Friday, March 24, 2023

Statement from Comptroller Brad Lander on Panel for Educational Policy Vote on Department of Education Budget

 

Comptroller Brad Lander released the following statement the morning after the March PEP meeting:

“Last night’s meeting of the Panel for Educational Policy was like a tale of two agencies. On the one hand I cannot overstate the importance of the Chancellor’s renewed commitment to expanding D75 special education programs so that more children with disabilities can attend schools in their local communities. The co-locations approved last night are among the first steps in achieving that goal and opening up new opportunities for greater inclusion of D75 students in our district schools.

“On the other hand, at the behest of the Department of Education, the Panel for Educational Policy voted on the Preliminary Budget in a premature and meaningless exercise.

“The Preliminary Budget is not the real budget—that’s why it’s aptly named Preliminary. The state budget, which currently accounts for 37% of the DOE’s budget, has not yet been finalized. We don’t know whether the additional $90 million needed for new weights in the Fair Student Funding formula will be added to the DOE budget or if some other valuable program will be cut. We don’t know how DOE’s enrollment projections relate to next year’s budget—which last year resulted in a $469 million cut to 77% of our schools.

“The Mayor will release his Executive Budget in April and the Council will vote in June, leaving time for the PEP to listen to public testimony and make an informed vote.

“Taking this vote now before necessary budget information is available is like grading a student’s final paper based only on their rough draft. Last year’s debate taught us that a more deliberative and democratic process for considering the budget for our public schools is needed. What happened last night was the exact opposite.”

Attorney General James Announces Indictment and Arraignment of Westchester Caseworker for Stealing More Than $300,000 from an Elderly Client

 

Westchester County Caseworker Chantel Chenault Fraudulently Withdrew

Funds Belonging to a 95-Year-Old Suffering from Dementia Under Her Care

New York Attorney General Letitia James today announced the indictment of Chantel Chenault, 46, of Danbury, CT, on charges of grand larceny and identity theft for stealing more than $300,000 from a 95-year-old woman with dementia while she was under Chenault’s care. The Office of the Attorney General (OAG) alleges that from March 2017 through April 2022, while employed as a caseworker with Westchester County Adult Protective Services (APS), Chenault transferred over $500,000 from the elderly woman’s retirement accounts to the woman’s checking account and would bring the woman to the bank to make withdrawals multiple times per month.  Chenault also regularly used the woman’s ATM card at casinos without permission. Chenault was arraigned today in Westchester County Court before Judge Maurice Williams. Her next appearance in court is scheduled for June 15, 2023.

“Chantel Chenault used her position as a caregiver to steal from someone who trusted her and who couldn’t protect herself. This betrayal harmed the victim and harmed the reputation of the Westchester County Adult Protective Services,” said Attorney General James. “All New Yorkers deserve safe and secure services to support autonomy later in life. My office will always defend our seniors against those who attempt to exploit their vulnerability and will ensure bad actors are held accountable.”

“There is nothing more insidious than exploiting the most vulnerable among us, especially when families put their trust in a caseworker they believe will treat their loved one with the respect and dignity they deserve,” said Suzanne Miles-Gustave, Esq., Acting Commissoner, New York State Office of Children and Family Services (OCFS) “OCFS has zero tolerance for this type of abuse and referred this case directly to Attorney General James’ office for investigation. I commend the subsequent caseworker who reported the alleged criminal activity to the appropriate authorities immediately. Reinforcing what we know in OCFS, the vast majority of human services professionals approach their work with the utmost care and compassion.”

Chenault became the elderly woman’s caseworker in 2017. As the woman’s physical and mental health declined, Chenault was responsible for arranging home health aides from a third-party provider to provide care. Chenault went on medical leave in March 2022, and the new caseworker at APS assigned to the elderly woman noticed there had been a substantial drop in her assets in just a matter of months. Further investigation revealed that the woman’s bank accounts and retirement accounts were entirely depleted and as a result, she could no longer afford home health care. A forensic audit of her bank accounts identified a pattern of suspicious withdrawals and transfers, and the use of her ATM card at times when she was homebound. In total, Chenault is alleged to have stolen more than $300,000 from the woman over a five-year period. 

