Statement on Preliminary Results of Clean Energy Supply Financing Ratio Shareholder Proposal at Bank of America and Goldman Sachs Annual General Meetings

 

New York City Comptroller Brad Lander released the following statement on the preliminary results of the New York City retirement systems’ first-time proposal requesting the disclosure of a clean energy supply financing ratio at Bank of America and Goldman Sachs.

“The climate crisis will not wait for us to get our act together. Strong results today send a wakeup call to the boards of Bank of America and Goldman Sachs that shareholders are paying close attention to ways they can measure their portfolio companies’ progress on the bold climate action to which they’ve committed.

“Three of the largest North American banks (JPMorgan Chase, Citi and the Royal Bank of Canada) have already agreed to disclose this important metric following engagement with my office. We expect this to become a standard disclosure for banks and an increasingly important tool for investors to evaluate a banks’ climate risk and climate commitments including the pace and scale of their financing of the energy transition.

“It is disappointing to see Bank of America, Goldman Sachs and Morgan Stanley drag their feet rather than join their peers who clearly understand the importance of this disclosure to investors. Given the urgency of the climate crisis and the need for a rapid transition, we are hopeful that they will take the necessary steps toward increasing transparency by providing investors with this decision-useful metric.”

The proposals requested annual disclosure of each banks’ ratio of clean energy supply financing to fossil fuel energy supply financing and their underlying methodology. This disclosure will allow long-term investors to better assess the role banks play in the climate transition, and whether they are on track to meet their emissions reduction commitments.

Today’s meeting follows the announcement of agreements New York City’s retirement systems recently reached with JPMorgan Chase, Citi and the Royal Bank of Canada to disclose this ratio.

Shareholders will have the opportunity to vote on this proposal at the upcoming Morgan Stanley Annual General Meeting on May 23rd and we encourage them to vote YES. Our presentation making the case for a vote in favor of the proposal is available here.

Former Comptroller General of Ecuador Convicted for $10M International Bribery and Money Laundering Scheme

A federal jury in Miami convicted the former Comptroller General of Ecuador yesterday for his role in a multimillion-dollar international bribery and money laundering scheme.

According to court documents and evidence presented at trial, between 2010 to 2015, Carlos Ramon Polit Faggioni, 73, solicited and received over $10 million in bribe payments from Odebrecht S.A., the Brazil-based construction conglomerate. Polit, in his position as Comptroller General of Ecuador, was responsible for protecting public funds against fraud and rooting out corruption. Instead, Polit took bribes from Odebrecht in exchange for removing fines and not imposing fines on Odebrecht’s projects in Ecuador. Additionally, in or around 2015, Polit received a bribe from an Ecuadorian businessman in exchange for assisting the businessman with obtaining certain contracts with the state-owned insurance company of Ecuador.

“As Comptroller General of Ecuador, Carlos Ramon Polit Faggioni was entrusted to protect the people of Ecuador from the misuse of public funds. Instead, Polit abused his position as a public official by soliciting and pocketing over $10 million in bribes and then laundering the illicit funds in Miami,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The Criminal Division is committed to ensuring that the United States is not a safe haven for the illicit funds of corrupt officials.”

“This verdict is a reminder of our office’s firm commitment to investigating and prosecuting corrupt foreign officials who bring their criminally obtained funds to South Florida to buy real estate,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida.

From in or around 2010 and continuing until at least 2017, at the direction of Polit, another member of the conspiracy caused proceeds of Polit’s bribery scheme to “disappear” by using Florida companies registered in the names of friends and associates, often without the associates’ knowledge. The conspirators also used funds from Polit’s bribery scheme to purchase and renovate real estate in Florida.

“This conviction shows that despite your wealth, title, or influence, nobody is above the law,” said Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami. “HSI and its partners on the El Dorado Financial Crimes Task Forces will continue to pursue corrupt foreign officials who utilize their official positions for their own illicit gain”.

The jury convicted Polit of one count of conspiracy to commit money laundering, three counts of concealment money laundering, and two counts of engaging in transactions in criminally derived property. He faces a maximum penalty of 20 years in prison on each count of money laundering and conspiracy to commit money laundering and a maximum penalty of 10 years in prison on each count of engaging in transactions in criminally derived property. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Odebrecht S.A. pleaded guilty in December 2016 in the Eastern District of New York to conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) in connection with a broader scheme to pay nearly $800 million in bribes to public officials in 12 countries, including Ecuador.

