Construction Business Operator Sentenced To Two Years In Prison For Failing To Pay More Than $4.4 Million Of Payroll Taxes

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that CHRISTIAN VARELA, a former owner of a construction firm, was sentenced yesterday by U.S. District Judge Philip M. Halpern to two years in prison for failing to pay to the Internal Revenue Service (“IRS”) more than $4.4 million of payroll taxes he collected from his employees.  VARELA pled guilty to one count of failure to pay payroll taxes in September 2022.

According to the Information to which VARELA pled guilty and statements made in court:

VARELA owned and operated Gibraltar Contracting, Inc. (“Gibraltar”), a contracting firm with more than 55 employees that handled federal and state government construction contracts.  VARELA was responsible under federal law for collecting, truthfully accounting for, and paying to the IRS federal income tax and contributions to Social Security and Medicare withheld from Gibraltar’s employees’ pay.  In 10 different quarters from 2015 through 2018, VARELA failed to pay to the IRS a total of more than $4.4 million of these payroll taxes.   

In addition to his prison term, VARELA, 48, of Staten Island, New York, was sentenced to three years of supervised release and 12 months of home confinement.  The Court also imposed restitution to the IRS of $4,404,564.60.

Mr. Williams praised the outstanding investigative work of the IRS-Criminal Investigation in this case.

Bronx Borough President Vanessa L. Gibson - Bronx Borough President Vanessa L. Gibson

Dear Neighbor,

 

We are so excited to announce our annual Bronx Week Celebration is back and better than ever before! We are dedicating 13 days to celebrating all things Bronx! 

We are celebrating everything The Bronx has to offer. From our beautiful waterfronts, green spaces, historic places, cultural institutions, restaurants, businesses, and the amazing people, who make our Borough a great place to live, work and raise a family. 

It takes a village to bring this two-week-long event to life and we are so grateful to all of our partners. We want to thank The Bronx Tourism Council, Bronx Economic Development Corporation, Montefiore Einstein and our incredible sponsors who are working around-the-clock with our team at Borough Hall to ensure that Bronx Week 2023 is one for the books!

Click here for our calendar of Bronx Week events. We hope to see you there!

As always, if you have any questions or concerns, please do not hesitate to contact our office at 718-590-3500 or email us at webmail@bronxbp.nyc.gov.

 

In partnership,

Bronx Borough President Vanessa L. Gibson

Congratulations to our Bronx Walk of Fame inductees: Juliet Papa, God-Is Rivera, Sunny Hostin, Coko & LeLee (SWV) and our inaugural People’s Choice Award honoree Principal Luis Torres. Thank you for all of your work and commitment to our beloved Borough!

Expanded Financial Assistance Now Available to Medicare Beneficiaries in New York State

 

Newly expanded monthly income eligibility levels expected to help an additional 300,000 Medicare beneficiaries with up to $7,300 in annual financial assistance

The New York State Office for the Aging (NYSOFA) today urged income-eligible Medicare beneficiaries in New York to apply for up to $7,300 annually in financial assistance through an expansion in the Medicare Savings Program (MSP).

Medicare beneficiaries in New York are encouraged to apply now that the newly expanded MSP eligibility income limits are official, based on updates to the federal poverty levels. The 2023 income eligibility limits are $2,280 for an individual and $3,077 for a couple. An application is available on the New York State Department of Health website here. 

New York State Office for the Aging Director Greg Olsen said, “Under Governor Kathy Hochul’s leadership, this program expansion is providing up to $7,300 in much-needed financial assistance for older adults to help cover costs like groceries, rent, or utility bills. This financial assistance is vital as New York continues its work to assure health care affordability, economic security, and supports for older adults.”

New York State Department of Health Acting Commissioner Dr. James McDonald said, “The expanded Medicare Savings Program is an outstanding resource older adults can use to cover everyday expenses, such as food and housing. I encourage eligible New Yorkers to take advantage of this vital benefit that enables them to afford the necessities and needed health care without having to choose one over the other. This is another example of Governor Hochul’s leadership in ensuring affordable, quality health care for all New Yorkers.”

