MAYOR ADAMS, NYCEDC, COUNCILMEMBER HANKS DOUBLE DOWN ON SUPPORT FOR STATEN ISLAND’S NORTH SHORE WITH NEW ACTION PLAN

 

“Staten Island North Shore Action Plan” Outlines Vision for Approximately $400 Million Investment in Vibrant, Mixed-Use Waterfront Community, Estimated to Generate Nearly $4 Billion in Economic Impact

 

Goals Include Expanding Waterfront Access, Accelerating Housing Creation, Reimagining and Redeveloping Key Sites, and Prioritizing Local Hiring and Career Pathways

 

Delivers on Major Commitment from Mayor Adams’ “Working People’s Agenda”

New York City Mayor Eric Adams, New York City Economic Development Corporation (NYCEDC) President and CEO Andrew Kimball, and New York City Councilmember Kamillah Hanks today recommitted to prioritizing the future of Staten Island’s North Shore by unveiling the “Staten Island North Shore Action Plan: Building a Vibrant, Mixed-Use Waterfront Community.” The four-year roadmap delivers on calls from the local community for a clear and unified vision for the North Shore and emerges from months of collaboration between the NYCEDC, Councilmember Hanks, and numerous city agencies and community partners.

 

Building on a generational city investment of approximately $400 million, the plan details strategic investments to the North Shore of Staten Island that will unlock 20 acres of public open space, create over 7,500 family-sustaining jobs, generate an estimated economic impact of $3.8 billion, and accelerate the completion of over 2,400 units of housing. The plan delivers on a major component of Mayor Adams’ “Working People’s Agenda,” released in January 2023, which launched community engagement on a North Shore community engagement process with the goals of building new housing, expanding waterfront access and flood resiliency, creating job opportunities, and fostering mixed-use development.

 

“For too long, our economic development plans have focused on Manhattan and slices of Brooklyn and Queens — but New York is a five-borough city,” said Mayor Adams. “Our plan for the North Shore executes on a once-in-a-generation investment of more than $400 million to bring homes, a school, jobs, open space, waterfront access, and flood resiliency to Staten Island — but, more importantly, it offers more breaks to hard-working New Yorkers who have historically faced long commutes and fewer economic opportunities. We’re grateful to Councilmember Hanks for her invaluable leadership in helping us shape this plan and invest in a neighborhood where New Yorkers can truly live and thrive.”

 

“Our administration’s top priority has always been an equitable and comprehensive economic recovery that sets up New Yorkers in all five boroughs for the future. This action plan delivers on that promise and puts forward a comprehensive revitalization for Staten Island’s North Shore that will deliver affordable housing, create good-paying jobs, and build a world-class waterfront,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “I want to thank Councilmember Kamillah Hanks and EDC President Andrew Kimball for their determined efforts and renewed commitment to the Staten Island community.”

 

“The North Shore of Staten Island is home to endless possibilities, and now, thanks to the leadership of Mayor Adams and collaboration with Councilmember Hanks, we have a clear roadmap to deliver results for Staten Islanders once and for all,” said NYCEDC President and CEO Kimball. “This action plan prioritizes reclaiming the waterfront for public access, making strategic investments throughout the community, and prioritizing career pathways and good-paying jobs for residents. We look forward to working alongside our partners in the public and private sector to bring this plan to life and bolster a community that has long been promised a vibrant, mixed-used neighborhood.”

 

Conceptual rendering of the future St. George Esplanade. Credit: FXCollaborative

Conceptual rendering of the future Pier 1. Credit: FXCollaborative

Additional core components of the Staten Island North Shore Action Plan include:

 

Redeveloping and Reopening Pier 1: Originally built for marine transportation and partially closed since 2017, NYCEDC plans to reactivate Pier 1 for public waterfront access and is currently working with local elected officials to secure additional funding to complete the project.

 

A New Request for Proposals for the Bank Street Site: At the site of the former New York Wheel project, NYCEDC plans to release a new request for proposals later this year to solicit plans to activate the terminal building with year-round programming and events, along with new waterfront open space.

