MAYOR ADAMS CELEBRATES $53 MILLION INVESTMENT FOR CITY’S CULTURAL INSTITUTIONS, TOTALING RECORD HIGH $254 MILLION IN BUDGET TO SUPPORT OVER 1,000 CULTURAL NONPROFITS CITYWIDE

 

Announcement Follows On-Time, Balanced, and Fiscally-Responsible $112.4 Billion Adopted Budget That Invests in Future of New York City 

New York City Mayor Eric Adams today celebrated a historic investment in the city’s cultural institutions as part of an on-time, balanced, and fiscally-responsible $112.4 billion Fiscal Year (FY) 2025 Adopted Budget that addresses the city’s affordability crisis head-on and invests in the future of the city and the working-class people who make New York the greatest city in the world. The FY25 Adopted Budget ensures cultural institutions will have what they need to engage New Yorkers and attract tourists and other visitors, as a critical part of the city’s economic and social wellbeing. After making multiple investments in New York City's cultural sector, including by restoring more than $22 million to the New York City Department of Cultural Affairs (DCLA) for the city's Cultural Institutions Group (CIG) and Cultural Development Fund (CDF) in Mayor Adams’ Executive Budget proposal, Mayor Adams and the City Council went even further in the FY25 Adopted Budget by restoring an additional $53 million. DCLA now has a record high budget of $254 million that will support over 1,000 cultural nonprofits citywide.

Last month, the City Council voted to pass the FY25 Budget. After the budget handshake announcement, New Yorkers from across the city, including multiple cultural institutions and organizations, praised the budget for its wide-ranging investments that help protect public safety, rebuild the economy, and make New York City more affordable and livable.

“Cultural institutions are the beating heart of our city,” said Mayor Adams. “Our cultural institutions break down barriers, teach us about the world around us, and make New York City the globe’s cultural hub. Thanks to our cultural institutions, our economy is thriving, and tourists are returning to our city to explore the best in arts, culture, and entertainment. Today, our administration is doubling down on our commitment to culturals and investing an all-time record high to ensure that the sector continues to thrive and that both New Yorkers and visitors have affordable places to learn, explore, and have fun.”

“In every corner of New York City, our cultural community creates world-class programming that drives our local economy, attracts visitors from across the globe, strengthens our communities, and helps us express who we are,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “With Mayor Adams’ historic investment in the Department of Cultural Affairs, we demonstrate our deep commitment to this crucial sector. Investing in culture means investing in New Yorkers. We are grateful to everyone who advocated for our cultural community, and proud that we were able to deliver for them thanks to our strong fiscal management.”

“Once again, the Adams administration is showing up for our cultural community with a historic investment that will put people to work, deliver extraordinary cultural programs in every corner of our city, and make New York a safer, stronger, more vibrant place for all of us,” said DCLA Commissioner Laurie Cumbo. “I want to give a shout out to the advocates, artists, cultural workers, and others who showed up at hearings, rallies, and other engagements to make the case for culture to their fellow New Yorkers. We know that culture inspires individuals, strengthens communities, and drives the economy. Now, with another record city investment in this important sector, we in local government are ready to continue partnering with our remarkable cultural community to continue delivering these benefits to residents in all five boroughs.”

Cultural institutions are a critical part of New York City's social and economic fabric, which New Yorkers depend on for education, community building, and the overall vibrancy of the city. The $53 million will go to support public programming at more than 1,000 cultural nonprofits citywide through DCLA’s Cultural Development Fund and Cultural Institutions. These funding streams invest in cultural groups across all disciplines, in all shapes and sizes, working in every corner of the five boroughs. The wide range of free summer cultural programs highlighted by DCLA earlier this year is just one example of the range of cultural programming that receives city support.

Thanks to the Adams administration’s ongoing strong fiscal management, which was bolstered by better-than-expected revenue growth, the administration overcame unprecedented challenges in this budget cycle to stabilize the city’s financial outlook and close a $7.1 billion budget gap in January. Now, because of steady, decisive decision making, this adopted budget allows the Adams administration and the City Council to reinvest in initiatives and programs that make New York City more affordable and that address the three things that cost New Yorkers the most — housing, child care, and health care — and that invest billions of dollars of city resources in critical areas, including early childhood education, cultural organizations, parks, public safety, housing, health care, and more.

