NYS Office of the Comptroller - DiNapoli: Employment Among Mothers in NYC Improves but Remains Higher than Pre-Pandemic Levels

 

The unemployment rate for mothers in New York City has improved but it remains higher than it was prior to the pandemic, according to a report released today by New York State Comptroller Thomas P. DiNapoli. The report also found that 5.7% of city moms in the workforce were unemployed in 2022 compared to 3.4% nationally. Black mothers in the city are the hardest hit, facing an unemployment rate of 9%. The city and state have improved access to early education and child care for working mothers and families, but more can be done to improve outreach and expand these opportunities.

“New York City mothers are having a tougher time getting work compared to other women around the country,” DiNapoli said. “More mothers in the city are now looking for work than before the pandemic, and some are seeking flexible work opportunities. The city and state should continue to build on their efforts to provide child care and other support services for mothers and families.”

DiNapoli’s report compares the unemployment and labor force participation rates of mothers in New York City before, during and after the pandemic with the rest of the state and the nation. In 2022, the labor force participation rate for city moms was 68.8%, well above the 2019 rate of 62.2%.

Employment outcomes vary by race and ethnicity. Black mothers faced the largest spike in unemployment during the pandemic, at 15.5% in 2020. After improving in 2021, their rate remained virtually unchanged at 9% in 2022, compared to 6.5% nationally. In contrast, unemployment rates for white, Asian and Hispanic mothers came down from 2021 to 2022. DiNapoli’s report raises concerns that the historic unemployment gap between Black and white mothers could remain stagnant or widen if all parts of the local economy don’t fully recover.

Some mothers in the city appear to be looking for flexible options outside full-time work, especially compared to the rest of the state and the nation. Prior to the pandemic, nearly 50,000 city mothers preferred part-time work, and this number jumped to nearly 64,000 in 2022, an increase of 28.5%. This compares to declines in the share of mothers in the workforce who preferred not to work full-time in the rest of the state (-4.5%) and the nation (-11.5%) from 2019 to 2022.

Additionally, more women in New York City pursued self-employment in 2022. Self-employment among Black women rose by more than 70% from 2021 to 2022, a larger increase compared to white, Hispanic and Asian women. However, white women remain the most likely to be self-employed at 10.9% in 2022. DiNapoli recommends enhancing outreach to women-owned businesses to help them become certified Minority and Women Owned Business Enterprises (M/WBE) and improve their opportunities for new business.

Report

New York City’s Uneven Recovery: Mothers in the Workforce 

Related Reports

New York City’s Uneven Recovery

DEC AND NYSERDA ANNOUNCE STAKEHOLDER INFORMATION SESSIONS ON DEVELOPMENT OF ECONOMYWIDE CAP-AND-INVEST PROGRAM TO REDUCE CLIMATE POLLUTION

 

Sessions Advance New York State’s Efforts to Meet Greenhouse Gas Emission Reduction Requirements under Climate Leadership and Community Protection Act

The New York State Department of Environmental Conservation (DEC) and New York State Energy Research and Development Authority (NYSERDA) today announced the first in a series of stakeholder information sessions on the development of the State’s economywide Cap-and-Invest Program to reduce the pollution driving climate change. The Cap-and-Invest Program was recommended by the Climate Action Council’s final Scoping Plan and was proposed in Governor Kathy Hochul’s 2023 State of the State Address and Executive Budget. DEC and NYSERDA are developing the program to meet the greenhouse gas emission reduction and equity requirements under the 2019 Climate Leadership and Community Protection Act (Climate Act).

DEC Commissioner and Climate Action Council Co-Chair Basil Seggos said, “New York is taking significant steps to reduce greenhouse gas emissions and combat climate change, including the development of an economywide Cap-and-Invest Program carefully designed to decrease pollution while prioritizing affordability to support New York’s transition to a clean energy economy. This first phase of stakeholder sessions announced today will provide information about program elements and encourage New Yorkers’ input to help ensure we meet our ambitious emissions reduction requirements while we advance a cleaner, greener, and healthier environment.”

NYSERDA President and CEO and Climate Action Council Co-Chair Doreen M. Harris said, “New York State, under Governor Hochul’s leadership, has demonstrated its continued commitment to meet its ambitious climate goals, and designing a Cap-and-Invest Program will further help to accelerate our critical climate action efforts. The upcoming stakeholder sessions are opportunities for open and valuable feedback to help ensure that New York’s future Cap-and-Invest Program is created in a way that prioritizes affordability and equity while ensuring all New Yorkers benefit from our growing green economy.”