Fred Riccardi, President of the Medicare Rights Center said, “The Medicare Savings Program can be a lifeline, allowing enrollees to maintain their Medicare coverage, access needed care, and afford other necessities, like food and rent. We encourage everyone who thinks they might be eligible for the MSP to be screened. For enrollment assistance, the Medicare Rights Center is standing by to help."

The MSP helps older adults and people with disabilities living on limited incomes by paying their Medicare Part B premiums and automatically enrolls them in Extra Help. This financial assistance can be a lifeline for enrollees, allowing them to maintain their Medicare coverage, access needed care, and afford other necessities. The newly expanded program is estimated to save beneficiaries an average of up to $7,300 annually.

Applicants who are approved for the program will receive reimbursement through their Social Security check. To apply, applicants will need photocopies of their Medicare card, proof of income, documentation about health insurance premiums other than Medicare, proof of date of birth and residence.

Application assistance is also available in every county through the statewide Health Insurance Information, Counseling and Assistance Program (HIICAP), which is administered by the New York State Office for the Aging. This program offers free and objective counseling for Medicare beneficiaries needing assistance applying for the Medicare Savings Program or any other Medicare-related questions. Simply call HIICAP at 1-800-701-0501. Callers will be routed to their local program for assistance.

Even if your income is just above the posted limits ($2,280 for an individual and $3,077 for a couple), beneficiaries should still consider reaching out to New York HIICAP for assistance in the application process, as you may be paying for out-of-pocket costs that can be deducted from your gross income to make you eligible.

NYSOFA has more information on its website including a video explaining the MSP application process, flyers, and social media tools to help spread the word about this important program. Please see https://aging.ny.gov/medicare-savings-program.

NYSOFA Director Greg Olsen also recently held a social media livestream with Medicare Rights Center President Fred Riccardi and Heather Leddick of New York HIICAP to discuss the MSP and answer questions from the public about it. An archive of the program is available on NYSOFA’s Facebook page at https://fb.watch/kjysU-27Zf/. 

Governor Hochul Announces Start of Construction on $416 Million, 698-unit Mixed-Income Development in Upper Manhattan

 

Inwood Mixed-Use Residential, Highly Energy-Efficient Development Will Increase Housing Supply, Further State's Carbon Reduction Goals

Inwood Will Offer Free Broadband to Help Close the Digital Divide

View Renderings of the Development Here

 Governor Kathy Hochul today announced that development of two interconnected, mixed-income, mixed-use residential buildings with nearly 700 apartments, including 281 affordable units, is underway in the Inwood neighborhood of Upper Manhattan. The $416 million Inwood development will feature all-electric heating and cooling and other sustainable features that advance the State's climate goals and offer free broadband internet to residents.

"My administration is fighting to ensure every New Yorker has the opportunity to live in a safe, secure, sustainable home in a thriving community like Inwood," Governor Hochul said. "This development will not only create new homes but will also provide essential services and amenities that increase quality of life and boost the economy for the entire community."

The development announced today is part of Governor Hochul's $25 billion comprehensive Housing Plan that will create or preserve 100,000 affordable homes across New York, including 10,000 with supportive services for vulnerable populations, plus the electrification of an additional 50,000 homes.

Together, the buildings at 405 and 407 West 206th Street will have a mix of studio, one-, two-, and three-bedroom apartments. Forty percent of the apartments are reserved for residents earning at or below 80 percent of the Area Median Income. An additional ten percent of apartments will have rents restricted up to 30 percent of 120 percent of AMI and be subject to NYC Rent Stabilization Guidelines. The remaining units will be market rate apartments.

The project is pursuing a LEED BD+C Silver certification and meets the new sustainability standards established by New York State Homes and Community Renewal in 2022 which promote healthier living environments and highly efficient buildings, and support the goals set by the New York State Climate Leadership and Community Protection Act. In addition to advancing the State's climate goals, 405 and 407 West 206th Street will offer free broadband, building on the Governor's ConnectALL initiative, which has made historic investments to deliver high-speed internet in underserved communities and close the digital divide for lower-income New Yorkers.

Shared amenities for all residents will include landscaped courtyards, an attended lobby, multiple roof decks, a fitness center, co-working spaces, lounge spaces and music rehearsal rooms. The complex will house a supermarket under the city of New York's Food Retail Expansion to Support Health Program (FRESH) program, neighborhood retail space, parking, and an immigrant-centered performing arts center to be owned and operated by the People's Theatre Project.