HSI’s Miami Field Office investigated this case. The FBI International Corruption Squad investigated the Odebrecht case and provided substantial assistance in this case.

The Justice Department’s Office of International Affairs provided substantial assistance. The Justice Department also thanks the assistance of law enforcement authorities in Ecuador, Brazil, Panama, and Curacao with the investigation.  

Suspended DEA Special Agent Sentenced To Four Years In Prison For Taking Bribes

 

Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHN COSTANZO JR. was sentenced today by U.S. District Judge J. Paul Oetken to four years in prison for participating in a scheme in which his co-defendant, MANUEL RECIO, and others funneled tens of thousands of dollars to COSTANZO in exchange for COSTANZO providing sensitive law enforcement information to assist defense lawyers. 

U.S. Attorney Damian Williams said: “With this sentence, John Costanzo Jr. finally faces the consequences of selling his office as part of a bribery scheme.  By disclosing sensitive information in exchange for money, Costanzo endangered his fellow officers, interfered in significant criminal investigations, and violated the laws he had sworn to uphold.  Such conduct demands serious punishment, and today’s sentence does just that.  Let this be a message to all public officials who are tempted to profit illegally from their service — there will be serious consequences.” 

According to the evidence presented in court during the trial:

JOHN COSTANZO JR. was a Drug Enforcement Administration (“DEA”) special agent most recently assigned to DEA Headquarters.  He was a Group Supervisor in the DEA’s Miami Field Office until June 2019.  MANUEL RECIO is a former DEA special agent who retired as the Assistant Special Agent in Charge for the Miami Field Office in November 2018.  Upon his retirement, RECIO began operating his own business, which provided private investigative services to criminal defense attorneys and also helped defense attorneys to recruit clients.  From around the time of RECIO’s retirement through around November 2019, RECIO agreed with COSTANZO to provide benefits to COSTANZO in exchange for COSTANZO providing RECIO with nonpublic information about DEA investigations.  COSTANZO provided RECIO with information about nonpublic investigations, such as the identities of individuals charged and the anticipated timing of indictments and arrests, and intelligence which COSTANZO obtained from the Narcotics and Dangerous Drugs Information System (“NADDIS”), a DEA database that contains information about individuals who are or have been under investigation by the DEA.  RECIO paid COSTANZO for this information, which RECIO used to help recruit new clients for criminal defense attorneys.

Among the benefits paid to COSTANZO were a $2,500 payment made in November 2018, shortly after RECIO’s retirement from the DEA, which was funneled to COSTANZO through a company owned by a close family member of COSTANZO.  At the same time that this payment was made, RECIO began asking COSTANZO to run searches in NADDIS to provide RECIO with nonpublic DEA information about DEA targets and investigations.  Following that initial payment, RECIO and others continued to provide benefits to COSTANZO, including tens of thousands of dollars that were funneled from RECIO through a company created by a DEA task force officer and $50,000 that was paid to COSTANZO through a close family member for COSTANZO’s purchase of a condominium in January and February 2019.

In return, COSTANZO continued to provide nonpublic DEA information to RECIO, including information about the timing of forthcoming indictments and information about DEA arrest plans of particular targets.  COSTANZO also searched NADDIS for names of particular individuals requested by RECIO on dozens of occasions during the scheme and provided RECIO with information and assistance with particular charged defendants represented by attorneys for whom REICO was working.  During the scheme, COSTANZO and RECIO took steps to conceal the existence of the scheme, including by structuring the payments from RECIO to COSTANZO through third parties and through COSTANZO’s use of a cellphone provided by RECIO for communications related to the scheme.

In addition to the prison term, COSTANZO, 49, of Coral Gables, Florida, was sentenced to three years of supervised release and ordered to forfeit $98,250.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the Department of Justice’s Office of the Inspector General and thanked the DEA’s Office of Professional Responsibility for its support in this matter.

