Former Police Chief And Doctor Plead Guilty To Insider Trading Around Alexion Pharmaceuticals’ Acquisition Of Portola Pharmaceuticals

 

Damian Williams, the United States Attorney for the Southern District of New York, announced that SHAWN CRONIN and PAUL FELDMAN each pled guilty before U.S. Magistrate Judge Sarah Netburn to one count of securities fraud in connection with their participation in an insider trading scheme surrounding the announcement of Alexion Pharmaceutical, Inc.’s acquisition of Portola Pharmaceuticals, Inc.  CRONIN and FELDMAN were arrested in June 2023. 

U.S. Attorney Damian Williams said: “As a law enforcement leader, Cronin was sworn to uphold the law and was trusted to set an example for junior officers.  And as a medical doctor, Feldman held a position of trust and respect in our society.  Rather than live up to their posts, these men broke the rules to try to make a quick buck.  Their convictions reflect my Office’s ongoing commitment to relentlessly rooting out corruption in our financial markets.” 

According to the allegations in the Indictment and statements made in public court proceedings:

In 2020, CRONIN, FELDMAN, and others engaged in an insider trading scheme surrounding the announcement of Alexion’s acquisition of Portola.  In April 2020, before that acquisition was publicly announced, CRONIN’s childhood friend, a then-vice president at Alexion, misappropriated material, non-public information (“MNPI”) about the acquisition and provided it to CRONIN so that CRONIN could profitably trade in securities.

In turn, CRONIN, who, at the time, was a police sergeant in Dighton, Massachusetts, and went on to become the police chief, provided another friend with the MNPI about Portola’s pending acquisition, both so that that friend could trade in advance of the acquisition and so that that friend would assist CRONIN in formulating trading strategies to maximize CRONIN’s trading profits.

The friend CRONIN tipped was a physician who went on to tip his friend and colleague, FELDMAN.  FELDMAN, for his part, aggressively bought Portola call options and also tipped at least five additional individuals who traded on the tip.

After Alexion’s acquisition of Portola was publicly announced on the morning of May 5, 2020, causing Portola’s stock price to increase significantly, CRONIN, FELDMAN, and others who had purchased shares and options based on the inside information sold their securities, reaping millions of dollars of illegally obtained profits.

CRONIN, 44, of Dighton, Massachusetts, and FELDMAN, 49, of Poughquag, New York, each pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.

The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.  CRONIN and FELDMAN will be sentenced by U.S. District Judge Gregory H. Woods on May 13, 2024.

Mr. Williams praised the outstanding work of the Federal Bureau of Investigation.  Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.

Attorney General James Announces Indictment and Arraignment of NYPD Sergeant on Manslaughter Charge

Sgt. Erik Duran Threw a Cooler at Eric Duprey, Causing His Death

New York Attorney General Letitia James today announced the indictment and arraignment of New York City Police Department (NYPD) Sergeant Erik Duran, 36, of Putnam County, on charges of Manslaughter in the Second Degree, Assault in the First and Second Degrees, and Criminally Negligent Homicide. The indictment alleges that on August 23, 2023, Sgt. Duran, an undercover member of the NYPD Narcotics Borough Bronx (NBBX) Tactical Response Unit, forcefully threw a cooler at Eric Duprey as he was driving a motorized scooter, causing Mr. Duprey’s death. Sgt. Duran was suspended and later placed on modified duty following the incident.

Sgt. Duran was arraigned today before State Supreme Court Justice George Villegas. Justice Villegas set bail at $150,000 bond or partially secured bond, with $150,000 cash alternative. Sgt. Duran is due back in court on April 18, 2024. The maximum sentence on the top charge is 25 years in prison. 

At approximately 5 p.m. on August 23, members of the NBBX team arrived on Aqueduct Avenue between West 190th and 192nd Streets in the Bronx to conduct their fourth “buy-and-bust” operation, or undercover drug purchase, of the day. During the operation, NBBX team members encountered Mr. Duprey and attempted to arrest him, at which point he got on a motorized scooter to flee. As Mr. Duprey rode the scooter toward West 190th Street, Sgt. Duran grabbed a civilian’s cooler off of a nearby table and threw it at Mr. Duprey, striking him in the head and causing him to lose control of the scooter. Mr. Duprey then sideswiped a tree before he was thrown from the scooter and hit his head on the curb, landing under a parked vehicle. Mr. Duprey was pronounced dead at the scene. 

Pursuant to New York Executive Law Section 70-b, the Office of the Attorney General’s (OAG) Office of Special Investigation (OSI) assesses every incident reported to it where a police officer or a peace officer, including a corrections officer, may have caused the death of a person by an act or omission. Under the law, the officer may be on-duty or off-duty, and the decedent may be armed or unarmed. Also, the decedent may or may not be in custody or incarcerated. If OSI’s assessment indicates an officer may have caused the death, OSI proceeds to conduct a full investigation of the incident.