Financing for the affordable portion of the new development includes nearly $70 million in Low Income Housing Tax Credit equity and nearly $82 million in tax-exempt bonds and almost $182 million in taxable bonds provided by New York State Homes and Community Renewal. In addition, the project applicant is applying for an estimated $39.5 million in tax credits following work completed to investigate and clean up contamination under Department of Environmental Conservation (DEC) oversight as part of the state's successful Brownfield Cleanup Program (BCP).

The bonds were purchased by Wells Fargo Municipal Capital Strategies and Wells Fargo Bank. Credit enhancement will be provided by Fannie Mae at conversion. The Low-Income Housing Tax Credits were purchased by the Urban Investment Group within Goldman Sachs Asset Management. Additional sources include nearly $87 million equity from the joint venture and the Urban Investment Group.

The development is a joint venture among LMXD affiliate of L+M Development Partners, MSquared and Taconic Partners. The Community League of the Heights (CLOTH) is the community sponsor. The buildings were designed by Beyer Blinder Belle Architects

Lawyer Sentenced To Nine Years In Prison For $8 Million Escrow Fraud

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that BRIAN O’NEILL, a Maryland attorney and escrow agent, was sentenced by U.S. District Judge Valerie Caproni to nine years in prison for defrauding his clients of funds he was holding for them in escrow.  O’NEILL pled guilty to two counts of wire fraud in November 2022. 

According to the allegations contained in the Complaint and matters included in public filings:

Beginning at least as early as August 2020, O’NEILL engaged in two related fraudulent schemes.

First, O’NEILL engaged in a scheme to defraud a medical equipment company (“Victim-1”) by falsely promising to hold over $5 million of the company’s funds in escrow.  Specifically, in August 2020, Victim-1 entered into an agreement with a Florida-based medical wholesale company (“Seller-1”) for the purchase of personal protective equipment (“PPE”).  In connection with the transaction, Victim-1 and Seller-1 entered into an escrow agreement (the “Escrow Agreement”) with O’Neill & Partners, the firm at which O’NEILL was the managing partner.  Pursuant to the Escrow Agreement, O’Neill & Partners was to act as escrow agent for the transaction and hold $5.1 million deposited by Victim-1 in escrow.  Instead of holding that money as required, however, O’NEILL secretly used the funds to execute personal deals for the purchase of PPE and completely dissipated the funds by approximately November 2020.   

In November 2020, Victim-1 cancelled the transaction and sent a letter to O’Neill & Partners requesting that the $5.1 million in escrowed funds be returned to Victim-1.  When O’Neill & Partners refused to return Victim-1’s money, Victim-1 filed a civil action in U.S. District Court for the Southern District of New York (the “Civil Action”).  In connection with the Civil Action, the Court ordered O’Neill & Partners to deposit the $5.1 million with the Clerk of the Court.  On September 22, 2021, O’NEILL deposited $3.3 million with the Clerk.   

The $3.3 million deposited with the Clerk, however, formed the basis of O’NEILL’s second scheme to defraud.  That money was neither part of the $5.1 million Victim-1 had deposited nor was it O’NEILL’s own money.  Instead, it consisted of funds being held by O’NEILL in escrow for a separate transaction.  In other words, O’NEILL stole $3.3 million from a separate set of escrow clients in an attempt to satisfy the Court’s order in the Civil Action and repay Victim-1. 

In addition to his prison term, O’NEILL, 49, of Chevy Chase, Maryland, was sentenced to three years of supervised release.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.

Permits Filed For 767 East 232nd Street In Wakefield, The Bronx

 

Permits have been filed for a four-story residential building at 767 East 232nd Street in Wakefield, The Bronx. Located between White Plains Road and Barnes Avenue, the lot is steps from the 233rd Street subway station, serviced by the 2 and 5 trains. Kol Zefi of East 232 Builders LLC is listed as the owner behind the applications.

The proposed 52-foot-tall development will yield 5,854 square feet designated for residential space. The building will have ten residences, most likely rentals based on the average unit scope of 585 square feet. The masonry-based structure will also have a 30-foot-long rear yard.

Node Architecture, Engineering, Consulting PC is listed as the architect of record.