A Westchester County Grand Jury indicted Chenault on charges of Grand Larceny in the Second Degree, Grand Larceny in the Third Degree, Identity Theft in the First Degree, and Official Misconduct.

Attorney General James thanks the Office of Children and Family Services for the referral and the Westchester District Attorney’s Office for its assistance in this matter.

QUEENS COUPLE CHARGED IN $112,707 PUBLIC BENEFITS SCAM

 

 Jocelyn E. Strauber, Commissioner of the New York City Department of Investigation (“DOI”), announced the arrest of a Queens couple on federal charges of conspiracy to commit mail fraud relating to the theft of $112,707 in state and federal benefits involving three separate public benefit programs. DOI investigated this matter in collaboration with the United States Postal Inspection Service’s New York Office and the United States Attorney’s Office for the Eastern District of New York, which is prosecuting the case.

 SEAD SELIMOVIC, 52, and his wife, MIRELA SELIMOVIC, 46, both of Bellerose, Queens, are each charged with conspiracy to commit mail fraud and face a maximum sentence of 20 years’ imprisonment if convicted. The SELIMOVICS were presented today before United States Magistrate Judge Vera M. Scanlon in U.S. District Court for the Eastern District of New York and they were each released on a $50,000 bond.

 DOI Commissioner Jocelyn E. Strauber said, “As charged, these defendants schemed to illegally obtain public benefits, painting a false picture of their finances to claim that they were eligible and in need when, in fact, they owned numerous properties and had substantial income. I thank our federal partners, the U.S. Postal Inspection Service and the U.S. Attorney’s Office for the Eastern District of New York, for their dedication in exposing the misuse of public benefits and preserving critical public funds.”

 Inspector in Charge of the New York Division Daniel B. Brubaker said, “This case highlights the Selimovics’ greed, who gamed the system and stole not just from the government, but from those who are truly in need. Their alleged actions took benefits directly from programs designed to assist those who are trying to make ends meet in an already tough economy. Postal Inspectors and their law enforcement partners will never tolerate this behavior and will work tirelessly to bring criminals to justice who harm the American public.”

 According to the complaint, between approximately February 2017 and January 2023, SEAD and MIRELA SELIMOVIC conspired with others, to knowingly submit applications through the United States mail for three separate public benefits programs, repeatedly providing false information in support of their applications including, understating their family income, falsely stating they each had only one residence, and falsely stating that their primary residence was a rental, among other false information.

 The Disabled Homeowners’ Exemption (“DHE”) program is a New York State program that allows local governments, including New York City, to reduce the property taxes paid by qualifying persons with disabilities — that is, those who have documented evidence of their disability and meet certain income limitations and other requirements relating to their legal residence and income.

 The federal government administers the Supplemental Nutrition Assistance Program (“SNAP”), which subsidizes low-income households and enables them to achieve a more nutritious diet by increasing their food purchasing power. The New York State Medicaid program is a federal and state health care program providing benefits to individuals and families who meet specified financial and other eligibility requirements. For both the SNAP and Medicaid programs, beneficiaries are required to submit annual documentation supporting their eligibility.

  According to the complaint, this investigation found that the defendants filed DHE applications and repeatedly understated their family income level, falsely stating, among other things, that they each had only one residence. In fact, the defendants owned numerous rental properties in New York and Pennsylvania from which they received just over $575,000 between 2017 and 2022. In addition, SEAD SELIMOVIC repeatedly falsely stated in SNAP benefits’ applications that his primary residence was a rental, when in fact he and MIRELA SELIMOVIC owned their residence, underreported his income, and failed to report his wife as a member of his household. SEAD SELIMOVIC also applied for Medicaid benefits and in that context made repeated false statements, including with respect to his income and the income of other members of his household.

 In connection with this fraudulent scheme, between about February 2017 and January 2023, the defendants received approximately $40,707 in DHE benefits, approximately $51,091 in SNAP benefits, and approximately $20,909 in Medicaid benefits to which they were not entitled.

