NYC Comptroller Lander Unveils New Online Hub to Track City’s Contracting & Budgeting Data for Asylum Seeker Service Provision

 

New York City Comptroller Brad Lander launched a new resource on the Comptroller’s Office website to enhance transparency into the City’s contracting and budgeting for service provision to support asylum seekers. The page, titled “Accounting for Asylum Seeker Services,” brings together the most comprehensive publicly available set of the City’s known emergency contracts, budget projections, and high-level data on the asylum seeker population.

“As New York City opens its arms to thousands of asylum seekers, the Comptroller’s Office is committed to providing New Yorkers with an honest look into the City’s emergency response operations and spending. Our new web resource is a centralized hub for City agencies, the press, and the public to access key information on emergency contracting, budgeting, and the status of individuals in our shelter system,” said Comptroller Brad Lander.

During emergency situations, agencies are permitted to expedite procurement processes, bypassing competitive bidding and reducing integrity reviews. Since Spring 2022, the City has entered into hundreds of emergency contracts across many agencies to provide shelter, meals, medical care, transportation, and legal assistance (and the staffing support for all of these services) to tens of thousands of asylum seekers.

Because these contracts are entered into with little coordination by multiple agencies, including some with different procurement rules (e.g. NYC Health + Hospitals), and because most have not yet been submitted to the Comptroller’s office for registration, there is no coordinated database. The Comptroller’s office has assembled the records in the directory from data collected from PASSPort Public (the City’s contract processing database), registered contracts that have arrived at the Comptroller’s Bureau of Contract Administration, and additional lists provided by the Administration.

In July, the Comptroller’s Office released an audit of emergency procurement during the COVID-19 crisis that identified significant overspending and issued a guidance memo to City agencies to employ best practices for controlling costs and conducting oversight of vendors in an emergency contracting context. Read the Comptroller’s Office’s letter to agencies on vendor oversight and cost containment during emergency procurement.

“New York benefits from each wave of new immigrants who consistently bring new energy, ideas, businesses, culture generation-after-generation, and an abiding faith in the future of our city. New York City stands to benefit greatly from this newest wave of New Yorkers, if we can effectively manage the challenge of helping them find stable housing, get permission to work, and begin building their new lives here. For that, we need much more support from the federal and state governments, a significantly stronger focus on helping new arrivals file their applications for asylum and work authorization, and a even broader coalition of public, private, and civic partners. We hope this resource will provide transparent information that supports those efforts,” said Lander.

The Comptroller’s office will update this resource on a regular basis as data becomes available.

Explore the “Accounting for Asylum Seeker Services” resource.

Governor Hochul Calls on President Biden to Direct the Federal Government to Provide Work Authorizations, Support, and Shelter For More Than 100,000 Asylum Seekers in New York State

 

Governor Urges White House to Provide Expedited Work Authorization for Asylum Seekers, Financial Assistance for the City and State, the Use of Federal Lands and Facilities, and Reimbursement for Nearly 2,000 New York National Guard Members

Governor Also Announces Plan to Connect Asylum Seekers to Employers with Job Openings Throughout New York State

Governor's Ongoing Response to Asylum Seeker Arrivals Includes $1.5 Billion in Aid in FY 2024 Budget, Mobilization of Nearly 2,000 National Guard Members, and Providing State-Owned Sites to House Asylum Seekers

 Governor Kathy Hochul today called on President Biden to take executive action and direct additional federal resources to the State of New York as it manages the unprecedented influx of asylum seekers arriving in New York. In a formal request sent to the White House this morning, Governor Hochul outlined specific, outstanding requests, including expedited work authorizations for asylum seekers, financial assistance for New York City and New York State, the use of federal land and facilities for temporary shelter sites, and Title 32 designation to provide federal funding for the nearly 2,000 New York National Guard members currently providing logistical and operational support across the State.   

“For over a year, I have called for federal assistance and support for New York as we manage the unprecedented number of asylum seekers arriving in our state,” Governor Hochul said. “New York cannot continue to do this on its own. It is past time for President Biden to take action and provide New York with the aid needed to continue managing this ongoing crisis.” 

