Governor Hochul Announces $269 Million to Make Local Water Infrastructure Projects Affordable Across New York State

Low-Cost Financing and Grants Minimize Ratepayer Burden for Critical Improvements Statewide

Funding to Help Pay for Lead Service Line Inventory and Replacement in Poughkeepsie and Troy

New York City Resiliency Project Advances with Environmental Bond Act Funding

Governor Kathy Hochul today announced $269 million was made available to help communities across the State affordably undertake water and sewer infrastructure improvement projects. The Environmental Facilities Corporation Board of Directors approved low-cost financing and State and federal grants that empower local governments to advance crucial upgrades — such as replacing lead service lines and removing emerging contaminants from drinking water — without passing high costs on to ratepayers. These investments protect public health and the environment, reduce future risks, and support good-paying jobs.

“This investment is about making essential water improvements more affordable for communities across New York,” Governor Hochul said. “By lowering costs for local governments, we are helping ensure New Yorkers can rely on safe, clean water without facing added financial pressure. These upgrades also strengthen our long-term resilience, ensuring our water systems can withstand future challenges and remain sustainable for decades to come.”

The funding approved today includes investments for the Cities of Poughkeepsie and Troy from the federal Infrastructure Investment and Jobs Act (IIJA) and Governor Hochul’s Lead Infrastructure Forgiveness and Transformation (LIFT) grant program. These investments are part of the $535 million Statewide effort to help communities pay for lead service line inventory and replacement projects. These loan forgiveness grants help cover costs not fully paid for by federal grants, minimizing the financial burden on local ratepayers.

EFC’s Board approved funding from the Clean Water and Drinking Water State Revolving Funds — New York’s primary mechanism for financing sewer and water infrastructure. These funds, supported by both State and federal sources, offer low-interest financing to help communities afford essential projects. IIJA funding for water infrastructure is administered through the State Revolving Funds.

Fully funded State Revolving Funds are necessary for New York to be prepared to meet the ongoing need for communities to repair, rehabilitate, and modernize aging infrastructure in the future. The State Revolving Funds deliver over $1 billion annually to New York communities and have been significantly bolstered by IIJA funding. By making clean water financing more accessible, these programs help ensure New Yorkers have access to safe drinking water, prevent infrastructure failures that threaten the environment, and avoid costly rate increases.

EFC also approved previously awarded grants from the Water Infrastructure Improvement and Green Resiliency Grant programs, including five grants funded by the Clean Water, Clean Air, and Green Jobs Environmental Bond Act. Board approval is a critical step in the funding process. It allows communities to enter into an agreement and access these dollars for project implementation.

The investment strategy of leveraging federal and State funds ensures every dollar goes further in protecting public health and modernizing aging infrastructure across the State.

Funding was approved for projects in the following regions:

Capital Region

• Albany Municipal Water Finance Authority, funding for two projects:
  • $3.6 million in State and federal grants and interest-free financing for the planning, design, and construction of sewer separation around Washington Park Lake and Thurlow Terrace to reduce combined sewer overflows in the City of Albany.
  • $18 million in federal grant and interest-free financing for the design and construction of sewer collection system improvements within the City of Albany.
• Town of Rotterdam, funding for two projects:
  • $17.8 million in State grant and low-cost financing for the construction of wastewater treatment plant improvements. The State grant is funded by the Environmental Bond Act.
  • $34 million in low-cost financing for high priority drinking water distribution system improvements and well field improvements in Water District No. 5.
• City of Troy, $16.7 million in State and federal grants and interest-free financing, including a loan forgiveness LIFT grant, to replace 1,110 lead service lines.
• Village of Whitehall, $2.9 million in federal grant and low-interest financing for the planning, design, and construction of disinfection and other upgrades at the wastewater treatment plant.

Finger Lakes

• Village of Avon, $4.7 million in State grant and low-interest financing for upgrades and rehabilitation of drinking water storage tanks, installation of mixing systems, and upgrade of a valve vault and valves within the distribution system.
• Village of Dresden, $6.6 million State grant and low-cost financing for the replacement of approximately 20,000 linear feet of aged and undersized asbestos-cement piping. The State grant is funded by the Environmental Bond Act.
• Village of Penn Yan, $6.2 million in interest-free financing for the planning, design, and construction of improvements at the Cherry Street Pump Station and a new force main from the pump station to the wastewater treatment plant.
• Village of Phelps, $12.7 million in State grant and interest-free financing for the design and construction of upgrades at the wastewater treatment plant.

Long Island

• Town of Hempstead, $5 million State grant for the construction of a new advanced oxidation process, granular activated carbon, and green sand filter treatment systems to remove 1,4-dioxane and iron from East Meadow Water District Well No. 10.
• Locust Valley Water District, $4.9 million federal grant for the installation of two granular activated carbon adsorption treatment systems and associated appurtenances at Well 9 to treat PFOA contamination.
• Town of Smithtown, $998,200 federal grant to extend the boundaries of the Smithtown Water District service area to provide water to residences with private wells contaminated with PFAS.
• Suffolk County Water Authority, six State grants totaling $5.5 million for the following projects:
  • Construction of new advanced oxidation process treatment systems to remove 1,4-dioxane from Hawkins Road Well No. 2, North Washington Avenue Well No. 1, and Kings Park Road Well No. 2A.
  • Construction of new granular activated carbon absorption vessels to remove PFAS from Blue Point Road Well No. 4A, Boyle Road Well No. 2, and Foxcroft Lane Well No. 2.