The first phase of pre-proposal webinars, scheduled throughout June, will provide an overview of New York’s potential program and similar programs designed to reduce greenhouse gas emissions in other states and jurisdictions. The webinars will present an opportunity for key stakeholders and the public to provide feedback on program design features. In addition, the presentation will include a link to a webpage where stakeholders can access the outline and questions and provide comments. All stakeholder input will be considered by staff as part of the program development.

These webinars will focus on obtaining input regarding anticipated program design details such as applicability and thresholds, allowance allocation and auction, stability mechanisms, compliance and enforcement, and reporting and verification. A second round of pre-proposal stakeholder outreach is expected to be held later this year.

For a full list of scheduled webinars, please see below. Recordings of the webinars will be posted online following the meetings. Additional information will be provided as it becomes available at capandinvest.ny.gov.

• June 1, 1 to 3 p.m. – Cap-and-Invest Overview 
• June 6, 11 a.m. to 1 p.m. - Natural Gas-focused webinar
• June 8, 1 to 3 p.m. - Liquid Fuels-focused webinar
• June 13, 11 a.m. to 1 p.m. – Energy Intensive and Trade Exposed Industries-focused webinar
• June 15, 1 to 3 p.m. - Waste-focused webinar 
• June 20, 11 a.m. to 1 p.m. – Cap-and-Invest Analysis Inputs and Methods
• June 22, 1 to 3 p.m. - Electricity-focused webinar

In addition to these scheduled webinars, DEC and NYSERDA will continue to engage with various stakeholders regarding the development of the program, including around labor, equity, disadvantaged communities, and other key issues. 

The Enacted FY 2023-24 Budget advances Governor Hochul’s priority to create an affordable, equitable, and effective Cap-and-Invest Program that promotes climate action, creates high-quality jobs, and protects and invests in disadvantaged communities. The Budget creates the Consumer Climate Action Account, which ensures not less than 30 percent of future proceeds will be provided to New Yorkers as a critical step toward protecting affordability. In addition, the Budget establishes a Climate Investment Account, which will direct two-thirds of future proceeds to support the transition to a less carbon-intensive economy. The Budget also creates a Climate Affordability Study process to provide recommendations on the most impactful use of funds to protect New Yorkers.

The program will prioritize the frontline, disadvantaged communities in the State that for far too long have suffered from pollution and environmental injustice. The program will not allow the use of offsets that could allow high-emitting sources to continue to pollute, and will instead be designed to ensure pollution burdens are reduced. Under Governor Hochul’s leadership, a minimum of 35 percent, with a goal of 40 percent, of the benefits of Cap-and-Invest resources will directly benefit disadvantaged communities, and the program will be designed to ensure pollution burdens are reduced in frontline communities.

Over the coming months, DEC and NYSERDA will design a Program that sets an annual cap on the amount of greenhouse gas pollution that is permitted to be emitted in New York. Every year, New York’s pollution cap will be set lower to meet the Climate Act’s greenhouse gas emission reduction requirements of 40 percent by 2030 and at least 85 percent from 1990 levels by 2050. Large-scale greenhouse gas emissions sources and distributors of heating and transportation fuels will be required to purchase or obtain allowances for the emissions associated with their activities. Proceeds will support the State’s critical investments in climate mitigation, energy efficiency, clean transportation, and other projects, in addition to mitigating potential consumer costs associated with the Program.

For more information about New York’s climate efforts, visit the Climate Act website at climate.ny.gov.

New York State's Nation-Leading Climate Plan

New York State's nation-leading climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues fostering a green economy across all sectors and ensures that at least 35 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation's most aggressive climate and clean energy initiatives, New York is on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economy-wide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented clean energy investments, including more than $35 billion in 120 large-scale renewable and transmission projects across the state, $6.8 billion to reduce building emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.8 billion in NY Green Bank commitments. These and other investments are supporting more than 165,000 jobs in New York's clean energy sector in 2021 and a 2,100 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York's climate action with nearly 400 registered and 100 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State's largest community air monitoring initiative in 10 disadvantaged communities across the state to help target air pollution interventions and combat climate change.