MAYOR ADAMS RELEASES EXECUTIVE BUDGET FOR FISCAL YEAR 2025, MAKING SIGNIFICANT, SUSTAINABLE INVESTMENTS IN NEW YORKERS FOLLOWING STRONG FISCAL MANAGEMENT

 

Investments Include Protecting Key Education and Child Care Programs, Doubling Down on Public Safety Measures to Continue Crime Reductions, Supporting Thousands of Cultural Institutions, and Putting Money in Pockets of Working-Class New Yorkers

Administration’s Proactive Fiscal Management Combined with Stronger Than Anticipated Economic Performance Helped Stabilize City’s Financial Outlook 

 

Mayor Adams Continues to Make Investments That Prioritize Public Safety, Economic Opportunity, Quality of Life Initiatives

New York City Mayor Eric Adams today released the City of New York’s balanced $111.6 billion Fiscal Year (FY) 2025 Executive Budget. Mayor Adams' budget builds on the administration’s actions, since last fall, to stabilize the city’s fiscal outlook, and has positioned the city to backfill long-term programs that had only been funded with temporary stimulus funds while making the investments that double down on the city’s efforts to strengthen public safety, rebuild the economy, and make the city more livable. These investments will specifically add more police officers to city streets and subways, protect educational programs with city and recurring state funds and increase access to early childhood education, provide support for thousands of cultural institutions, and boost programs that improve the quality of life for working-class New Yorkers. By virtue of Mayor Adams’ strong fiscal management and better-than-expected revenue, the Adams administration balanced the budget, stabilized the city’s fiscal position and outlook, and prevented major service cuts, tax hikes, or layoffs.

 

FY24 and FY25 remain balanced, with outyear gaps of $5.5 billion, $5.5 billion, and $5.7 billion in Fiscal Years 2026 through 2028, respectively. Growth of $2.2 billion in FY25 over the Preliminary Budget is driven by stronger than expected economic activity in FY24 and an improved outlook in FY25.

 

“When we came into office two years ago, during the height of another wave of the COVID-19 pandemic, we were determined to protect public safety, rebuild our economy, and make our city more livable for working-class New Yorkers,” said Mayor Adams. “We have made great strides in these commitments, and today, crime is down, jobs are up, our streets are cleaners, we’re taking on major quality of life issues, and we have financed the most newly constructed affordable housing in a single year in our city’s history. Thanks to our strong fiscal management, we are able to invest in the things that matter to New Yorkers in this Fiscal Year 2025 Executive Budget, including public safety, early childhood education, and the needs of working-class people. As New York City moves toward the future, our core values will continue to guide us as we continue to build a safer, more equitable, and more prosperous city for all New Yorkers.”

 

Proactive Fiscal Management

 

On the heels of the pandemic, New York City had to confront substantial challenges, filling holes left where long-term programs were funded with temporary stimulus dollars, and the costs of funding fair labor deals that went years unresolved with city employees. While there are still reasons to remain cautious — like slowing revenue growth in coming fiscal years — by making smart decisions in the November and January plans — like monitoring spending and trimming agency and asylum seeker budgets — as well as better-than-expected revenue, the administration has balanced the budget and steadied the city’s fiscal position.

 

Strong and decisive action led to achieving a record level of gap-closing savings, and due to better-than-expected economic growth, the administration was able to cancel the previously announced Executive Budget Program to Eliminate the Gap (PEG). As good stewards of taxpayer dollars, the administration still achieved $41 million in agency expense savings, over FY24 and FY25, driven by underspending, where agencies spent less than expected to fund a program or service. This has no impact on service delivery.

 

Additionally, because continuing to fund the needs of the asylum seeker humanitarian crisis without any limits was not sustainable, Mayor Adams committed to PEG the city’s asylum seeker spending over FY24 and FY25 by a total of approximately 30 percent between the Preliminary and Executive Budgets. As a result of the administration’s policies — including providing 30 to 60 days of housing, legal support, intensified case management, and reducing per diem household costs — more than 65 percent of the asylum seekers who have come through the city’s intake centers have left the city’s care and taken the next steps in their journeys. The administration has successfully cut migrant costs in the Executive Budget by $586 million over FY24 and FY25. Along with $1.7 billion in migrant costs previously cut in the FY25 Preliminary Budget, this brings the two-year total migrant PEG savings achieved to nearly $2.3 billion.

 

Total savings — including the asylum seeker PEGs — achieved in FY24 and FY25 over the November, January, and April Financial Plans is now $7.2 billion.

 

Additionally, tax revenue has been revised up by $619 million in FY24 and $1.7 billion in FY25 compared with the Preliminary Budget due to better than anticipated economic performance in 2023 and an improved economic outlook in 2024. These additional revenues were used to help remain balanced in FY24 and FY25. However, tax revenue growth is expected to cool in upcoming fiscal years as the local economy slows, bolstering the fact that the city cannot rely exclusively on revenue growth to resolve fiscal challenges.