Mid-Hudson

• Village of Nyack, $7.2 million in State and federal grants and low-cost financing to upgrade a surface water treatment plant to install two sets of granular activated carbon filter vessels.
• City of Poughkeepsie, funding for two projects:
  • Interest-free financing and a loan forgiveness LIFT grant totaling $906,600 for exploratory work required to create a drinking water service line material inventory, with emphasis on locating lead or galvanized pipe.
  • $6.2 million in federal grant and interest-free financing for the design and construction of a stormwater management project.

Mohawk Valley

• Town of Frankfort, $700,000 State grant for the creation of the Center and Zolad Roads Water District.
• City of Utica, $24.1 million in State and federal grants and interest-free financing for various combined sewer overflow improvement projects.

New York City

• New York City Housing Authority, $6.9 million for the Jefferson Houses Cloudburst Project to manage, store, and filter stormwater runoff at a public housing development in East Harlem. The project will install a subsurface retention system, porous concrete pavers, and two synthetic turf fields. In addition to stormwater capture, these green infrastructure practices will reduce the urban heat island effect while providing residents access to outdoor recreation space.

North Country

• Village of Dexter, $2 million in State and federal grants and low-cost financing for the design and construction of disinfection facilities at the sewage treatment plant.
• Village of Gouverneur, $2 million in State and federal grants and interest-free financing for the planning, design, and construction of a sanitary and storm sewer separation project.
• Town of Keene, $7.2 million in State grant and low-cost financing for the installation of a new drinking water production well, rehabilitation of the existing treatment building, installation of water meters and installation of all required appurtenances to connect the new well to the treatment building and distribution system.
• City of Ogdensburg, $2.6 million in State and federal grants and interest-free financing for the planning, design, and construction of sanitary and storm sewer improvements. The State grant is funded by the Environmental Bond Act.
• Town of Peru, $25.6 million in State grant and low-cost financing for the planning, design and construction of wastewater treatment plant improvements.
• Town of St. Armand, $2 million in low-cost financing for the planning, design, and construction of wastewater disinfection improvements.

Southern Tier

• City of Binghamton, $7.7 million for the planning, design and construction of a new force main and pump station to replace the existing 6th Ward interceptor sewer and Delevan Pump Station.
• Town of Cohocton, $3.6 million in State grant and low-cost financing for the installation of approximately 6,800 linear feet of new drinking water main, hydrants and valves on Wayland Street, Beecher Street, and University Avenue. The State grant is funded by the Environmental Bond Act.
• City of Elmira, $6 million in State and federal grants and interest-free financing for drinking water main replacement at Water Street, the High Reservoir, and the Chemung River crossings at Harmon and Lake Streets.

Western New York

• Village of Cattaraugus, $10.5 million in State grant and interest-free financing for a new groundwater well, rehabilitation of the existing well, drinking water treatment plant upgrades, replacement of 28,200 linear feet of water main, and water storage tank upgrades.

Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings

The Board also took action to help ensure continued, long-term affordability of existing projects. Short-term financing provides capital for project design and construction. Once construction is completed, the short-term financing is typically refinanced to long-term financing for up to 30 years, saving municipalities significant interest expenses versus financing on their own.

The Board approved long-term interest-free financing for projects undertaken by communities in the following regions:

Mohawk Valley

• City of Rome, $12.7 million in long-term interest-free financing for the planning, design, and construction of the Railroad Street interceptor sewer project.

Southern Tier

• Village of Wayland, $2 million in long-term interest-free financing for the design and construction of wastewater treatment plant improvements.

Based on current market conditions, these long-term financings are projected to save local ratepayers an estimated $18.8 million in interest payments over the life of the financings.

New York's Commitment to Water Quality

New York State continues to increase its nation-leading investments in water infrastructure, including more than $3.4 billion in financial assistance from EFC for local water infrastructure projects in State Fiscal Year 2025 alone.

With $500 million allocated for clean water infrastructure in the FY26 Enacted Budget announced by Governor Hochul, New York will have invested a total of $6 billion in water infrastructure since 2017. Any community needing assistance with water infrastructure projects is encouraged to contact EFC. New Yorkers can track projects benefiting from EFC’s investments using the interactive project impact dashboard. 

Two Men Sentenced for $17M COVID-19 Unemployment Fraud

Two Cordele, Georgia, men were sentenced today for their participation in a scheme to defraud the Georgia Department of Labor (GaDOL) out of millions of dollars in benefits meant to assist unemployed individuals during the COVID-19 pandemic.

Malcolm Jeffrey, 34, was sentenced to 10 years in prison and ordered to pay $16,958,372 in restitution. Gerard Towns, 34, was sentenced to six years in prison and ordered to pay $365,066 in restitution.