 

A Request for Proposals for the New Stapleton Waterfront Site:the first six-acre phase of open space opened in 2016, advance the ongoing transformation of a 35-acre former U.S. Navy base into a campus with public open space, more than 2,000 mixed-income homes, new community facilities, and a 600-seat public school. NYCEDC will issue a new development request for proposals for the site’s southern phase in fall 2023 and plans to conclude its open space development in 2027.

 

Restoring Public Access at the St. George Esplanade: Alongside the Bank Street site, NYCEDC plans to restore public waterfront access to this three-acre stretch that has been closed to the public in recent years and which faced severe weather damage.

 

Lighthouse Point and Staten Island Urby: NYCEDC will work to accelerate completion of these two existing housing projects.

 

Construction will resume in the fall of 2023 on this $400 million public investment, focusing on executing the long-promised, two-mile waterfront esplanade, stretching from Stapleton to Tompkinsville to St. George — creating 20 acres of continuous waterfront access. The plan will also fully unlock the potential of the 2019 Bay Street rezoning, the 2008 St. George rezoning, and the 2006 Stapleton Waterfront rezoning.

 

These public investments, including 20 acres of waterfront open space, 2,400 homes on city-owned land, and 600 new New York City Department of Education K-8 school seats are anticipated to leverage significant additional privately developed homes and commercial space. Building on NYCEDC’s work with local schools and community groups in the offshore wind industry, NYCEDC and its partners will connect development in the action plan with local job placement and career pathway opportunities on Staten Island’s North Shore.

 

The action plan pledges ongoing work with Mayor Adams, Councilmember Hanks, and existing private sector partners to ensure past commitments are delivered on, while also highlighting the unique development opportunities on Staten Island’s North Shore to new private sector partners. At Empire Outlets, for example, NYCEDC will support efforts to create a more dynamic retail experience. NYCEDC will also support capital upgrades and a new brewpub and dining experience at the Staten Island University Hospital Community Park.

 

In addition to detailing public investment on the North Shore, the action plan includes initiatives to leverage public investment to support private development, continue supporting arts and culture on the North Shore, and facilitate partnerships between NYCEDC and private stakeholders to prioritize economic mobility and job opportunities for the local community.

 

“The North Shore of Staten Island is one of New York City’s diverse, up-and-coming waterfront neighborhoods and it deserves strong investments in its future. Thanks to this action plan, and the Department of City Planning’s upcoming collaborative planning work for Richmond Terrace, we’re ready to create new homes, jobs, amenities, and waterfront access to help these communities thrive,” said New York City Department of City Planning Director Dan Garodnick.

 

“Improving waterfront access across the city can provide exciting opportunities to create important recreational and transportation corridors for cyclists and micromobility users,” said New York City Department of Transportation Commissioner Ydanis Rodriguez. “We look forward to working with the EDC, our sister agencies, and Staten Islanders to build better connections to the North Shore waterfront.”

 

“We’re thrilled that this action plan will create 20 acres of continuous waterfront access — connecting Staten Islanders with open spaces to enjoy spectacular views, get fresh air and exercise, and enjoy opportunities for recreation. It will also bolster flood resiliency for our public spaces as the city deals with the effects of climate change and severe weather,” said New York City Department of Parks & Recreation Commissioner Sue Donoghue. “We’re grateful to Mayor Adams, NYCEDC, and Councilmember Hanks for their commitment to revitalizing the esplanade and making the North Shore a more vibrant place for New Yorkers and visitors alike.”

 

“The new roadmap laid out by Mayor Adams and President Kimball is a major milestone in our mission to unleash the potential of Staten Island’s North Shore,” said New York City Department of Small Business Services Commissioner Kevin D. Kim. “These plans will guide the development of a world-class waterfront district that everyone can enjoy, while also bringing in new, good paying jobs for Staten Islanders. Not only will new businesses and residents flock to the North Shore, but the small businesses that already call the neighborhood home will thrive, grow, and expand.”