 DOI Commissioner Strauber thanked Breon Peace, United States Attorney for the Eastern District of New York and his staff for the prosecution of this matter, which is being handled by Assistant United States Attorney Chand Edwards-Balfour. Commissioner Strauber also thanked Daniel Brubaker, U.S. Postal Inspection Service Inspector in Charge of the New York Office, and his staff, especially Postal Inspector Joseph Marcus, for their partnership on this investigation.

A complaint is an accusation. Defendants are presumed innocent until proven guilty.

New York Doctor Who Performed Unnecessary Back Surgeries As Part Of Trip-And-Fall Fraud Scheme Sentenced To 36 Months In Prison

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that SADY RIBEIRO, a New York-licensed pain management doctor, was sentenced today to 36 months in prison for his participation in a scheme to obtain fraudulent insurance reimbursements and other compensation from fraudulent trip-and-fall accidents.  U.S. District Judge Sidney H. Stein imposed today’s sentence. 

U.S. Attorney Damian Williams said: “Sady Ribeiro abused his professional license and broke his vow to do no harm by performing scores of medically unnecessary, invasive surgeries to increase the value of fraudulent trip-and-fall lawsuits.  In carrying out the scheme, Ribeiro and his co-conspirators preyed upon the most vulnerable members of society – many of whom were poor, drug addicts, or homeless – in order to enrich themselves.  Ribeiro now faces serious penalties for his callous crime.”

According to the Indictment, the Superseding Information, evidence presented in court, and statements made in court:

RIBEIRO, among others, was involved in an extensive fraud scheme through which fraud scheme participants defrauded businesses and insurance companies by staging trip-and-fall accidents and filing fraudulent lawsuits arising from those staged trip-and-fall accidents.

The fraud scheme participants recruited individuals (the “Patients”) to stage or falsely claim to have suffered trip-and-fall accidents at particular locations throughout the New York City area (the “Accident Sites”).  In the course of the fraud scheme, scheme participants recruited more than 400 Patients.  Members of the fraud scheme often recruited individuals who were extremely poor as Patients.  For example, it was common for Patients to ask for food when they would appear for their intake meetings with the lawyers.  Many of the Patients did not have sufficient clothing to keep them warm during the wintertime and had poor-quality shoes.  Members of the fraud scheme also recruited Patients who were drug addicts, and it was common for scheme participants to recruit Patients from homeless shelters in New York City.

In the beginning, scheme participants would instruct Patients to claim they had tripped and fallen at a particular location, when in fact, the Patients had suffered no such accidents.  Eventually, at the direction of the lawyers who filed fraudulent lawsuits on behalf of the Patients, scheme participants began to instruct Patients to stage trip-and-fall accidents, i.e., to go to a location and deliberately fall.  Common Accident Sites used during the fraud scheme included cellar doors, cracks in concrete sidewalks, and purported “potholes.”

After the staged trip-and-fall accidents, Patients were referred to specific attorneys who would file personal injury lawsuits (the “Fraudulent Lawsuits”) against the owners of the Accident Sites and/or insurance companies of the owners of the accident sites (the “Victims”).  The Fraudulent Lawsuits did not disclose that the Patients had deliberately fallen at the accident sites or, in some cases, had not fallen at all.  During the course of the fraud scheme, the defendants, together with others known and unknown, attempted to defraud the Victims of more than $31,000,000.

The Patients were also instructed to receive ongoing chiropractic and medical treatment from certain chiropractors and doctors, including RIBEIRO.  The fraud scheme participants advised the Patients that if they intended to continue with their lawsuits, they were required to undergo surgery.  As an incentive to getting surgery, the recruited Patients were offered a payment typically between $1,000 and $1,500 after they completed surgery (“Post-Surgery Payments”).  Patients generally were told to undergo two surgeries.

Doctors in the fraud scheme, including RIBEIRO, were expected to, and in fact did, conduct these surgeries, such as discectomies, regardless of the legitimate medical needs of the Patients.  RIBEIRO performed discectomies, among other medical procedures, on more than 200 Patients.  To maximize his patient base, RIBEIRO paid participants cash kickbacks in exchange for patient referrals.