Mayor Adams, DCLA Commissioner Cumbo, and other members of the administration have collaborated on many new initiatives to support the city’s vibrant cultural sector and bring the arts to all New Yorkers. In February, DCLA announced more than $52 million in grants for 1,031 nonprofits through the CDF, which is part of this budget investment for FY25 and FY26. With support from Mayor Adams, the City Council, and borough presidents, DCLA also announced more than $209 million in new funding for cultural capital projects across the city included in the FY24 budget in the Bronx, Brooklyn, Manhattan, Queens, and Staten Island.

Under the Adams administration, the city has also announced new initiatives to support artists and bring arts programming to residents in every corner of the city. Mayor Adams convened the city’s first-ever Live Performance Industry Council to address issues facing this industry. The new City Canvas program will transform unsightly sidewalks sheds, construction sheds, and scaffolding into platforms for creative expression. The revived She Built NYC program will honor remarkable women from New York City history with monuments in all five boroughs. A new, interactive map launched as part of the 40^th anniversary of the city’s Percent for Art program makes the city’s public art collection more accessible than ever before. And efforts to bring temporary art installations into City Hall and other public buildings have, most recently, included an exhibition at City Hall that explores “the Greatest Day in Hip-Hop” and celebrates LGBTQIA+ artists for Pride Month.

“The Museum of the City of New York is delighted to learn of the restoration of cuts to the cultural sector,” said Stephanie Hill Wilchfort, Ronay Menschel director and president, Museum of the City of New York (MCNY). “This support will allow MCNY to open seven days a week starting on July 1. The museum's exhibitions exploring history, popular culture, and art will be open on Tuesdays and Wednesdays for the first time since the pandemic. City support also allows the museum to operate as a cooling center, open at no charge to anyone who seeks relief from warm weather. Free admission is provided to children under the age of 18 at all times. Thank you to Mayor Adams and his administration, Speaker Adams and the City Council, and DCLA Commissioner Laurie Cumbo for their commitment to arts and culture in New York City and to our museum’s work.”

“New Yorkers can celebrate a huge victory in the full restoration of funding for culture and art in the FY25 Adopted Budget. We applaud Mayor Adams, First Deputy Mayor Sheena Wright, Deputy Mayor Maria Torres-Springer and DCLA Commissioner Laurie Cumbo for supporting cultural organizations, both large and small, and their understanding of these anchor institutions and the economic impact this sector has on the city,” said John F. Calvelli, executive vice president, public affairs, Wildlife Conservation Society. “We thank the many champions for culture on the City Council, including Speaker Adrienne Adams, Finance Chair Justin Brannan, and Cultural Chair Carlina Rivera. This support from the city directly helps organizations like the Wildlife Conservation Society’s Bronx Zoo and New York Aquarium remain economic engines for the city and continue to educate and inspire millions of New Yorkers to become stewards of nature.”

“The Metropolitan Museum of Art is grateful to Mayor Eric Adams and New York City Council Speaker Adrienne Adams for their tireless work and leadership in delivering a comprehensive budget that recognizes the immeasurable value and impact cultural institutions have across this city,” said Marina Kellen French Director and Chief Executive Officer, Metropolitan Museum of Art Max Hollein. “With this allocation, nonprofits big and small can continue to serve as both vital economic engines and creative safe havens that all New Yorkers can rely on.”

“On behalf of the New York Botanical Garden, I applaud Mayor Eric Adams, Speaker Adrienne Adams, and their leadership teams for restoring funding to the Department of Cultural Affairs and cultural anchors in all five boroughs,” said Jennifer Bernstein, CEO and The William C. Steere Sr. president, New York Botanical Garden (NYBG). “NYBG is the backyard of many Bronx families, providing free critical access to nature and the myriad physical and emotional benefits it offers. Cultural anchors like NYBG keep kids engaged, focused, curious, and excited about their natural world; and we help produce the scientists, scholars, businesspeople, artists, and well-rounded adults of tomorrow. None of this would be possible without funding from the City of New York, and we deeply appreciate the restorations agreed upon here today.”