Governor Hochul also announced a program that will greatly expand the State’s ability to help asylum seekers quickly gain lawful employment. Governor Hochul directed the New York State Department of Labor (DOL) to help connect asylum seekers to employment opportunities so they can begin working immediately after obtaining federal work authorization. All asylum seekers with work authorization in New York can now register for assistance here. DOL career experts will work with individuals to assess skills, work history, education, career interests and more, and connect them with employers across the State. Additionally, the New York State Department of Labor launched a portal enabling businesses to inform the State that they would welcome newly-authorized individuals into their workforce.  

Today's actions are Governor Hochul's latest efforts to address the arrival of asylum seekers and migrants in New York. Earlier this week, Governor Hochul announced a $20 million investment to help expedite the casework filing process for more than 30,000 asylum seekers. This investment builds on the $1.5 billion the State already committed to support New York City by providing funding for health care, shelter costs, National Guard personnel, legal services, and voluntary relocation programs. The State has also loaned New York City sites to use as temporary shelters which currently house more than 2,000 asylum seekers every day.  

The full text of Governor Hochul's letter to the President is available below: 

Dear President Biden:

New York State has been working with the City of New York to manage the arrival of a significant number of migrants and individuals seeking asylum in New York over the past year.  This influx has stretched the City’s and State’s resources, created tremendous operational and management challenges, and imposed overwhelming demands on the City’s homeless shelters.  I wrote to you earlier this year to ask for the use of certain federal properties to provide temporary shelter.  While I appreciate you taking initial steps to assist the State in this regard and your longstanding commitment to an equitable approach to immigration at the Southwest border, the challenges we face demand a much more vigorous federal response.  With the arrival of over 100,000 asylum seekers and migrants in the past year, coupled with the sustained arrival of hundreds if not thousands to the City every week, the federal government must partner with the City and State in handling this humanitarian crisis.  The City and the State have provided significant funding, staffing, and case management for these arrivals to date.  I write to you today to express a most urgent need for the federal government to take executive action and direct significant financial assistance to address this challenge.

There are several key steps that the federal government must take to meet its responsibilities to New York.

First, the federal government must expedite work authorizations.  New York has a very strong job market, and the State is committed to providing job placement services to those who have work authorization and to resettling individuals and families who have applied for asylum.  Today, many asylum seekers and migrants need both shelter and financial assistance for an indefinite period simply because they cannot legally work in the United States.  Work authorization would enable these individuals to resettle in communities more quickly.  The federal government can expedite work authorizations through executive actions like granting and extending Temporary Protected Status, specifically for countries like Venezuela, which constitute a significant portion of the arriving population and where the situation on the ground continues to deteriorate.  I also support the use of the humanitarian parole program for individuals from other countries.  We cannot make progress in mitigating the humanitarian crisis we face in New York without these essential actions by the federal government.

Second, the federal government must provide the State and the City with significant financial assistance.  The State has already committed over $1.5 billion, and based on the current trajectory and planning, this crisis could cost the State an additional $4.5 billion next year.  According to New York City Mayor Eric Adams, the City projects that the cost to the City will be $12 billion to support the arriving asylum seekers and migrants.  The City and the State are incurring these unexpected expenditures in the midst of declining tax revenues while costs are rising.  This is a financial burden the City and State are shouldering on behalf of the federal government.  While the State appreciates the $145 million contribution that the federal government has made to this effort, this allotment of funds is insufficient.  The costs to provide services and assistance to migrants arriving in New York are high and the need for federal assistance is clear.

• Healthcare and Human Services: The State needs funding from the federal government to pay to test the migrants for illnesses that might pose a threat to public health and to provide Covid-19 vaccine and other immunizations; to offset state program costs through an increase in federal cost sharing under the Medicaid program (FMAP); and to support comprehensive case management services.
• Transportation: The Federal Transit Administration has an Emergency Relief program, and we call on the federal government to direct funds from this program to the Metropolitan Transportation Authority (MTA) for free transportation services provided to migrants and asylum seekers.  To date, the MTA has spent over $2.3 million for these services and the costs will continue to rise.  The MTA has had to raise fares for New York commuters to close its budget gap and the MTA cannot provide free transport services for migrants on an ongoing basis without federal financial assistance. 
• Housing Assistance: The Department of Housing and Urban Development has housing subsidy programs, including Section 8 housing vouchers, that should be provided to eligible homeless families and individuals to help them move into permanent housing, to relieve the pressure on the City’s shelters, and to decrease the City’s significant costs to shelter elsewhere.
• Education: The Department of Education must work with the City and the State to surge resources to school districts seeing the dramatic increases in their student population as a direct result of this crisis. Many of the arriving migrants are families with children who are enrolling in public school and need English as a Second Language and other support services.