“The defendants orchestrated an egregious scheme to steal $17 million of unemployment insurance payouts using stolen identities,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “These defendants exploited a government program designed to alleviate economic hardship to line their own pockets. The sentencings today demonstrate that the Criminal Division will hold accountable fraudsters who steal from the public fisc.”

“Malcolm Jeffrey, Gerard Towns, and their co-conspirators participated in an unemployment insurance fraud scheme that targeted the Georgia Department of Labor,” said Special Agent in Charge Mathew Broadhurst of the U.S. Department of Labor Office of Inspector General (DOL-OIG) Southeast Region. “The conspirators submitted fraudulent UI claims using the stolen identities of identity theft victims to obtain debit cards loaded with UI benefits. We will continue to work closely with our law enforcement partners to hold accountable those who attempt to exploit these vital U.S. Department of Labor programs.”

“Exploiting pandemic relief programs meant to help Americans at the height of the COVID-19 pandemic for personal enrichment is unconscionable,” said Inspector General Joseph V. Cuffari Ph.D., of The Department of Homeland Security Office of Inspector General (DHS-OIG). “DHS-OIG will continue to prioritize pandemic-related fraud investigations and work with our law enforcement partners to bring perpetrators to justice.”

“Today’s sentencings emphasize our dedication and commitment to holding individuals accountable who exploit federal relief programs for personal gain, “said Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector General (USPS-OIG). “As proven in this case, our criminal investigators along with our law enforcement partners will work together and diligently pursue anyone who attempts to exploit programs created to help legitimate people and businesses affected by the global pandemic.”  

“IRS Criminal Investigation special agents are continuing finding and holding accountable criminals who defrauded COVID-19 programs,” said Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office. “With the passage and signing of bills in 2022 establishing 10-year statute of limitations for those who defrauded the COVID-19 programs, I want to put those who stole from the taxpayers on notice that it is only a matter of time before IRS-CI special agents and our law enforcement partners uncover their crimes and bring them to justice.”

Jeffrey and Towns are the last of 12 defendants sentenced in connection with Operation Cordele Partial, one of the largest domestic unemployment insurance (UI) fraud investigations in the history of the DOL. Operation Cordele Partial uncovered multiple massive schemes based in central Georgia that defrauded the GaDOL of over $45 million and involved over 20 states unemployment insurance programs.

According to court documents and evidence presented in court, from March 2020 through November 2022, Jeffrey, Towns, and their co-conspirators caused more than 2,500 fraudulent UI claims to be filed with the GaDOL, resulting in at least $17 million in stolen benefits.

To execute these schemes, the defendants and their co-conspirators created fictitious employers and fabricated lists of purported employees using personally identifiable information (PII) from thousands of identity theft victims and filed fraudulent UI claims on the GaDOL website. The co-conspirators obtained PII for use in the scheme from a variety of sources, including by paying an employee of an Atlanta-area health care and hospital network to unlawfully obtain patients’ PII from the hospital’s databases, and by purchasing PII from other sources over the internet. Using victims’ PII, the co-conspirators caused the stolen UI funds to be disbursed via prepaid debit cards mailed to various locations in Georgia.

In June 2025, Towns pleaded guilty to conspiracy to commit mail fraud. In August 2025, Jeffrey was convicted at trial of conspiracy to commit mail fraud.

DOL-OIG, DHS-OIG, IRS-CI, USPS-OIG, U.S. Postal Inspection Service, U.S. Secret Service and Homeland Security Investigations investigated the case.

Trial Attorneys Lyndie Freeman, Siji Moore, and Kyle Crawford of the Criminal Division’s Fraud Section prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. 

Crypto-Enabled Fraudster Sentenced For Orchestrating $40 Billion Fraud

Do Kwon, Founder of Terraform Labs, Sentenced to 15 Years for Fraud and Manipulation 

United States Attorney for the Southern District of New York, Jay Clayton, announced today that DO HYEONG KWON was sentenced to 15 years in prison for committing wire fraud and conspiring to commit securities fraud, commodities fraud, and wire fraud in connection with KWON’s fraud centered around Terraform Labs PTE, Ltd. (“Terraform”), and the cryptocurrencies launched by Terraform.  KWON was extradited on December 31, 2024, and pled guilty in August 2025 before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence. 

“Do Kwon devised elaborate schemes to mislead investors and inflate the value of Terraform’s cryptocurrencies for his own benefit,” said U.S. Attorney Jay Clayton.  “When his crimes caught up to him, Kwon embarked on a deceptive public relations campaign to cover up his fraud, laundered the proceeds of his illegal schemes, and sought to purchase political protection in foreign countries to evade criminal prosecution. Let there be no mistake, fraud is fraud whether it takes place on our streets, in our securities markets, or in our emerging and important digital asset ecosystem, and no matter where in the world criminals may seek refuge, the women and men of the Southern District of New York will relentlessly pursue justice for investors and protect the integrity of financial markets.” 