ADMINISTRATION FOR CHILDREN’S SERVICES UNVEILS NEW CHILD PROTECTION SITE IN CO-OP CITY

 

New ACS Site at 2100 Bartow Avenue in the Bronx Will Replace ACS’s Morris Park Location

 

Co-Op City Location Offers a More Modern & Technologically Advanced Workspace That Will Better Meet the Needs of Local Families & ACS Staff

The NYC Administration for Children’s Services (ACS) this week hosted a ribbon-cutting ceremony at its new child protection site located at 2100 Bartow Avenue in the Bronx. The new site replaces the previous 974 Morris Park location. The new Bartow Avenue office in Co-Op City offers a more modern and technologically advanced workspace that will better meet the needs of families within Community Districts 9 and 10, and the office’s 120 ACS staff members. The new site includes a food pantry to supply families with emergency groceries and clothing for immediate needs, family restrooms with changing tables, lactation rooms for families, a welcoming waiting area for children, and more. The site is also conveniently located nearby many bus lines (Bx12, Bx5, BxM7, Q50), several major highways and there will be a shuttle from the subway.

 

“ACS’ new location in Co-Op City will be a renewed hub for both staff and families. The site will have a food pantry, lactation spaces, and an inviting area for families as they arrive to connect with staff. The site demonstrates ACS’ commitment to proactive services and support for families as a first step in every engagement,” said Anne Williams-Isom, Deputy Mayor for Health & Human Services.

 

“The new ACS site in Co-Op City is a win-win-win for families, staff and the local Bronx community,” said ACS Commissioner Jess Dannhauser. “We are pleased to open our doors at 2100 Bartow Avenue, as this new more modern space will better serve children and families in the Bronx. There are welcoming waiting areas for children and families, a pantry to supply our families with emergency food, a space where ACS can provide families with clothing to meet immediate needs, a space for a nurse, conference rooms for family team meetings, and more. The site is easy to get to via public transportation or car, making it convenient for both families and staff to access.”

 

“Today marks a significant milestone for our community with the opening of this new ACS child protection site in Co-op City,” said Council Member Kevin C. Riley. “This modern, accessible facility will provide essential support and resources to families, ensuring they receive the help they need in a welcoming and safe environment. I am proud to celebrate this advancement, which will greatly benefit the families and children in the Northeast Bronx.”

 

ACS is charged with protecting and promoting the safety of New York City’s children through the child welfare system. ACS’s Division of Child Protection responds to allegations of abuse and neglect and connects families to services and supports that keep children safe. ACS also contracts with nonprofit community-based organizations to provide family support/prevention services, as well as foster care services for children who not able to safely remain at home. The ACS Division of Child Protection includes 19 sites across the five boroughs, including four in the Bronx. The ACS Bronx South borough office team is seated in two separate ACS offices: 2501 Grand Concourse and a small annex office space at 1775 Grand Concourse. The ACS Bronx North borough office team has historically been located at: 1200 Waters Place and 974 Morris Park. The new site at 2100 Bartow Avenue will replace 974 Morris Park.

 

In a typical year, the Bronx Child Protection offices respond to over 16,000 reports, assessing child safety and connecting families in need to services and supports. This can include providing families with concrete goods such as cribs and food; referring families to substance abuse treatment or other prevention services. It may include helping a survivor of domestic violence change locks. And, in those instances when children are in imminent risk of harm, child protective staff act with urgency to ensure children are safe, most often with a family member who can care safely for them. ACS’s Bronx North offices currently about 6,600 families annually, or about half of the families, with reports of child abuse and neglect in the Bronx.

 

Families in Bronx North who are involved in the child welfare system may use the Bartow Avenue site to meet with caseworkers, attend child safety conferences and receive key information about the range of services the agency provides. The new site features the following spaces and benefits for families:

 

• Conference Areas: This site is designed to have 7 spaces for family team conferences.
• Welcoming Visiting Areas: 2100 Bartow Avenue has been designed to have visiting areas, where parents and children can have visits in an appropriate, welcoming space.
• Modern & Child Friendly Waiting Area: This new site has a comfortably sized reception area that can accommodate approximately 25 people, as well as a welcoming waiting area for children. (photo attached)
• Child Friendly Nursery: A child-friendly, trauma-informed environment where young children who must be removed from their families receive immediate medical attention, if and when appropriate to do so.
• Pantry for Emergency Needs and Boutique (clothing, food, diapers, sleep sacks, etc.) (photo attached)
• Separate Family Restrooms with Changing Tables & Lactation Rooms

As High Temperatures Continue, A Reminder to Never Leave Children and Pets in Hot Cars

 

Take Precautions to Keep Children and Pets Safe and Prevent Heat Stroke 

“As temperatures continue to rise this week and throughout the summer, I urge all New Yorkers to remember these life-saving tips and remain attentive when getting in and out of your car because just a simple mistake or a few minutes’ time can put your loved one in serious danger.”