 

“We believe the North Shore waterfront is an untapped jewel. That jewel should be shined for the whole world to see and for all Staten Islanders to enjoy,” said Staten Island Borough President Vito Fossella. “We must commit ourselves to use this time to enhance and to improve the waterfront once and for all. We are thankful that Mayor Adams and NYEDC delivered on their promise to invest in Staten Island and revitalize an area that has long been ignored. We are excited for the prospect that someday soon, the waterfront will be fully accessible for the community to enjoy and utilized fully for recreation, housing, and community engagement. Additionally, we are excited to see this project be utilized to provide good-paying jobs and economic opportunity for Staten Islanders.”

 

“New York City is making history and fulfilling Staten Island’s destiny thanks to Mayor Eric Adams, Borough President Vito Fossella, Councilmember Kamillah Hanks, and NYCEDC’s Andrew Kimball,” said Peter Lisi, president, Van Duzer Civic Association. “Collaboratively, they have managed to catch a dropped ball and slam dunk it for the whole community. Their efforts will finally bring a long overdue workable and walkable waterfront to life, creating a beautiful destination for generations to enjoy. Pier 1 will be brought back to its original glory, unlocking the full potential of Staten Island’s North Shore waterfront.”

 

“For years, the St. George waterfront has been closed to the community and allowed to deteriorate after it was taken hostage for an unpopular and unsuccessful wheel project. On behalf of the St. George Civic Association, I am very pleased to learn that there are plans to intelligently reopen our waterfront and cohesively link it to developments in our neighboring communities of Tompkinsville and Stapleton,” said Eileen Harrington, president, St. George Civic Association. “I look forward to working with Mayor Adams and his administration to develop the plans for much-needed community access and recreation.”

161st Street Business Improvement District Awarded Multi-Year Grant Opportunity Through City

 

Funds are Part of $4.8 million the City is Awarding Including the First-Ever Commercial District Lighting Grant

The NYC Department of Small Business Services (SBS) announced yesterday it will award a total of $4.8 million in Avenue NYC and Neighborhood 360° grants, Strategic Development Grants, and the first-ever Commercial District Lighting Grants to 44 community-based development organizations (CBDOs) working in low-to-moderate income neighborhoods.  

“The 161st Street Business Improvement District is ecstatic to be part of the 2023 Avenue NYC cohort,” said 161st Street Business Improvement District Executive Director Trey Jenkins. “Having a Program Manager dedicated to surveying our small businesses and the community not only in our district but throughout the South Bronx will do wonders for our area and will allow our BID to continue serving our stakeholders at a high level.”

"Our Administration is committed to implementing new, innovative ways to revitalize our neighborhoods, and the investments we are making through Avenue NYC, Neighborhood 360°, and now the Commercial District Lighting Grants will help strengthen commercial corridors citywide, including in areas that have historically not seen City investment," said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. "Partnership is the way we get things done, and I want to thank our community partners for their steadfast work in promoting thriving neighborhoods and equitable development."

"I am pleased to announce the recipients of our next round of grants for our Avenue NYC and Neighborhood 360° programs, Strategic Development Grants, and the brand-new Commercial District Lighting Grants," said SBS Commissioner Kevin D. Kim. "These grants aren’t just numbers with a dollar sign next to them—they are investments in people and in communities. They are critical to making New York the City of Yes, and to making our commercial corridors not just spaces for small businesses to be in, but spaces for them to thrive in."

The Avenue NYC grant program includes:

•   Helping the 161st Street Business Improvement District, develop, design, and deliver commercial revitalization programs and services as part of the BID's three-year Avenue NYC Commercial Revitalization grant funded by the New York City Department of Small Businesses Services (SBS).

•   Strengthening community-based development organizations (CBDOs) to carry out commercial revitalization programs in low- and moderate-income (LMI) communities.

•   Leading a commercial district needs assessment process in the relevant commercial corridor(s) and spearheading a process to analyze the data collected through the needs assessment and engage community stakeholders.

•   Following the completion of the needs assessment, the the grantee will work in partnership with the BID's leadership to develop and implement various commercial revitalization projects that will address the needs identified by the assessment.