According to the allegations in the Superseding Indictment and statements made in public court filings and proceedings:

From at least in or about 2018, up to and including in or about 2022, KWON orchestrated schemes to defraud purchasers of cryptocurrencies created and issued by Terraform.  Terraform was a blockchain and cryptocurrency company co-founded by KWON in 2018. Terraform distinguished the Terra blockchain from other competing blockchains by issuing so-called algorithmic stablecoins pursuant to what it called the “Terra Protocol.”  According to KWON and others, Terraform stablecoins maintained a steady value even under changing market conditions.  In or around September 2020, Terraform publicly announced the launch of Terraform’s stablecoin pegged to the U.S. dollar, TerraUSD (“UST”).  Terraform promotional materials claimed that, under the Terra Protocol, one UST could always be exchanged for $1 worth of LUNA, the Terra blockchain’s native token. Conversely, $1 worth of LUNA could always be exchanged for one UST.

KWON claimed that Terraform had used blockchain technology to create a self-contained, decentralized financial world with its own money, payment system, stock market, and savings bank.  KWON presented Terraform as having developed functioning, reliable financial technologies on the cutting edge of a movement towards “decentralized finance” (or “DeFi”), in that Terraform’s products purportedly operated largely through automated mechanisms and economic incentives, and that Terraform’s systems were governed by their users rather than by KWON and his associates and subordinates.

In fact, core Terraform products did not work as KWON advertised and were manipulated to create the illusion of a functioning and decentralized financial system in order to lure investors.  KWON engaged in this deceptive conduct in order to pump up the value of Terraform’s cryptocurrencies, which KWON and entities he controlled (a) possessed in large amounts and (b) sold to investors in exchange for billions of dollars’ worth of other assets.

The misrepresentations that KWON made in furtherance of his schemes to defraud included the following:

1. The Stablecoin Misrepresentations: KWON lied about the effectiveness of the system that lay at the heart of Terraform’s cryptocurrency empire, the “Terra Protocol,” which purportedly used a computer algorithm to maintain the value of Terraform’s so-called “stablecoin” pegged to the U.S. dollar, TerraUSD (“UST”), at a value of $1 for one UST.  Beginning at least in or about 2020, KWON and his associates advertised the Terra Protocol, including the economic incentives it created in the market, as sufficient on its own to maintain parity between one UST and one U.S. dollar.  In particular, KWON claimed that the Terra Protocol on its own had caused the successful restoration of UST’s $1 value after it dropped below 92 cents in or about May 2021.  That was a lie.  In truth, after the Terra Protocol on its own failed to cause the restoration of UST’s $1 peg in May 2021, KWON reached an agreement with executives at a high-frequency trading firm (the “Trading Firm”) to have the Trading Firm purchase large amounts of UST to artificially support UST’s $1 peg.  UST’s $1 peg was restored in May 2021 only after the Trading Firm strategically purchased millions of dollars of UST for the purpose of artificially propping up the peg.
2. The LFG Misrepresentations:  KWON lied about the governance of the Luna Foundation Guard Ltd. (the “LFG”), a purportedly independent body the creation of which KWON publicly announced in or about January 2022.  KWON claimed that the LFG was managed by a governing body that operated independently of Terraform and was tasked with deploying billions of dollars’ worth of financial reserves to defend UST’s peg.  In truth, KWON simultaneously controlled both the LFG and Terraform at all relevant times following the creation of the LFG; operated the LFG as an arm of Terraform rather than as an independent entity; repeatedly made significant financial decisions for the LFG without the prior approval of its governing body; and treated the LFG’s funds as interchangeable with Terraform’s funds when it suited KWON’s interests, resulting in KWON misappropriating hundreds of millions of dollars in assets from the LFG. KWON and others acting at his direction then sought to launder those misappropriated funds using a variety of transactions designed to conceal and disguise the nature, location, source, ownership, and control of the funds.
3. The Mirror Misrepresentations: KWON lied about the control, operation, and extent of user adoption of an investing application on the Terra blockchain called Mirror Protocol (“Mirror”), that purportedly allowed for the creation, buying, and selling of synthetic versions of stocks listed on United States securities exchanges.  KWON claimed that Mirror operated in a decentralized manner and that he and Terraform played no role in Mirror’s governance.  In truth, KWON and Terraform secretly maintained control over Mirror, and used automated trading bots to manipulate the prices of synthetic assets issued by Mirror.  KWON funded those manipulative trading bots in part by using a supply of one billion stablecoins that he created at the genesis of the Terra blockchain (the “Genesis Stablecoins”).  KWON also caused Terraform to inflate key user metrics to deceive investors about the extent of Mirror’s adoption and decentralization.
4. The Chai Misrepresentations: KWON falsely claimed that the Terra blockchain was being used to process billions of dollars in financial transactions for the Korean payment-processing application Chai.  KWON pointed to Chai’s purported use of the Terra blockchain as evidence that Terra had “real world” applications or uses, as distinct from competing cryptocurrency platforms.  In truth, Chai processed transactions through traditional financial processing networks, not the Terra blockchain.  To create the illusion that Chai processed transactions through the Terra blockchain, KWON and his co-conspirators used an automated process that copied transactions onto the Terra blockchain.  KWON used the Genesis Stablecoins in part to fund these fraudulent efforts.
5. The Genesis Coin Misrepresentations: When the Terra blockchain was first established in or about 2019, KWON arranged for it to have a preexisting supply of approximately one billion Terra stablecoins (the Genesis Stablecoins).  KWON provided limited, shifting, and knowingly false disclosures to investors about the Genesis Stablecoins.  Rather than using the Genesis Stablecoins solely for the purposes set forth in disclosures to investors, KWON used the Genesis Stablecoins for fraudulent purposes, such as funding (i) fake Chai blockchain transactions and (ii) trading bots to manipulate the prices of synthetic assets issued by Mirror.

