DOC DASHBOARD UPDATE: NYC Comptroller Releases New Monthly Data on Department of Corrections

 

The Office of the New York City Comptroller released its monthly update to the Department of Correction (DOC) Dashboard, available here. Key monthly DOC metrics show:

• DOC housed 6,692 individuals as of December 1, 73 more people than the previous month.
  • Since January 1, 2022, the inmate population surged by 26%, with a 6% increase in Fiscal Year 2024.
• 1,922 individuals entered DOC custody in November, 31 fewer people than the previous month.
• DOC discharged 1,866 people in November, 143 fewer people than the previous month.
• The average length of a person detained in DOC custody was 96 days in November, virtually the same since June.
• The headcount of uniformed DOC staff declined 5 percent in Fiscal Year 2024, according to the Comptroller’s Annual Comprehensive Financial Report.
• The percentage of staff on sick leave or medically restricted duty remained steady in October and November.
• Incidents of violence in November:
  • 68 assaults on staff, 3 fewer than the previous month, but 18% above the monthly average for the past year.
  • 30 slashings and stabbings occurred, 8 more than the previous month.
  • 593 fights, 132 fewer than the previous month.
  • At least 5 people have died on Rikers in 2024.
  • 1,691 incidents involving the use of force occurred in Q1 of FY 2025, 93 fewer incidents than the previous quarter.

The Comptroller’s dashboard, first published in August 2022, monitors pervasive issues in the City’s jails, including staff absenteeism, missed medical appointments, and incidents of violence among detained people and staff. It also tracks the jail population every month and length of stay. The Comptroller’s Office publishes data to this dashboard monthly to provide increased transparency and accountability over the City’s jail system.

View the DOC Dashboard here.

Attorney General James Recovers $4 Million from Drizly for Former Delivery Workers

 

Drizly Led Customers to Believe Tips Would Go Directly to Delivery Workers Who Earned Them, But Did Not Ensure Store Owners Properly Distributed Tips

More Than 8,300 Delivery Workers Across New York State Will Be Eligible to Receive Recovered Funds

New York Attorney General Letitia James today announced that she has recovered $4 million in withheld tips from Drizly, a now-defunct alcohol delivery platform owned by Uber, for failing to ensure delivery workers received their rightfully earned tips. An investigation by the Office of the Attorney General (OAG) found that Drizly actively encouraged customers to leave tips for delivery workers, even including an automatic 10 percent tip at checkout. However, Drizly led customers to believe that the entirety of those tips would go directly to the delivery workers who earned them, when in fact all tips instead went to store owners for distribution. Liquor stores using Drizly had the option to either outsource deliveries or to employ their own delivery workers. For delivery workers employed by the stores, including more than 8,300 workers at 2,453 stores throughout New York state, Drizly sent all of the tips to the store owners, who then decided how tips would be distributed. As a result of OAG’s action, Drizly will pay $4 million in restitution to impacted delivery workers.

“Drizly misled its customers by encouraging them to tip and then failing to make sure those tips went to the delivery workers who earned them,” said Attorney General James. “So many delivery workers work paycheck to paycheck and denying them their hard-earned tips could mean the difference between making ends meet and not being able to put food on the table. Now, we are finally returning this money to those who actually deserve it and who customers intended it would go to. My office will always take on companies that mislead their customers and workers and undermine the laws meant to protect them.”

Drizly was an online alcohol delivery platform that began operations in New York in 2013. Uber acquired Drizly in 2021 and shut it down in March 2024, after Uber decided to consolidate its food and alcohol delivery services into one platform, Uber Eats. Through Drizly, customers were able to purchase alcohol from local stores for delivery to their homes. In New York, 2,453 stores used the Drizly platform, including:

• New York City - 1,375
• Long Island - 508
• Hudson Valley - 194
• Western New York - 176
• Finger Lakes - 71
• Capital Region - 55
• Central New York - 31
• Southern Tier - 27
• North Country - 9
• Mohawk Valley - 7

Within New York City, stores in every borough used the Drizly platform: 

• Manhattan - 409
• Brooklyn - 367
• Queens - 351
• Bronx - 109
• Staten Island - 39

As of August 2023, over 80 percent of Drizly orders were being delivered by store employees. These store employees did not automatically receive their earned tips through the Drizly app. Instead, Drizly sent all of the tips to the store owners, who then decided how tips would be distributed. Drizly failed to ensure that those tips were paid to the delivery workers who earned them, even though Drizly was heavily involved in stores’ delivery processes. Drizly also encouraged liquor stores to engage in “tip pooling,” or splitting tips among all employees rather than giving them directly to the workers who earned them, a practice that is unlawful for liquor store employees in New York. Despite this, Drizly continued to encourage tip pooling and did not implement any mechanism to ensure the delivery workers received the money intended for them. As a result, many delivery workers did not receive all of the tips they earned.