In addition to the prison term, RIBEIRO, 72, of New York, New York, was sentenced to three years of supervised release. 

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.  Mr. Williams also thanked the National Insurance Crime Bureau for their assistance in the investigation.

Governor Hochul Announces Initiative to Improve Food Benefit Access for Women, Infants and Children

 mother and son grocery shopping

Feedback Collected Through Live Online Chat Function, Interviews and Surveys Will Be Used to Improve New Yorkers' Experience with the WIC Program

Governor Delivers on State of the State Initiative to Make Customer Experience and Benefits Participation a State Priority; Improve Delivery of WIC Benefits


 Governor Kathy Hochul today announced a new client feedback initiative that will improve understanding of the challenges New Yorkers face enrolling in the Supplemental Nutrition Program for Women, Infants, and Children, also known as WIC. Announced as part of Governor Hochul's 2023 State of the State address, the New York State Department of Health will partner with Code for America to pilot a live, online chat program that will help the agency gather client feedback to improve the WIC program and enrollment statewide.

"Despite being a critical resource for struggling families, the WIC program isn't used by nearly as many New Yorkers who are eligible for these food benefits or by many families who are already enrolled in the program,"Governor Hochul said. "This initiative will help us identify ways to eliminate bureaucratic hurdles, simplify the enrollment processes and implement new technology so that struggling families have better access to healthy, nutritious foods."

Initially, Code for America will help implement a live online chat function to replace the Department of Health's automated chat bot that appears on the agency's WIC page, which will connect individuals to a WIC staffer for live interaction. Live interaction is an effective way to guide applicants through the process and enrollees with using their benefits, while also providing an invaluable source of feedback that can be coupled with client interviews and other qualitative and quantitative research methods to better understand challenges with WIC enrollment and usage.

During a second phase of the project, the Department of Health will work with Code for America to implement improvements to the WIC program based on the gathered feedback. The partnership will enable the agency to determine what is preventing eligible families from participating and taking full advantage of the program and then use that information to improve the delivery of WIC services.

The WIC program provides federal funding to states for supplemental foods, health care referrals, and nutrition education for low-income pregnant, breastfeeding, and non-breastfeeding postpartum women; and to infants and children up to age 5 who are found to be at nutritional risk. The Department of Health was among four agencies selected to participate in the second cohort of Code for America's Safety Net Innovation Lab, which is aimed at making state-administered public benefits programs more equitable and accessible.

Nationally, about half of the families eligible for WIC participate in the program and those enrolled in the program do not consistently use their food benefits. Data compiled by the U.S. Department of Agriculture's Food and Nutrition Service this year found that roughly 706,000 New Yorkers were eligible for WIC in 2020, but only 363,000 participated in the program.

Food insecurity has been consistently associated with poor health outcomes in children, including poorer overall health status, acute and chronic health problems, and limited healthcare access. Participation in WIC has been associated with healthier births, improved birth weights, reduced risk of infant mortality, better infant-feeding practices, more nutritious diets, better access to primary and preventive health care, and improved cognitive development in children, among other positive health outcomes.

The initiative with Code for America is part of Governor Hochul's plans to make government work better for New Yorkers by transforming the way they access services and benefits. Significant technological enhancements are now being implemented to reduce bureaucratic hurdles and improve access; reduce call wait times; use e-signature technology; launch 'one ID' to improve how residents interact with certain state agencies online; and modernize state agency websites and applications to improve the user experience.

VCJC News & Notes 3/24/23

 

Van Cortlandt Jewish Center
News and Notes


Here's this week's edition of the VCJC News and Notes email. We hope you enjoy it and find it useful!

Reminders

  1. Shabbos

    Shabbos information is, as always, available on our website, both in the information sidebar and the events calendar.
    Here are the times you need:  
    Shabbos Candles Friday date @ 6:54 pm
    Shabbos morning services at 8:40 am.  Please join the services if you can do so safely. 
    Shabbos Ends Saturday date @ 7:58 pm
     
  2. Register for the Blood Drive Now! 
Sunday, March 26th, 2023
9:30am - 2:00pm
Van Cortlandt Jewish Center
Game Room
3880 Sedgwick Ave
Bronx, NY 10463
To schedule an appointment, please click here.
For more information, please call NYBC at (800)933-2566.