 

Maintaining budget reserves as a hedge against the unexpected is a critical part of the administration’s strong financial management strategy. The FY25 Executive Budget maintains a near-record level $8.2 billion in reserves, including $1.2 billion in the General Reserve, $4.8 billion in the Retiree Health Benefits Trust Fund, $250 million in the Capital Stabilization Reserve, and $1.96 billion in the Rainy-Day Fund.

 

FY25 Priorities

 

The FY25 Executive Budget enhances safety and doubles down on the Adams administration’s efforts to continue to bring down crime by adding two more police classes this year and putting 1,200 additional police officers on the streets by adding July and October New York City Police Department (NYPD) classes. Now, all police academy classes will be fully funded in 2024. This adds 2,400 new police officers to city streets in the coming year and puts New York City on the path to having a total of 35,000 uniformed officers protecting New Yorkers in the coming years.

 

The Adams administration’s strong fiscal management, combined with a stronger than anticipated economic performance in 2023, helped put the city in a position to fund a number of stimulus-funded long-term programs that could be backfilled with city and state dollars. In the FY25 Executive Budget, Mayor Adams uses $514 million in city and recurring state funds to support key education programs that had been funded with expiring stimulus dollars, including mental health care, career readiness, and literacy programs for New York City public school students.

 

Additionally, the administration is making multiple investments in New York City’s cultural sector by allocating more than $22 million over the next three fiscal years to the New York City Department of Cultural Affairs. These investments will support over 1,000 cultural organizations, which make up the heart and soul of New York City and are the cornerstone of its economic rebound. 

 

More specifically, some highlighted investments of the FY25 Executive Budget include:

 

Keeping New Yorkers Safe

•  Doubling down on decreases in homicides and shootings by adding 1,200 more police recruits between the July and October NYPD classes, putting New York City on a path to have 35,000 uniformed officers in the coming years ($62.4 million, FY25).
• Funding for the Job Connections initiative, which will connect 500 young New Yorkers at risk of gun violence with career readiness and green job placement programs ($16.9 million, FY25).
• Expanding the Crisis Management System to support additional Cure Violence coverage areas and additional mental health services in gun violence safety precincts ($8.6 million, FY25).
• Supporting the Neighborhood Safety Alliance, which fosters collaboration between communities, actors, law enforcement agencies, and city services to reduce gun violence in six additional precincts ($2.5 million, FY25).

Securing a Better Future for New York City Children

• Supporting citywide 3-K expansion as it transitions from its original stimulus funding source ($92 million, FY25).
• Supporting nearly 500 social workers and psychologists who provide mental health supports in schools ($74 million, FY25)*.
• Maintaining funding for special education Pre-K providers to increase service hours, and resources for DOE-related services and evaluation teams ($56 million, FY25)*.
• Investing in pathways programs that facilitate career pathways programs in high schools — offering apprenticeships, career-readiness, and access to college credits ($53 million, FY25)*.
• Arts funding programming ($41 million, FY25).
• Literacy and dyslexia programs and academic assessments for both English language arts, and math ($17 million, FY25)*.
• Funding for coordinators for students in temporary housing in schools and shelters ($17 million, FY25)*.
• Bilingual education funding for curriculum and assessment, teacher preparation and staffing, professional learning, and multilingual family and community engagement for 100 bilingual programs ($10 million, FY25)*.
• Increasing the availability of in-school early childhood education classes and services for students with special needs ($25 million, FY25).
• Maximizing enrollment in early childhood education programming and helping parents connect with Pre-K and 3-K seats with an extensive media outreach and marketing campaign ($3.5 million, FY25).

 * Indicates funded with recurring state resources.

 Investing in Cherished Cultural Institutions

• Allocating funding for the Cultural Institutions Group, 34 cultural nonprofits operated on city-owned property ($5.4 million, FY25).
• Investing in the Cultural Development Fund, which supports over 1,000 cultural nonprofits across the city ($2.2 million, FY25).

