Saturday, November 2, 2024

New Jersey Resident Pleads Guilty to Helping Russia’s Defense Sector Evade U.S. Export Controls

 

Defendant Facilitated Russia’s Acquisition of Millions of Dollars of U.S.-Made Dual-Use Electronics Used in Radar, Surveillance, and Military Research and Development

Vadim Yermolenko, 43, a dual U.S.-Russian national and resident of New Jersey, pleaded guilty to conspiracy to violate the Export Control Reform Act, conspiracy to commit bank fraud, and conspiracy to defraud the United States for his role in a transnational procurement and money laundering network that sought to acquire sensitive dual-use electronics for Russian military and intelligence services.

“This defendant joins the nearly two dozen other criminals that our Task Force KleptoCapture has brought to justice in American courtrooms over the past two and a half years for enabling Russia’s military aggression,” said Attorney General Merrick B. Garland. “This defendant admitted to playing a central role in a now-disrupted scheme with Russian intelligence services to smuggle sniper rifle ammunition and U.S. military grade equipment into Russia. The Justice Department will never stop working to aggressively disrupt and prosecute both the criminal networks and the individuals responsible for bolstering the Russian war machine.”

“The illegal export of sensitive, dual-use technologies in support of Russia’s war effort poses a significant threat to the United States and its allies and must not be tolerated,” said FBI Director Christopher Wray. “The defendant in this case played a key role in exporting U.S. technology that in the hands of our adversaries could pose great danger to our national security. The FBI and its partners will continue to focus on protecting strategic innovation at home and hold accountable anyone who facilitates illegal transfers to hostile nations like Russia.”

“To facilitate the Russian war machine, the defendant played a critical role in exporting sensitive, dual-use technologies to Russia, facilitating shipping and the movement of millions of dollars through U.S. financial institutions,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This plea highlights my Office and our law enforcement partners continued commitment to use all tools available to prosecute those who unlawfully procure U.S. technology to send to Russia.”

According to court documents, the defendant was affiliated with Serniya Engineering and Sertal LLC, Moscow-based companies that operate under the direction of Russian intelligence services to procure advanced electronics and sophisticated testing equipment for Russia’s military industrial complex and research and development sector. Serniya and Sertal operated a vast network of shell companies and bank accounts throughout the world, including the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true Russian end users of U.S.-origin equipment.

The defendant and his co-conspirators unlawfully purchased and exported highly sensitive, export controlled electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing and other military applications. Following Russia’s invasion of Ukraine in February 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the U.S. Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions and imposed additional export restrictions on Serniya, Sertal, and several individuals and companies used in the scheme, calling them “instrumental to the Russian Federation’s war machine.”

Sertal was licensed to conduct highly sensitive and classified procurement activities by Russia’s Federal Security Service (FSB), Russia’s principal security agency and the main successor agency to the Soviet Union’s KGB. The Serniya network’s Russian clients included State Corporation Rostec, the state-owned defense conglomerate; State Atomic Energy Corporation Rosatom (Rosatom); the Ministry of Defense; the Foreign Intelligence Service (SVR); and various components of the FSB, including the Department of Military Counterintelligence and the Directorate for Scientific and Technological Intelligence, commonly known as “Directorate T.”

To carry out the scheme, the defendant helped set up numerous shell companies and dozens of bank accounts in the U.S. to illicitly move money and export-controlled goods. During the period charged in the indictment, more than $12 million passed through accounts owned or controlled by the defendant. These funds were used in part to purchase sensitive equipment used in radar, surveillance and military research and development. In one instance, money from one of the defendant’s accounts was used to purchase export-controlled sniper bullets, which were intercepted in Estonia before they could be smuggled into Russia.