The charges against the defendant are accusations, and the defendant is presumed innocent unless and until proven guilty. 

 

Comptroller Lander’s Audit Finds Speed Cameras Reduce Speeding & Crashes, But Illegally Obscured License Plates Cheat NYC Out of $100 Million/Yr

 

New York City Comptroller Brad Lander released an audit of the NYC Department of Transportation’s speed camera program, which found that speed cameras effectively reduce speeding and crashes – but also that drivers are increasingly using illegally obscured, temporary, or ghost license plates to avoid fines, cheating the City out of more than $100 million each year and growing. 

“Speed cameras reduce speeding, prevent crashes, and save lives,” said Comptroller Brad Lander. “Unfortunately, a small but rapidly growing number of drivers are illegally obscuring their license plates in order to speed without getting caught. These scofflaws are putting their neighbors’ lives and safety at risk – and cheating the City out of $100 million a year.”    

The Department of Transportation (DOT) speed camera program, run through prime contractor Verra, issues $50 notices of liability (NOL), otherwise known as speeding tickets, when a driver is caught driving more than 10 miles an hour above the speed limit by a speed camera located within one-quarter mile of a school. The State Legislature program initially authorized as a pilot in 2013, limited in time and number. As of August 2022, the Legislature authorized the City to operate speed cameras in 750 school speed ones, 24 hours a day. 

The data reviewed by the Comptroller’s office show positive outcomes from the speed camera program. The average daily NOLs for each fixed speeding camera site decreased from 123 NOLs in Calendar Year 2014 to fewer than 10 in 2022, indicating that cameras may have helped to change behavior and reduce speeding. In addition, even though the overall number of crashes in New York City with casualty or injuries due to unsafe speed or aggressive driving trended upward from 2019 to 2023, only eight of the 45 sampled crashes occurred in locations near a speed camera, suggesting that cameras reduce crashes within their vicinity. Other studies of New York City and other cities found similar results. 

The audit found that DOT generally had adequate controls over the speed camera program and accurately issued NOLs for speeding violations. Auditors found that DOT placed cameras widely throughout city neighborhoods, using crash data to identify high-risk locations, as required by State law.  

Less positively, the audit uncovered a dramatically growing problems with speed camera violations that were not processed as a result of a missing/temporary plate, sometimes referred to as a “ghost plate”, or an obscured license plate. The camera system rejected an alarming 1,076,182 incidents (22%) of all captured incidents because of ghost plates (748,468; 15.3%) or covered plates (327,714; 6.7%) between January and June 2023. The use of ghost plates grew over 5000% since 2019. The potential lost revenue from the violations for the first six months was $54 million – suggesting that the City is losing over $100 million as a result of ghost plates. 

While recent laws strengthened penalties against drivers who obscured license plates, raising fines (from $65 to $250), allowing police to confiscate the plates, and prohibiting the sale of items that conceal, distort, or obscure license plates, the Comptroller argued that stronger enforcement is needed to effectively crack down on missing and fraudulent license plates. Lander urges the following steps:  

• The City, in partnership with MTA Bridges and Tunnels, should step up enforcement at tolled bridges and sites associated with high numbers of complaints about “ghost cars” to seize vehicles using fraudulent plates and recoup unpaid fines.  
• The City Council should pass Intro 978 to increase fines for using and selling fraudulent plates and introduce legislation allowing citizens to report vehicles using obscured or fraudulent plates in exchange for a portion of the fine paid.  
• The State Legislature should pass legislation allowing regulators to investigate and shut down car dealerships suspected of issuing fraudulent temporary plates and suspend the licenses of drivers who use them to evade fines and tolls.   

Lander acknowledged his own history of receiving speed camera violations over the years. “This is an issue that I have fallen short on myself, so I know firsthand how important it is to educate the public and get this system right, and for all of us to practice responsible driving.” A NYPD detail drives Lander when on duty as comptroller, but Lander drives his own car on personal business. 

The auditors made eight recommendations for how DOT can strengthen the programmatic and fiscal effectiveness of the speed camera program. DOT agreed with all of the audit’s recommendations.  

View the audit here. View the Comptroller’s Audit Recommendations Tracker here. 