Brookdale Hospital Agrees to Civil Settlement to Resolve Allegations that Former Employees Defrauded a Federally Funded Nutrition Program

 

The Alleged Scheme Involved Defrauding a Federal Program that Provides Grants for Supplemental Foods, Health Care Referrals, And Nutrition Education for Lower-Income Women And Children

 The Brookdale Hospital Medical Center, a nonprofit hospital based in Brooklyn, has agreed to pay $300,000 to the United States to resolve allegations that it violated the False Claims Act based on the conduct of former employees who engaged in a scheme to defraud the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).  Brookdale cooperated fully throughout the investigation.  The settlement agreement, which resolved claims under the Federal False Claims Act, was approved yesterday by United States District Judge I. Leo Glasser. 

Breon Peace, United States Attorney for the Eastern District of New York and Bethanne M. Dinkins, Special Agent-in-Charge, United States Department of Agriculture, Office of Inspector General (USDA-OIG), announced the settlement.

“Our Office worked with Brookdale to arrive at a fair and just resolution that holds Brookdale accountable while crediting its cooperation,” stated United States Attorney Peace.  “This settlement demonstrates our Office’s commitment to holding healthcare providers accountable when their employees engage in misconduct that defrauds federal programs like the USDA-funded WIC program.”    

Mr. Peace expressed his gratitude for the support of the New York State Department of Health, Bureau of Special Investigations for their assistance in investigating these claims.

“The WIC program was created to provide food and nutrition to those who truly need this assistance,” stated USDA-OIG Special Agent-in-Charge Bethanne M. Dinkins. “Those who are involved in fraud and abuse of USDA-funded programs will be investigated by our office to the fullest extent.  Our joint investigation with the New York State Department of Health, Bureau of Special Investigations identified those who sought to defraud WIC.  USDA-OIG will continue to dedicate investigative resources, working with our law enforcement and prosecutorial partners, in order to protect the integrity of these programs.” 

The USDA-funded WIC program provides grants to states for supplemental foods, health care referrals, and nutrition education for lower-income pregnant, breastfeeding, and non-breastfeeding postpartum women, and to infants and children who are found to be at nutritional risk.  The United States contends that between 2010 and 2016, former Brookdale employees, including the former director of Brookdale’s WIC program, engaged in a scheme to defraud the WIC program by, among other things, causing ineligible persons to be qualified for WIC benefits and misappropriating WIC program funds.  The United States further alleges that these former employees falsified time sheets and other records concerning work purportedly performed by breastfeeding peer counselors, and falsified budget records to inflate Brookdale’s purported requirements for WIC funds. 

The settlement includes the resolution of a civil action brought under the qui tam or whistleblower provisions of the False Claims Act against Brookdale.   Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant.  The qui tam case is captioned United States ex rel. Young v. The Brookdale Hospital Medical Center, No. 19-CV-2272 (E.D.N.Y.). 

The claims resolved by the settlement are allegations only and there has been no determination of liability.

Attorney General James’ Office of Special Investigation Releases Report on Death of Lopamudra Desai

 

New York Attorney General Letitia James’ Office of Special Investigation (OSI) released its report on the death of Lopamudra Desai in Queens. Following a thorough investigation, which included review of security camera video, 911 calls, and crash reconstruction analysis, OSI concluded that criminal charges are not warranted in this case. 

In the afternoon on May 23, 2021, an off-duty officer with the New York City Police Department (NYPD) was driving her personal car to work. The officer was driving southbound on Corporal Kennedy Street and turning eastbound onto 43rd Avenue when her vehicle struck Ms. Desai, who was walking northbound in the eastern pedestrian crosswalk. Immediately following the collision, the officer exited her car and approached Ms. Desai to provide aid. A nearby witness who was a nurse joined the officer and advised against moving Ms. Desai. The officer, the nurse, and two other witnesses all called 911 to report the incident and request medical assistance. Ms. Desai was transported to a local hospital, where she was pronounced dead on May 25, 2021.  

The NYPD’s Collision Investigation Squad (CIS) responded to the scene to examine the crash site and administer field sobriety tests (FSTs) to the officer, which she passed. The officer also submitted to an alcohol breath test and a drug test, which were both negative. A download of the officer’s car’s event data recorder showed no recorded events, and review of her phone’s call and text history showed no communication around the time of the incident apart from the call made to 911. 

Under New York law, proving criminally negligent homicide requires establishing beyond a reasonable doubt that a person failed to perceive a substantial and unjustifiable risk that death would occur; that the failure to perceive the risk was a gross deviation from a reasonable person’s standard of care; and that the person engaged in blameworthy conduct. In this case, there is no evidence that the officer was engaging in unnecessarily risky behavior, nor that she was speeding or impaired, and therefore OSI concluded that criminal charges could not be pursued against the officer.  

