MAYOR ADAMS CELEBRATES SHUT DOWN OF MORE THAN 750 ILLEGAL CANNABIS SHOPS SINCE LAUNCH OF “OPERATION PADLOCK TO PROTECT”

 

Multi-Agency Task Force Takes Rapid Action to Protect Communities with Focus on Closing Illegal Cannabis Shops Near Schools, Houses of Worship, and Youth Facilities 

Adams Administration Has Sealed 779 Illegal Locations, Issued Over $65 Million in Civil Penalties, and Seized an Estimated $41 Million of Illegal Products 

Follows Adams Administration’s Successful Advocacy for Legislative Action Taken by Governor Hochul and State Legislature to Give Local Municipalities Enforcement Authority

 

New York City Mayor Eric Adams, New York City Sheriff Anthony Miranda, New York City Police Department (NYPD) Commissioner Edward A. Caban, and New York City Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga today celebrated milestone achievements in the city’s effective enforcement actions against illegal cannabis shops. Since launching “Operation Padlock to Protect” — a multi-agency task force made up of members from the Sheriff’s Office, the NYPD, and DCWP — the Adams administration has sealed a total of 779 shops and issued 41,502 counts of violations amounting to $65,671,487 in penalties. The city estimates it has already seized a total value of $41,443,792 in illegal products.

Over the month of July alone, “Operation Padlock to Protect” conducted several successful enforcement actions aimed at targeting the manufacturing, processing, and distribution networks of illegal cannabis suppliers across New York City. After conducting operations against , the task force delivered the biggest seizure of illegal products to date. These two operations alone resulted in a combined $8 million of illegal products being taken off city streets.

“In the three months since launching ‘Operation Padlock to Protect,’ our administration has delivered major results on a major quality of life and public safety issue,” said Mayor Adams. “To date, we have already sealed over 775 illegal cannabis shops, taken $41 million in illegal products off our streets, and issued over $65 million in violations, and these numbers continue to rise every day. For too long, illegal shops have contributed to a feeling that anything goes on our streets, while targeting our most vulnerable — including children — with dangerous, counterfeit products marketed as candy. But today, we are celebrating that this is no longer being tolerated and we are making huge gains to protect communities and usher in a legal cannabis market that will thrive. I thank Sheriff Miranda, Commissioner Caban, and Commissioner Mayuga for overseeing this highly successful enforcement operation. I also extend deep thanks to our partners in Albany, especially Governor Hochul, for giving us the legal authority we needed to stub out these illegal shops.”

“Earlier this year, I enacted new enforcement powers to quickly and permanently close the thousands of illegal cannabis retailers across New York selling potentially dangerous products — many of which are marketed to children and teens — and siphoning sales from hard-working, licensed store owners,” said New York Governor Kathy Hochul. "Today, I am pleased to join Mayor Adams and other officials to celebrate a milestone and recognize the enforcement teams who shut down more than 1,000 unlicensed stores statewide, bringing us closer to our goal of building the strongest, most equitable cannabis industry in the nation.”

“This is not just about an unlicensed cannabis shop selling weed; they are undermining the legal market — the people who follow the rules — by evading taxes, distributing untested products, and jeopardizing the safety of our neighborhoods,” said Deputy Mayor for Public Safety Philip Banks III. “More importantly, they distribute products that haven’t been tested. These products could have additive chemicals and other unknown substances that are harmful to our kids and the communities where these shops open up. In addition, these shops are dealing with cash, which act like magnets to crime and robberies. Our children, parents, and grandparents are walking by these shops during robberies gone wrong, which is why it’s much more than just an illegal cannabis shop.”

“We want to thank Mayor Adams for his leadership in securing the changes in the law that drives and empowers law enforcement action,” said Sheriff Miranda. “These unlicensed, illegal, and unregulated stores target underage children, endangering the health and safety of all our communities. We thank the many members of all the agencies that make up the Sheriff’s Joint Compliance Task Force for their dedicated work. We recognize the critical role our partners in the community play in identifying these illegal locations, ‘Operation Padlock to Protect’ will continue to respond to your complaints.”