About the 161st Street Business Improvement District:

Founded as the Capitol District Management Association in 2009, the 161st Street Business Improvement District (BID) was created to provide a vibrant commercial district and improve the quality of life for those who live, work, visit and shop on 161st Street in the Bronx. The 161st Street BID aims to keep the streets clean, promote commerce and enrich the area through special events and cultural projects. The BID is in the heart of the Bronx Capitol District, located on and around 161st street in the shadows of Yankee Stadium. In addition to Yankee Stadium, the district contains many municipal buildings, recreation sites, community organizations, unique shops, restaurants and services. To learn more about the 161st Street BID and stay up-to-date on all happenings in the area, make sure visit 161bid.org and follow the BID on Instagram, Facebook, and Twitter. 

About Avenue NYC 

SBS’ Avenue NYC program is a competitive grant program that funds and builds the capacity of CBDOs, including business improvement districts (BIDs), local development corporations, merchants associations and other locally serving nonprofits operating in low- to moderate-income neighborhoods, to execute commercial revitalization projects. Avenue NYC is funded through the U.S. Department of Housing and Urban Development’s Community Development Block Grant (CDBG) Program. More information on Avenue NYC can be found at nyc.gov/avenuenyc. 

About Neighborhood 360° 

SBS’ Neighborhood 360° program identifies, develops, and launches commercial revitalization projects in partnership with local stakeholders. Through proactive planning and targeted investments, Neighborhood 360° supports projects that strengthen and revitalize the streets, small businesses, and community-based organizations that anchor New York City neighborhoods. For more information on Neighborhood 360°, please visit nyc.gov/neighborhood360.

 

About the NYC Department of Small Business Services (SBS)   

SBS helps unlock economic potential and create economic security for all New Yorkers by connecting New Yorkers to good jobs, creating stronger businesses, and building vibrant neighborhoods across the five boroughs. For more information on all SBS services, go to nyc.gov/sbs, call 311, and follow us on Facebook, Twitter, and Instagram.

Fischer Senior Apartments Breaks Ground At 97 West 169th Street In Highbridge, The Bronx

 

Construction has kicked off on Fischer Senior Apartments, a senior housing property at 97 West 169th Street in Highbridge, The Bronx. Designed by Shakespeare Gordon Vlado Architects and developed by West Side Federation for Senior and Supportive Housing (WSFSSH), the structure will yield 105 homes for seniors, including 54 units for the formerly homeless. All of the units will be reserved for households 55 years and older making less than 50 percent of the area median income.

To improve affordability, all of the units will be designated as project-based Section 8 from NYCHA, guaranteeing that no tenant pays more than 30 percent of their income to rent.

In addition, WSFSSH will pilot a new housing model to help seniors age in place. This includes two dedicated floors for enhanced care, where studio apartments will share a common lounge and terrace, with on-site caregivers offering supervision, reminders, assistance, activities, and meal preparation. Building staff will also help residents obtain and maintain medical and mental healthcare and counseling, manage their finances, and pay rent.

Residents will also have access to shared laundry facilities, two elevators, and indoor common areas.

“We are currently experiencing a housing crisis with many Bronxites struggling to pay rent and afford basic necessities,” said Bronx Borough President Vanessa L. Gibson. “The Fischer Senior Apartments will ensure that our seniors, formerly unhoused residents, and other vulnerable New Yorkers receive the affordable, quality, and safe housing needed to age in place and with dignity in our communities.”

As described by the design team, the building will have a contextual brick façade that builds on the historic Art Deco designs in the neighborhood, a setback level with a landscaped terrace, maximized light and air to units and corridors, and a landscaped rear yard. At the ground floor, the building entry is flanked by large windows that engage the sidewalk and enhance the pedestrian experience.

Sustainable components include solar shading, energy-efficient windows and lighting, and rooftop solar panels. The building is also expected to achieve the 2020 Enterprise Green Communities standards.

Total construction costs hover around $69 million. The project received funding from Capital One, the New York City Department of Housing Preservation and Development‘s Senior Affordable Rental Apartments (SARA) program, and a nine percent Low-Income Housing Tax Credit equity syndicated by the National Equity Fund. Additional funding sources include Reso A discretionary funds from New York City Council Member Althea Stevens and Bronx Borough President Gibson, the New York State Homeless Housing and Assistance Program, and a Deferred Developer Fee.