3. Passover Package Distribution 
Volunteers are needed to distribute about 80 Passover packages in the Amalgamated Park Reservoir houses and surrounding area on Sunday March 26th starting at 9 am. 

Distribution is from the 9th Building Club Room on Gale Place opposite the train park. Packages are made up in advance. You can find the location by using 95 Gale Place as the address.

Please bring a shopping cart as most of these packages can be walked.

A few packages will require a car. 

Please let BJCC know if you are planning on helping by sending an email to Brad Silver at the Bronx Jewish Community Council. 

Van Cortlandt Jewish Center
3880 Sedgwick Ave
Bronx, NY 10463

Thursday, March 23, 2023

CEO Of Paycheck Protection Program Lender MBE Capital Pleads Guilty In Connection With Fraudulent Loan And Lender Applications

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced today that RAFAEL MARTINEZ, the CEO of MBE Capital Partners, LLC, pled guilty to conspiring to commit wire fraud in connection with loan and lender applications submitted through the Paycheck Protection Program (the “PPP”) administered by the U.S. Small Business Administration (the “SBA”).  MARTINEZ pled guilty before United States District Judge Lewis J. Liman, to whom his case is assigned. 

U.S. Attorney Damian Williams said: “In the depths of the COVID-19 pandemic, Martinez lied to get money that was supposed to help people.  His abuse of the system during a terrible time has now been brought to light.  Martinez took advantage of his employees, a tax preparer, and the public at large — all to fund a lavish lifestyle of cars, jets, and fancy homes.  Let me be clear, this Office will not tolerate such conduct and will continue to bring to justice those who put their greed above the law.”

According to the allegations in the Complaint, court filings, and statements made during plea proceedings:

MARTINEZ used false representations and documents to fraudulently obtain the approval of the SBA for his company, MBE Capital Partners, LLC (“MBE”), to be a non-bank lender through the PPP.  He engaged in this criminal conduct to fraudulently secure hundreds of millions of dollars in capital for PPP loans and, ultimately, to collect more than approximately $71 million in lender fees.  In addition, MARTINEZ engaged in a scheme to obtain a PPP loan for MBE in the amount of approximately $283,764 through false statements regarding the number of employees of MBE and the wages paid to MBE employees and using the forged signature of MBE’s tax preparer. 

At all relevant times, MARTINEZ has been the CEO and primary owner of MBE, a New York limited liability company formed in or about March 2015.  Republic Group, LLC, a/k/a Republic Group Parts, LLC (“Republic Group”), which is owned and controlled by MARTINEZ, serves as the holding company for MBE and conducts business as MBE.  According to MBE’s website, “For over 20 years, MBE Capital Partners has been a leading provider of financing solutions for small and diverse businesses . . .  In 2019, we financed over $1.7 billion in public and private debt and we funded over 35,000 PPP loans worth $800M.” 

On or about April 5, 2020, MARTINEZ applied to a financial institution for a government-guaranteed loan for Republic Group, through the SBA’s PPP.  In connection with the loan application, MARTINEZ represented that MBE had as many as 15 employees and an average monthly payroll of approximately $119,390 in 2019.  In fact, however, from in or about April 2018 through in or about April 2020, MBE had at most four employees who had a total average monthly payroll of no more $25,000.  In order to support the false representations made by MARTINEZ in the loan application about the number of employees at and the wages paid by MBE, MARTINEZ submitted fraudulent and doctored tax records that contained the forged signature of a tax preparer located in Manhattan, New York (the “Tax Preparer”).  Based on the false documentation provided by MARTINEZ, MBE was approved for a PPP loan in the amount of approximately $283,764, which was disbursed to a bank account controlled by MARTINEZ.  A majority of the loan proceeds do not appear to have been used for payroll for employees of MBE or other business expenses.