As high temperatures continue across New York State, the New York Department of State’s Division of Consumer Protection is warning New Yorkers of the danger children and pets face when left in hot cars. Unfortunately, multiple deaths have been reported after children and pets have been left in a hot vehicle. Heatstroke or death due to hot cars occur most commonly when an adult unintentionally forgets a child or pet, who may be quiet or sleeping in a in a rear-facing seat. Along with these incidents, children can also gain unsupervised access to parked cars and get stuck inside, especially if child safety locks are on. There is a real and severe danger in extreme weather and when temperatures don’t “feel” hot. At 60 degrees outside, after just one hour a closed car can get as hot as 105 degrees.

“Hot weather can pose many risks to New Yorkers, and one of the most prevalent dangers comes from children or pets being left unsupervised in hot cars,” said Secretary of State Walter T. Mosley. “As temperatures continue to rise this week and throughout the summer, I urge all New Yorkers to remember these life-saving tips and remain attentive when getting in and out of your car because just a simple mistake or a few minutes’ time can put your loved one in serious danger.”

Tragically, 1,083 children have died nationwide due to Pediatric Vehicular Heatstroke since 1990. Fifteen of these were in New York State. According to People for the Ethical Treatment of Animals (PETA), every year many pets die from heat exhaustion because they are left in parked vehicles. In 2023 alone, 163 animals died due to heat–related deaths and another 855 were rescued from the heat. Anyone found responsible for leaving a child or pet alone in a hot car could face criminal charges. 

Safety Tips for Children

• Never leave a child in an unattended vehicle in the warm weather, not even with the windows slightly open or down, due to the risk of heatstroke (hyperthermia).
• If you see a child in a hot car, call 911 right away and follow their instructions. Emergency personnel are trained to respond.
• Teach children not to play in or around vehicles and to alert an adult when a friend is playing in a vehicle without supervision. Make sure children understand the dangers of trunk entrapment (suffocation, heatstroke, etc.).
• Place something you need, like keys, a purse or bag, or your cell phone, next to your child's car seat so you will remember to check the backseat before you lock the car. Alternatively, place a stuffed toy in your child’s car seat when not in use and move the toy to the front passenger seat when your child is in his/her car seat as a reminder that your child is in the vehicle.
• Use drive-through services whenever possible while driving with a child in a vehicle.
• It is vital to recognize the symptoms of heatstroke in children. Symptoms include absence of sweat, confusion, disorientation, flushed skin, loss of alertness, unconsciousness or rapid/shallow breathing.

Safety Tips for Pets

• Never leave a pet unattended in the car. Like children, dogs and other animals have a harder time staying cool, leaving them extremely vulnerable to heatstroke.
• A car can overheat even when the window has been left cracked an inch or two. Parking in the shade or leaving water in the vehicle won’t prevent your pet from overheating, either.
• According to the American Society for the Prevention of Cruelty to Animals (ASPCA), young, overweight or senior animals or those with short muzzles or thick or dark coats are most at risk for overheating.
• If you see a pet in a hot car, call 911 immediately.
• Recognize the symptoms of heatstroke in pets and take action if you see them. Symptoms include restlessness, heavy panting, vomiting, lethargy and lack of appetite or coordination.

About the New York State Division of Consumer Protection

Follow the New York Department of State on Facebook, X and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has been unsuccessful at reaching a resolution on their own. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumerprotection. The Division can also be reached via X at @NYSConsumer or Facebook.