 Putting More Money in the Pockets of Working-Class New Yorkers

•  Investing in stable housing for the most vulnerable New Yorkers by funding the City Family Homelessness and Eviction Prevention Supplement programs in the baseline ($615 million, FY25).
• Wiping out $2 billion in medical debt for qualified low-income and severely debt-burdened New Yorkers through RIP Medical Debt, which buys debt at a steep discount and forgives repayment. This is the largest municipal medical debt program of its kind in the country ($6 million, FY25).
• Ensuring eligible New Yorkers learn about supportive city programs that are available to them and make accessing the resources easy and efficient via the NYC Benefits Access Initiative ($4.6 million, FY25).
• Helping unemployed New Yorkers connect with job opportunities and career support across the city’s public workforce through the Jobs NYC Employment Sprint system with a talent portal and by bringing hiring halls to communities experiencing high unemployment ($1 million, FY25).
• Accelerating Minority and Women-Owned Business Enterprises (M/WBE) and community hiring by implementing tools to track the implementation of community hiring legislation and the new city-wide M/WBE program ($5.5 million, FY25).
• Helping low-to moderate-income communities by funding grants to create and support new Small Business Improvement Districts and merchant associations ($5.3 million, FY25).  
• Establishing the NYC Future Fund that will make loans to Black, indigenous, and people of color-owned businesses with a focus on early-stage businesses ($2 million, FY25).

Climate Budgeting

Mayor Adams is taking a critical step towards making the city cleaner and greener over generations to come in his FY25 Executive Budget. New York City is the first big city in America, and among a small elite group of cities internationally, to implement climate budgeting, a system that integrates climate targets and considerations into the budget process to help achieve the city's goals of net-zero greenhouse gas emissions and resiliency to climate threats. Critically, climate impact will now be one of the many factors that will be balanced when allocating the city’s limited resources to ensure resources are aligned with sustainability and resiliency needs. And — for the first time and moving forward — the Executive Budget will also include a Climate Budgeting publication that will include an analysis of the city's new and ongoing climate investments and progress toward emissions goals.

Affordable Housing Lottery Launches For Edgemere Commons In Far Rockaway, Queens

 

The affordable housing lottery has launched for Edgemere Commons, a 17-story mixed-use building at 5123 Beach Channel Drive in Far Rockaway, Queens. Designed by Aufgang Architects and developed by The Arker Companies and Slate Property Group, the structure yields 194 affordable apartments, a 23,000-square-foot supermarket, and 133 parking spaces. Available on NYC Housing Connect are 134 units for residents at 30 to 80 percent of the area median income (AMI), ranging in eligible income from $24,480 to $154,080.

Amenity spaces consist of a shared laundry room, bike storage, community room, a recreation room, and outdoor space including a rooftop terrace. Tenants are responsible for electricity, including electric stove. Rent includes heat and hot water.

At 30 percent of the AMI, there are 16 one-bedrooms with a monthly rent of $617 for incomes ranging from $24,480 to $41,940; 20 two-bedrooms with a monthly rent of $728 for incomes ranging from $29,349 to $50,310; and two three-bedrooms with a monthly rent of $830 for incomes ranging from $33,909 to $57,780.

At 60 percent of the AMI, there are 49 one-bedrooms with a monthly rent of $1,411 for incomes ranging from $51,703 to $83,880; 19 two-bedrooms with a monthly rent of $1,682 for incomes ranging from $62,058 to $100,620; and three three-bedrooms with a monthly rent of $1,931 for incomes ranging from $71,658 to $115,560.

At 80 percent of the AMI, there are 12 one-bedrooms with a monthly rent of $1,941 for incomes ranging from $69,875 to $111,840; 11 two-bedrooms with a monthly rent of $2,317 for incomes ranging from $83,829 to $134,160; and two three-bedrooms with a monthly rent of $2,665 for incomes ranging from $96,823 to $154,080.

Prospective renters must meet income and household size requirements to apply for these apartments. Applications must be postmarked or submitted online no later than June 10, 2024.

New York City Man Convicted of Drug and Gun Offenses

 

Rasheed Mingues, 44, a resident of New York City staying in the Utica, NY area, pled guilty to possession of controlled substances with the intent to distribute them and possession of a firearm as a convicted felon.  United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.

As part of his plea, Mingues admitted that, between April and October 2022, he sold over 100 grams of methamphetamine and over 30 grams of fentanyl in the Utica, New York area. He also admitted that on December 9, 2022, he possessed over 700 grams of fentanyl, over 700 grams of methamphetamine, and over 100 grams of cocaine with the intent to distribute them, and that he possessed a loaded 9mm handgun in the same bag as the drugs.  Federal law prohibits Mingues from possessing the firearm as a result of a prior felony conviction. 

Sentencing is scheduled for August 23, 2024, in Syracuse, at which time Mingues faces a mandatory minimum prison sentence of 10 years and a maximum sentence of life, a fine of up to $10,000,000, and a term of supervised release of at least 5 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

The United States Drug Enforcement Administration (DEA) and New York State Police are investigating the case with assistance from the Utica Police Department, Syracuse Police Department, Oneida County Sheriff’s Office, and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorneys Jessica N. Carbone and Benjamin Gillis are prosecuting the case.