Enticed, in part, by the fraudulent claims of KWON, both institutional and retail investors flocked to the Terra blockchain, such that, at its peak in the spring of 2022, the total market value of all UST and another Terraform cryptocurrency, LUNA, exceeded $50 billion.  KWON solicited and obtained investments from several investment firms in the United States and other locations, with the investments primarily consisting of agreements for the purchase or loan of Terraform’s cryptocurrencies built on the Terra blockchain.  Much of this growth followed KWON’s brazen deceptions about Terraform and its technology, including efforts by KWON and his associates to paper over UST’s vulnerabilities in May 2021 by secretly manipulating the market for UST.

By May 2022, UST’s peg began to break again.  By this time, the UST market was approximately nine times larger in terms of market capitalization and more than eight times larger in terms of daily trading volume relative to one year prior, in May 2021, when KWON sought to deceptively manipulate UST to maintain its $1 value.  While KWON was able to cover up the weaknesses of the Terra Protocol in May 2021, he was not able to do so in May 2022 when the market had expanded substantially.  As a result, UST and LUNA crashed, resulting in over $40 billion worth in investor losses.

After the crash of UST and LUNA in May 2022, and the initiation of government investigations in multiple jurisdictions into the crash, KWON sought to continue Terraform’s business operations and made public remarks about being in “full cooperation” with law enforcement inquiries.  In truth, KWON sought to evade accountability.  In a recorded conversation with an associate in or about August 2022, for example, KWON stated, in substance and in part, that his strategy with law enforcement investigating the crash of UST and LUNA was to “tell them to fuck off,” and that he had been taking steps to obtain “political protection” from multiple countries and was “pretty comfortable” that he would not be extradited to face criminal charges.

On or about March 23, 2023, KWON was arrested in Montenegro for trying to use a fraudulent passport.

In addition to the prison term, KWON, 34, of the Republic of Korea, was ordered to forfeit over $19 million in proceeds from his illegal schemes, including his interest in Terraform and its cryptocurrencies.

Mr. Clayton praised the investigative work of the Federal Bureau of Investigation (“FBI”), FBI’s Virtual Assets Unit, FBI’s Economic Crimes Unit, FBI’s International Operations Division, and the Department of Justice’s Office of International Affairs for their assistance.  Mr. Clayton further thanked the U.S. Securities and Exchange Commission, which previously conducted a separate civil action against KWON.  Mr. Clayton commended the Ministry of Justice of the Republic of Montenegro and the Ministry of Justice of the Republic of Korea for their cooperation and assistance in this matter.

Historic Homeland Security Task Force New York Targets Foreign Terrorists, Cartel Members, And Criminal Organizations With Ties To Big Apple

Homeland Security Investigations (HSI) New York, Federal Bureau of Investigation (FBI) New York Co-Lead Groundbreaking Coordinated Campaign Against Transnational Criminal Organizations 

United States Attorney for the Southern District of New York, Jay Clayton, United States Attorney for the Eastern District of New York, Joseph Nocella, Jr., Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Ricky J. Patel, Special Agent in Charge of the New York Field Office of Internal Revenue Service Criminal Investigation (“IRS-CI”), Harry T. Chavis, Jr., and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, joined federal partners on Dec. 10 to announce the establishment of the Homeland Security Task Force (“HSTF”) New York. 

Co-led by HSI and the FBI, the HSTF New York will serve as a first-of-its-kind task force that utilizes a whole-of-government approach to identify, disrupt and dismantle criminal cartels, foreign gangs, and transnational criminal organizations (“TCOs”) in New York and throughout the United States. 

“We hear what New Yorkers want: they want our parks, schools, housing developments, subways, and streets to be safe and feel safe,” said U.S. Attorney Jay Clayton.  “Together with our federal partners and the NYPD, the Southern District is committed to delivering safe streets and a better quality of life for all New Yorkers.  In the last year, we have collectively investigated and charged: members of Tren de Aragua and many other brutally violent gangs with murders, sex trafficking, and narcotics distribution; over a dozen narco-terrorists and members of state-sponsored drug cartels with narcotics distribution; foreign nationals with fentanyl distribution; and most recently, 18 defendants in a wide narcotics sweep aimed at cleaning up Washington Square Park.  The women and men of the SDNY are actively engaged in similar matters and are committed to making New York safer each and every day.” 

“The historic collaboration of this Task Force strengthens the mission to protect our citizens by standing between our Districts and the transnational criminal organizations, human smugglers, and cybercriminals who target us with drug trafficking, violence, and economic harm,” said U.S. Attorney Joseph Nocella, Jr.