Third, the federal government has key facilities in the City and metropolitan area that the State and the City urgently need for temporary shelters.  The New York City shelter system is caring for over 58,500 asylum seekers and migrants, and the number continues to grow by the thousands each week.  The City has opened more than 200 shelters in response to this crisis and is out of space.  Additionally, the State has provided multiple state-owned facilities including the former Lincoln Correctional Facility, Building 197 at John F. Kennedy Airport, and space on the Creedmoor Psychiatric Hospital campus.  The City and State are quickly running out of viable locations to house asylum seekers and migrants.  Additional federal assistance to identify, prepare, and operate new sites on federally owned assets is essential.  I am grateful for the efforts of your Administration to make Floyd Bennett Field available.  However, there are other properties the federal government owns that should also be made available for this purpose.

Fourth, the federal government should reimburse the State for the costs of deploying the National Guard.  The State is incurring costs of over $22 million per month to support approximately 1,950 National Guard members, who are deployed in the City and to counties to assist with humanitarian operations.  This is an expense most appropriately borne by the federal government.   Title 32 of the United States Code provides those who perform active duty under state control with pay and benefits by the federal government.  I understand that the federal government has authorized the use of the Title 32 authority in the past to reimburse states for costs associated with the deployment of the National Guard to assist with immigrants arriving in the United States.  I am calling on the federal government to provide that same level of assistance to New York, either through a Title 32 authorization or through another funding mechanism.

In summary, New York City and New York State are deploying all available resources and staff to manage this immigration crisis.  New York is a state with tremendous talent, capability, compassion, and potential.  No challenge is too great, and we are stepping up to handle this mission.  However, the flow of asylum seekers and migrants into New York is continuing at a high and unabated level.  It is the federal government’s direct responsibility to manage and control of the nation’s borders.  Without any capacity or responsibility to address the cause of the migrant influx, New Yorkers cannot then shoulder these costs.  I cannot ask New Yorkers to pay for what is fundamentally a federal responsibility and I urge the federal government to take prompt and significant action today to meet its obligation to New York State.

Thank you for your continued leadership for our nation on this issue and so many others.

Bronx Metro-North Monthly Update, August 2023

 

Monthly Bronx Metro-North Study Update
August 2023

Upcoming Outreach Opportunities Come join us this summer! Stop by our table at DOT's Summer Streets event on August 26th, where we will be joining members of our Cross Bronx Planning team. Come say hello, ask questions, or leave feedback. Where: Grand Concourse between East Tremont Avenue and Mosholu Parkway When: August 26th, 10am-1pm

The NYC Summer Streets program (flyer above) represents just one of the many ways that DCP and other City Agencies celebrate neighborhood pride and strong community ties, as well as encourage conversations about public space and other current initiatives geared towards public realm improvements across all boroughs.

Are you looking for another way to engage?  We also encourage those wishing to share ideas, ask questions, or discuss the planning work to take advantage of our Remote Office Hours. See the below link to find a 15-minute window to chat with us. Members of the public can sign up for multiple windows. Sign up here!   Stay up-to-date on Planning Work: Please visit the Bronx Metro-North webpage to see a summary of recommendations and past planning work. You can also learn more about the Metro-North Study and view past info sessions on the Metro-North YouTube channel.   Remote Office Hours: Have additional questions or thoughts you’d like to share with us? We’d love to hear from you. Sign up for one-on-one remote office hours with the study team here: Sign up!   Follow us: Find us on Twitter, Instagram and Threads. You can also subscribe to our YouTube channel and check out our Bronx Metro-North video playlist

Housing Lottery Launches For 2026 Honeywell Avenue In West Farms, The Bronx

 

Permits have been filed for a six-story mixed-use building at 2026 Honeywell Avenue in West Farms, The Bronx. Located between East 178th and East 179th Streets, the lot is near the West Farms Square/East Tremont Avenue subway station, serviced by the 2 and 5 trains. Yoel Klein under the Boinen LLC is listed as the owner behind the applications.

