Fugitive Vladimir Voronchenko

 Damian Williams, the United States Attorney for the Southern District of New York, Andrew C. Adams, the Director of Task Force KleptoCapture, Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Maged Behnam, Acting Special Agent in Charge of the Miami Field Office of the Federal Bureau of Investigation (“FBI”), announced the filing of a civil forfeiture complaint against six real properties located in New York, New York, Southampton, New York, and Fisher Island, Florida, worth approximately $75 million.  The Complaint alleges that the properties, which are beneficially owned by Russian oligarch Viktor Vekselberg, are the proceeds of sanctions violations and were involved in international money laundering in promotion of sanctions violations committed by, among others, Vladimir Voronchenko, a/k/a “Vladimir Vorontchenko,” who was indicted on February 7, 2023. 

U.S. Attorney Damian Williams said: “This action, filed on the anniversary of Russia’s full-scale invasion of Ukraine, seeks forfeiture of six luxury properties owned by Viktor Vekselberg that his associate Vladimir Voronchenko maintained by funneling millions of dollars into the United States.  With the filing of this complaint, the United States sends a strong message to those who violate sanctions and engage in money laundering that the United States will use every available tool to forfeit criminal proceeds and will use that money to help our allies in Ukraine under the newly enacted law.”

Director of Task Force KleptoCapture Andrew C. Adams said: “Strawmen, corrupt professionals, and shell companies may be the hallmarks of money laundering and sanctions evasion, but they are obstacles that diligent, dedicated investigators and prosecutors will surmount.  Today’s filing marks yet another step that the Department of Justice and our partners at HSI and FBI have taken toward dislodging ill-gotten gains from those who would attempt to evade U.S. sanctions, and toward making the value of these properties available for aid to Ukraine.”

HSI Special Agent in Charge Ivan J. Arvelo said: “For years, Russia’s weaponization of corruption has relied on opaque legal structures – and Western enablers – to move, hide, and spend stolen wealth, enriching its oligarchs and ultimately resourcing the war in the Ukraine.  Since the invasion, HSI New York and our partners have worked tirelessly to cut Russia’s corruptocrats and their assets out of the American financial system.  Today we continue our active measures and remove jewels from the crown of yet another oligarch, stripping him of the luxury assets he so cherishes.”

FBI Acting Special Agent in Charge Maged Behnam said: “The mission of the interagency Task Force KleptoCapture is to enforce sanctions, export restrictions, and economic countermeasures imposed by the United States in response to Russia’s unprovoked military invasion of Ukraine one year ago.  This civil forfeiture complaint is an example of the Task Force’s ongoing work to fulfill this mission.  I commend the hard work, dedication, and cooperation of this team of professionals.”

According to the allegations in the Complaint filed in Manhattan federal court today:[1]

On April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Vekselberg as a Specially Designated National (“SDN”) in connection with its finding that the actions of the Government of the Russian Federation in Ukraine constituted an unusual and extraordinary threat to the national security and foreign policy of the United States.  On or about March 11, 2022, OFAC redesignated Vekselberg as an SDN and blocked Vekselberg’s yacht and private airplane.

Prior to his designation by OFAC, between in or about 2008 and in or about 2017, Vekselberg, through a series of shell companies, acquired six real properties in the United States, specifically, (i) two apartments on Park Avenue in New York, New York, (ii) an estate in Southampton, New York, (iii) two apartments on Fisher Island, Florida, and (iv) a penthouse apartment also on Fisher Island, Florida (collectively, “the Properties” or the “Defendants-in-rem”).  As of the date of the Complaint, the Properties were worth approximately $75 million. 

Voronchenko, Vekselberg’s close friend and business associate, retained an attorney (the “Attorney”), who practiced in New York, New York, in connection with the acquisition of the Properties.  The Attorney also managed the finances of the Properties, including by paying common charges, property taxes, insurance premiums, and other fees associated with the Properties in U.S. dollar transactions from the Attorney’s interest on lawyer’s trust account (“IOLTA account”).

Prior to Vekselberg’s designation as an SDN, between approximately February 2009 and March 2018, companies owned by Vekselberg sent approximately 90 wire transfers totaling approximately $18.5 million to the IOLTA account.  At the direction of Voronchenko and his family member who lived in Russia, the Attorney used these funds to make various U.S. dollar payments to maintain and service the Properties. 