Permits Filed For 233 East 202nd Street In Jerome Park, The Bronx

Permits have been filed for an eight-story residential building at 233 East 202nd Street in Jerome Park, The Bronx. Located between Grand Concourse and Valentine Avenue, the interior lot is one block from the Bedford Park Boulevard subway station, serviced by the B and D trains. Franc Gjini under the 2625 Grand Avenue Corp. is listed as the owner behind the applications.

The proposed 74-foot-tall development will yield 25,846 square feet designated for residential space. The building will have 44 residences, most likely rentals based on the average unit scope of 585 square feet. The steel-based structure will also have a cellar and a 30-foot-long rear yard.

Fred Geremia Architects & Planners is listed as the architect of record.

Demolition permits were filed last month for the two-story residential building on the site. An estimated completion date has not been announced.

Miami-Based Businessman Pleads Guilty to Conspiracy to Violate Russia-Ukraine Sanctions and to Commit International Money Laundering

 

Sergey Karpushkin Agrees to Forfeit Over $4.7 Million in Criminal Proceeds

Sergey Karpushkin, 46, of Miami, a resident of the United States and a citizen of Belarus, pleaded guilty to engaging in a scheme to violate U.S. sanctions and commit money laundering by conducting transactions for the purchase and acquisition of metal products valued at over $139 million from companies owned by Sergey Kurchenko, a sanctioned oligarch.

According to court documents, Kurchenko was sanctioned by the U.S. Department of the Treasury Office of Foreign Assets Control (OFAC) in 2015 for his role in misappropriating Ukrainian state assets or economically significant entities.

According to the allegations in the information and other public filings: between in or about July 2017 and in or about August 2020, Karpushkin conspired with others to purchase and receive over $139 million in metal products from two companies that Karpushkin knew were owned and controlled by Kurchenko. Karpushkin and his business associates, acting through the Florida-based company Metalhouse LLC, entered into contracts and purchase orders for pig iron, steel billets, and wire rods from these companies, received tens of thousands of tons of metal products from the companies, and agreed to share profits from these unlawful transactions. Karpushkin and his business associates intentionally concealed from U.S. banks and government officials the ultimate source and origin of the goods they sought to acquire, knowing that they did not have the necessary authorization or license from OFAC to transact with Kurchenko and companies owned and controlled by Kurchenko.

Karpushkin pleaded guilty before U.S. Magistrate Judge Embry J. Kidd in Orlando, Florida, to one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA) and to commit international promotional money laundering, which carries a maximum penalty of five years in prison. Karpushkin also agreed to forfeit $4,723,625 in proceeds that he obtained as a result of the conspiracy. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

An indictment charging alleged co-conspirator and Metalhouse president John Can Unsalan, aka Hurrem Can Unsalan, with one count of conspiring to violate and evade U.S. sanctions, in violation of IEEPA, 10 counts of violating IEEPA, one count of conspiring to commit international money laundering, and 10 counts of international money laundering was unsealed on April 17, and Unsalan has been detained pending further court proceedings.

The FBI Tampa Field Office and the International Corruption Unit  of the FBI Washington Field Office are investigating the case, with valuable assistance provided by U.S. Customs and Border Protection and the FBI Miami Field Office.

The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.

U.S. Attorney Announces Charges Against Five Individuals For Over $20 Million Health Care Fraud, Money Laundering, And Kickbacks Scheme

 

 Damian Williams, the United States Attorney for the Southern District of New York, and Naomi Gruchacz, the Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced the unsealing of a Superseding Indictment charging acupuncturists JUNYI LIU, a/k/a “Jenny,” and HONGXING WANG, as well as physical therapists JONATHAN LAQUI and MITZY BALDOVINO and insurance company employee VICTOR MAN, a/k/a “Mr. Wen,” with operating an over $20 million health care fraud scheme at medical offices in Manhattan, Brooklyn, and Queens (the “Offices”).  As part of the fraud scheme, MAN referred patients to the Offices in exchange for kickbacks and also assisted in paying kickbacks to the patients (the “Paid Patients”), who were insured by Medicare and/or other insurance providers (collectively, the “Insurance Providers”).  The defendants and their co-conspirators then billed the Insurance Providers for physical therapy and acupuncture services that were unnecessary or never performed.  LIU was additionally charged with unlawfully enriching herself and a family member through a COVID-19 unemployment benefit scheme.