Governor Hochul Announces $13.1 Million to Support Construction of the Adirondack Rail Trail

Environmental Bond Act Funding to Support Ongoing Construction of World-Class Recreational Trail in Heart of the Adirondacks

Restoration of Adjacent Historic Saranac Lake Depot to Bolster North Country Economy

Governor Kathy Hochul today announced $13.1 million to support the ongoing construction of the Adirondack Rail Trail, a 34-mile, multi-use recreational corridor for outdoor adventurers between Tupper Lake and Lake Placid, and the restoration of the Saranac Lake Depot. Funding from the 2022 Clean Water, Clean Air and Green Jobs Environmental Bond Act will aid the ongoing transformation of a former railbed into a world-class shared-use path and the former depot for use as a regional education, interpretation, and economic asset. When complete, the trail will be open all year, free of charge, for hikers, bikers, cross-country skiers, and snowmobile enthusiasts.

“The Adirondack Rail Trail is bolstering tourism and connecting New Yorkers to the outdoors to enjoy the unparalleled beauty of the Adirondack Park,” Governor Hochul said. “As construction continues, this new $13.1 million investment is instrumental in fulfilling the Environmental Bond Act’s commitment to improving recreational infrastructure, contributing to local economies, and enhancing public access to the outdoors for residents and visitors alike.”

In December 2023, Governor Hochul announced completion of the first of three construction phases that connected the Lake Placid to Saranac Lake corridor of the trail. Upon completion of all three phases of construction, the Adirondack Rail Trail will connect the communities of Lake Placid, Saranac Lake, and Tupper Lake. Interpretive signage will help visitors learn about the history of the railway, cultures of adjacent communities, and surrounding lands and waters. The trail is currently open for snowmobiling, cross-country skiing, and other outdoor winter recreation.

As part of the Rail Trail project, DEC is preserving the historic Saranac Lake Depot and the associated Freight Building, which are contributing features of the New York Central Railroad, Adirondack Division Historic District, and listed in the State and National Registers of Historic Places. It is an integral part of the Remsen-Lake Placid Travel Corridor and an integral part of the village of Saranac Lake that will serve as the key interface between the State-owned Rail Trail and the village. In October, DEC solicited ideas and plans for the depot’s use and public access through structure improvements, opportunities for historic interpretation, facilitation of a welcoming outdoor experience for the public, and activities or operations that complement the Adirondack Rail Trail. DEC is reviewing submissions before issuing a formal Request for Proposals.

Work to transform the trail started in October 2020 when the State Department of Transportation (DOT) worked to remove rail infrastructure from the Tupper Lake to Lake Placid segment of the corridor. In March 2022, DEC and DOT announced the transfer of jurisdiction to DEC, marking the formal completion of the rail removal phase and the start of the formal trail design and construction phase with the State Office of General Services. Up-to-date information on corridor conditions, phases of construction, guidance on interim recreation, and a public use map are available on DEC's Remsen-Lake Placid Travel Corridor webpage.

The Adirondack Rail Trail project is part of DEC's strategic investments through the Adventure NY Initiative to enhance public access to State lands and facilities and connect people with nature and the outdoors. The trail is designed to be accessible by people of all abilities to the maximum extent practicable. Most of the trail surface will consist of compacted crushed stone. The trail will be paved within the village of Saranac Lake and on small sections of trail over bridges.

The voter-approved $4.2-billion Clean Water, Clean Air and Green Jobs Environmental Bond Act is helping to support these and many other initiatives, including leveraging funding for water quality improvement and resilient infrastructure. The Bond Act is advancing historic levels of funding to update aging water infrastructure and protect water quality, strengthen communities' ability to withstand severe storms and flooding, reduce air pollution and lower climate-altering emissions, restore habitats, and preserve outdoor spaces and local farms. For more information about the Bond Act, go to www.ny.gov/BondAct.

Today’s announcement complements Governor Hochul’s ongoing investments in the Adirondack Park. Earlier this month, the Governor announced $1.8 million in grants to support 27 not-for-profit organizations involved with stewardship of State parks, trails, historic sites and other public lands. Among the grantees was the Adirondack Rail Trail Association, who was awarded $75,400 to fund a comprehensive capacity-building initiative including the development of a multi-year strategic plan, revenue-generating activities, a volunteer program, and a marketing campaign plan.

MAYOR ADAMS ANNOUNCES 14 JUDICIAL APPOINTMENTS AND REAPPOINTMENTS

 

New York City Mayor Eric Adams today announced 14 judicial appointments and reappointments to Family Court, Criminal Court, and Civil Court. Specifically, Mayor Adams appointed two Family Court judges and three Criminal Court judges, and reappointed two Family Court judges, six Criminal Court judges, and one interim Civil Court judge.

 

“Public safety and justice are the prerequisites to prosperity, and the judges I’m appointing and reappointing today are deeply committed to both,” said Mayor Adams. “Ensuring that our courts have the judges they need to operate smoothly, efficiently, and effectively will help us continue to reverse the bottlenecks that resulted from the pandemic and that has delayed justice for too many. We are grateful for their continued service as we build a city that is more just and equitable for all.”