Co-defendant Alexey Brayman previously pleaded guilty to conspiracy to defraud the United States and is awaiting sentence. The case against co-defendant Vadim Konoshchenok, a suspected FSB operative, was dismissed after Konoshchenok was removed from the United States as part of a prisoner exchange negotiated between the United States and Russia. Defendant Nikolaos Bogonikolos’ case remains pending. Defendants Boris Livshits, Alexey Ippolitov, Svetlana Skvortsova, and Yevgeniy Grinin remain at large.        

The FBI, BIS, and IRS are investigating the case.

The U.S. Customs and Border Protection, Department of Justice’s Office of International Affairs, and Estonian authorities provided valuable assistance.

Assistant U.S. Attorneys Artie McConnell, Andrew D. Reich, and Matthew Skurnik for the Eastern District of New York are prosecuting the case, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.

These actions were coordinated through the Justice Department’s Task Force KleptoCapture and the Justice and Commerce Departments’ Disruptive Technology Strike Force. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.

NYC Board of Elections Seven day totals for Early Voting by Borough

 

Early Voting Check-Ins

General Election 2024

 

October 26, 2024 - Day 1

 

  • Manhattan - 38,237
  • Bronx - 16,462
  • Brooklyn - 40,289
  • Queens - 31,671
  • Staten Island - 13,486

 

*Unofficial as of Close of Polls 140,145



October 27, 2024 - Day 2

 

  • Manhattan - 71,321
  • Bronx - 27,581
  • Brooklyn - 77,033
  • Queens - 58,078
  • Staten Island - 23,847

 

*As of Close of Polls – Unofficial and Cumulative 257,860



October 28, 2024 - Day 3

 

  • Manhattan - 106,870
  • Bronx - 40,217
  • Brooklyn - 115,286
  • Queens - 87,174
  • Staten Island - 35,718

 

*As of Close of Polls – Unofficial and Cumulative 385,265




October 29, 2024 - Day 4

 

  • Manhattan - 136,206
  • Bronx - 50,830
  • Brooklyn - 150,805
  • Queens - 112,350
  • Staten Island - 45,287

 

*As of Close of Polls – Unofficial and Cumulative 495,478


October 30, 2024 - Day 5

 

  • Manhattan - 164,107
  • Bronx - 61,851
  • Brooklyn - 184,649
  • Queens - 137,617
  • Staten Island - 54,168

 

*As of Close of Polls – Unofficial and Cumulative 602,392



October 31, 2024 - Day 6

 

  • Manhattan - 190,542
  • Bronx - 70,962
  • Brooklyn - 218,775
  • Queens - 160,179
  • Staten Island - 60,944

 

*As of Close of Polls – Unofficial and Cumulative 701,402



November 1, 2024 - Day 7

 

  • Manhattan - 222,810
  • Bronx - 83,536
  • Brooklyn - 259,716
  • Queens - 189,523
  • Staten Island - 70,574

 

*As of Close of Polls – Unofficial and Cumulative 826,159


Speaker Adrienne Adams, Council Members, and Advocates Announce City for All Housing Plan to Advance Comprehensive Housing Solutions for All New Yorkers with Focus on Affordability

 

Housing plan addresses lack of commitments for affordability, infrastructure and housing protections in mayoral administration’s proposed zoning reform

New York City Council Speaker Adrienne Adams and Council Members announced City for All, the Council’s inclusive housing plan to holistically address New Yorkers’ wide range of housing challenges with policy actions and investments. The Council’s housing plan is focused on advancing a more affordable, livable, and sustainable city for all New Yorkers, calling for deeper affordability in housing, increased affordable homeownership and housing preservation efforts, investments in community infrastructure, stronger tenant protections, better use of housing vouchers, and increased capacity for housing agencies. The City for All housing plan is the Council’s response to Mayor Adams’ citywide zoning reform proposal, currently under review by the Council, lacking complementary housing investments and policies that confront the housing issues facing New Yorkers and their neighborhoods.