LIU and WANG were previously indicted and arrested on these charges in September 2021.  LAQUI, BALDOVINO, and MAN were arrested earlier today and presented and arraigned this afternoon before U.S. Magistrate Judge Sarah L. Cave.  The case is assigned to U.S. District Judge Laura Taylor Swain.

U.S. Attorney Damian Williams said: “The defendants allegedly perpetrated a lucrative scheme in which they fraudulently billed for physical therapy and acupuncture services that were never rendered.  Thanks to our law enforcement partners and the dedicated work of the prosecutors of this Office, the defendants are now facing an array of serious charges in federal court.”

HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Health care providers who submit fraudulent claims to federally funded insurance plans and bribe patients to participate in kickback schemes put health care benefits for older people and vulnerable populations at risk.  HHS-OIG will continue to hold accountable individuals who exploit federal health care programs for their own greed.”

As alleged in the Indictment unsealed today in Manhattan federal court:[1]

Between 2018 and 2021, JUNYI LIU, a licensed acupuncturist, operated the Offices from which LIU and her partners fraudulently billed the Insurance Providers for physical therapy and acupuncture services that were not rendered in the manner represented or not rendered at all.  LIU partnered with other licensed medical professionals, including JONATHAN LAQUI and MITZY BALDOVINO, both of whom were licensed physical therapists, and HONGXING WANG, who was a licensed acupuncturist (collectively, the “Partners”).  The Partners’ roles in the scheme typically included: (i) allowing the Offices to use their enrollments with the Insurance Providers to submit to the Insurance Providers materially false and fraudulent claims for reimbursement for physical therapy and acupuncture services; (ii) creating materially false medical documentation, which stated that certain physical therapy and acupuncture services had been rendered, when such services in fact were not rendered in the manner represented or were not rendered at all; and (iii) contributing financing for the Offices, including for the payment of cash kickbacks to the Paid Patients to induce those patients to provide their insurance information and receive medically unnecessary and/or non-existent services at the Offices. 

In furtherance of the scheme, LIU paid cash kickbacks to MAN and others in exchange for recruiting and referring the Paid Patients, all beneficiaries of the Insurance Providers, to the Offices.  The beneficiaries also received cash kickbacks, paid by MAN and others, in exchange for their insurance information and their signatures on sign-in sheets and other documents.  In some instances, these Paid Patients visited the Offices, signed in, and received unnecessary physical therapy and acupuncture services.  In other instances, the Paid Patients visited the Offices, signed a sign-in sheet and other documents, and then left without receiving any services at all.  In yet other instances, the Paid Patients did not visit the Offices at all and instead signed sign-in sheets and other documents brought to them elsewhere by MAN and others.  Regardless of whether the Paid Patients received any services or even visited the Offices at all, LIU and her co-conspirators used the Paid Patients’ insurance information to fraudulently bill the Insurance Providers for unnecessary and/or never rendered services.  

While LIU and her co-conspirators were defrauding the Insurance Providers of millions of dollars, from April 2020 through September 2021, LIU also engaged in a scheme to obtain COVID-19 unemployment benefits for herself and a family member (the “Family Member”) by fraudulently submitting and causing to be submitted to the New York Department of Labor materially false online applications and certifications for COVID-19 benefits.  Among other things, the applications and/or certifications represented that LIU was unemployed when, in fact, she continued to operate the Offices for all or nearly all of this period, and the applications and/or certifications represented that the Family Member was unable to work because of COVID-19 during a five-month period when the Family Member was in China. 