 

“A capable judiciary is crucial to providing fair and efficient justice for New Yorkers,” said City Hall Chief Counsel Lisa Zornberg. “We are grateful to this impressive group of judges for their continued dedication to serving the city.”

 

Mayor Adams appointed the following judges to Family Court:

 

Judge Cynthia Lopez was first appointed as an interim Civil Court judge in June 2021 and has been serving in Family Court since then. Judge Lopez began her legal career with the New York City Administration for Children’s Services as an agency attorney. She went on to hold various titles, including but not limited to assistant supervising attorney of Queens Family Court Legal Services and supervising attorney of Manhattan and Staten Island Family Court Legal Services. Prior to her appointment to the bench in 2021, she served as borough chief of the Brooklyn Family Court Legal Services. 

 

Judge Marjorie Steinberg was first appointed as an interim Civil Court judge in April 2023 and has been serving in Family Court since then. Judge Steinberg initially worked at a private firm as an associate attorney with a focus on custody, visitation, domestic violence, matrimonial, guardianship, and neglect litigation. She then served with The Children’s Law Center as a staff attorney and subsequently as deputy director. Judge Steinberg then joined the New York State Unified Court System and was first assigned to the Richmond County Supreme Court as a court attorney in the Integrated Domestic Violence Part, then as principal court attorney in the All-Purpose Matrimonial Part. Prior to her appointment to the bench, Judge Steinberg served as a support magistrate in Richmond County Family Court.

 

Mayor Adams appointed the following judges to Criminal Court:

 

Judge Anthony Battisti was first appointed as an interim Civil Court judge in December 2021 and has been serving in Criminal Court since then. He was a former Queens County assistant district attorney with assignments to the Intake, Criminal Court, Grand Jury, and Supreme Court Bureaus. After several years, he entered a law partnership which he eventually left to start his own practice. Prior to his appointment, Judge Battisti was a private practitioner in Queens for 27 years, specializing in criminal defense and residential real estate. 

 

Judge Diego Freire was first appointed as an interim Civil Court judge in December 2021 and has been serving in Criminal Court since then. Judge Freire began his legal career with The Legal Aid Society, Queens County Criminal Defense Practice in 2007. Prior to his appointment to the bench in 2021, he was a senior staff attorney holding the dual title of adolescent intervention and diversion attorney.

 

Judge Craig Ortner was first appointed as an interim Civil Court judge in February 2023 and has been serving in Criminal Court since then. Judge Ortner was a former associate with Proskauer Rose LLP before leaving to clerk with the United States District Court for the Middle District of Florida and United States Court of Appeals for the 11^th Circuit in Jacksonville, Florida. He then returned to New York and served with the New York County District Attorney’s Office for over 19 years, holding various titles, including criminal court supervisor in Trial Bureau 80 and deputy bureau chief in Trial Bureau 60.

 

Mayor Adams reappointed the following judges to Family Court:

 

Judge Ben Darvil was first appointed as an interim Civil Court judge in March 2016 and then appointed to Family Court in April 2017. Judge Darvil was a former staff attorney with the New York City Administration for Children’s Services, Family Court Legal Services. He litigated child abuse and neglect cases in New York County Family Court. He went on to serve in the Supreme Court, Appellate Division, Second Judicial Department, as an appellate court attorney. Prior to his appointment to the bench, he served as a law clerk to the Honorable John M. Leventhal (Ret.).

 

Judge Emily Ruben was appointed to the Family Court in June 2015. She began her legal career as a law clerk to New York County Supreme Court Justice Elliot Wilk. Thereafter, she was an associate with a boutique matrimonial firm and a private firm focusing on matrimonial law and trusts and estates. She was formerly with The Legal Aid Society, Civil Division, and prior to her appointment to the bench, she concurrently held the titles of supervising attorney of the Citywide Family Law Unit, co-supervisor of the Domestic Violence Project, and attorney-in-charge of the Brooklyn Neighborhood Office.

 

Mayor Adams reappointed the following judges to Criminal Court:

 

Judge Mary Bejarano was first appointed as an interim Civil Court judge in May 2017 and then appointed to the Criminal Court in January 2018. She was a former Queens County assistant district attorney and malpractice defense attorney for two private firms. She went on to operate and maintain her own solo practice for over six years before joining the Kings County District Attorney’s Office in the Civil Litigation Unit up until her appointment to the bench.

 

Judge Kathryn Paek has been a Criminal Court judge since February 2015. Judge Paek began her legal career with The Legal Aid Society in Nassau County and briefly practiced as an associate with a private firm. Thereafter, she was a staff attorney with The Legal Aid Society, Kings County in the Criminal Defense Division and Immigration Unit. Judge Paek was also a former principal court attorney to a Kings County Supreme Court justice. Prior to her appointment to the bench, she was chief-of-staff to the New York State Unified Court System’s Office of Policy and Planning.