The proposed 71-foot-tall development will yield 36,281 square feet, with 29,508 square feet designated for residential space and 6,773 square feet for community facility space. The building will have 43 residences, most likely rentals based on the average unit scope of 686 square feet. The concrete-based structure will also have a cellar, a 30-foot-long rear yard, and 13 enclosed parking spaces.

P. Georgopoulos PC is list 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.

Idaho Diesel Parts Companies and Owner Agree to Pay $1 Million After Pleading Guilty to Selling and Installing Illegal Defeat Devices

 

Diesel performance parts retailers GDP Tuning LLC and Custom Auto of Rexburg LLC, dba Gorilla Performance, as well as the companies’ owner Barry Pierce, pleaded guilty to criminal charges in federal court in Pocatello, Idaho, and agreed to pay a total of $1 million in criminal fines. The companies also agreed to implement compliance programs and to not manufacture, sell or install any device that defeats a vehicle’s emissions controls.  

GDP Tuning pleaded guilty to an information charging it with conspiracy to violate the Clean Air Act (CAA). Gorilla Performance and Pierce pleaded guilty to an information charging them with violating the CAA by tampering with the monitoring device of an emissions control system of a diesel truck. Under the plea agreement, the companies and Pierce agree to pay a $1 million criminal fine.

“Tampering with vehicles’ on-board diagnostic devices isn’t just a violation of federal law – it’s a major health hazard,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “People are harmed as a direct consequence of the many air pollutants that would be removed by emissions controls systems absent the illegal tampering. We have made progress in curbing harmful emissions, but that progress is undermined by sellers and distributors of defeat devices. We are committed to enforcing the Clean Air Act and holding accountable businesses and individuals that violate federal law.”

“Nearly a decade after EPA began cracking down on illegal defeat devices that violate the Clean Air Act, there is no excuse for companies to be continuing to cheat on vehicle emissions and putting the health of the environment and our communities at risk,” said Assistant Administrator David M. Uhlmann of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “EPA will continue to pursue criminal charges against companies like Gorilla Diesel, which broke the law brazenly and repeatedly, until this egregious criminal activity comes to a stop once and for all.”

“The defendants in this case purposefully violated laws that protect air quality and the overall quality of life for Idahoans, especially vulnerable populations such as children, the elderly and those who suffer from respiratory conditions,” said U.S. Attorney Josh Hurwit for the District of Idaho.  “My office will continue to partner with law enforcement agencies to prosecute those who seek illegal profits at the expense the public’s health and our shared environment.”

According to court documents, GDP Tuning conspired with Pierce and others to violate the CAA by purchasing and selling tens of thousands of tuning devices and accompanying software which, when used together, tampered with vehicles’ on-board diagnostic (OBD) systems. OBDs normally detect any removal and malfunction of a vehicle’s emissions control equipment and record a diagnostic trouble code which will illuminate a vehicles “check engine light.” If the malfunction is not remedied, some vehicles can go into “limp mode,” where the maximum speed is limited to 5 mph as an incentive to have the vehicle repaired.

GDP Tuning bought and sold devices and software that allowed customers to reprogram or “tune” a vehicle’s OBD. This reprogramming tampers with emissions monitoring built into the diagnostic system and allows removal of the vehicle’s emissions control equipment without detection by the OBD. Removing a vehicle’s emissions controls is typically referred to as a “delete” and is accompanied by a “delete tune.”

In addition to GDP Tuning’s national wholesale operation, Gorilla Performance and Pierce operated a retail shop and auto repair facility in Rexburg, Idaho, where customers’ trucks were deleted and tuned.

Diesel exhaust contains a variety of air pollutants, such as particulate matter (PM), nitrogen oxides (NOx), carbon monoxide and non-methane hydrocarbons, among other hazardous air pollutants. Factory-standard emissions control equipment dramatically reduces these emissions. 

Deleting a diesel truck causes its emissions to increase dramatically. For a fully deleted truck with all emissions equipment removed, EPA testing has quantified the increased emissions as follows: NOx increased 310 times, non-methane hydrocarbons increased 1,400 times, carbon monoxide increased 120 times and PM increased 40 times. EPA’s Air Enforcement Division released a report in November 2020 finding that more than 500,000 diesel pickup trucks in the United States – approximately 15% of U.S. diesel trucks that were originally certified with emissions controls – have been illegally deleted. 