In addition to enabling and encouraging unfair tipping practices, Drizly deceived customers about how tips were used and distributed. When individuals placed orders through Drizly’s platform, Drizly encouraged them to tip their delivery workers on its checkout screen, writing, “we provide you with the opportunity to tip your driver from our apps or website. The default tip is 10 percent of your order total, but you may adjust the amount according to your preference. We humbly ask that you tip drivers, as they are critical in making every Drizly delivery a reality.” Drizly failed to adequately notify customers that the tips would not go directly to delivery workers or clarify that stores were responsible for tipping their employees. Instead, many customers were led to believe that the full amount of the tip they paid was going to the delivery worker who delivered their order.

As part of the settlement, Drizly must pay $4 million in restitution to delivery workers employed by stores that used the Drizly platform. Drizly must also pay an additional $200,000 for a settlement administrator, who will track and disburse the restitution funds to these delivery workers. At least 8,385 delivery workers stand to receive settlement funds from this settlement. In New York City, surveys found that an overwhelming majority of delivery workers are non-white, over 80 percent work full-time as delivery workers, and nearly half are supporting a child or family member on this salary.

Bronx Borough President Vanessa L. Gibson - Community Resources & Updates

Dear Neighbor,

Yesterday, there was a heavy street leak that affected Webster Ave and Mosholu Parkway North. The north side of the sidewalk has been cleared and is now open to pedestrian traffic. The Department of Environmental Protection (DEP)`s Emergency Contractor and DSNY are still working to remove roadway debris on Webster Ave, between Mosholu Parkway N. and E. Mosholu Parkway S. Additionally, DEP is on-site distributing Comptroller claim forms to all impacted properties. If you have any questions or concerns, please do not hesitate to contact 3-1-1 or our office at 718-590-3500 or email us at webmail@bronxbp.nyc.gov.

Lastly, we want to extend our warmest wishes to you and your loved ones for a joyful, safe, and healthy holiday season. May this special time bring you peace, happiness, and cherished moments with those who matter most.

In partnership,

Bronx Borough President Vanessa L. Gibson

IN THE COMMUNITY

In partnership with the Bronx Zoo and Roadway Moving, we hosted a heartwarming Veterans Toy Drive! Thank you to all our incredible partners for making this event a success! Your generosity and holiday spirit brought joy to many veterans and their families across the Bronx this Christmas season! Spotlight on the Bronx Educational Opportunity Center (EOC)! The Bronx EOC is a cornerstone of our borough’s commitment to education and workforce development. Through job fairs, job readiness initiatives, vocational programming, and more, they’ve been a vital partner in equipping Bronx residents with the tools they need to succeed. We’re proud to support their mission and collaborate on efforts that empower our community! We just celebrated the reopening of the newly renovated Melrose Library! Specific renovations at the Melrose branch include: Creation of a fully accessible entrance and other accessibility updates Installation of a new elevator Creation of new designated areas for teens, children, and adults Creation of new community spaces for programming & more! This is a major game-changer for the South Bronx! This newly renovated facility is not just a library; it’s a hub for creativity, learning, and opportunity. We must continue to invest in libraries like Melrose across our borough—these community centers offer more than books; they provide the foundation for a brighter, more equitable future. Thank you to the NYPL, my colleagues in government, and everyone else who played a vital role in making this possible! UPCOMING EVENTS COMMUNITY EVENTS GENERAL INFORMATION

 

Bronx Tax Preparer Pleads Guilty To Filing Tens Of Thousands Of False Tax Returns Causing $145 Million In Fraudulent Tax Loss

 

Rafael Alvarez Perpetrated and Oversaw One of the Largest Ever Tax Frauds by a Return Preparer

Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced today the guilty plea of RAFAEL ALVAREZ, a/k/a “the Magician,” to a two-count Superseding Information charging ALVAREZ with one count of conspiracy to defraud the U.S. and steal government funds and one count of aiding and assisting in the preparation of a false and fraudulent U.S. individual income tax return.  The charges arise from ALVAREZ’s orchestration of a decade-long, $145 million tax fraud scheme to file tens of thousands of federal individual income tax returns that included false information designed to fraudulently reduce the individuals’ tax burden.  As part of today’s guilty plea, Alvarez agreed to pay the Internal Revenue Service (“IRS”) $145 million in restitution and forfeit over $11.84 million in fraudulent proceeds he received from his criminal conduct.  ALVAREZ pled guilty today before U.S. District Judge J. Paul Oetken.