“In all the work we do, the safety and quality of life of the people we serve remains our top priority,” said NYPD Commissioner Caban. “And enforcement against unlicensed and illegal cannabis shops is an important part of our shared public-safety mission. It is absolutely critical that industry regulations are enforced, that shop operators follow the rules, and that we keep these products out of the hands of our children. The New York City Police Department will continue to listen to concerned New Yorkers who demand safe neighborhoods free from these illegal operations, which put both our residents and the legal market at risk. The NYPD is proud to partner with the mayor and the New York City Sheriff’s Office in this important effort, and we thank them for their tireless dedication to public safety.”

“The sale of unlicensed cannabis products poses a danger to our neighbors, especially our children,” said DCWP Commissioner Mayuga. “We want all businesses to follow the law, but we won’t hesitate to take action against businesses illegally selling nicotine or cannabis products. Thank you to the mayor, and our partners in the Sheriff’s Office and at the NYPD, for collaborating with us on protecting the health and safety of our neighbors.”

Following Mayor Adams’ successful advocacy in Albany for municipalities to be given the regulatory authority by the state to finally shut down illegal cannabis and smoke shops plaguing city streets, New York City moved quickly to execute its legal authority, and accelerated its steady enforcement. With the newly granted local authority, the Adams administration has executed a five-borough strategy to finally end this public health and safety issue.

“Operation Padlock to Protect” systematically conducts joint operations in neighborhoods across the five boroughs, which include inspections and follow-up inspections. When operators are ordered to be sealed, local NYPD precincts monitor those locations to ensure compliance and alert the Sheriff’s Office when violations of the seal order occur.

Record-high closures build on praise by New Yorkers, who join the administration in prioritizing decisive action against this public safety and quality of life nuisance. “Operation Padlock to Protect” is an example of the Adams administration’s efforts to double down on its commitment to swiftly shut down illegal operators, protect the city’s children, improve quality of life, and facilitate a safe and thriving legal cannabis market. 

The legalization of cannabis is intended to create a new economy to emerge in New York state, while addressing the harmful impact of the “War on Drugs” on Black and Brown New Yorkers. For New York City’s new cannabis economy and justice-involved businesses to thrive, the city and state must protect the development of the legal market. To do so, the Adams administration launched Cannabis NYC under the New York City Department of Small Business Services to provide free resources and services for all New Yorkers interested in the cannabis industry. Cannabis NYC has engaged over 5,000 New Yorkers on its five borough “Lift Off! Cannabis NYC” public education, listening, and outreach tour and over 200 New Yorkers have participated in the FastTrac for Cannabis Entrepreneurs sessions, which connects legal cannabis business owners and entrepreneurs with free, high-quality training and advice delivered by leading voices in the legal cannabis industry. 

The Adams administration is focused on addressing the quality-of-life issues New Yorkers care about even beyond the proliferation of illegal cannabis shops. Mayor Adams recently announced the city has seized 42,000 illegal mopeds, which contribute to disorder on city streets and further facilitate criminal behaviors. To address the miles of scaffolding that have taken over city streets for decades, the administration’s “Get Sheds Down” initiative has removed over 5,453 sheds and 55 percent of all permitted sidewalk sheds have been taken down since the initiative began in July 2023. And, to address retail theft, the administration announced a pilot program to enable businesses to voluntarily integrate their security cameras with their local NYPD precinct.

In 2023, Mayor Adams launched the Community Link initiative to bring together various city departments and agencies to work with the community and business leaders to address complex and often chronic community complaints that require a multi-agency response. Participating city agencies include:

• DCWP
• Fire Department of the City of New York
• Mayor’s Office of Community Mental Health
• New York City Department of Buildings
• New York City Department of Environmental Protection
• New York City Department of Health and Mental Hygiene
• New York City Department of Homeless Services
• New York City Department of Parks and Recreation
• New York City Department of Sanitation
• New York City Department of Small Business Services
• New York City Department of Transportation
• NYPD
• Office of the Special Narcotics Prosecutor for the City of New York

Since its inception, Community Link has already convened five community improvement coalitions throughout the five boroughs. Over the last 18 months, these coalitions have responded to over 800 complaints and conducted over 600 operations to address quality of life concerns raised by the communities they serve.