Diesel emissions contain multiple hazardous compounds that harm human health and the environment. Diesel emissions have been found to cause and worsen respiratory ailments such as asthma and lung cancer. One study found that 21,000 American deaths annually are attributable to diesel particulate matter. Additionally, exposure to polluted air in utero has been associated with a host of problems with lifelong ramifications including low birth weight, preterm birth, autism, asthma and brain and memory disorders.  

Sentencing is scheduled for Nov. 8 before U.S. District Court Judge B. Lynn Winmill for the District of Idaho. Though the corporate defendants agreed to pay $1 million in criminal fines under the plea agreements, they face a maximum fine per count of $500,000 or twice the gross pecuniary gain derived from the offense, and Pierce faces up to two years in prison. The defendants’ sentences will be determined at the discretion of the court after application of statutory factors and the Federal Sentencing Guidelines, which consider a number of variables.  

The criminal case stemmed from an investigation by the EPA’s Criminal Investigation Division. U.S. Attorney Josh Hurwit for the District of Idaho, Senior Trial Attorney Cassandra Barnum of the Environment and Natural Resources' Environmental Crimes Section and EPA Regional Criminal Enforcement Counsel Karla Perrin are prosecuting the case. 

Stopping the manufacture, sale and installation of illegal delete devices is a priority for EPA. To learn more, visit www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines

Attorney General James Leads Multistate Coalition to Protect Americans’ Right to Clean Air

 

Coalition of 10 Attorneys General and Two Local Governments Urges Court to Protect EPA Authority to Curb Dangerous Pollution That Crosses State Lines

New York Attorney General Letitia James led a multistate coalition in submitting an amicus brief to the U.S. Court of Appeals for the Fifth Circuit in the case of Texas v. EPA to defend the U.S. Environmental Protection Agency’s (EPA) authority under the Clean Air Act to ensure that each state does its fair share to reduce the air pollution that they send to other states. The brief responds to a claim by Texas, Mississippi, and Louisiana that the EPA does not have the authority to independently review their state implementation plans (SIPs) to ensure that these states sufficiently curb dangerous air pollution that travels across state lines. Attorney General James and the coalition reject that argument and support EPA’s authority to ensure that all states follow federal law requiring them to reduce dangerous air pollution that causes high levels of ground-level ozone, or “smog,” beyond their own borders that can trigger severe respiratory problems and even lead to early death. 

“Air pollution doesn’t care about state lines, and pollution emissions in other states very much impact the quality of air in New York,” said Attorney General James. “That is why I am leading a coalition of my fellow attorneys general to defend the EPA’s authority to require that all states adhere to their responsibilities under the Clean Air Act. I will not allow other states to pretend their air pollution has no harmful effects elsewhere. New Yorkers can breathe easier knowing that we will always fight for clean air and commonsense pollution regulations.” 

Congress included the Good Neighbor Provision in the Clean Air Act to address the problem of interstate pollution and help ensure states fulfill their obligations to their neighboring states. In 2015, the EPA strengthened air quality standards for ozone. Around this time, the EPA found that emissions from power plants and other industries in two dozen upwind states, including Texas, Mississippi, and Louisiana, would significantly affect many of the coalition states’ ability to achieve safe air quality standards. In response, rather than provide SIPs outlining plans to reduce emissions and ozone pollution, many upwind states simply downplayed the harm to downwind states and their residents’ air quality or minimized the role they played. When the EPA disapproved of these states’ inadequate plans to curb pollution, Texas, Mississippi, and Louisiana challenged the EPA’s authority to enforce the Good Neighbor Provision and to ensure all states reduce air pollution emissions affecting their neighbors.  

Attorney General James and the coalition explain that the EPA does have the authority to hold states accountable and ensure upwind states will work to curb harmful ozone pollution. The coalition notes that more than 50 percent of ozone pollution in some of their localities comes from other states, including those challenging the EPA’s authority. Additionally, Attorney General James and the coalition explain that ozone harms the health of residents in their states, as elevated levels of ozone can trigger asthma, worsen bronchitis and emphysema, and even contribute to early death. The coalition urges the court to reject the efforts of Texas, Mississippi, and Louisiana to ignore the Good Neighbor Provision and undermine the EPA’s power to protect states from air pollution originating in neighbor states.  