“FBI New York proudly stands alongside our federal, state, and local partners to co-lead with HSI New York the New York Homeland Security Task Force,” said FBI Assistant Director in Charge Christopher G. Raia.  “By bringing the full force of the federal government, this task force will dismantle designated terrorist enterprises who are responsible for trafficking lethal drugs and weapons into our communities.  Through unified partnership, we will continue to defend the homeland from evolving threats, safeguard critical infrastructure, and strengthen national resilience.”

“The people of this city deserve to know that special agents and investigators at every level of law enforcement are standing side-by-side and collaborating under one roof, so that New Yorkers may go about their lives safely and comfortably,” said HSI Special Agent in Charge Ricky J. Patel.  “The HSTF New York and HSI, as its co-leader, are driving coordinated investigations that strike at the heart of criminal networks and schemes both here and abroad.  With unity as our strength and coordination as our advantage, we will outpace, outsmart, and outmaneuver transnational criminal organizations at every turn.”

“We are proud to have entered into this agreement with the New York Homeland Security Task Force as a partner and as the third agency on the Executive Committee,” said IRS-CI Special Agent in Charge Harry T. Chavis, Jr.  “Whether it is money laundering, Bank Secrecy Act violations, a complex financial fraud, or leveraging our tax authority, we will continue working in tandem with all the agencies under the HSTF umbrella to take criminals off the street and dismantle transnational criminal organizations.  Special Agents with IRS Criminal Investigation have long been known for lending their financial and tax expertise to complex investigations.  With this agreement, our special agents will continue to proactively leverage our knowledge and unique skills for the betterment of this new team.”

The mission of the HSTF is to identify and target for prosecution transnational criminal organizations engaged in diverse criminal schemes involving a myriad of federal violations both within the United States and throughout the world.  Violations include, but are not limited to drug trafficking, money laundering, weapons trafficking, human trafficking, alien smuggling, homicide, extortion, kidnapping, weapons trafficking, and other TCO- related violations where there is or may be a federal investigative interest.

HSTF New York will primarily focus on investigating TCO Foreign Terrorist Organizations (“FTOs”), and is working towards the disruption and full dismantlement of these criminal organizations, combining the full strength of the investigative and intelligence forces of the U.S. government.  One key component of the HSTF is the ability to combine information from our intelligence community partners with our law enforcement investigations to increase our effectiveness in combatting and dismantling the threat.

This task force model allows state, local, and federal law enforcement to extend our reach, share intelligence in real time, and target these threats at every level.

HSTF New York is comprised of law enforcement personnel from state and local law enforcement, including the NYPD, and federal entities from the U.S. Department of Homeland Security, the Department of Justice, the Department of Treasury, the Department of State, the Department of War, the Office of the Director of National Intelligence, and the Department of Labor.  Participating agencies include the Bureau of Alcohol, Tobacco, Firearms and Explosives; Diplomatic Security Service; the Drug Enforcement Administration; the New York City Police Department (NYPD); U.S. Citizenship and Immigration Services; U.S. Coast Guard; U.S. Customs and Border Protection; U.S. Marshals Service – Eastern District of New York; U.S. Marshals Service – Southern District of New York; U.S. Postal Inspection Service; and the U.S. Secret Service.

More About the Homeland Security Task Force (“HSTF”)

Homeland Security Task Forces (“HSTFs”) nationwide arrested more than 3,200 foreign terrorists, narcotraffickers, and gangbangers, and seized more than 91 metric tons of narcotics off American streets between August 25 and October 7 alone.

Prior to the creation of HSTF, the federal government had 1,000 competing task forces focused on transnational criminal organizations.  Since January, HSTF has established a new system and force in all 50 states and U.S. territories while coordinating and implementing operations with federal, state, local, tribal, and territorial law enforcement partners.  Department of War and Intelligence Community partners are also providing HSTF with logistics, intelligence, and operational support.

On August 25, HSTF officially launched its effort to protect the Homeland with a September Surge encompassing 400 operations nationwide. In just 43 days, HSTF’s nationwide operations resulted in 3,266 arrests and seizures including:

• 1,041 Sinaloa members,
• 856 Cartel Jalisco Nuevo Genaracion (“CJNG”) members,
• 641 MS-13 members,
• 456 Tren de Aragua members,
• 1,067 weapons
• More than $3,250,000 in currency
• Approximately 91 metric tons of narcotics

The HSTF will absorb several key components of the Organized Crime Drug Enforcement Task Force (“OCDETF”), which has now been retired, to serve as the foundation of the HSTFs, to include critical databases previously utilized by OCDETF, OCDETF Strike Force infrastructure, partnerships, and funding.

HSTFs differ from Safe Street Task Forces (“SSTF”) by focusing on combating multijurisdictional TCOs operating across national borders, while the SSTF will continue to focus on targeting domestic gangs and violence reduction efforts in partnership with state and local law enforcement.  When feasible, SSTF investigations could be enhanced by HSTF resources for maximum impact.