“I was proud to mobilize New Yorkers across all five boroughs to pass the SMOKEOUT Act in the state budget, authorizing the city to shut down illegal smoke shops for good,” said New York State Assemblymember Jenifer Rajkumar. “Mayor Adams, Sheriff Miranda, and Commissioner Caban immediately sprung into action with the spectacularly successful ‘Operation Padlock to Protect.’ We have already closed over 750 unlicensed cannabis shops, almost half of all shops in New York City, in a matter of weeks. That is 750 fewer shops attracting armed robberies and selling to children, tons of unregulated cannabis off our streets, and tens of millions of dollars in more tax revenue to invest in communities. This demonstrates what we can achieve when all levels of government come together to address the issues facing New Yorkers.”

D.A. Bragg Announces Sentencing Of Assamad Nash For Murder Of Christina Yuna Lee

 

Manhattan District Attorney Alvin Bragg, Jr., announced the sentencing of ASSAMAD NASH, 27, to 30 years-to-life in state prison for fatally stabbing 35-year-old Christina Yuna Lee inside her Chinatown apartment in February 2022. On June 18, 2024, NASH pleaded guilty in a New York State Supreme Court to one count each of Murder in the Second Degree and Burglary in the First Degree as a Sexually Motivated Felony.

“Christina Yuna Lee was killed in an unthinkably horrific manner in her own apartment at the hands of Assamad Nash,” said District Attorney Bragg. “Ms. Yuna Lee was a creative, kind and joyful person and her death not only devastated her family but left a lasting impact on an entire community. I hope the resolution of this case offers comfort and a sense of justice for everyone that has been touched by Ms. Yuna Lee’s life and this tragedy. May her legacy be celebrated for years to come.”

According to court documents and statements made on the record in court, and as admitted in the defendant’s guilty plea, on February 13, 2022, at approximately 4:20 a.m., Ms. Yuna Lee entered her apartment building near Grand Street and Chrystie Street. NASH followed her into the building and up six flights of stairs to her apartment. As Ms. Yuna Lee entered her apartment, NASH ran up behind her, pushed his way inside and attempted to sexually assault her.

At approximately 4:22 a.m., Ms. Yuna Lee’s neighbors called 9-1-1 after hearing sounds of a struggle, including Ms. Yuna Lee screaming for help. A few minutes later, police officers arrived at Ms. Yuna Lee’s apartment and heard her screams but were unable to breach the door to gain entry. NASH attempted to flee the apartment through the fire escape but went back inside after spotting a police officer on the roof above him.

At approximately 5:40 a.m., officers broke down the apartment door and found NASH hiding under the mattress of Ms. Yuna Lee’s bed and a bloodied kitchen knife hidden behind the dresser. In the bathroom, officers found Ms. Yuna Lee with at least 40 stab wounds, including to her head, neck and torso. She was pronounced dead at the scene.

Assistant D.A.s Dafna Yoran (Senior Trial Counsel of Trial Bureau 70) and Dasha Kabakova handled the prosecution of this case, under the supervision of Assistant D.A. David Hammer (Chief of Trial Bureau 70) and Executive D.A. Lisa DelPizzo (Chief of the Trial Division).

D.A. Bragg thanked the New York City Police Department, particularly Detective Caballero of the 5th Precinct Detective Squad, the other members of the NYPD’s 5th Precinct and the Emergency Services Unit for their assistance with the investigation.