Demolition permits will likely not be needed as the lot is vacant. An estimated completion date has not been announced.

MAYOR ADAMS AND CHANCELLOR BANKS LAUNCH MAJOR NEW CITYWIDE CAMPAIGN TO DRAMATICALLY STRENGTHEN LITERACY

 

New Initiative, ‘New York City Reads,’ Will Help NYC Lead Nation’s Public Schools by Putting Literacy at Core After Years of Decreasing or Stagnant City, State, and National Literacy Rates 

Birth Through Graduation Campaign Utilizes Strategies Rooted in Science of Reading  

Initiative to Be Phased in Over Two Years, Supported by Intensive Professional Development for Educators 

Campaign Will Also Include Early Childhood Education and High School Math Components

New York City Mayor Eric Adams and New York City Department of Education (DOE) Chancellor David C. Banks today launched “New York City Reads,” a major citywide campaign to declare literacy and reading instruction as the core focus and overriding priority of New York City’s public schools. This multi-pronged, long-range campaign renews the commitment of public schools to the primary responsibility of ensuring the city’s students become confident readers and are able to learn basic algebra. With half of New York City students not proficient at reading, and more than two-thirds nationally, Mayor Adams and Chancellor Banks today declared that now is the time for the city and nation to act.

“The most basic thing we can do at our schools is ensure that all our students learn how to read and have the resources to thrive, but with more than half of our city’s public-school students reading below grade level, now is the time to act — and that is exactly what we are doing today,” said Mayor Adams. “‘New York City Reads’ is a historic curriculum shift in the largest school district in the nation that will bring proven science-of-reading and phonics-based methods to all of our public-school students, starting with our early childhood programs and our elementary schools. We owe it to our young people, and we owe it to our educators who have been working hard to teach without access to the right tools. Through this campaign, New York City is finally setting up our students and teachers for success.”

"Teaching children to be confident readers is job number-one,” said DOE Chancellor Banks. “Literacy is the foundation for all learning, and it is absolutely essential to a clear path to our students’ bold futures. By making an investment of resources in our children’s reading development, we are investing in their future, our city, and our nation. It is our collective responsibility to ensure every child has the tools, resources, and support needed to unlock their full potential and open every door of opportunity.” 

The New York City Reads campaign focuses classroom instruction on proven, research-based curricula, supported by intensive coaching and professional learning for educators aligned with those specific curricula, in order to ensure all public-school students, in every neighborhood, regardless of their background or identity, is experiencing rigorous, relevant, engaging reading instruction that works. Implemented over two years, this initiative will streamline and enhance curricular resources in early childhood and elementary classrooms, as well as in high school algebra courses. Additionally, it will provide approximately $35 million next year for training and coaching to help teachers and leaders effectively implement the classroom materials and address their students' needs. 

 

In a change from past efforts, every educator responsible for teaching the curricula will receive intensive, high-quality training prior to the start of the year so they will be well-prepared for the start of the school year and will receive continuing coaching two to three times a month during the course of the school year.   

Bright Starts in Early Childhood Programs

Starting in the 2023-2024 school year, all New York City public school early childhood programs will adopt and implement “The Creative Curriculum” — a nationally used, research-based program. Alongside this curriculum, early childhood programs will use “Teaching Strategies GOLD,” an authentic child assessment system, and “Ages & Stages,” a developmental screener to inform the planning of rich learning experiences tailored to each child's strengths, interests, and needs. Program staff will receive intensive professional learning in the spring and summer in preparation for implementation in the fall, ensuring that all children are able to enter kindergarten with the literacy and math skills needed for academic success. 

Every Elementary School, Every ELA Classroom, Every Student

Phase one of the plan will begin next school year with superintendents in 15 community school districts selecting a single research-backed curriculum for use in all elementary school ELA classrooms. Educators will receive intensive training from a curriculum-aligned professional development partner organization this spring to prepare for full implementation in the fall. Superintendents will choose between “Into Reading,” “Wit & Wisdom,” and “EL Education” based on engagement with principals and an analysis of current school materials. In phase two, the remaining 17 districts will purchase new curriculum materials in the fall of 2023 and spend the year preparing for full implementation in the 2024-2025 school year. 