“New Yorkers need more housing, but affordability, homeownership opportunities, housing security and stability, and neighborhood investments are equally important to help working- and middle-class residents in our city,” said Speaker Adrienne Adams. “In order to ensure everyone in our city has safe and stable housing to continue contributing to the strength of our city and its economy, we must go beyond zoning reforms to address all the unrelenting housing pressures that leave New Yorkers struggling to afford finding or staying in homes. Without holistic solutions, our city’s severe housing and affordability crisis will only worsen. I am proud to join with my colleagues and advocates to announce City for All, the Council’s housing plan to meet the full range of housing needs of New Yorkers. Taken together, these actions and investments can help ease the challenges facing New Yorkers, allowing our city to become more affordable, livable, and sustainable. The Council intends to advance City for All to secure the housing justice all New Yorkers deserve.”

Further details on the plan can be found here.

City for All calls for:

Deepen Affordability of Housing Production

  •   Significantly Increase Funding in HPD Five-Year Capital Plan for Affordable Housing Programs and Deeper Affordability
  •   Deepen Affordability Targets
  •   Make Deep Affordability Option 3 of MIH Stand-Alone
  •  Require Affordability in Large Transit Oriented Developments and Town Center Developments
  •   Strengthen Support for Faith- and Community-Based Organizations Affordable Housing Development
  •    Increase Funding and Support to Strengthen Community Land Trusts

Support Affordable Homeownership

  •   Double funding for HPD HomeFirst Down Payment Assistance Program
  •   Expand Funding for HPD HomeFix to provide financing to working- and middle-class homeowners for maintenance and repairs to preserve homeownership
  •   Increase Affordable Homeownership Production through increased funding
  •   Increase Funding of Legal Services for Homeowners

Invest in Infrastructure to Support Growth

  •   Commit Significant Capital Funding for DEP Infrastructure, Open Space and Street Upgrades
  •   Make increased investments in public transit, including infrastructure, access to reduced fare programs, bus service, etc.

Strengthen Affordable Housing Preservation

  •   Significantly Increase Capital Funding for NYCHA Section 9 Units
  •   Increase Funding for HPD Preservation
  •   Incentivize Return of Vacant Units
  •   Significantly Increase Funding for Mitchell-Lamas Preservation

Bolster Utilization of Housing Vouchers

  •   Use Vouchers to Help New Yorkers at Greatest Risk and Fix Bureaucratic Issues
  •   Establish Voucher Incentives and Set-Asides
  •   Significantly Increase Funding to Combat Housing Discrimination

Protect Tenants

  •   Significantly Enhance Right to Counsel Funding
  •   Restore and Strengthen Anti-Harassment Tenant Protection (AHTP) Program
  •   Increase Funding for Non-profit Tenant Organizing

Fund Housing Agency Capacity

  •   Enhance HPD Development Capacity
  •   Strengthen DOB & HPD Housing Inspections
  •   Increase Funding for Neighborhood Plans

New York City is currently facing a severe housing crisis, with a citywide housing vacancy rate of 1.4 percent– the lowest percentage since 1968. The lack of housing is greatest for the most affordable homes, and most New York City renters are rent-burdened (paying 30 percent or more of their income on rent). Record homelessness, rising evictions, and widespread housing insecurity are impacting New Yorkers across the city, resulting in less safety and stability for communities.

The Council, under Speaker Adams, has prioritized the advancement of housing solutions, including the approval of major land use projects – Innovation QNS and Hallets North in Queens, Innovative Urban Village in Brooklyn, and the Bronx Metro-North Stations and Bruckner Boulevard rezonings in the Bronx. Speaker Adams has led by example within her own district by approving projects to create affordable housing, including the South Jamaica Gateway Rezoning141-05 109th Avenue Rezoning, and the 97-04 Sutphin Boulevard Rezoning, among others.

In December 2022, Speaker Adams released her Housing Agenda to Confront the City’s Crisis, outlining comprehensive actions for the City to tackle the housing shortage, deepen affordability, preserve housing, and restore support for City agencies, and in November 2023, the Council enacted Speaker Adams’ Fair Housing Framework Act, which will require the City to establish targeted housing production goals for each community district. Through City for All, the Council is putting forward a holistic housing plan to support working- and middle-class families by investing in solutions that meet their needs.