HSTFs differ from Joint Terrorism Task Forces (“JTTF”) by focusing on combating multijurisdictional cartel and international gang TCOs operating across national borders with the ultimate goal to disrupt and dismantle these organizations through prosecution while JTTF will continue to focus on protecting the homeland from foreign and domestic, ideological-based terrorism. 

Governor Hochul and Queens District Attorney Katz Announce Indictment Charges in $2.2 Million Organized Retail Theft Bust

Queens-Based Multi-State Operation Busted by District Attorney’s Office and Members of the State Police Organized Retail Theft Task Force Established by Governor Hochul

13 Individuals Named in a 780-Count Indictment Charging Them with Grand Larceny, Conspiracy, and Criminal Possession of Stolen Property

Queens District Attorney’s Office Leveraged New Laws Targeting Organized Retail Theft Secured by Governor Hochul in the FY25 Enacted Budget

Governor Kathy Hochul and Queens District Attorney Melinda Katz today announced that 13 individuals have been charged in a 780-count indictment for operating a stolen goods and resale ring that targeted Home Depot locations in New York and eight other states. The individuals are facing grand larceny, conspiracy, and criminal possession of stolen property charges, including those included in the FY25 Enacted Budget that strengthened larceny laws by combining the value of merchandise stolen in separate incidents. In addition to these new crimes targeting organized retail theft, the FY25 Enacted Budget included a new crime specific to assault on retail workers, and more than $40 million for law enforcement secured by Governor Hochul. That funding created a dedicated Organized Retail Theft Task Force within the New York State Police, the work of which was integral to this case, and augmented efforts by district attorneys and local police departments to investigate and prosecute these cases.

“Since taking office, my highest priority has been driving down crime and keeping New Yorkers safe,” Governor Hochul said. “Following a post-pandemic spike in retail theft, I committed new funds to establish a dedicated organized retail theft task force and secured stronger laws to hold people who commit these crimes accountable. With better support for District Attorneys, local police departments and the State Police, we’re stopping organized retail theft rings in their tracks and ensuring a safer retail environment for business owners, staff and shoppers throughout New York.”

Queens District Attorney Melinda Katz said, “Thirteen defendants, over $2.2 million in merchandise, 319 incidents of theft, nine states and 128 separate Home Depot stores are the facts alleged, resulting in a 780-count indictment. The defendants took breaks for lunch and dinner, sometimes hitting the same Home Depot up to four times in one day. The stolen items were then resold to consumers, through a Brooklyn storefront or on Facebook Marketplace. Working with our partners at the New York State Police, we brought this brazen operation to a halt. I thank Governor Hochul for signing laws that provide prosecutors’ offices with tools to more efficiently investigate, and more effectively charge, organized retail theft and fencing operations.”

The District Attorney’s Office investigation began in June 2024, when members of the District Attorney’s Detective Bureau observed stolen air conditioners from Home Depot while conducting surveillance in a separate matter. The District Attorney’s Crime Strategies and Intelligence Bureau built the case in-house and worked closely with the New York State Police’s Organized Retail Theft Task Force, part of the agency’s Special Investigations Unit.

New York State Police Superintendent Steven G. James said, “This case sends a strong message to would-be criminals – if you engage in retail theft, we will find you and hold you accountable to the full extent of the law. Retail theft has real victims – threatening the safety of shoppers and retail workers, creating enormous losses for businesses, and rising prices for the rest of us. I want to commend the outstanding work of our investigators and our partners at the Queens County District Attorney’s Office, and I want to thank Governor Hochul for the support she has provided to help us fight back against organized retail theft.”

Eleven individuals were arraigned yesterday on a 780-count indictment including charges of first-degree grand larceny, first-degree criminal possession of stolen property, fourth-degree conspiracy, and other crimes. One defendant remains at large and another will be arraigned at a later date. If convicted, members of the alleged theft crew face up to 25 years in prison, and the alleged black market retailers, known as fences, up to 15 years in prison.

According to the indictment and investigation, members of the theft and fencing ring are accused of stealing home construction tools, building supplies, power tools, smoke alarms, air conditioners, paper towels and other goods totaling more than $2.2 million during a 13-month period from August 2024 to September 2025. The items — stolen during 319 different incidents — were then sold to black market resellers, known as fences, who allegedly ordered the specific items to be stolen and then resold those goods to consumers.

The theft crew met almost daily to determine the locations of Home Depots they would target based on a review of merchandise in each store. Among the most common items stolen were insulation kits, buckets of reflective roof coating, power tools, air conditioners and smoke and carbon monoxide detectors. The amount of merchandise stolen in a single day ranged from about $1,800 to nearly $35,000.

Not including arrests and stolen goods recovered from this operation, the State Police and local law enforcement partners have recovered more than $2.6 million in stolen goods, made 1,261 arrests and filed 2,219 charges across 1,057 retail theft enforcement operations. As of December 2025, retail theft is down 14 percent year over year in New York City. Across the rest of the state, larceny is down 14 percent in the first seven months of 2025 vs. 2024.