JUNYI LIU, 69, of Great Neck, New York, JONATHAN LAQUI, 46, of Rahway, New Jersey, MITZY BALDOVINO, 46, of the Bronx, New York, HONGXING WANG, 63, of Brooklyn, New York, and VICTOR MAN, 60, of Queens, New York, are all charged with conspiring to commit health care fraud, which carries a maximum sentence of 20 years in prison, and conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison.  LIU, LAQUI, WANG, and MAN are also charged with conspiring to violate the Anti-Kickback Statute, which has a maximum penalty of five years in prison.  LIU is additionally charged with wire fraud, which has a maximum penalty of 20 years in prison, and theft of Government funds, which has a maximum penalty of 10 years in prison.  MAN is further charged with violating the Anti-Kickback Statute, which has a maximum penalty of 10 years in prison.   

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

Mr. Williams praised the outstanding investigative work of HHS-OIG’s New York Office and the New York Field Office of the Internal Revenue Service, Criminal Investigation.  Mr. Williams also thanked the New York State Attorney General’s Medicaid Fraud Control Unit and the U.S. Department of Labor, Office of Inspector General for their assistance.

The charges contained in the Superseding 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 constitutes only allegations, and every fact described herein should be treated as an allegation.

NYC Pension Funds Sue Fox Corporation Board for Breach of Fiduciary Duty in Connection with Defamatory Broadcasts

 

The five New York City pension funds filed a shareholder derivative lawsuit today against the board of directors and certain officers of Fox Corporation, the parent company of Fox News Network, for breach of fiduciary duty. The funds are long-term shareholders of Fox Corporation, with approximately 572,946 shares of Fox Class A stock and 285,338 shares of Fox Class B stock worth, valued at $27.7 million as of August 31, 2023.

“Fox’s board of directors has blatantly disregarded the need for journalistic standards and failed to put safeguards in place despite having a business model that invites defamation litigation,” said New York City Comptroller Brad Lander. “A lack of journalistic standards and a proper strategy to mitigate defamation has clearly harmed Fox’s reputation and threatens their bottom line and long-term profitability. Clear governance systems are absolutely necessary for the long-term health of a company. As Fox’s board continues to ignore these red flags, we are holding them accountable as long-term shareholders.”

The complaint alleges that the Board knew that Fox News’s promotion of political narratives without regard for whether the underlying factual assertions were true created defamation risk, starting with false claims that murdered Democratic National Committee staffer Seth Rich provided hacked emails to WikiLeaks and continuing through false claims that election technology companies U.S. Dominion, Inc. and Smartmatic USA Corp. rigged the 2020 presidential election.

The complaint further alleges that Fox had a business model of broadcasting stories that appealed to their viewers, regardless of the truth or factual basis for those claims, meaning that Fox’s Board needed to be particularly attuned to the risk of defamation litigation. Instead, the complaint alleges that defendants consciously disregarded that risk.

In the suit, the funds highlight Fox’s illegal business model of pursuing profits by committing actionable defamation and allege that the company undertook no good-faith efforts to monitor for or mitigate defamation risk. The funds also allege that the Defendants took no meaningful steps to protect the Company and are liable for the harm to Fox that has resulted from their breaches of fiduciary duty, including Fox’s $787.5 million settlement with Dominion. The Board’s failures have also brought increased scrutiny on Fox’s adequacy to hold an FCC broadcast license.

The lawsuit seeks to recover from Fox’s officers and directors damages that their misconduct has caused to the company, including amounts paid in settlement and legal fees arising out of lawsuits brought by Dominion and Smartmatic.

The New York City Funds are partnering in this lawsuit with the State of Oregon by and through the Oregon State Treasurer and the Oregon Department of Justice, on behalf of the Oregon Investment Council and the Oregon Public Employee Retirement Fund. They are represented by the New York City Law Department as well as counsel at Cohen Milstein Sellers & Toll PLLC, Friedlander & Gorris, and Lieff Cabraser Heimann & Bernstein.