Brooklyn Business Owner Convicted of Operating an Unlicensed Money Transmitting Business, Bank Fraud, Money Laundering and Other Felony Charges

 

Defendant Maintained Shell Accounts to Conceal $55 Million Used to Purchase Jewelry, Luxury Vehicles and Renovate His Penthouse Apartment on the Upper East Side

A federal jury in Brooklyn convicted David Motovich of perpetrating a years-long scheme to establish and conceal a massive illegal check-cashing operation.  Motovich was found guilty on 16 counts of an indictment charging him with operating an illegal money transmitting business, failure to file currency transaction reports, bank fraud, conspiracy to commit bank fraud, money laundering, aggravated identity theft, and conspiracy to defraud the United States.  The verdict followed a three-week trial before United States District Judge William F. Kuntz, II.  When sentenced, Motovich faces up to 30 years in prison.

Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Thomas Fattorusso, Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the verdict.

“Taken behind the façade of a seemingly legitimate lumber business in Brooklyn, the jury followed the trail of evidence to find an infestation of crimes,” stated United States Attorney Peace.  “Motovich operated an illegal money transmitting business that funneled millions of dollars to himself to get rich, evade taxes and fund a lavish lifestyle of luxury cars, jewelry and a spectacular penthouse apartment.  With this verdict, the defendant finds there is a very high price to pay for his blatant disregard for the law.”

“David Motovich developed an illicit scheme using his family’s business to launder more than $55 million through construction companies to finance lavish purchases.  For seven years, Motovich funneled his proceeds through falsely named bank accounts to conceal the profits and evade authoritative oversight. Despite his efforts to disrupt our investigation into his unlawful activity, this verdict highlights the FBI’s tireless dedication to apprehending criminals who employ fraudulent tactics to fund expensive lifestyles,” stated FBI Acting Assistant Director in Charge Curtis.

“Motovich made millions from his back office deals, cashing checks for clients who paid more in fees just to know their transactions were hidden from the government.  But we found out.  And although his shady business allowed him to lease a high-end apartment with expensive renovations and luxury cars, today’s verdict will ensure that his next lease is only for a prison cell, no renovations required,” said Thomas M. Fattorusso, Special Agent in Charge of IRS CI New York.

As proven at trial, Motovich used his family-run business in the Midwood section of Brooklyn as a front for an illegal, unlicensed check-cashing operation.  From the second floor of Midwood Lumber on Coney Island Avenue, Motovich offered his services primarily to the owners and operators of construction companies, cashing millions of dollars in checks to fund off-the-books payrolls for those businesses.  As part of the scheme, Motovich cashed checks for his customers in exchange for a fee or a percentage of the face amount of the checks, ranging between four and 15 percent.  Motovich’s customers paid a higher fee to Motovich than the fees charged by licensed check cashing businesses because the customers understood that Motovich would not file Suspicious Activity Reports or Currency Transaction Reports for cash transactions in amounts greater than $10,000, as required by federal anti-money laundering statutes.  Motovich supplied his check cashing customers with fraudulent documents that they could use to disguise the transactions as payments by the customers for materials and/or subcontracting work if the customers were audited by the New York State Workers Compensation Board or tax authorities.     

In furtherance of his scheme, Motovich created shell companies for the sole purpose of facilitating his illegal check cashing business and instructed his customers to issue checks drawn against their business accounts and make the checks payable to one of the companies.  Motovich then deposited the checks into bank accounts that he created at several financial institutions.  To conceal his control and ownership of the funds in the accounts, and to avoid detection of his scheme, Motovich opened the accounts in the names of other individuals.

In total, between 2012 and 2019, Motovich deposited more than $55 million into the accounts that he had opened in the names of other individuals and used the funds to purchase real estate; pay personal and corporate credit card accounts; purchase luxury items, including millions of dollars of diamonds, watches, jewelry and clothing; make lease and purchase payments for Porsche and Lexus luxury vehicles; pay premiums on multi-million dollar life insurance policies for himself, his wife and others; renovate his penthouse apartment in Manhattan to include a swimming pool; and to fund other business ventures.