Leading this coalition of 10 attorneys general is part of Attorney General James’ ongoing efforts to protect New Yorkers’ right to clean air and natural resources. Earlier this month, Attorney General James helped secure $2.8 million from FrieslandCampina due to air and water pollution in Delaware County. In July, Attorney General James joined a bipartisan, multistate coalition opposing a proposed settlement with 3M for contaminating drinking water supplies. In May 2022, Attorney General James brought a lawsuit against three New York City bus companies for violating city and state bus idling laws and causing significant air pollution. In May 2020, Attorney General James led a coalition of nine attorneys general to sue the Trump administration for limiting enforcement of environmental protection laws.  

Joining Attorney General James in filing this amicus brief are the attorneys general of Connecticut, Illinois, Maryland, Massachusetts, New Jersey, New Mexico, Pennsylvania, Wisconsin, and the District of Columbia; the county attorney of Harris County, Texas; and corporation counsel of the City of New York. 

Tornado Cash Founders Charged With Money Laundering And Sanctions Violations

 

Roman Storm and Roman Semenov Charged with Operating the Tornado Cash Service, Laundering More Than $1 Billion in Criminal Proceeds 

Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the Attorney General of the United States, Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”), Nicole M. Argentieri, the Acting Assistant Attorney General of the Justice Department’s Criminal Division, Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, James Smith, the Assistant Director in Charge of the New York Field Office of the FBI, and Bryant Jackson, the Special Agent in Charge of the Cincinnati Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced the unsealing of an Indictment charging ROMAN STORM and ROMAN SEMENOV with conspiracy to commit money laundering, conspiracy to commit sanctions violations, and conspiracy to operate an unlicensed money transmitting business.  The charges in the Indictment arise from the defendants’ alleged creation, operation, and promotion of Tornado Cash, a cryptocurrency mixer that facilitated more than $1 billion in money laundering transactions and laundered hundreds of millions of dollars for the Lazarus Group, the sanctioned North Korean cybercrime organization.  ROMAN STORM was arrested in the state of Washington and will be presented in the U.S. District Court for the Western District of Washington.  The case has been assigned to U.S. District Judge Katherine Polk Failla.  SEMENOV remains at large.

U.S. Attorney Damian Williams said: “As alleged, Tornado Cash was an infamous cryptocurrency mixer that laundered more than $1 billion in criminal proceeds and violated U.S. sanctions.  Roman Storm and Roman Semenov allegedly operated Tornado Cash and knowingly facilitated this money laundering. While publicly claiming to offer a technically sophisticated privacy service, Storm and Semenov in fact knew that they were helping hackers and fraudsters conceal the fruits of their crimes. This indictment is a reminder that money laundering through cryptocurrency transactions violates the law, and those who engage in such laundering will face prosecution.”

Attorney General Merrick B. Garland said: “As alleged in the indictment, the defendants operated a $1 billion scheme designed to help other criminals launder and conceal funds using cryptocurrency, including by laundering hundreds of millions of dollars on behalf of a state-sponsored North Korean cybercrime group sanctioned by the U.S. government.  These charges should serve as yet another warning to those who think they can turn to cryptocurrency to conceal their crimes and hide their identities, including cryptocurrency mixers: it does not matter how sophisticated your scheme is or how many attempts you have made to anonymize yourself, the Justice Department will find you and hold you accountable for your crimes.”

FBI Director Christopher A. Wray said: “Today’s announcement should remind criminal organizations everywhere in the world that they are neither untraceable nor anonymous.  You can’t hide from us behind a keyboard — whether you’re a hacker or facilitator.  Those charged today engaged in a conspiracy to launder money for cybercriminals, including for a North Korean cybercrime organization seeking to evade sanctions.  As we have with this operation, the FBI is going to keep dismantling the infrastructure used by cyber criminals to commit and profit from their crimes, and holding anyone who assists those criminals accountable.”