 

Judge Archana Rao has presided in Criminal Court since January 2019. Judge Rao spent the entirety of her legal career at the New York County District Attorney’s Office, where she served as an assistant district attorney in Trial Bureau 30 and in the Financial Frauds Bureau (formerly known as the Special Prosecutions Bureau). She served as deputy bureau chief, principal deputy chief, and, prior to her appointment to the bench, bureau chief of the Financial Frauds Bureau.

 

Judge Steven Statsinger was appointed Criminal Court judge in January 2013. Judge Statsinger formerly served with The Legal Aid Society, Criminal Appeals Bureau before moving onto the Federal Defender Division, Appeals Bureau. He then joined the Federal Defenders of New York, Inc., Southern District of New York as a supervisor and training director before his appointment to the bench.

 

Judge Laura Ward has presided in Criminal Court since May 1997. Judge Ward currently serves as an acting Supreme Court justice. Judge Ward began her legal career with Skadden, Arps, Slate, Meagher & Flom as a litigation associate before joining the Organized Crime Strike Force with the U.S. Attorney’s Office for the Eastern District of New York as a special attorney. She also briefly served as assistant attorney general-in-charge of the Bureau of Investor Protection and Security at the New York Office of the Attorney General before returning to the U.S. Attorney’s Office for the Eastern District of New York to serve as an assistant United States attorney before her appointment to the bench.

 

Judge Joanne Watters was appointed as a Criminal Court judge in December 2015. Judge Watters currently serves as supervising judge in Criminal Court, Queens County. She was a former prosecutor with the Bronx County District Attorney’s Office before joining a private firm as an associate attorney. Judge Watters then became an assistant department advocate for the Department Advocate’s Office before joining the New York State Unified Court System, where she last served as supervising court attorney in Kings County Criminal Court.

 

Mayor Adams reappointed the following judge to Civil Court:

 

Judge Grace Oboma-Layat was appointed as an interim Civil Court judge in April 2023 and has been serving in Family Court since then. Prior to her appointment to the bench, Judge Oboma-Layat was a staff attorney with The Legal Aid Society, Juvenile Rights Practice for 19 years. Her focus was child protective, termination of parental rights, and custody and visitation proceedings.

City Planning Commission Kicks Off Public Review on Bronx Metro-North Station Area Plan

 

Proposal will complement new Metro-North stations coming to Hunts Point, Parkchester/Van Nest, Morris Park, and Co-op City

Land Use Revamp Around New Stations Builds on Six Years of Public Engagement

Plan to Bring Thousands of New Homes and Jobs, Improved Infrastructure, and More to the East Bronx

New York City Planning Commission (CPC) Chair Dan Garodnick today began the public review process for the Bronx Metro-North Station Area Plan, the first neighborhood plan certified during Mayor Eric Adams’ administration, which will better support the East Bronx’s current and future needs. This once-in-a-lifetime plan complements new Metro-North stations coming to Parkchester/Van Nest, Morris Park, Hunts Point, and Co-op City with improved public space, transit access, and other community amenities, as well as nearly 7,500 homes, including permanently income-restricted housing, and 10,000 jobs in Parkchester/Van Nest and Morris Park.

“Building on historic citywide zoning overhauls like ‘City of Yes,’ our plan for the Bronx Metro North Station area offers a once-in-a-generation opportunity to deliver transportation and neighborhood investments that will serve current and future residents of the East Bronx,” said New York City Mayor Eric Adams. “The plan would bring more than 7,000 new homes and 10,000 jobs to these neighborhoods, along with infrastructure and public realm improvements, workforce training programs, and support for important community institutions and job centers. We hope Bronxites continue to engage with this transformative effort and make their voices heard as it continues through the public review processes.”

“With four new Metro-North stations on their way, this is a unique and exciting opportunity for the East Bronx. Our plan will help to ensure that those who live and work in these four neighborhoods are the ones who benefit the most from these new stations. From housing to jobs, open space to infrastructure, and more, this community-focused plan will be a truly transformational and positive force for the Bronx,” said Dan Garodnick, Director of the Department of City Planning and Chair of the City Planning Commission.

“The Bronx Metro-North Station Area Plan is years in the making and will be a major game-changer for the East Bronx. Soon, we will be connecting communities in historic transit deserts to accessible public transportation options, providing employment for New Yorkers, reducing our carbon footprint, increasing public amenities in these neighborhoods, and developing new, affordable housing to combat our current housing crisis. I want to thank the NYC Department of City Planning, my colleagues in the City Council, and transit advocates for their partnership on this important initiative, and we look forward to our continued work together to bring this project to fruition,” said Bronx Borough President Vanessa L. Gibson.