Defendant Convicted of Murder For Hire in Fatal Shooting Outside Karaoke Bar in Queens

 

Antony Abreu was Hired by Co-Conspirators to Kill the Victim in Exchange for a Richard Mille Luxury Wristwatch

A federal jury in Brooklyn returned a guilty verdict against Antony Abreu on both counts of an indictment charging him with murder-for-hire and murder-for-hire conspiracy in connection with the February 12, 2019 killing of 31-year-old Xin “Chris” Gu, outside of a karaoke bar in Queens.  The verdict followed a two-week trial before United States District Judge Carol Bagley Amon.  When sentenced, the defendant faces a mandatory term of life in prison.

Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the verdict.

“With this conviction of Abreu, a cold-blooded triggerman who executed a young man in exchange for an expensive wristwatch, this Office has held all the conspirators responsible for this murder plot driven by greed and revenge,” stated United States Attorney Peace.  “The victim was marked for death simply because he was pursuing the American dream by starting his own company.  Chris Gu was celebrating his promising future and the Chinese New Year when his life was violently ended in the street on without warning.  His killers will spend the rest of their lives in prison.” 

“Antony Abreu appraised Xin “Chris” Gu to be worth that of an expensive watch, murdering him for such jewelry. After Gu decided to pursue his own business dream, his slighted employer bribed Abreu to carry out the final step in this twisted judge, jury, and executioner scheme. This conviction of the final defendant in this cold-blooded conspiracy emphasizes the FBI’s commitment to restoring the balance of justice and reaffirming that no individual is permitted to put a price on another’s life,” stated FBI Assistant Director-in-Charge Smith.

“The tireless work of the detectives, agents, and prosecutors in this case helped hold to full account the men responsible for this murder,” stated NYPD Commissioner Caban. “This is another example of our agencies’ collaborative commitment to public safety, and further proof that no one is beyond the reach of the law.”

As proven at trial, Abreu was hired to murder Gu as part a revenge scheme orchestrated by Gu’s former boss, Allen Yu.  Allen Yu’s business, Amaco, lost substantial business when Gu left to start his own property development company.  Enraged at Gu’s perceived disloyalty, Allen Yu hired co-conspirators You You and Zhe Zhang to kill Gu in exchange for payment.  Zhang in turn hired Abreu to carry out the murder. 

 On the evening of February 11, 2019, and into the following pre-dawn hours, Gu’s new company hosted a celebration of the Lunar New Year at Lake Pavilion restaurant in Flushing.  After dinner, Gu and a smaller group went to a karaoke bar, Grand Slam KTV in Flushing.  When Gu left the bar and was getting into a cab, Abreu approached and shot Gu multiple times at close range, killing him.  In exchange for committing the murder, Zhang gave Abreu a luxury Richard Mille wristwatch valued at over $100,000.

 In the days after the murder, in an effort to avoid detection, Abreu sold the car he used in the murder to a relative and sold a burner phone used to facilitate the murder.  In the following months, Abreu repeatedly bragged about committing the murder to various associates and posted on social media about the wristwatch Zhang had given him.  After his arrest, Abreu obtained a contraband phone in jail, which he used to attempt to intimidate and retaliate against government witnesses in the case and to make payments to potential defense witnesses.

You You pleaded guilty to murder-for-hire conspiracy in June 2023 and is awaiting sentencing.  Allen Yu and Zhang were convicted at trial in October 2023 and face mandatory life sentences when they are sentenced.

Attorney General’s Office of Special Investigation Opens Investigation into Civilian Death in Queens

 

The New York Attorney General’s Office of Special Investigation (OSI) has opened an investigation into the death of Jesus Alberto Nunez Reyes, who died on April 20, 2024 following an encounter with members of the New York City Police Department (NYPD) in Queens.

At approximately 4:09 a.m. on April 20, NYPD officers responded to 39-21 103rd Street in Queens where they encountered Mr. Nunez Reyes allegedly holding a knife. The officers repeatedly commanded him to drop the knife, but Mr. Nunez Reyes did not comply, and an officer fired at him. Mr. Nunez Reyes was transported to a hospital where he was later pronounced dead. Officers recovered a knife at the scene. 

Pursuant to New York State Executive Law Section 70-b, 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.

These are preliminary facts and subject to change.