Acting Assistant Attorney General Nicole M. Argentieri said: “Cryptocurrency mixers have become the go-to method for criminals to conceal their ill-gotten gains.  As alleged, the defendants operated Tornado Cash as a safe haven for criminal actors to obfuscate the trail of funds tied to their criminal activities, such as computer hacking and wire fraud.  The Criminal Division will continue to prioritize the investigation and prosecution of those who seek to criminally exploit the cryptocurrency ecosystem.”

Assistant Attorney General Matthew G. Olsen said: “As stated in the indictment, the defendants’ cryptocurrency service facilitated more than $1 billion in illicit transactions, and they knowingly allowed a globally sanctioned cybercrime group to launder hundreds of millions of dollars on behalf of the North Korean regime.  The Justice Department – alongside our domestic and international law enforcement partners – will use every tool in our arsenal to pursue and dismantle the criminal networks that enable US sanctions violations wherever they operate.”

FBI Assistant Director in Charge James Smith said: “This indictment of Tornado Cash co-founders Roman Storm and Roman Semenov highlights their alleged role in creating a cryptocurrency mixer that ultimately served as a gateway for the laundering of more than $1 billion in criminal proceeds.  As alleged, when it became clear that a sanctioned North Korean cybercrime organization was using the platform to launder hundreds of millions of dollars derived from cyber heists, Storm and Semenov turned a blind eye to the illicit activity and made public representations that they were compliant with sanctions laws.  Today’s enforcement actions remind the public that the FBI, when faced with illegal activity, is committed to tracing the untraceable, and will remain focused on protecting victims of financial crime wherever those crimes are committed — be it through the traditional banking system or the virtual currency blockchain.”

IRS-CI Special Agent in Charge Bryant Jackson said: “As alleged, Tornado Cash was used to launder over $1 billion.  IRS Criminal Investigation’s Special Agents use their financial expertise to follow the flow of cryptocurrency transactions and dismantle major money laundering organizations that try to conceal the criminal source of their funds.  Today's indictment is a direct result of our collaboration with our law enforcement partners, both in the U.S. and abroad.  Through our work together, those who use deceit and fraud to line their pockets with illegal profits will be held accountable.”

As alleged in the Indictment unsealed in Manhattan federal court and court filings:[1

ROMAN STORM and ROMAN SEMENOV were two of the three founders of the Tornado Cash service, a cryptocurrency mixer that allowed its customers to engage in untraceable transfers of cryptocurrency.  The defendants and their co-conspirators created the core features of the Tornado Cash service, paid for critical infrastructure to operate the Tornado Cash service, promoted the Tornado Cash service, and made millions of dollars in profits from operating the Tornado Cash service.  The Tornado Cash service advertised to customers that it provided untraceable and anonymous financial transactions, and STORM and SEMENOV chose not to implement know your customer or anti-money laundering programs as required by law.  As a result, the Tornado Cash service was used to launder more than $1 billion in criminal proceeds.  STORM and SEMENOV knew about these money laundering transactions and received complaints and requests for help from victims of hacking and other cybercrimes.  However, they refused to implement any controls and continued to operate the Tornado Cash service and facilitate these money laundering transactions.  

In April and May 2022, the Tornado Cash service was allegedly used by the Lazarus Group, a sanctioned North Korean cybercrime organization, to launder hundreds of millions of dollars in hacking proceeds.  STORM and SEMENOV knew that the Tornado Cash service they were operating was engaging in these sanctions-violating transactions.  They implemented a change in the service so that they could make a public announcement that they were compliant with sanctions, but in their private chats, they agreed that this change would be ineffective.  They then continued to operate the Tornado Cash service and facilitate hundreds of millions of dollars in further sanctions-violating transactions, helping the Lazarus Group to transfer criminal proceeds from a cryptocurrency wallet that had been designated by the Office of Foreign Assets Control as blocked property.

ROMAN STORM, 34, of Auburn, Washington, and ROMAN SEMENOV, 35, a Russian national, are each charged with one count of conspiracy to commit money laundering and one count of conspiracy to violate the International Economic Emergency Powers Act, which each carry a maximum sentence of 20 years in prison.  They are also each charged with conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison.    

The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. 

Mr. Williams praised the investigative work of the FBI and IRS-CI.  He also acknowledged the assistance of the Justice Department’s Office of International Affairs.  Mr. Williams further thanked the Joint Chiefs of Global Tax Enforcement (“J5”) for their assistance in the investigation.