Motovich’s co-defendants Marina Kuyan, Kemal Sarkinovic, and Joshua Markovics, all previously pleaded guilty to various charges in connection with the scheme. They are awaiting sentencing.

Attorney General James Secures 10-Year Ban On Wayne LaPierre From NRA

 

After Years of Violations and Jury Verdict that the NRA Broke the Law, Court Determines Changes Needed to NRA Governance

New York Attorney General Letitia James secured a 10-year ban on former Executive Vice President Wayne LaPierre from the National Rifle Association (NRA), and a court direction that the Office of the Attorney General (OAG) and the NRA propose reforms to be enacted at the NRA following years of mismanagement. Potential reforms that New York State Supreme Court Judge Joel Cohen outlined as priorities include retaining a compliance consultant to work with NRA staff to ensure needed changes are enacted, as well as changing the internal Audit Committee, reducing the size of the Board, and easing access for candidates to stand for Board positions. 

This court decision follows a jury verdict in February that found that the NRA broke the law, retaliated against whistleblowers, and lied on its annual regulatory filings. The jury verdict also concluded that Wayne LaPierre caused the NRA $5.4 million in damages and ordered him to pay $4.3 million.

“The NRA and its senior leaders broke the law and funneled millions of dollars in cash and lavish perks to themselves, their families, and NRA insiders,” said Attorney General James. “The damages portion of the case we presented, as well as the earlier trial before the jury, demonstrated that the NRA had a stunning lack of accountability and its leaders engaged in illegality and self-dealing. As a result of this case, Wayne LaPierre will be banned from the NRA for 10 years for spearheading this fraud, and the court called for additional proposed reforms to the NRA. After years of corruption, the NRA and its senior leaders are finally being held accountable.”

As a result of this case brought by Attorney General James: 

• A jury found that the NRA and members of its senior leadership violated the law, 
• Wayne LaPierre was found to have caused the NRA $5.4 million in damages and must pay $4.3 million, and is banned from serving in a fiduciary the organization for 10 years,
• Former Chief Financial Officer (CFO) and Treasurer Wilson “Woody” Phillips is required to pay $2 million in damages and accepted a 10-year ban from New York’s not-for-profit industry.

In February, Attorney General James won the first stage of the trial when a jury found the NRA, LaPierre, former General Counsel and current Corporate Secretary John Frazer, and Phillips violated state laws. The jury found that the NRA failed to properly administer charitable funds and protect whistleblowers, and that LaPierre and Phillips caused the organization $7.4 million in monetary harm. Ahead of the second stage of the trial, the Office of the Attorney General (OAG) reached a settlement with Phillips that included a 10-year ban from serving as a fiduciary of a not-for-profit in New York. 

Attorney General James filed a lawsuit against the NRA and the other current and former senior officers in August 2020. In January 2021, the NRA filed for bankruptcy in an attempt to avoid accountability by trying to reorganize in Texas. In May 2021, a federal bankruptcy court in Texas rejected the NRA’s bankruptcy petition, stating, “that the NRA did not file the bankruptcy petition in good faith.” In September 2022, Judge Joel Cohen rejected another attempt by the NRA to challenge OAG’s claims and affirmed that Attorney General James can seek an independent monitor to ensure the proper administration of the NRA’s charitable assets. In December 2023, the New York State Supreme Court, Appellate Division, First Department affirmed that decision. In January 2024, a final effort to delay the trial was rejected by the Appellate Division, First Department.

On the eve of the first stage of the trial, Wayne LaPierre abruptly announced his retirement as Executive Vice President and CEO of the NRA, a role he held for more than 30 years. In addition, OAG reached a $100,000 settlement with the NRA’s former Executive Director of Operations and Chief of Staff Joshua Powell before the trial’s beginning. At the conclusion of the six-week trial, the jury found all the defendants liable for violating New York not-for-profit laws and determined the damages due to the NRA from LaPierre are $4.35 million and from Phillips are $2 million, which is not affected by his settlement with OAG.  