“It is no secret that New York City is in the midst of one of the most pressing housing crisis ever experienced in our great city,” said Council Member Rafael Salamanca, Chair of the Committee on Land Use. “On a daily basis, constituents seek my office’s help in obtaining safer and more affordable housing. While City of Yes is a long overdue start in unlocking new housing opportunities, my community will continue to be severely rent-burdened if any new housing created doesn’t truly reflect the neighborhoods in which they are built in. I am proud to join Speaker Adrienne Adams and my colleagues in rolling out City for All, a plan that comprehensively highlights actions that will generate the change so many New Yorkers need and demand. As Chair of the Committee on Land Use, I look forward to working with Speaker Adams and my colleagues in negotiating a plan that will create a more equitable city.”

Lyft to Pay Civil Penalty to Resolve Allegations of Misleading Drivers About Their Potential Earnings

 

The Justice Department, together with the Federal Trade Commission (FTC), announced that Lyft Inc. (Lyft) has agreed to resolve allegations that it made false and misleading statements about how much Lyft drivers would earn. The settlement includes an agreement to pay $2.1 million in civil penalties and a permanent injunction prohibiting such false and misleading earnings claims.

Lyft operates a mobile app ride-hailing platform that connects consumers seeking rides with those who provide rides with their own personal vehicles. Through marketing campaigns and advertisements, Lyft recruits drivers. After a driver is hired, Lyft sets the rates the driver charges and collects a portion of the fare for each ride. In a civil complaint filed in the U.S. District Court for the Northern District of California, the government alleges that, as early as 2021, Lyft made false and misleading claims in its advertising and marketing regarding potential earnings and incentives to be earned by drivers who signed up to drive for Lyft. Lyft allegedly continued these practices even after it received a Notice of Penalty Offenses in October 2021 that placed the company on notice that false and misleading earnings claims were unlawful.

The complaint alleges that Lyft disseminated advertisements promoting specific hourly amounts that drivers throughout the United States could earn. The company, however, did not disclose that the potential hourly amounts were based on the earnings of the top 20% of its drivers. The complaint also further alleges that Lyft also tried to induce drivers to offer more rides by promoting “earnings guarantees,” which guaranteed that drivers would be paid a set amount if they completed a specific number of rides in a certain time. These guarantees allegedly did not clearly disclose that drivers were paid only the difference between what they otherwise earned for the rides and Lyft’s advertised guaranteed amount, rather than receiving the full guaranteed amount in addition to their regular earnings for the rides.

In the stipulated order entered by the federal district court, Lyft is required to pay a $2,100,000 civil penalty. The order also enjoins Lyft from making any misrepresentations regarding driver earnings and includes other monitoring and reporting provisions aimed at promoting Lyft’s compliance with the order.

“The Justice Department will vigorously enforce the law to stop companies from misleading Americans about their potential earnings in the gig economy,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to work with the FTC to stop unfair and deceptive marketing practices.”

“Lyft drivers deserve accurate information about how much they will be paid for the work they do,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Our settlement with Lyft bans exaggerated earnings claims and underscores the FTC’s commitment to ensuring gig workers are treated fairly.”

Trial Attorney Paulina Stamatelos and Assistant Director Zachary Dietert of the Civil Division’s Consumer Protection Branch, Assistant U.S. Attorney Ekta Dharia for the Northern District of California and Abdiel Lewis and Evan Rose of the FTC’s Bureau of Consumer Protection handled the matter.

For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov.

Governor Hochul Announces New York State Landmarks to be Lit Teal in Commencement of Alzheimer's Awareness Month

New York State Landmarks Lit Teal to Honor Sexual Assault Survivors 

Governor Kathy Hochul announced that 14 New York State landmarks will be lit teal on Friday, Nov. 1 to mark the beginning of Alzheimer’s Awareness Month.