“New York City financed a record number of new affordable homes in 2023, and the city is hard at work to continue building new affordable housing anyway we can, everywhere we can,” said Department of Housing Preservation and Development (HPD) Commissioner Adolfo Carrión Jr. “The launch of the Bronx Metro-North Station Area Plan showcases how we push the envelope to deliver for New Yorkers. Along with critical transit access, public space, and community amenities, this plan will bring over 7,000 new homes to the Parkchester and Morris Park neighborhoods. HPD looks forward to working with DCP in getting this transformative plan across the finish line.”

“Expanding sustainable and safe public transportation options brings better access to education and economic opportunities, as well as supports ongoing demand for housing in New York City, while also making it faster and easier to get around without a car,” said New York City Department of Transportation Commissioner Ydanis Rodriguez. “We look forward to engaging with Bronx communities to build the infrastructure necessary to make these new neighborhoods a hub for vibrant public space and improved quality of life.”

“These new stations will connect Bronx residents with crucial job centers and increase access to other parts of New York City and beyond, while creating more vibrant communities in the station neighborhoods. The neighborhood plan includes proposals that will enhance green and open public spaces, and increase park equity by ensuring Bronxites have access to high-quality outdoor spaces,” said New York City Department of Parks & Recreation Commissioner Sue Donoghue. “These new stations and the proposed transit-oriented development will be transformative for the Bronx and we look forward to receiving public feedback on the neighborhood planning proposals.”

“The Bronx is home to some of our city's most vibrant commercial corridors,” said New York City Department of Small Business Services Commissioner Kevin D. Kim. “DCP's plans will not only create greater accessibility to the Metro-North area and generate thousands of jobs, but also supercharge the small businesses that make their home in the East Bronx. I want to thank Commissioner Garodnick and Borough President Gibson for making the Bronx a pivotal part of the City of Yes.”

“As NYCEDC works to further our commitment of making New York City a great place to live, work, play and learn, it’s essential we invest in commercial and residential density near transit options,” said New York City Economic Development Corporation President & CEO Andrew Kimball. “I applaud DCP and Commissioner Garodnick's commitment to maximizing housing and job creation near the four new Metro-North stops in the East Bronx.”

“It’s exciting that we’re already seeing the benefits of Metro-North Penn Access,” said Metropolitan Transit Authority Construction & Development President Jamie Torres-Springer. “This project supports the East Bronx’s economic development and is a perfect example of how investing in public transportation stimulates local and regional economic activity, especially in historically underserved areas. New rail service to and from the East Bronx, Westchester, and Connecticut will provide residents with access to job opportunities, education, medical institutions, and leisure travel and support development of the surrounding communities, aided by this initiative from the Adams administration.”

Together, these four neighborhoods of Parkchester/Van Nest, Morris Park, Hunts Point, and Co-op City are home to 500,000 New Yorkers, greater than the population of Atlanta, Georgia. Nevertheless, these communities have limited access to public transit, with the exception of Hunts Point. The new Metro-North stations on the New Haven Line will connect area residents to job opportunities across the Bronx, Midtown Manhattan, Westchester and Connecticut, while also reducing car use and easing traffic.

Most of the land use actions proposed in the Bronx Metro-North Plan are focused on the neighborhoods of Parkchester/Van Nest and Morris Park, with Hunts Point and Co-op City receiving investments but no zoning changes.

The Bronx Metro-North Plan would create nearly 7,500 new homes, including 1,900 permanently income-restricted homes through Mandatory Inclusionary Housing, by allowing residential uses in some areas of Parkchester/Van Nest currently designated solely for commercial and manufacturing uses. It would also expand the amount of housing allowed in some residential districts in that neighborhood and in parts of Morris Park.

The plan would lead to the creation of 10,000 new jobs by bolstering key commercial corridors, establishing workforce training programs, and supporting important community institutions and job centers, such as Jacobi Medical Center, Montefiore Hospital, Calvary Hospital, and Hutchinson Metro Center. Morris Park and Hunts Point are two of 10 largest job centers in New York City, responsible for a total of 37,000 jobs. To augment the mix of education and health care found in Morris Park, the Bronx Metro-North Plan will explore siting a STEAM (Science, Technology, Engineering, the Arts and Mathematics) school to set high schoolers on a path to a career success in these growing sectors.

Enhanced infrastructure and new pedestrian-friendly public amenities will make it easy for residents and workers to access the new stations, and improve the quality of life in these neighborhoods. Proposed public realm improvements include new and/or upgraded public plazas and open spaces; bus shelters, improved lighting, wider medians; and local retail that fosters a sense of community around these transit hubs.