A Strong Math Foundation for a Bold Future

Beginning in the 2023-2024 school year, 178 high schools across seven superintendents’ districts will implement a consistent, research-based Algebra 1 curriculum. Mastery of Algebra early is critical for students to reach calculus by 12th grade and is linked to increased chances of earning a bachelor’s degree, particularly for low-income students. Algebra is often considered the "gatekeeper" to higher-level math and science courses that can lead to science, technology, engineering, and math (STEM) careers. All high schools will receive curriculum-aligned professional learning and coaching from external partners with a strong track record of success. After reviewing all core curriculum options, superintendents chose Illustrative Mathematics. 

Further Expansion Coming

Early literacy is the most critical skill students must develop to be successful in school. The first two phases of ‘New York City Reads’ campaign will focus heavily on ensuring that the city’s early childhood programs and elementary schools are providing that foundational education.

Beyond Algebra 1, the city recognizes that more core subject areas will benefit from consistent, research-based materials. DOE will assess and work with stakeholders to identify initial lessons learned from this rollout and identify additional subject areas and grade bands for expansion in the coming years.

Putting Students with Disabilities and Multilingual Learners at the Center

Special populations were the most impacted by instructional loss during the COVID-19 pandemic and are at the center of New York City public schools’ curriculum planning.

For students with disabilities, the curriculum will be delivered through intensified, tiered supports and specially designed materials tailored to their needs. The Special Education Office will offer curricular support in key areas such as pacing and prioritizing, building knowledge through various experiences and modalities, ensuring access to educational technologies, providing writing support, and identifying supplementary texts for practice and success.

For multilingual learners, schools will facilitate the implementation of the core curriculum using DOE’s existing resource collection, which demonstrates how to provide instructional support for grade-level content (e.g., ELA, math) in a culturally- and linguistically-responsive manner. New York City public schools will deliver professional learning by leveraging research-based elements that publishers have already incorporated into their programs for multilingual learners, through central, district, school-level educators, and partner organizations offering onsite coaching.

Enhancing with New York City-Made Culturally Responsive Materials

New York City houses diverse cultures, and the learning materials presented to its students should mirror the diversity in their communities. While other states choose to restrict academic freedom, DOE believes that its students must explore the full scope of history and human experience to become active citizens in the United States and in the world.

In addition to standardized curriculum, the city’s public schools will offer New York City-created, ELA-specific resources under the 'Hidden Voices' initiative, a joint effort between DOE, academic institutions, scholars, and community leaders to spotlight the stories of countless individuals often overlooked in history books. These stories feature people who championed their beliefs and defied expectations. So far, DOE has already released Hidden Voices curricular resources covering Asian Americans, Pacific Islanders, and the LGBTQ+ community, with more in development, such as a comprehensive Black studies curriculum.

Professional development connected to curriculum adoption will help educators learn how to adapt foundational material to include a broader range of authors, stories, and subjects.

Attorney General James Releases Statement on Biden Administration Rule Protecting Airline Passengers

 

New York Attorney General Letitia James today released the following statement in response to new rules announced by President Joe Biden’s administration requiring airlines to compensate passengers for cancellations or significant delays:  

“Millions of Americans have been inconvenienced because airlines have overbooked flights, refused to secure adequate staffing, or otherwise failed to ensure they can take off and land when they promised. That is why I urged the U.S. Department of Transportation to take action and hold airlines accountable, and that is why I am thrilled that President Biden is addressing this problem. New Yorkers, and all Americans, deserve to know that airlines will live up to their promises, and pay the consequences when they are at fault for cancellations and delays.” 

Attorney General James has been a leader on standing up for consumers, and has been outspoken on the need to ensure airline companies provide quality services for New Yorkers and all Americans. Airline cancellations, poor service, and costly delays were one of the top ten complaints made by New York consumers in 2022. In August 2022, Attorney General James called on the U.S. Department of Transportation (DOT) to take action to address widespread airline cancelations and delays, which have disrupted travel plans for millions of consumers. In September 2021, Attorney General James urged DOT to take action to end airline “slot-squatting,”which is a practice where airlines occupy flight slots at airports but under-utilize them, holding on to slots simply to prevent them from being used by their competitors, thereby inconveniencing consumers.