The NYPD’s patrol guide requires that if qualified to do so, the patrol supervisor must administer an alcohol test to any police officer involved in a collision that results in a death. The officer involved in this incident was not breath-tested until two hours after the incident, when CIS arrived. While there is no evidence the officer in question was impaired or intoxicated, OSI recommends that all officers or civilians involved in a motor vehicle collision be tested on scene as soon as practicable to ensure the most accurate results. 

VCJC News & Notes 5/19/23

 

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 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 5/19/23 @ 7:51 pm Shabbos morning services at 8:40 am.  Please join the services if you can do so safely.  Shabbos Ends Saturday 5/20/23 @ 8:55 pm Kiddush will be given by Ben Z Panush in honor of his aunt Sara Lustig’s yahrzeit.    Sunday 5/21/23, Lecture by Rabbi Viders “How the 10 Commandments Impact our Lives in Modern-day Society” We are excited to announce the resumption of our lecture series at the Van Cortlandt Jewish Center beginning on Sunday May 21st. This first lecture will explore the topic of “How the 10 Commandments impact our lives in modern day society.” As we approach the holiday of Shavuos, it is important for us to examine the meaning and teachings behind this significant event in the  Jewish calendar. Our esteemed speaker, Rabbi Viders, will guide us in a deep dive into the 10 Commandments and their relevance to our everyday lives. Doors will open at 9:30 AM for a light breakfast before the seminar begins at 10 AM sharp. We encourage all members of our community to attend this enlightening event and gain a deeper understanding of the laws and teachings of Shavous. Rabbi Viders is an experienced and renowned lecturer who has a wealth of knowledge on Jewish law and ethics. You won’t want to miss out on his insights and wisdom. Please join us on May 21st at 10 AM for this informative lecture. Spread the word and invite your friends and family to this enlightening event. We hope to see you there! There is no charge.  We plan to record the lecture and have it posted on our website. 3. Shavous Thursday, May 25 is Erev Shavuot, -- Friday May 26 is 1st day of Shavuot, Saturday, May 27 is 2nd day of Shevuot.   Candles 5/25/23 at 7:57 PM.  Candles 5/26/23 Shabbos and Shavous 7:58 PM Services 5/27/23 8:40 AM Yizkor 5/27/23 at approximately 9:40 AM Shabbos and Shavous end 5/27/23 9:02 PM.   4. Donate for Shavuos Yizkor!  It is customary to make a charitable donation in conjunction with Yizkor.  If you wish to donate to VCJC as part of your Yizkor observance, it can be done in person at the office, by check, or online through our website 5. Reminders Tell us about your preferences for the Center Light via email We are considering offering the Center Light by email (as an alternative).  It might be as a pdf, which might not work very well on mobile devices.  It might be as highlights or summaries with links to read more.  It could be a different format than that.  We are soliciting your input about this.  You can respond to this newsletter and tell us: if you prefer postal mail or would like email instead, if you would find pdf acceptable or would prefer a more mobile-friendly format, if you think this is a good idea (to save money and make the Center Light more accessible) or a terrible idea. Shiurim on the website There are now several audio shiurim on the VCJC website. You can access them via the right column on any page or the blog summary page.  Let us know how you like them or if you have any suggestions for how they are presented.  Van Cortlandt Jewish Center 3880 Sedgwick Ave Bronx, NY 10463

Bronx Borough President Vanessa L. Gibson - Calling All Bronx High School Seniors

 



Calling all Bronx high school seniors! Please join us today, Friday, May 19th from 4PM - 8PM for our Prom Dress & Suit Giveaway at Borough Hall! We look forward to seeing you there. Happy Prom Season!

In partnership,

Bronx Borough President Vanessa L. Gibson

Querido Vecino,

¡Llamando a todos los estudiantes del Bronx! ¡Por favor, únase a nosotros hoy, viernes, 19 de mayo de 4PM - 8PM para nuestro Prom Dress & Suit Giveaway en Borough Hall! Esperamos verlos allí. ¡Feliz temporada de graduación!

En colaboración,

Vanessa L. Gibson, Presidenta del Condado del Bronx

NYS Office of the Comptroller DiNapoli Releases Analysis of 2023-24 Enacted State Budget

 

The $229 billion Enacted Budget for State Fiscal Year (SFY) 2023-24 includes new recurring spending for schools, mental health services, and health care, as well as resources for the Metropolitan Transportation Authority (MTA) and for emergency rental assistance. Preliminary estimates show All Funds spending will grow nearly 4% year-over-year amid a projected drop in revenues and as temporary federal aid is spent down, according to an analysis by State Comptroller Thomas P. DiNapoli.