Immediately after Vekselberg’s designation as an SDN, the source of the funds used to maintain and service the Properties changed.  The IOLTA Account began to receive wires from a bank account in the Bahamas held in the name of a shell company controlled by Voronchenko, Smile Holding Ltd., and from a Russian bank account held in the name of a Russian national who was related to Voronchenko.  Between approximately June 2018 and March 2022, approximately 25 wire transfers totaling approximately $4 million were sent to the IOLTA account.  Although the source of the payments changed, the management of the payments remained the same as before: Voronchenko and his family member directed the Attorney to use these funds to make various U.S. dollar payments to maintain and service the Properties.  Additionally, after Vekselberg was sanctioned in 2018, Voronchenko and others tried to sell both the Park Avenue apartment and the Southampton estate.  No licenses from OFAC were applied for or issued for any of these payments or attempted transfers.  

On or about May 13, 2022, federal agents served Voronchenko on Fisher Island with a Grand Jury subpoena, which called for his personal appearance for testimony and his production of documents, including documents relating to the Properties.  Approximately nine days later, on or about May 22, 2022, Voronchenko took a flight from Miami, Florida, to Dubai, United Arab Emirates, and then went to Moscow, Russia.  Voronchenko failed to appear before the Grand Jury and has not returned to the United States.

The Properties subject to the forfeiture action are as follows:

• 19 Duck Pond Lane, Southampton, New York 11968;
• 515 Park Avenue, Units 21 and 2I, New York, New York 10022;
• 7002 Fisher Island Drive, Unit 7002 PH2, Miami Beach, Florida 33109; and
• 7183 Fisher Island Drive, Units 7182 and 7183, Miami Beach, Florida 33109.

Mr. Williams praised the outstanding work of the New York and Miami field offices of HSI and the FBI.  Mr. Williams further thanked the Department of Justice’s National Security Division and Office of International Affairs and OFAC for their assistance and cooperation in this investigation.

On March 2, 2022, the Attorney General announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.  The Task Force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.

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

Governor Hochul Delivers Remarks at Congregation Beit Simchat Torah in Support of a Shabbat of Peace Not Hate

 

Governor Hochul: "There are 20 million New Yorkers who are with you today and every day as we stand up and call out antisemitism and racism and homophobia and all the other isms, because there's still far more of us than there are of them, and I want them to know that."

Hochul: "There is strength in numbers, but there's also strength and a legacy of courage of standing up to evil...We stand up people of courage to make sure that the words 'never again' truly mean something."

 Shabbat shalom. So delighted to be back here. I always feel so warm and part of a family when I walk through those doors. And Rabbi Kleinbaum, we've become great friends over the years, and I thank you for being that voice of reason, that voice of courage that stands up, especially on days like this. When there are people out there who think that by their words alone, by declaring a day of hate that the rest of us, particularly those in the Jewish community would cower and say, "Well, we're afraid of them. We're going to stay home." They certainly misjudged the situation because now you have allies from other faiths who greeted us as we walked in the door to show the strength, the power of people coming together.

And I want you to feel that as you continue with your prayers and to think about, this is the rest of the week and we approach the week and the feast of Purim, we think about the faith of Esther and her courage and what she did to stand up against hatred and how she persevered and prevailed. And her story continues through the generations and truly has passed on through our children here today who will pass it on to their children and grandchildren. So, that is what we're here to do, be together in solidarity. I called upon our resource at the State level, our homeland security, our state police to be prepared. There are no known threats here in the State of New York, but I'm always conscious of the fact that this is the home of the largest gathering of Jews outside of Israel, right here in New York, and I'm so proud of that. I am so proud of that. 

And I'll tell you that my then 80-year-old Irish-Catholic father, all he wanted to do on his bucket list was to go to the Holy Land and to go back to Israel. And I shared in him his joy. And I want you to know that this is so important to me to carry on these great traditions and stories, but I will stand up against hate, and stand with the people of this state. And so, you are not alone. This is not a small community. There are 20 million New Yorkers who are with you today and every day as we stand up and call out antisemitism and racism and homophobia and all the other isms, because there's still far more of us than there are of them, and I want them to know that. 

There is strength in numbers, but there's also strength and a legacy of courage of standing up to evil. In the last century, what we saw, the lessons, what happened with the Holocaust. My husband, Bill Hochul has joined me here, been with me to many of the camps, we both visited them with our family. We wanted them to see what hatred could look like even in our lifetime, in our parents' lifetime, our grandparents' lifetime and to let people know that in our time, we stand up people of courage to make sure that the words "never again" truly mean something. So, thank you for allowing me to share with you this morning. We have you. We're all together as one family and we are together, we are New York Strong. Thank you very much.