Governor Hochul Urges New Yorkers to Be Prepared as Hazardous Conditions Impact the State

 

Potential Thunderstorms and Rainfall Associated with Hurricane Beryl Could Impact State Tuesday Through Thursday

Air Quality Index Levels Forecasts to Reach ‘Unhealthy’

Heat Advisories Issued for Hudson Valley, New York City, and Portions of Long Island

Governor Kathy Hochul urged New Yorkers to monitor their local forecasts as above average temperatures in combination with increased humidity will result in hazardous heat conditions in the coming days. “Feels like temperatures” at or above 95 degrees may result in an increased risk of heat illnesses. The National Weather service has issued heat advisories for the Hudson Valley, New York City, and portions of Long Island beginning at noon today. The heat is expected to continue into Tuesday. The State is also monitoring the potential for thunderstorms and rainfall associated with Hurricane Beryl beginning Tuesday night and extending into Thursday for much of upstate. Isolated instances of flash flooding are possible. The Departments of Environmental Conservation (DEC) and Health (DOH) also issued an Air Quality Health Advisory in the New York City Metro (New York City, Rockland, Westchester) region for ozone today, July 8, from 11 a.m. until 11 p.m. Additional Advisories may be issued throughout the week as conditions necessitate.

“Heat waves can be dangerous — I encourage New Yorkers to take precautions necessary to stay safe during this extreme heat,” Governor Hochul said. “Keep an eye on your local forecast, stay hydrated and postpone outdoor activity if possible.”

Staying Safe During Extreme Heat

Be Air Quality Aware

• Summer heat can lead to the formation of ground-level ozone and Governor Hochul recently encouraged New Yorkers to be Air Quality Aware to help protect public health. DEC and DOH issue Air Quality Health Advisories when DEC meteorologists predict levels of ozone and fine particulate matter pollution are expected to exceed an Air Quality Index value of 100, which is considered ‘unhealthy for sensitive groups.’ People, especially those with cardiovascular disease and those who have respiratory disease (such as asthma), young children, the elderly, those who exercise outdoors, and those involved in vigorous outdoor work should consider limiting strenuous outdoor physical activity when ozone levels are highest (generally afternoon to early evening). When outdoor levels of ozone are elevated, going indoors will usually reduce exposure. Individuals experiencing symptoms such as shortness of breath, chest pain, or coughing should consider consulting their personal physician.
• DEC encourages New Yorkers to check airnow.gov for accurate information on air quality forecasts and conditions. Sign up to receive Air Quality Alerts through DEC Delivers, visit dec.ny.gov for updated forecasts and information about air quality index levels, and the DOH website for information on health risks and precautions related to air quality.

Prepare in Advance

• Sign up for NY alerts that can come to your phone and email and other alerts offered in your local community.
• Create a family emergency plan and include a plan to stay cool.
• Install air conditioners and insulate around them, cover windows that receive morning or afternoon sun, and set up fans to increase air flow.
• You may qualify for a free air conditioning unit. The Home Energy Assistance Program (HEAP) can provide an air conditioning unit to income eligible households that include someone with a documented medical condition exacerbated by extreme heat, or households with young children or older adults. Applications will continue to be accepted until funding runs out. For more information, visit the Office of Temporary and Disability Assistance website or contact your local office for the aging at 1-800-342-9871.
• Attend a free Citizen Preparedness Corps training for residents and get the tools and resources to prepare for emergencies.

Heat Stroke and Exhaustion - Know the Symptoms and What to Do

• Heat stroke is the most serious type of heat-related illness and is always an emergency. Call 911 immediately if you or your loved one has a body temperature above 105°, a rapid pulse, confusion, rapid or shallow breathing, or loses consciousness. Try to cool the person quickly using a cool bath, fans and air conditioning while you wait for emergency responders.
• Heavy sweating, fainting, nausea or vomiting, dizziness, weakness and cold clammy skin can be indications of heat exhaustion, which can quickly escalate to heat stroke without prompt intervention. Individuals should be moved to a cool place, and cool wet cloths applied to the neck, face and arms.
• Heat cramps in the abdominal area or extremities can be treated by moving to a cool place, gently stretching the cramped muscle and drinking cool water.
• Additional information, including procedures for athletes and coaches, workers and employers and heat and health data can be found on the Department of Health’s Extreme Heat website.
• Heat like this can be dangerous – New Yorkers should take every precaution to stay cool this week.