Canadian Man Pleads Guilty in Scheme to Steal Millions of Dollars from Bank Accounts of Thousands of Victims in the United States

 

A Canadian man pleaded guilty in federal court in Las Vegas to conspiracy to commit wire fraud and money laundering in connection with a scheme to steal millions of dollars from thousands of victims in the United States.

According to court documents, Poupak Jannissar, 52, of Quebec, Canada, operated and controlled sham companies that used fake checks and other fraudulent debits to steal from victims’ accounts at banks in the United States. The defendant and his co-conspirators used various names for the sham companies, including Computer Run, EBooks, Joreeb, Memo Storage, Our Online Backup, You Can Fax Too and Your E-Library. These companies pretended to sell various internet-based services for consumers, such as cloud storage, internet faxing and online books. However, the sham companies did not actually provide any real products or services. Instead, the sham companies served to conceal the theft of money from bank accounts by Jannissar and his co-conspirators.

According to court documents, Jannissar and his co-conspirators bought lists containing misappropriated personal information belonging to thousands of potential victims. Jannissar and his co-conspirators then falsely represented to banks and others that individual victims had authorized debits from their bank accounts. If the individual victims did not notice and dispute initial charges made by the sham companies, the sham companies would fraudulently debit bank accounts multiple times. Jannissar and his co-conspirators transferred money they stole to accounts in Canada.

Jannissar pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering in front of U.S. District Judge Andrew P. Gordon of the U.S. District Court for the District of Nevada.

Jannissar was arrested on Jan. 22, at the Fort Lauderdale–Hollywood International Airport in Florida based on a criminal complaint and arrest warrant issued in the District of Nevada by U.S. Magistrate Judge Brenda Weksler. He was subsequently indicted on the charges to which he pled guilty today.

“Through various sham entities, the defendant and his accomplices stole consumers’ hard-earned money directly from their bank accounts,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will use all of the tools at its disposal to apprehend and prosecute criminals, whether located inside or outside the United States, who steal from Americans.”

“This guilty plea demonstrates our commitment to finding and prosecuting individuals who steal from consumers,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “Defrauding consumers and stealing their hard-earned dollars is a crime against the individuals but it also violates the trust we have in free commerce. With our law enforcement partners, we are committed to holding accountable those who violate federal law. We thank our partners for their investigative efforts to help bring justice for victims.”

“Mr. Jannisar and his co-conspirators used sham companies to steal from unknowing victims by accessing their bank accounts using personal identifiable information from illegally obtained lists, and sadly nothing more than a keystroke on a computer,” said Inspector in Charge Eric Shen of U.S. Postal Inspection Service Criminal Investigations (USPIS-CI). “His actions and those of his co-conspirators represent a crime of greed and opportunity but will not go unpunished thanks to the law enforcement community, who have dedicated their mission to uncovering and putting an end to devious schemes like these.”

"The defendant's guilty plea holds him accountable for perpetrating a fraudulent scheme that stole funds from thousands of victims' bank accounts,” said Special Agent in Charge Vincent R. Zehme of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) Chicago Regional Office. “The FDIC OIG continues to work closely with our law enforcement partners to pursue those who cause financial harm to consumers and threaten to undermine the integrity of our Nation's banking system."

Jannissar faces a maximum penalty of 20 years in prison per charge. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

USPIS-CI and FDIC OIG are investigating the case. U.S. Customs and Border Protection provided valuable assistance.

Senior Trial Attorney Daniel Zytnick of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Richard Anthony Lopez for the District of Nevada are prosecuting the case.

For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Consumer complaints can be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

Governor Hochul Announces $350 Million in Direct Financial Assistance to Low- and Moderate-Income Families Across New York

Governor Hochul: “We're all parents and we talk about intensely how we can put more money back in the pockets of New Yorkers. We're delivering $350 million in direct financial assistance to low- and moderate-income families statewide through the Child Tax Credit program. $350 million meaning one million New York families with children will be receiving a check in the mail by the end of August.”