“As a Chamber leader, I have waited for a strategic plan such as this one that not only fosters economic and workforce development but also recognizes and confronts the unique challenges of small businesses. The prospects that lie ahead following the implementation of the several new Metro-North stations are truly promising, and I eagerly anticipate the positive outcomes it will bring. In order to ensure that these stations and the related redevelopment have a positive impact on the employment needs of Bronx communities and the talent needs of local employers, the Bronx Chamber of Commerce is committed to partnering with the necessary organizations to develop information and strategies,” said Lisa Sorin, president of the Bronx Chamber of Commerce.

“This is an exciting day and a big step forward for the East Bronx,” said Ruben Diaz, Jr., SVP, Strategic Initiatives, Montefiore. “With four new Metro-North stations providing improved transit access to this borough, along with new housing, jobs, and infrastructure investment, we’re on our way toward a brighter future with improved access to vibrant economic activity and world class scientific research and healthcare.”

In partnership with Bronx Borough President Gibson and the New York City Council, DCP has conducted extensive outreach in the communities around the new stations over the last six years, including both in-person and virtual workshops, open houses, weekly “office hours” to answer questions, surveys, and small-group meetings. The agency has held multiple meetings with nearly two dozen community stakeholders, ranging from neighborhood organizations to educational and medical institutions, as well as 16 government agencies at the city, state, and federal levels.

Today’s certification begins the roughly seven-month Uniform Land Use Review Procedure (ULURP), which includes recommendations from Community Boards 9, 10, and 11, and Borough President Gibson, followed by votes at the City Planning Commission, then the City Council.

The MTA anticipates the four new Metro-North stations will open in 2027.

MAYOR ADAMS TO RELIEVE OVER $2 BILLION IN MEDICAL DEBT FOR HUNDREDS OF THOUSANDS OF WORKING-CLASS NEW YORKERS

 

$18 Million Investment Will Provide Relief for up to 500,000 New Yorkers Burdened With Medical Debt, Becoming Largest Municipal Medical Debt Relief Program in Country

New York City Mayor Eric Adams and New York City Department of Health and Mental Hygiene (DOHMH) Commissioner Dr. Ashwin Vasan today announced a pioneering medical debt relief program, that will invest $18 million over three years to relieve over $2 billion in medical debt for hundreds of thousands of working-class New Yorkers. Medical debt — the number one cause of bankruptcy in the United States — disproportionately affects uninsured, under-insured, and low-income households, and the city’s program would wipe out debt for up to 500,000 New Yorkers on a one-time basis. The city will partner with RIP Medical Debt, a national, New York City-based nonprofit specializing in buying and ultimately wiping out medical debt to acquire debt portfolios and retiree debt from health care providers and hospitals across New York City. Affected New Yorkers will then be notified that their medical debt has been relieved; there is no application process for this program. The one-time debt relief program, the largest municipal initiative of its kind in the country, will launch in early 2024 and run for three years.

 

“Getting health care shouldn’t be a burden that weighs on New Yorkers and their families,” said Mayor Adams. “Since day one, our administration has been driven by the clear mission of supporting working-class New Yorkers and today’s investment that will provide $2 billion in medical debt relief is another major step in delivering on that vision. Up to half a million New Yorkers will see their medical debt wiped thanks to this life changing program — the largest municipal initiative of its kind in the country. No one chooses to go into medical debt — if you're sick or injured, you need to seek care. But no New Yorker should have to choose between paying rent or for other essentials and paying off their medical debt, which is why we are proud to bring this relief to families across the five boroughs, as we continue to fight on behalf of working-class New Yorkers.”

 

“For hundreds of thousands of New Yorkers and for millions of Americans, medical debt creates anxiety, uncertainty, and stress,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “It weighs not only on individual and familial balance sheets, but may cause some to put off additional care and limits upward financial mobility. New York City’s investment through this partnership will help working people and families advance their health and financial well-being so they can thrive, instead of just survive. Furthermore, we realize this issue is part of a larger complex health care system and we look forward to continuing to advocate for systemic changes to help New Yorkers avoid medical debt in the future.”

 

“Throughout my career as a doctor, I have seen first-hand how high health care costs and medical debt can force patients to make impossible choices,” said DOHMH Commissioner Dr. Ashwin Vasan. “No one in New York City, or in America, in 2024, should have to choose between getting the health care they need and paying their rent or buying food to feed their families. But as a provider, I have seen all-too-often patients who delay or forgo lifesaving care because of fear of high costs leading to debt. Medical debt caused by the exorbitant and ever-rising costs of health care is the number one cause of personal bankruptcy in the United States, and also has our economy on an unsustainable path. As a physician and advocate, I know medical debt is killing New Yorkers and killing our economy, and today, this city is stepping up to say that the people deserve better.”