“Alzheimer’s is a debilitating and brutal disease, and, like many of you, it is one that I have a personal connection with,” Governor Hochul said. “I take Alzheimer’s Awareness Month as the time to reflect on the struggles my fellow New Yorkers have faced when it comes to watching a family member or a loved one battle an incredibly heartbreaking diagnosis. I am remembering my grandfather this month as well as all of the New Yorkers and their families who are currently battling an Alzheimer’s diagnosis.”

The landmarks that will be lit include:

  • Albany International Airport Gateway
  • Alfred E. Smith State Office Building
  • Empire State Plaza
  • Fairport Lift Bridge over the Erie Canal
  • Governor Mario M. Cuomo Bridge
  • Kosciuszko Bridge
  • Moynihan Train Hall
  • MTA LIRR - East End Gateway at Penn Station
  • Niagara Falls
  • One World Trade Center
  • State Education Building
  • State Fairgrounds – Main Gate & Expo Center
  • The “Franklin D. Roosevelt” Mid-Hudson Bridge
  • The H. Carl McCall SUNY Building

The Office of the Aging reported — according to New York State data shared by the Coalition of New York State Alzheimer’s Association Chapters — that more than 426,000 New Yorkers aged 65 or older have been diagnosed with Alzheimer’s. The 2024 New York Alzheimer’s statistics, which includes caregiving, workforce and healthcare data, can be found here.

New York State is proud to have a network of resources for patients suffering from Alzheimer’s and their families. The New York State Department of Health outlines a map of counties across New York State which includes a list of Caregiver Support Programs and Centers for Excellence in Alzheimer’s Disease in each respective county. This list can be found here.


MAYOR ADAMS ISSUES CITYWIDE DROUGHT WATCH, ORDERS CITY AGENCIES TO DEVELOP WATER CONSERVATION PLANS, URGES NEW YORKERS TO START CONSERVING WATER

 

October Saw City’s Second Longest Rainless Streak in Recorded History 

 

Drought Watch is First of Three Levels of Water Conservation Declarations Possible by City 

 

WATCH: Mayor Adams Issues Citywide Drought Watch 


New York City Mayor Eric Adams and New York City Department of Environmental Protection (DEP) Commissioner Rohit T. Aggarwala today issued a citywide drought watch amid a historic lack of precipitation, ordering city agencies to update water conservation plans and prepare to implement them, and urging the public to help conserve every drop possible. The announcement comes as New York City concludes a historically dry October, which saw the second-longest dry streak in city records dating back to 1869. Conserving water will slow the depletion rate of the stored water in city reservoirs and can potentially postpone or eliminate the threat of a serious shortage.  

 

New Yorkers come together in times of crisis, and right now, amidst the dryest spell in recent memory, we need New Yorkers to do just that and conserve as much water as possible,” said Mayor Adams. “We’re going to do our part as a city as well, which is why I’m ordering our city agencies to update their water conservation plans and prepare to implement them imminently. By starting to save water now, we’re doing everything we can to make sure that we can water our parks and fill our pools come summer, and to stave off a more serious drought emergency.” 

 

“We encourage all New Yorkers to take this drought watch seriously and conserve water where you can. While water conservation is always essential, it is particularly crucial during extended dry periods, such as those experienced in New York state throughout this fall,” said Chief of Staff and Extreme Weather Coordinator Camille Joseph Varlack. “Implementing voluntary water conservation measures now can help prevent the need for more stringent restrictions in the future. The administration is ready to implement immediate measures across city agencies to conserve water and stands prepared to take further actions if required.” 

 

“Time and again, New Yorkers’ resiliency shines through the hardest of days. Now, we ask all New Yorkers to step up and do their part to conserve water during this historically dry season, helping us avoid some of the worse impacts of drought,” said Deputy Mayor for Operations Meera Joshi. “When every New Yorker makes even small changes, like turning off the tap when washing hands, brushing teeth, and doing dishes, we save millions of gallons by the minute.” 