Earlier in the week, DiNapoli reported that state tax collections in April totaled just over $10.9 billion, a $7.2 billion, or 39.9%, decrease from last April, and $4.4 billion lower than projections in the Division of the Budget’s (DOB) 2024 Updated Executive Budget Financial Plan, the most recent plan available. The decline was primarily in the Personal Income Tax (PIT).

“The Enacted State Budget funds critical services, including fully funding Foundation Aid for our schools, programs to help New Yorkers that are still struggling in our post-pandemic world and stabilizing the MTA after massive ridership declines,” DiNapoli said. “It also comes at a time when revenues appear to be softening, inflation persists, and the federal government has yet to reach a deal on the debt ceiling. The state has made progress in building up reserve funds, but policymakers need to carefully monitor the economy and work to put the state on a sustainable fiscal course.”

Decline in Projected Revenues

Based upon DOB’s most recent Financial Plan projections, as well as Executive and legislative estimates associated with changes included in the Enacted Budget, All Funds revenues for SFY 2023-24 are projected to be almost $9.2 billion, or 3.9%, lower than SFY 2022-23. These declines include a forecasted reduction in tax receipts of $3.5 billion, or 3.2%. This follows a decrease in tax revenues of 7.8% in SFY 2022-23. Lower collections were primarily concentrated in the PIT reflecting an estimated 26% decline in Wall Street bonuses, the volatility in the financial markets and its impact on estimated payments throughout the year, as well as the tax credits claimed for the first year of the Pass-Through Entity Tax.

Early Revenue Concerns

Although only a month into the new fiscal year, April tax collections may be a cause for concern, particularly the PIT. April PIT collections totaled $7.5 billion, 49.4% below last year. While a year-over-year decline was anticipated, these revenues were 39.1% lower than DOB cash flow projections for April contained in its most recent Financial Plan.

According to reports from the Department of Taxation and Finance, the net settlement for the 2022 tax year totaled $3.6 billion, 66.3% lower than that for 2021. In addition to these settlement payments, April collections also include quarterly estimated payments for tax year 2023; these payments were $531.7 million in April, 33.6% lower than the same month last year. 

Spending Overview

All Funds spending is forecast to be $229 billion, 3.9% higher than SFY 2022-23. On a State Operating Funds basis, spending is projected to total $127.2 billion, an almost 3% year-over-year increase and a 24.5% increase since SFY 2019-20. On a General Fund basis, spending is forecast to total $108.1 billion, a 16.5% year-over-year increase and an almost 40% increase since SFY 2019-20. The report notes that much of the increased spending is recurring and may present a growing fiscal challenge to the state, particularly as temporary federal aid wanes and if a more pronounced or extended economic downturn occurs. 

Reserve Funds

As DiNapoli has consistently pointed out, the state has underfunded its statutory reserve funds for decades. Some progress has been made to increase the size of reserve funds since 2019. By the end of SFY 2022-23, statutory rainy day fund balances had increased to $6.26 billion (compared to $1.8 billion in SFY 2014-15). The Enacted Budget contains provisions that would allow the state to continue this progress. For the statutory Rainy Day Reserve Fund, the Budget increases the maximum balance to 25% of General Fund spending, and maximum annual deposits to 15% of General Fund spending. Compared to prior law, the increased limits will result in an estimated $10.7 billion increase in maximum allowable Rainy Day Reserve Fund levels based on forecasted SFY 2023-24 General Fund spending.

However, it is unclear what the state’s plans are for additional contributions to the statutory rainy day reserve funds. DiNapoli said policymakers should require mandatory deposit levels and increase reliance on the more restrictive statutory reserve funds, rather than informal reserves, so the state is better prepared for the next economic downturn or unexpected event.     

Poor Debt Practices Persist

The Enacted Budget includes provisions that bypass Debt Reform Act protections, including the state’s debt cap. For example, the Gateway Project debt (increased by $500 million, to a total of $2.85 billion) is structured as a federal loan, to be repaid by the state through a service contract mechanism. This utilizes a Debt Reform Act loophole to avoid being counted toward the state’s debt limit. It also reduces transparency and accountability by inappropriately classifying the Gateway loan in a modified classification of state-related debt, inconsistent with past practice.