Hochul: “Together we secured a $7 billion investment to overhaul our state's child care system and making child care more affordable. And just a couple weeks ago, we announced a new digital portal to make free and low cost child care available for eligible families online. Get this, and I hope you all heard this last week: for a family earning up to $108,000 – a family of four earning up to $108,000, their child care expenses will not cost more than $15 a week. The average cost is $350. That's real money back in New Yorkers pockets, and I'm really proud of that as well.”

So, this is something that I can relate to having been a mom. I'm still a mom. My kids still consider me their mom, which is great. They've despite growing up with a political mother since they were preschoolers, they've stuck with me. I appreciate that. And I'm a grandma, and I understand profoundly how hard it is for families, just trying to make it all work out. It's so hard. And every night, the parents sit at the dinner table and talk about the math, and I remember seeing the stack of bills keep getting higher, and how we're going to pay the property tax bill or our rent, and just the basic needs, right? And then, of course you think you're doing fine, and it's oh yeah, school is around the corner. They don't fit into anything from last year. We need all new sneakers, they need new backpacks, they need to do everything. And it's just so hard, and you know what? You can't hear those stories and not feel compelled to act.

And I want to acknowledge two individuals who've been at the forefront of trying to solve this affordability crisis here in our State of New York. We have with us the Majority Leader of the New York State Senate, Andrea Stewart-Cousins. I want to acknowledge her and her strong support for what we're talking about here today. Let's give her another round of applause. The Speaker of the New York State Assembly, Carl Heastie, who has been a great partner of mine as well. Let's give him a round of applause.

As I mentioned at the outset, New Yorkers are facing really serious financial pressures. And all I can do is look at the cost of the bills, right? The cost of groceries have gone up 23 percent in the last five years. Who doesn't have to buy groceries, right? Every family needs to buy groceries every single week.

Housing prices, if you're trying to buy a house, have gone up 17 percent the same time. Child care has gone up 20 percent. And I think it's not a newsflash that wages have not kept up with that, right? So, the strain on working families is too much, and we're losing some families who are going elsewhere where they don't have the same challenges. And that actually threatens New York State's long term viability. And that's why, since becoming Governor, making New York State more affordable has been one of my top priorities. And as I said, “I have great partners who have the same feeling of who we're fighting for and what we must do.”

We fought to raise the minimum wage, and for the first time in history, tie it to inflation. Now that was back when inflation wasn't even a big factor. Leaders, aren't we glad we did that for New Yorkers? We tied the cost of minimum wage to inflation. We doubled tuition assistance together. We held the line on income taxes. We negotiated a historic deal to build more affordable housing because nothing was being built driving up the prices everywhere. We also are protecting our renters.

And we talk about child care. Together we secured a $7 billion investment to overhaul our state's child care system and making child care more affordable. And just a couple weeks ago, we announced a new digital portal to make free and low cost child care available for eligible families online. Get this, and I hope you all heard this last week: for a family earning up to $108,000 – a family of four earning up to $108,000, their child care expenses will not cost more than $15 a week. The average cost is $350. That's real money back in New Yorkers pockets, and I'm really proud of that as well.

As I said, it doesn't happen without the partnership of the State Legislature, but we know our work is far from over. We have to figure out ways – we're constantly seeking ways to ease the burden on New Yorkers. And there's a lot of talk about it used to be the three men in the room, remember? During budget negotiations. Now you have the two women and the man. And we're all parents. We're all parents and we talk about intensely how we can put more money back in the pockets of New Yorkers.

And today we're going to announce one of the many ways we've done just that. And so, I'm announcing we're delivering $350 million in direct financial assistance to low- and moderate-income families statewide through the Child Tax Credit program. $350 million meaning one million New York families with children will be receiving a check in the mail by the end of August.