On or about April 9, 2020, within five days of applying for the PPP loan referenced above, MARTINEZ submitted an application to the SBA for MBE to become a non-bank PPP lender.  As part of the PPP lender application process, MARTINEZ represented that MBE had originated and serviced over $3.8 billion in business loans or other commercial financial receivables for the three-year period from in or about 2017 through in or about 2019 and submitted fraudulent financial statements that purported to be audited by the Tax Preparer’s firm for the years 2018 and 2019.  Based on the false information provided by MARTINEZ to the SBA, MBE was approved as a non-bank lender for PPP loans.

On or about April 27, 2020, MARTINEZ submitted various documents, including the same fraudulent audited financial statements for 2019 provided to the SBA, to a life insurance company (the “Company”) as part of a proposed partnership to fund PPP loans for minority and women-owned small businesses.  On or about May 13, 2020, the Company provided MBE with $100 million to fund PPP loans, which MBE in turn used as collateral to borrow additional capital of approximately $832 million through the Payment Protection Program Liquidity Facility (“PPPLF”) with the Federal Reserve.

As a result of the above fraudulent misrepresentations, MARTINEZ, through his company MBE, became an approved PPP lender and issued approximately $823 million in PPP loans to approximately 36,600 businesses.  These loans earned MARTINEZ a total of approximately $71.3 million in fees.  MARTINEZ spent the proceeds from his criminal conduct on, among other things, the purchase of a villa in the Dominican Republic for over $10 million, a $3.5 million mansion located in Franklin Lakes, New Jersey, a chartered jet service, and several luxury vehicles, including a 2018 Porsche 911 Turbo, a 2017 Ferrari 488 Spider, a 2017 Bentley Continental GT, a BMW 750, and a 1962 Mercedes Benz 190. 

MARTINEZ, 57, of Franklin Lakes, New Jersey, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison. 

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

As part of his plea agreement, MARTINEZ agreed to pay restitution in the amount of $71,711,893.07 and to forfeit $44,546,712.94, including more than $15 million previously seized by law enforcement, properties in New Jersey and the Dominican Republic, and five luxury vehicles.

Mr. Williams praised the outstanding investigative work of the Internal Revenue Service, Criminal Investigation; U.S. Small Business Administration, Office of Inspector General; and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Eastern Region.

Speaker Adrienne Adams Delivers Opening Remarks at the Council’s Criminal Justice Fiscal Year 2024 Preliminary Budget Hearing

 

Today, Speaker Adrienne Adams chaired and delivered opening remarks at the Council’s Committee on Criminal Justice Fiscal Year (FY) 2024 preliminary budget hearing. In her remarks, the Speaker reiterated the need to close Rikers Island by 2027, as mandated by law, and steps the City must take to ensure its closure. Speaker Adams also outlined the importance of the Department of Correction (DOC) addressing existing challenges in the jail system and preparing for a more effective jail system in the future that does not replicate the problems on Rikers. Speaker Adams also raised concerns about the Department of Correction’s actions to limit the Board of Correction (BOC)’s access to video in the City’s jails, which undermines BOC’s ability to conduct effective oversight.

Below are the Speaker’s full remarks as prepared for delivery:

Good morning, and welcome to today’s Preliminary Budget Hearing for the Committee on Criminal Justice. We will examine the Mayor’s Fiscal Year 2024 Preliminary Budget as it relates to the Department of Correction, the Department of Probation, and the Board of Correction.

I’m Speaker Adrienne Adams, and I am chairing today’s hearing in place of our Criminal Justice Committee Chair, Council Member Carlina Rivera, who is on family leave. I want to acknowledge my colleagues who have joined us this morning. 

First, we will hear from the Department of Probation, whose FY 2024 preliminary budget is $116.1 million, approximately $9.6 million less than the adopted budget for Fiscal Year 2023. Probation’s budgeted headcount for the FY24 Preliminary Budget is 1,092, a decrease of 12 positions from the FY23 budget at adoption. The budget breakdown shows that the allocation for Probation Services shrank by nearly $10 million, and the Executive Management program grew by $385,000. Additionally, $285,000 was included for Alternatives to Incarceration, as part of a state grant focusing on transitional employment opportunities for young adults on probation.