 

“It’s gratifying to see this collaboration come together since RIP Medical Debt was founded here in New York City,” said Allison Sesso, president and CEO, RIP Medical Debt. “Medical debt is a failing of the system writ large, not people. Beyond creating often unpayable financial burdens, medical debt undermines one’s mental health as well. By making future care more accessible, this initiative aligns well with hospitals and health systems’ community benefit and health equity efforts.”

 

“Medical debt impacts tens of thousands of New Yorkers, preventing them from saving for the future,” said New York City Department of Consumer and Worker Protection Commissioner Vilda Vera Mayuga. “This new partnership with RIP Medical Debt will transform the lives of New Yorkers and their families, providing much needed relief and stability. Thank you to the mayor, DOHMH Commissioner Vasan, RIP Medical Debt, and the Mayor’s Office for Economic Opportunity for prioritizing the needs of some of our most vulnerable neighbors.”

 

“Our unique poverty measure for New York City identifies out-of-pocket medical expenses as a consistent force keeping New Yorkers in poverty,” said Carson Hicks, acting executive director, Mayor’s Office for Economic Opportunity. “High medical expenses often mean high levels of debt. Our research has found that the pool of people eligible for debt relief includes both low- and middle-income households across all boroughs. Medical debt relief is an important step towards increased economic security for many New Yorkers.” 

“In New York, we believe that health care is a right and that no New Yorker should worry about barriers to accessing the high-quality health care they need," said Mitchell Katz, MD, president and CEO, NYC Health + Hospitals. “Our health system has reduced barriers and encouraged all New Yorkers — regardless of their ability to pay or immigration status — to access primary care as their pathway to their healthiest life.”

“The overwhelming impact of medical debt on hundreds of thousands of New Yorkers and their families goes beyond a financial burden and can become debilitating in other areas of their lives” said Marcella Tillett, executive director, Mayor’s Fund to Advance New York City. “Mayor’s Fund to Advance New York City is excited to partner with the City of New York and RIP Medical Debt on this groundbreaking Medical Debt Relief Program which will give New Yorkers access to greater financial health and combat other impacts of medical debt, including experiences of great emotional distress and feelings of there being barriers to continued engagement in health services.”

 

RIP Medical Debt will purchase bundled medical debt portfolios from providers like hospitals and commercial debt buyers to then abolish that debt at pennies on the dollar. Debt relief recipients will then be notified that their debt has been bought by a third party and erased, with no strings attached. Recipients owe nothing on the debt and face no tax penalty. New Yorkers who fit one of the two eligibility criteria will qualify for the debt relief announced today, if their debt has been acquired: 1) having annual household income at or below 400 percent of the Federal Poverty Line or 2) having medical debt equal 5 percent or more of their annual household income.

 

To supplement the city’s investment, RIP Medical Debt and the Mayor’s Fund to Advance New York City will also partner to raise additional funding over three years. New Yorkers interested in helping relieve medical debt can donate online.

 

More than 100 million Americans hold some medical debt, with the total amount nationwide exceeding $195 billion. Carrying medical debt can undermine financial stability and mobility, as it can affect credit scores and put individuals and families in difficult positions to choose between care and other needed expenses. Black and Latino communities are 50 percent and 35 percent, respectively, more likely to hold medical debt than their white counterparts, and while medical debt may be held by those without insurance, even those with insurance are at risk of carrying medical debt.

 

“We applaud Mayor Adams for this tremendous effort to relieve medical debt for so many New Yorkers who deserve continued access to the care they need,” said Michael Dowling, president and CEO, Northwell Health. “As New York’s largest health care provider, we remain committed to providing quality care to all patients in need, regardless of their ability to pay. For more than a decade, we have offered financial assistance to patients based on incomes 500 percent above the federal poverty level and we will continue to support any measure that helps us do more. We stand with the city in raising the health of all New Yorkers and keeping health care affordable for all.”

 

“We recognize that medical debt can be devastating for many families across the country. We support efforts to reduce medical debt and thank the mayor for highlighting this important issue,” said Brendan G. Carr, MD, MA, MS, chief executive officer, Mount Sinai Health System.

 

“I applaud the Adams administration for investing in New Yorkers’ health by unburdening them from medical debt,” said Oxiris Barbot, MD, president and CEO, United Hospital Fund; Board Member, RIP Medical Debt; former DOHMH commissioner. “The benefit of debt relief is more than financial.  It gives patients peace of mind and ensures they seek the medical care they need.  As we strive collectively toward a health system that promotes health equity, I encourage all New York City hospitals not only to participate in this partnership but commit to further enhancing their robust financial assistance policies so that patients don’t have to incur unnecessary medical debt in the first place.”