Now depending on your income and the size of the family, that will determine the amount. Some families will receive up to $330 per child. You have three children, that's $1,000 in your family, doubling the amount of assistance that they've received in the past. And can you imagine the timing of that? While you're out there doing that last minute school shopping. That's why we wanted to do this for New Yorkers. And the best part is New Yorkers don't have to do anything to receive this payment. No forms, no phone calls, no hoops to jump through. It's just going to come to them.

As I mentioned, back to school in September. Those costs add up a lot. What do I know about this? I checked. A backpack today costs around $30-40. Some kids want the fancy ones. Some of the lower end sneakers cost about $45. They go way up from there. Some kids need uniforms, a lunch box, notebooks, and pens. I'm having PTSD from buying all this. I used to go in that shopping cart and just pile it all in, pile it all in, and it just seemed unending.

And with this check, this is how parents will be able to cover the cost of back-to-school supplies and even some clothes in there. And that's why I'm so proud of this. And no other Governor and no other State Legislature in the history of this great state has distributed this much direct financial assistance to the degree we have to families in New York.

In the last two years alone, we provided over $2.6 billion in financial relief for families and helped homeowners with their bills. What we've done: we helped homeowners with their property tax bills, we had additional assistance from the Earned Income Tax Credit recipients and we even saved gas – the cost of buying gas at the pump for New Yorkers during the pandemic.

So, this all comes back to our collective commitment to support New York's working families, and this child tax credit program is a vital program offering support to families with kids. And I know this is going to make a real difference.

This is part of the cornerstone of our collective efforts to help families navigate the cost of living in New York. We're going to continue finding ways to drive the cost down. And I will also say this – what I realized when I became Governor, this tax credit was only available for families with kids aged four and up.

Any parents in this room? Yeah, I thought so. They're kind of expensive as newborns, aren't they? They outgrow everything in three months. The clothes say, ‘zero to three months,’ ‘three to six,’ ‘six to nine,’ because your babies are growing. And then they want to buy little sneakers, and they don't stay in those very long. And then all of a sudden the cost of formula – my gosh, formulas and diapers. I told my husband as soon as our kids are out of formula and diapers, we're going to be rich again. It was that much of a strain on us. I'd run out to BJ's, just fill up the shopping cart with everything I could buy as cheaply as I could. So, we said “no.” We're going to make that tax credit available from birth on upward and not just the age of four.

That's a huge change. So, we did that last year, so that means over 600,000 more children are covered with this from infants all the way on up to high school and that's one more way we're just making life a little bit easier.

But I know I threw a lot of numbers at you, but I wanted you to hear from a real person in a couple minutes – not that we're not all real people – a person who's living through this right now. A young woman, Lisa Chin, a mom from Westchester, Mount Vernon, who's going to tell her story in a few moments about what it's like with a 2.5-year-old daughter and a 2-month-old son. I think she came up here just to get a little break in the action. So, let her – Lisa, you can stay as long as you want here.

And this year, since we expanded the eligibility, her family received the tax credit for the very first time. And she's balancing life as a full-time mom, pursuing her own dreams, and she's finishing up her bachelor's degree at FIT, and she's one of the recipients of our Tuition Assistance Program.

So, with the state's support, she's just an example of the people that we care about, why we do what we do, and how we're helping, not just her future, but her children's future as well.

It's not just making life livable in New York, it's also making it affordable for every single family, and we won't stop fighting.

There's always ways that we can work together to alleviate that burden, and it would not have been possible, as I mentioned, without incredible partners in our State Legislature.

WILLIAMS' STATEMENT ON THE NOMINATION OF RANDY MASTRO AS CORPORATION COUNSEL

 

"Now that the administration has decided to ignore the laws it opposes and rewrite the rules that get in its way, the mayor has nominated a corporation counsel who will defend these and future tactics. Randy Mastro’s record does speak for itself, and what it says should cause New Yorkers great concern. Both the Council and our office made these concerns clear for months, and the administration stubbornly insisted upon this nomination. Despite the mayor’s recent power grab through charter revision, the Council still has to vote on this appointment, and I hope they use that power to reject it."