In addition to Comptroller Lander, the trustees of the five New York City pension funds are as follows:

New York City Employees’ Retirement System (NYCERS): Mayor Eric Adams’ Appointee Bryan Berge, Director, Mayor’s Office of Pension and Investments; New York City Public Advocate Jumaane Williams; Borough Presidents: Mark Levine (Manhattan), Donovan Richards Jr. (Queens), Vito Fossella (Staten Island), and Vanessa L. Gibson (Bronx); Henry Garrido, Executive Director, District Council 37, AFSCME; Richard Davis, President Transport Workers Union Local 100; and Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.

Teachers’ Retirement System (TRS): Mayor Eric Adams’ Appointee Bryan Berge, Director, Mayor’s Office of Pension and Investments; Chancellor’s Representative, Greg Faulkner, New York City Department of Education Panel for Educational Policy; and Thomas Brown (Chair), Victoria Lee, and David Kazansky, all of the United Federation of Teachers.

New York City Fire Pension Fund (Fire): Mayor Eric Adams’ Representative Bryan Berge, Director, Mayor’s Office of Pension and Investments;  New York City Fire Commissioner Laura Kavanagh (Chair); New York City Finance Commissioner Preston Niblack; Andrew Ansbro, President, Robert Eustace, Vice President, Chris Viola, Treasurer, and Eric Bischoff, Staten Island Representative and Chair, Uniformed Firefighters Association of Greater New York; Sean Michael, Chiefs’ Rep., Joe Camastro, Lieutenants’ Rep. and Liam Guilfoyle, (Chair), Uniformed Fire Officers Association; and Peter Devita, Marine Engineers Association.

New York City Police Pension Fund (Police): Mayor Eric Adams’ Representative Bryan Berge, Director, Mayor’s Office of Pension and Investments; New York City Finance Commissioner Preston Niblack; New York City Police Commissioner Edward Caban (Chair); Chris Monahan, Captains Endowment Association; Louis Turco, Lieutenants Benevolent Association; Vincent Vallelong, Sergeants Benevolent Association; Paul DiGiacomo, Detectives Endowment Association; and Patrick Hendry, Daniel Terrelli, Albert Alcierno and Arthur Egner all of the NYC Police Benevolent Association.

Board of Education Retirement System (BERS): Schools Chancellor David C. Banks, Represented by Karine Apollon; Mayoral appointees Lilly Chan, Marjorie Dienstag, Gregory Faulkner, Anita Garcia, Anthony Giordano, Dr. Angela Green, Alan Ong, Phoebe Sade-Arnold, Maisha Sapp, Venus Sze-Tsang, Gladys Ward; CEC appointees Naveed Hasan, Jessamyn Lee, Thomas Sheppard, and Ephraim Zakry; Borough President Appointees Geneal Chacon (Bronx); Tazin Azad (Brooklyn); Kaliris Salas-Ramirez (Manhattan); Sheree Gibson (Queens); Aaron Bogad (Staten Island); and employee members John Maderich of the IUOE Local 891 and Donald Nesbit of District Council 37, Local 372.

Governor Hochul Signs Legislation to Crack Down on Telemarketers

 

Legislation (A4456/S4617) Nearly Doubles the Maximum Fine for Telemarketers Who Violate the Do Not Call Registry

Increased Penalty Will Help Safeguard New Yorkers from Continuous, Unwanted Calls

 Governor Kathy Hochul signed legislation (A4456/S4617) to crack down on telemarketers and safeguard New Yorkers from continuous, unwanted calls. This legislation will help curb calls by nearly doubling the fine for telemarketers violating the Do Not Call Registry.

“Every day, hard-working New Yorkers are forced to field call after call from relentless telemarketers,” Governor Hochul said. “we’re raising the penalty for violators of the Do Not Call Registry to deter telemarketers, protect New Yorkers, and send a clear message that New York won’t tolerate these frustrating, unsolicited calls.”

Legislation (A4456/S4617) amends the general business law to raise the maximum fine for violators of the Do Not Call Registry from the current $11,000 penalty set in 2004 to $20,000. By raising the fine, this legislation will deter telemarketers and safeguard New Yorkers from incessant calls. This builds on legislation Governor Hochul signed into law in December 2022 to require telemarketers to give customers the option to be added to the company's do-not-call list at the outset of certain telemarketing calls.