This allocation to Alternatives to Incarceration programming is a welcome one, because the evidence is clear about the types of programs that reduce recidivism and make us safer. Probation should be a mechanism for successful re-entry to communities, not one that pushes people back into incarceration. Community-based and responsive programming, providing job opportunities, supportive housing, and stability is critical to public safety and reducing our city’s jail population. 

Commissioner Holmes, I look forward to hearing your testimony about how the Department of Probation will help us meet these goals, and what additional investments are needed to achieve them.

Next, we will hear from the Department of Correction, whose FY24 budget is $1.2 billion, approximately $79.2 million less than the adopted budget for Fiscal Year 2023. DOC’s budgeted headcount for the FY24 Preliminary Budget is 244 fewer positions than what was budgeted the previous year at adoption. All of the positions that are proposed to be cut as part of the Program to Eliminate the Gap (PEG) are civilian, not uniformed positions.

New York City entrusts the Department of Correction with the mission of creating a safe and supportive environment while providing individuals in its care with a path to successfully re-enter their communities.  Yet month after month, we have seen a fellow New Yorker lose their life on Rikers Island at levels that are nearly unprecedented. 19 people died in our jail system last year, making it the deadliest year in a decade. And we know that the condition of people with mental health challenges are too often worsened by cycling through the criminal legal system and the jails. We’ve also seen Correction Officers assaulted in housing areas due to staff shortages attributed to chronic absenteeism.

I have also been concerned by some of the actions taken by the department to reduce transparency and access to Rikers Island.

As I have said before, Rikers is undermining public safety by exposing everyone there – uniformed staff, un-uniformed staff and those detained – to violence and trauma that maintain cycles of harm rather than interrupting them. It was reported earlier this week that the Department of Correction has repeatedly failed to keep track of how long it has held people in intake units and to implement numerous court-mandated reforms. DOC, as concluded by the Office of Compliance Consultants, has not maintained adequate sanitation, ventilation, and fire safety – contributing to unsanitary conditions that violate incarcerated individuals’ constitutional rights.

It’s clear that Rikers Island, which houses eight out of nine facilities under DOC’s purview, no longer serves New Yorkers or DOC’s mission. For both public safety and human rights, we must close Rikers by 2027 as mandated by law.

There are many active steps that we must take as a city to make this a reality. Though they are not the sole responsibility of DOC, they do include the agency. 

It will require leadership from throughout our government – the Administration, the Council, the court system, prosecutors, public defenders, service providers, and various city agencies. We must come together to expand pre-trial services, mental health diversion and treatment programs, re-entry programming, supportive housing, and more. 

We also must develop a new pre-trial system that does not simply replicate the same problems that exist on Rikers – this is not just about changing locations. 

I look forward to hearing from you, Commissioner Molina, on steps the agency is taking to address existing challenges in the system and prepare to meet the 2027 deadline to close Rikers Island and establish an improved system that is safer for everyone – officers, other personnel, and detainees. 

We will also hear from the New York City Board of Correction, whose FY 2024 preliminary budget is $3.2 million, approximately $43,000 less than the adopted budget for Fiscal Year 2023. BOC’s budgeted headcount for the FY24 Preliminary Budget is 31, a decrease of just one position from FY23 budget at adoption.

The Board of Correction engages in the critical work of oversight, establishing and ensuring compliance with standards regulating conditions of confinement and correctional health and mental health care in city correctional facilities. Independent oversight is key to ensuring accountability, and safeguarding the BOC’s right to independently examine documents and records is essential.

Recent actions by the Department of Correction to limit the BOC’s access to live footage of correctional facilities are troubling and we urged for them to be remedied. The Board’s ability to conduct oversight cannot be compromised, because it undermines the ability to improve the department and its jails.

And finally, we will also hear from advocates, service providers, and members of the public.

This Council will always prioritize the safety of our communities. We must invest in New Yorkers and more in the programs that are proven to help us create and sustain a safer city. These are the same programs that will help us close Rikers.

This is the plan that best serves our city, and the one this Council is pursuing. 

Thank you. And now, I’ll turn it over to our Committee Counsel.