What to Do During Extreme Heat

• Stay inside in the air conditioning if possible.
• If you don’t have access to air-conditioning within your home, open windows and shades on the shady side and close them on the sunny side to try to cool it down. It may also be cooler outside in the shade.
• Identify free locations areas in your neighborhood where you can go to stay cool such as a public library, pool, or mall. Find Cooling Centers in New York State and New York City.
• Drink plenty of fluids - preferably water.
• When working in the heat you should drink one cup (8 ounces) of water every 15 – 20 minutes. That translates to at least 24-32 ounces glasses of water per hour during extreme heat, even if you do not feel thirsty. Drinking water at shorter intervals is more effective than drinking large amounts infrequently. Your body needs water to keep cool. Avoid beverages containing alcohol or caffeine.
• Beat the heat with cool showers and baths.
• Take regular breaks from physical activity.
• Avoid strenuous activity during the hottest part of the day (between 11 a.m. and 4 p.m.).
• Wear loose, lightweight, light-colored clothing to help keep cool.
• Stay out of the sun as much as possible.
• Wear sunscreen and a ventilated hat (e.g., straw or mesh) when in the sun, even if it is cloudy.

Never Leave Children and Pets Unsupervised in Hot Cars

• There is a real and severe danger when leaving children or pets unsupervised in a car even when temperatures don’t “feel” hot.
• At 60 degrees outside, after just one hour a closed car can get as hot as 105 degrees.

D.A. Bragg Announces Indictment Of Woman For Unprovoked Fatal Stabbing In Midtown

 

Manhattan District Attorney Alvin L. Bragg, Jr., announced the indictment of SAMARIA LOPEZ, 22, for fatally stabbing 22-year-old Jordin Walston in Midtown in June 2024. LOPEZ is charged in a New York State Supreme Court indictment with one count of Murder in the Second Degree. [1] 

“As alleged, Samaria Lopez brutally stabbed and took the life of Jordin Walston – a doting and beloved young mother,” said District Attorney Bragg. “This alleged conduct has devastated Ms. Walston’s family and loved ones and my thoughts remain with them in their ongoing grief.” 

According to court documents and statements made on the record in court, on June 11, 2024, at approximately 10:15 p.m., LOPEZ, unprovoked, approached and began a physical

Assistant D.A. Heather Pearson is handling the prosecution of this case with the assistance of Shanni Davidowitz, under the supervision of Assistant D.A. Siobhan Carty (Chief of Trial Bureau 80) and Executive Assistant D.A. Lisa DelPizzo (Chief of the Trial Division). Trial Preparation Assistants Declan Forte (Trial Bureau 80) and Andrea Cipriano (Trial Bureau 80), and Victim altercation with Ms. Walston near West 40th Street and 8th Avenue. During the altercation, LOPEZ punched Ms. Walston, removed a knife, and stabbed her in the torso, puncturing her aorta and causing her to fall on the ground. Ms. Walston was eventually transported to Bellevue Hospital where she was pronounced dead.

LOPEZ fled the scene and was arrested on June 14, 2024.  Services Advocate Alexandra Minaya (Survivor Services Bureau) are providing valuable assistance in this case. 

D.A. Bragg thanked the NYPD, particularly Detective Travis Duke of the Midtown South Detective Squad, Detective Steven Stiller of the Manhattan South Homicide Squad and Detective Brian Dobbins of the Manhattan Violent Felony Apprehension Unit.  

Paxful Inc. Co-Founder Pleads Guilty to Conspiracy to Fail to Maintain Effective Anti-Money Laundering Program

 

The co-founder and former chief technology officer (CTO) of Paxful Inc. pleaded guilty to conspiracy to fail to maintain an effective anti-money laundering (AML) program.

According to court documents, from July 2015 to June 2019, Artur Schaback, 36, of Tallin, Estonia, used Paxful Inc. to operate Paxful, an online peer-to-peer virtual currency platform and money transmitting business where customers negotiated for and traded virtual currency for a variety of other items, including fiat currency, pre-paid cards, and gift cards. During this time, Schaback allowed customers to open accounts and trade on Paxful without gathering sufficient know-your-customer (KYC) information; marketed Paxful as a platform that did not require KYC; presented fake AML policies to third parties that he knew were not, in fact, implemented or enforced at Paxful; and failed to file a single suspicious activity report, despite knowing that Paxful users were perpetrating suspicious and criminal activity.

As a result of his failure to implement AML and KYC programs, Schaback made Paxful available as a vehicle for money laundering, sanctions violations, and other criminal activity, including fraud, romance scams, extortion schemes, and prostitution.  

Schaback pleaded guilty to conspiracy to willfully fail to establish, develop, implement, and maintain an effective AML program as required by the Bank Secrecy Act. He is scheduled to be sentenced on Nov. 4 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Schaback will also resign from Paxful Inc.’s Board of Directors.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Phillip A. Talbert for the Eastern District of California; Special Agent in Charge Tatum King of Homeland Security Investigations (HSI) San Francisco; and Acting Special Agent in Charge Michael Mosley of the IRS Criminal Investigation (IRS-CI) Oakland Field Office made the announcement.