Acting U.S. Attorney Edward Y. Kim said: “Rafael Alvarez became known as ‘the Magician’ by his customers for his supposed ability to make their tax burden disappear.  But, as today’s guilty plea shows, there was no magic to what Alvarez was doing – he was committing a serious federal crime by falsifying tens of thousands of tax returns and, in the process, depriving the IRS of $145 million in tax revenue.  Today’s guilty plea, in one of the largest ever tax frauds by a return preparer, should serve as an important reminder to tax professionals that this Office will vigorously investigate and prosecute tax offenses.” 

As alleged in the Indictment and Superseding Information and statements made in public filings and court proceedings: 

From at least in or about 2010, up to and including in or about 2020, ALVAREZ was the CEO, owner, and manager of ATAX New York, LLC, also doing business as ATAX New York-Marble Hill, ATAX Marble Hill, ATAX Marble Hill NY, and ATAX Corporation (together, “ATAX”).  ATAX was a high-volume tax preparation company located in the Bronx, New York, which prepared approximately 90,000 federal income tax returns for its customers during this period.  ALVAREZ both prepared tax returns for ATAX customers and recruited, supervised, and directed other ATAX personnel who in turn prepared tax returns for customers.  During this period, ALVAREZ oversaw a sweeping fraudulent scheme, whereby he and his employees submitted false information to the IRS in ATAX customers’ tax returns. This false information, which included, among other things, bogus itemized tax deductions, made-up capital losses, phony business expenses, and fraudulent tax credits, served to fraudulently reduce the customers’ tax liability and increase the customers’ tax refunds from the IRS. 

In total, ALVAREZ oversaw ATAX’s fraudulent submission of tax returns on behalf of customers that deprived the IRS of $145 million in tax revenue.  ALVAREZ was so consistent at falsifying ATAX customer tax returns that he became known to ATAX’s customers as “the Magician.”  Additionally, ALVAREZ agreed as part of his plea agreement that he was a leader of the scheme and attempted to obstruct or impede the administration of justice with respect to the investigation of the tax fraud scheme when he and an ATAX employee made false statements to an IRS Revenue Agent.  ALVAREZ’s operation of ATAX helped the company generate approximately $12 million in fraudulent proceeds over the duration of the fraud. 

ALVAREZ, 61, of Cortland Manor, New York, pled guilty to one count of conspiracy to defraud the U.S. and steal government funds, which carries a maximum sentence of five years in prison, and one count of aiding and assisting in the preparation of a false and fraudulent U.S. individual income tax return, which carries a maximum sentence of three years in prison.  ALVAREZ is scheduled to be sentenced by Judge Oetken on April 11, 2025.    

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

Mr. Kim praised the outstanding investigative work of the IRS, Criminal Investigation, the Federal Bureau of Investigation, and the Treasury Inspector General for Tax Administration in this case. 

This case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorney David R. Felton is in charge of the prosecution. 

Virginia Man Convicted for Crypto Financing Scheme to ISIS

 

A jury convicted Mohammed Azharuddin Chhipa, 35, of Springfield, Virginia, on Dec. 13 for charges relating to his efforts to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization.

According to court records and evidence presented at trial, from at least October 2019 through October 2022, Chhipa collected and sent money to female ISIS members in Syria to benefit ISIS in various ways, including by financing the escape of female ISIS members from prison camps and supporting ISIS fighters. Chhipa would raise funds online on various social media accounts. He would receive electronic transfers of funds and travel hundreds of miles to collect funds by hand. He would then convert the money to cryptocurrency and send it to Turkey, where it was smuggled to ISIS members in Syria.

His primary co-conspirator was a British-born ISIS member residing in Syria who was involved in raising funds for prison escapes, terrorist attacks, and ISIS fighters. Over the course of the conspiracy, the defendant sent out over $185,000 in of cryptocurrency.

The jury found Chhipa guilty of one count of conspiracy to provide material support or resources to a designated foreign terrorist organization and four counts of providing and attempting to provide material support or resources to a designated foreign terrorist organization. Chhipa faces a maximum penalty of 20 years in prison per count. A sentencing hearing has been scheduled for May 5, 2025. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Executive Assistant Director Robert Wells of the FBI’s National Security Branch, and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.

The FBI is investigating the case.