 

“October was the driest October on record, which has resulted in minimal inflow to replenish the reservoirs,” said DEP Commissioner Aggarwala. “Because of this, a drought watch has been declared, and we must now take immediate action. All of us who rely on the city’s water supply, including 8.3 million consumers in the city and another 1.5 million upstate, must make concerted efforts to conserve water.” 

 

“As we work closely with DEP to enhance city agencies' water shortage response plans and ensure a coordinated effort across all levels of government, I want New Yorkers to know we all have a role to play in conserving our city's water, one of our most precious resources,” said New York City Emergency Management Commissioner Zach Iscol. “By taking small but meaningful steps, such as running the washer and dishwasher only when full, to taking shorter showers, and educating your fellow New Yorkers about the drought watch, we can make a huge impact.” 

 

A drought watch is the first of three levels of water conservation declarations by the city. As conditions continue to evolve, the city may declare a drought warning orsubsequently, drought emergency, which involve escalating requirements to reduce water usage at city agencies and on New Yorkers. 

 

Keeping reservoir levels high is even more important given the city’s current repair work on the $2 billion Delaware Aqueduct Repair Project, DEP’s largest-ever infrastructure repair project that will prevent a decades-old, 35-million-gallon-per-day leak under the Hudson RiverDuring the ongoing final phase of construction — which includes connecting a 2.5-mile parallel tunnel to bypass the leak — DEP is drawing on increased amounts of drinking water coming from the Croton Watershed, the city’s oldest upstate water supply. However, the watershed has seen below-average rainfall over the last month — receiving only .81 inches of rain this October, compared to historical averages of 3.81 inches of rain for the month. DEP will continue to analyze current and forecasted reservoir levels for their impacts to the project 

 

Mayor Adams, today, urged all New Yorkers to do their part to conserve water. Some simple tips include:   

 

  •   Report open fire hydrants and street leaks to 311. An open hydrant can release more than 1,000 gallons per minute, which wastes 1.4 million gallons of drinking water in a 24-hour cycle.  
  •   Don't flush the toilet unnecessarily. According to the EPA, toilets are by far the main source of water use in a home, accounting for nearly 30 percent of an average home's indoor water consumption. Each flush can use 1.6 gallons, with older models using as much as 6 gallons.   
  •   Take shorter showers, saving five to seven gallons a minute. When taking a bath, fill the tub only halfway and save 10 to 15 gallons.  
  •   Don't run the tap while shaving, washing hands, or brushing teeth. Faucets use two to three gallons per minute.   
  •   Fix leaks. A leaky faucet that drips at the rate of one drip per second can waste more than 3,000 gallons per year, according to the U.S. Environmental Protection Agency.  
  •   Run the dishwasher and washing machine only when full. Use short cycles if available. Turn off the water while washing dishes.  
  •   Install water-saving fixtures, including low-flow toilets and showerheads, as well as faucet aerators.  
  •   Sweep driveways and sidewalks clean rather than washing them down with a hose.  

 

New York City’s average daily water demand has decreased by approximately 35 percent over the past several decades. During its peak in 1979, the city’s average water usage was 1.5 billion gallons of water a day. Thanks to improved management strategies — systemwide leak detection and repairs, replacing old meters with automated meter readers, and providing an online platform for customers to track and monitor water use and quickly detect leaks in their buildings — the city now uses just 1.1 billion gallons a day on average, and under 1 billion gallons during the winter months.  

 

DEP manages the nation’s largest municipal water supply system, which provides high-quality drinking water each day to nearly 10 million residents, including 8.3 million in New York City. The water is delivered from a watershed that extends more than 125 miles from the city, comprising 19 reservoirs and three controlled lakes. Approximately 7,000 miles of water mains, tunnels, and aqueducts bring water to homes and businesses throughout the five boroughs.