The NCET was established to combat the growing illicit use of cryptocurrencies and digital assets.  Within the Criminal Division’s Computer Crime and Intellectual Property Section, the NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers.  The NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the Department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.

The allegations in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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

At the New York State Fair, Governor Hochul Signs Executive Order Increasing State Sourcing of Local Food From Farmers

 

State Agencies to Increase Percentage of Food Sourced from New York Farmers and Producers to 30 Percent by 2028

Governor Hochul Also Signs Bills to Address Technical Challenges in Farming and to Boost Agriculture Promotion and Support Smaller and New Fairs

Legislation (A.1528-A/S.1723-A) To Bring Together Students to Develop Innovative Agricultural Technologies as Part of the New York State Fair

Legislation (A.2935/S.5526) to Support Smaller and Newer Fairs Across the State and Promote Youth Involvement in Agriculture and Domestic Arts

Governor Kathy Hochul at the Great New York State Fair today signed an Executive Order directing State agencies to increase the percentage of food sourced from New York farmers and producers to 30 percent of their total purchases within five years. The Governor also signed legislation to bring together students at the New York State Fair to develop innovative agricultural technologies as well as legislation to support smaller and newer fairs across the state while promoting youth involvement in agriculture and domestic arts.

“Agriculture is the backbone of our state, and our state’s fairs are the perfect way of showcasing that – that's why we’re taking major steps to support both our farmers and our fairs,” Governor Hochul said. “By increasing the amount of food State agencies must buy from local growers and producers, we are further investing in farm production and food processing in New York. We will continue taking bold action to support our next generation of farmers and the future of our agricultural industry for decades to come.”

New York State agencies currently report spending nearly $4 million on New York food; this new effort would aim to procure and purchase nearly $400 million worth of food from New York farmers. The Executive Order directs the Office of General Services (OGS) to ensure its centralized food contracts highlight sourcing from New York producers. It requires agencies to report food purchases, including those purchased through contracted service providers, to OGS to ensure the 30 percent goal is being met. The 30 percent goal can be reached incrementally, with agencies purchasing 5 percent of their food products from New York by the end of this year; 15 percent by the end of 2024; 20 percent by the end of 2025; 25 percent by the end of 2026; and 30 percent by the end of 2027.

The Executive Order also directs the Department of Agriculture and Markets and OGS to convene a working group, which will include representatives from the Department of Corrections and Community Supervision, the Office of Addiction Services and Supports, the Office of Mental Health, and the Office for People with Developmental Disabilities, Department of Health, Office of the Aging, along with other state agencies that purchase food. The group will work to identify opportunities to increase the purchase of New York State food products, recommend guidance to assist state agencies in increasing the amount of New York State food product they purchase, and recommend data collection and reporting requirements to achieve the Executive Order’s goals.

The Executive Order also encourages county and municipal governments, as well as local school districts not already participating in the State’s 30 percent school initiative, to join in meeting this target.

In addition, Governor Hochul signed legislation (A.1528-A/S.1723-A), which starting next year, will bring together young people with interests in agriculture, science, and technology at the New York State Fair to develop innovative solutions to problems facing agriculture and food production. Technological advancements in farming have already drastically changed the agricultural industry and will likely continue to do so, and this will help spur interest and curiosity from young innovators and inventors into the challenges of the agricultural industry.

The Executive Order is a part of the Governor’s commitment made in her 2023 State of the State Address and New York State Budget to increase the resilience and capacity of New York’s food system and to strengthen local economies by creating additional demand for New York-grown agricultural products. It also builds on New York State’s efforts to support New York farmers and producers and connect them to new markets through programs like Farm-to-School, the 30 percent New York State initiative, Nourish New York, and New York State Grown & Certified. In addition, the Governor's recent actions to support Farm-to-School initiatives included in the FY 2024 State Budget significantly raised the discretionary threshold for schools to purchase local food and food products from $20,000 to $150,000.

Complementary to these initiatives, Cornell University’s Charles H. Dyson School of Applied Economics and Management is currently researching variables that impact the true cost of food with the goal of increasing the competitiveness of local food procurement. The working group will review this research and incorporate it into its analysis and discussions around procurement options moving forward.