The Enacted Budget reauthorized the ability to issue state-supported bonds for MTA purposes with maturities up to 50 years, far exceeding the Debt Reform Act’s 30-year maturity limit for all state-supported debt. It also authorized up to $4 billion in short-term cash flow borrowings during SFY 2023-24, including up to $3 billion in PIT Notes and $1 billion in lines of credit.

Oversight

Continuing an ill-advised pattern, the Enacted Budget authorizes nearly $5 billion in state spending without protections such as competitive bidding and State Comptroller review and approval of contracts before they become effective. In addition, it includes provisions that disregard Section 163 of the State Finance Law or other competitive bidding requirements that total an additional approximately $2.5 billion.

DiNapoli’s office will provide a report on operating spending, capital commitments and debt affordability after DOB releases the Enacted Budget Financial Plan.

Report

State Fiscal Year 2023-24 Enacted Budget Review

Wisconsin Man Charged With Hacking Fantasy Sports And Betting Website

 

Defendant Sold Access to Hacked Accounts with Instructions on How to Drain the Accounts’ Funds

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 unsealing of a six-count criminal Complaint charging JOSEPH GARRISON in connection with a scheme to hack user accounts at a fantasy sports and betting website (the “Betting Website”) and sell access to those accounts in order to steal hundreds of thousands of dollars from them.  GARRISON surrendered this morning in New York, New York, and will be presented this afternoon before United States Magistrate Judge James L. Cott.

FBI Assistant Director in Charge Michael J. Driscoll said: “As alleged, Garrison attained unauthorized access to victim accounts using a sophisticated cyber-breaching attack to steal hundreds of thousands of dollars.  Cyber intrusions aiming to steal private individuals’ funds represent a serious risk to our economic security.  Combatting cyberattacks and holding the responsible threat actors accountable in the criminal justice system remains a top priority for the FBI.”

As alleged in the Complaint:[1]

On or about November 18, 2022, GARRISON launched a “credential stuffing attack” on the Betting Website.  During a credential stuffing attack, a cyber threat actor collects stolen credentials, or username and password pairs, obtained from other large-scale data breaches of other companies, which can be purchased on the dark web.  The threat actor then systematically attempts to use those stolen credentials to obtain unauthorized access to accounts held by the same user with other companies and providers in order to compromise accounts where the user has maintained the same password.  Here, in connection with the attack on the Betting Website, there was a series of attempts to log into the Betting Website accounts using a large list of stolen credentials.

GARRISON and others successfully accessed approximately 60,000 accounts at the Betting Website (the “Victim Accounts”) through the credential stuffing attack.  In some instances, the individuals who unlawfully accessed the Victim Accounts were able to add a new payment method on the account, deposit $5 into that account through the new payment method to verify that method, and then withdraw all the existing funds in the Victim Account through the new payment method (i.e., to a newly added financial account belonging to the hacker), thus stealing the funds in the Victim Account.  Using this method, GARRISON and others stole approximately $600,000 from approximately 1,600 Victim Accounts.

Law enforcement executed a search on GARRISON’s home in February 2023.  In that search, they located programs typically used for credential stuffing attacks.  Those programs require individualized “config” files for a target website to launch credential stuffing attacks, and law enforcement located approximately 700 such config files for dozens of different corporate websites on GARRISON’s computer.  Law enforcement also located files containing nearly 40 million username and password pairs on GARRISON’s computer, which are also used in credential stuffing attacks.

On GARRISON’s cellphone, law enforcement also located conversations between GARRISON and his co-conspirators, which included discussions about how to hack the Betting Website and how to profit from the hack of the Betting Website by extracting funds from the Victim Accounts directly or by selling access to the Victim Accounts.  In one particular conversation, GARRISON discussed, in substance and in part, how successful he was at credential stuffing attacks, how much he enjoyed credential stuffing attacks, and how GARRISON believed that law enforcement would not catch or prosecute him.  Specifically, GARRISON messaged the following, in substance and in part: “fraud is fun . . . im addicted to see money in my account . . . im like obsessed with bypassing shit.”

GARRISON, 18, of Madison, Wisconsin, is charged with conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison; unauthorized access to a protected computer to further intended fraud, which carries a maximum sentence of five years in prison; unauthorized access to a protected computer, which carries a maximum sentence of five years in prison; wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; and aggravated identity theft, which carries a mandatory minimum sentence of two years in prison. 

The minimum and maximum potential sentences 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 work of the FBI.  Mr. Williams also thanked the United States Attorney’s Office for the Western District of Wisconsin for their assistance in the investigation.

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Kevin Mead and Micah Fergenson are in charge of the prosecution.

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.