Following a post-pandemic spike in reported retail theft in New York City and a statewide surge in reported larcenies, Governor Hochul also advanced new initiatives to strengthen laws, hold perpetrators accountable, protect retail workers and support small businesses, including:

• Elevating the assault of a retail worker from a misdemeanor to a felony, ensuring any person who causes physical injury to a retail worker performing their job is subject to enhanced criminal penalties
• Allowing prosecutors to combine the value of stolen goods when filing larceny charges, and allowing retail goods from different stores to be aggregated for the purposes of reaching a higher larceny threshold when stolen under the same criminal scheme
• Making it illegal to foster the sale of stolen goods to go after third-party sellers
• Securing $5 million to fund tax credits to help small businesses invest in and alleviate the financial burden for added security measures

NYS Office of the Comptroller DiNapoli: Gen Z and Young Millennials in NY Struggle With Economic, Affordability Challenges

 

Student Loan Debt, Rising Housing Costs, and High Unemployment Undermine Financial Independence

New York’s young adults – some members of Generation Z (born 1997-2012) and Millennials (born 1981-1996) – are facing a complex economic landscape including higher unemployment rates, increasing costs, and larger debt burdens, that threatens their financial well-being, according to a new report released by State Comptroller Thomas P. DiNapoli.

“Young adults are dealing with mounting obstacles to achieving financial stability and independence,” DiNapoli said. “They face a shrinking pool of entry-level jobs and rising unemployment, driven in part by AI. Increasing housing costs along with growing debt are also making it increasingly difficult for them to live independently and build their future. Addressing affordability, expanding housing options, and improving access to education, job training and employment opportunities are essential to reversing these trends. Retaining the state’s young workforce is a critical component of New York’s prospects for its long-term economic growth and prosperity.”

In 2023, there were 4.6 million New Yorkers aged 18 to 34 (“young adults”) representing 23.2% of the state’s population and 6.1% of the young adult population nationwide, according to the Census Bureau’s American Community Survey. However, New York saw a 1.9% decline in this age group over the past decade, while the national population of young adults grew 4.2%.

The majority of young adults reside in the downstate regions (New York City, Long Island and the Hudson Valley), with one in four New York City residents falling into this age group. From 2013 to 2023, seven regions across the state experienced a decline in their young adult populations, with the largest decrease in the North Country (8.5%).

For 18-year-old high school graduates in New York, over half, 56.7%, pursue higher education, more than 37.3% of high school graduates nationally. People aged 26 to 34 are more likely to have a bachelor’s degree (31.5%) compared to those aged 35 and older (19.6%).

Job Market

For 18- to 25-year-olds, the labor force participation rate in 2023 was 47.6% with just under half (49.9%) attending school (high school and above). For those in school and in the labor force, the majority (87.8%) worked mostly part-time with a median work week of 21.7 hours. Employment for the 18- to 25-year-olds is largely in service occupations such as sales, food preparation or serving. Young adults aged 26 to 34 have the highest participation rate at 84.7%. Just under 90% of those who are college educated (and not currently attending school) are employed compared to 68.1% of those without a college education.

Unemployment

Compared to older New Yorkers, young adults face higher unemployment. The unemployment rate for young adults was 8.6% in 2023, more than double the statewide average. However, unemployment varies based on race, ethnicity and education. In 2024, the unemployment rate in New York for Black or African Americans aged 20 to 24 was 18.2%, more than double their white counterparts; the same was true among 25- to 34-year-olds. Young adults of Hispanic or Latino ethnicity also had higher unemployment rates. Asians aged 25 to 34 had the lowest unemployment rate. The unemployment rate for those in the 26 to 34 age group who do not have a college degree was over two times higher than those with one in 2023.

Expenses

The largest expenses for young adults were housing, food and transportation, which comprised over two-thirds of their total spending in 2023. Housing represented the largest expense, 35%, and food and transportation were a third of expenses. 

Since 2013, median rental costs for housing across New York have increased by 33%, with the number of lower cost units declining. Due to these increased costs, 35.9% of young adult renters now face housing cost burdens with 22.4% spending 30-49% of their income on rent and utilities and 13.4% spending 50% or more. In addition, home ownership by young adults has become increasingly difficult. In 2004, 31.2% of 26- to 34-year-olds owned a home; in 2023, it was 23.4%.

Debt Burdens

Young adults held nearly 30% of the nation’s total household debt in 2024. Since 2013, all debt held by young adults has grown by 67.8% ($2.1 trillion), growing faster than the 52.3% increase in debt held by individuals over 40.

In New York, 1.3 million young adults aged 18 to 34 had student loan debt totaling $40.5 billion, 42.1% of the total amount of student loan debt held by all age groups in the state in 2024. Average student loan debt in New York, just over $30,300, was the second highest in the nation, just below Maryland ($30,400). Reported student loan delinquencies, which are 90 days or more late on repayment, grew from 0.3% of young adults nationally at the end of 2024 to 9.7% in the second quarter of 2025, following the end of the Department of Education’s pause on credit reporting for student loans in October 2024.

Report

Obstacles to Independence: Financial Challenges Facing Young Millennials and Gen Z

Related Reports

New York City’s Uneven Recovery: Youth Labor Force Update