HSI and IRS-CI are investigating the case.

Bank Integrity Unit Deputy Chief and National Cryptocurrency Enforcement Team Deputy Director Kevin Mosley and Trial Attorneys Emily Cohen, Victor Salgado, and Caylee Campbell of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney Matthew Thuesen for the Eastern District of California are prosecuting the case.

MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Attorney General James Stops Four School Bus Companies from Illegal Idling and Polluting at Bus Yards in New York City Communities

 

Bus Companies Will Invest Up to $2 Million to Electrify Buses and Curb Air Pollution from Excessive Idling in Low-Income Communities and Communities of Color

New York Attorney General Letitia James announced settlements with four school bus companies to stop illegal excessive idling at their bus yards in communities of color and low-income communities in Brooklyn, Queens, the Bronx, and on Staten Island. The companies—Consolidated Bus, Inc. (Consolidated), Logan Bus Company (Logan), Pioneer Transportation Co. (Pioneer), and Total Transportation Corp. (Total)—will each be required to invest up to $2 million to purchase new electric buses or electrify some of their current fleet. The Office of the Attorney General (OAG) alleges that these four companies violated New York laws by allowing school buses to idle for extended periods of time at their bus yards. Emissions from buses and cars are the largest contributor to air pollution in New York, and excessive idling endangers the health of surrounding communities. By contrast, the new electric buses will not emit any air pollutants. The companies will also install automatic idling shut-off timers on their remaining traditional buses and implement anti-idling training for drivers. 

"School bus companies play an important role in getting children to and from school safely, but they should be able to do so without polluting our communities,” said Attorney General James. “New Yorkers are already suffering the health consequences of air pollution, and these bus companies all operate bus yards in low-income communities and communities of color that are already bearing the disproportionate impacts of this pollution. We must do everything we can to protect the health of our children and our planet, and my office will always fight against environmental injustice.” 

Data provided by the fleet management system that the New York City Department of Education (NYCDOE) has installed on all New York City school buses indicated that the companies had all repeatedly exceeded idling limits. The data revealed thousands of instances of excessive idling by Consolidated, Logan, Pioneer, and Total at their bus yards. Most of these bus yards, which are in Brooklyn, Queens, the Bronx, and on Staten Island, are located in areas identified by the New York State Department of Environmental Conservation (DEC) as potential “environmental justice areas,” or neighborhoods that are disproportionately impacted by environmental harms such as air pollution. The companies’ bus yards are sometimes clustered together in these neighborhoods, which exacerbates their negative impacts on the surrounding community. 

Map of Consolidated bus yards 

Map of Logan bus yards

Map of Pioneer bus yards 

Map of Total bus yards

New York law prohibits idling for over five minutes, while New York City law prohibits idling for more than three minutes, or one minute when the vehicle is near a school building. The OAG investigation focused on instances of idling for periods of more than two hours in the early morning to rule out instances where extended idling might be allowed under the law due to other circumstances, such as traffic or picking up and dropping off students.

Emissions from cars, trucks, and buses are one of the leading sources of air pollution in New York state. Idling is a significant source of these emissions, with an estimated 130,000 tons of carbon dioxide emitted in New York City alone each year. Emissions from diesel-powered vehicles like buses are particularly harmful to the communities surrounding bus yards because they emit fine particulate matter that has been linked to numerous problems, including asthma, cancer, and heart disease. The health impacts of air pollution are disproportionately felt in low-income communities and communities of color in New York City, which are often home to bus yards and other high-emission facilities like power plants located in close proximity to residential neighborhoods. Children in Central Brooklyn, the South Bronx, and Upper Manhattan—which are predominantly low-income communities and communities of color—are three times more likely than children in other areas of the city to be diagnosed with asthma.  

Depending on the number of alleged instances of illegal idling, the companies will each invest at least $300,000 and up to $2 million to purchase new electric school buses or “repower” existing traditional school buses, which involves removing the vehicle’s internal combustion engine and replacing it with an electric drive system. The companies will also implement mandatory training for all bus drivers to reduce unnecessary excessive idling at bus yards.