Office of the New York State Comptroller DiNapoli - This Week: Business Costs in New York City

Business Costs in New York City

According to a new report released by Comptroller DiNapoli, New York City remains one of the nation’s most expensive places to start or operate a business, but several major business expenses have grown at a slower rate than in competing metropolitan areas over the past decade. Understanding where costs are rising more quickly can help inform policies that support both economic growth and affordability.

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Audit Reveals More Than $460K Owed to Vehicle Owners

An audit released by Comptroller DiNapoli found that NYC’s Department of Finance (DOF) failed to return over $460,000 to owners of seized vehicles that were auctioned due to a lack of financial controls and training. The lack of internal controls shortchanged vehicle owners of money that was rightfully theirs. The DOF generally agreed with the audit's findings and is acting to implement its recommendations.

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Former Hoosick Falls Police Chief Pleads Guilty to Official Misconduct

The former officer in charge of the Village of Hoosick Falls Police Department and former chief of the Town of Hoosick Rescue Squad, pleaded guilty to official misconduct, in relation to using rescue squad funds to purchase over a thousand dollars in tires for his personal vehicle, Comptroller DiNapoli, Rensselaer County District Attorney Mary Pat Donnelly, and New York State Police Superintendent Steven G. James announced.

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S T A T E   A G E N C Y   A U D I T S

• Department of Health – Medicaid Program: Improper Medicaid Payments to Hospitals for Outpatient Services Billed as Inpatient Services for Recipients Enrolled in Managed Care
• Department of Health – Medicaid Program: Improper Payments for Laboratory and Related Services
• Office for People With Developmental Disabilities – Incentives for Non-Profit Service Providers’ Recruiting and Retention Efforts
• Department of Motor Vehicles – Assessable Expenses of Administering the Motor Vehicle Financial Security Act and the Motor Vehicle Safety Responsibility Act for the State Fiscal Year Ended March 31, 2025
• Nelson A. Rockefeller Empire State Plaza Performing Arts Center Corporation – Security Over Critical Systems

A L S O  I N  T H E  N E W S

•  Why does it cost so much to run a business in NYC?

•  N.Y. comptroller audit finds nearly two-thirds of funds for  homeless veterans went  unspent

•  Floyd Memorial Library Podcast: Episode 241 with Tom DiNapoli, New York State   Comptroller

•  Audit finds issues with N.Y.'s domestic violence hotline

•  Homelessness proving to be an intractable problem

Note: Some news links may require a paid subscription

P O S T   O F   T H E   W E E K

 

AIR QUALITY HEALTH ADVISORY ISSUED FOR NEW YORK CITY METRO REGION

Department of Environmental Conservation

In Effect for August 8, 2026

New Yorkers Encouraged to Download AirNow App, Sign Up for Air Quality Alerts via DEC Delivers

New York State Department of Environmental Conservation (DEC) Commissioner Amanda Lefton and State Department of Health (DOH) Commissioner Dr. James McDonald issued an Air Quality Health Advisory for Saturday, August 8, 2026, for ozone for the New York City Metro region. 

The pollutant of concern: Ozone 

The advisory will be in effect: 11 a.m. through 11 p.m.

The Air Quality Health Advisory region consists of: New York City Metro, which includes New York City and Rockland and Westchester counties.

DEC and DOH issue Air Quality Health Advisories when DEC meteorologists predict levels of pollution, either ozone or fine particulate matter (PM2.5), are expected to exceed an Air Quality Index (AQI) value of 100. The AQI was created as an easy way to correlate levels of different pollutants to one scale, with a higher AQI value indicating a greater health concern.  

People, especially those who have respiratory disease (such as asthma), young children, teenagers, the elderly, those who exercise outdoors, and those involved in vigorous outdoor work should consider limiting strenuous outdoor physical activity when ozone levels are the highest (generally afternoon to early evening). When outdoor levels of ozone are elevated, going indoors will usually reduce exposure. Individuals experiencing symptoms such as shortness of breath, chest pain, or coughing should consider consulting their personal physician.

OZONE 

Increased heat can lead to the formation of ground-level ozone, a major component of photochemical smog. Automobile exhaust and out-of-state emission sources are the primary sources of ground-level ozone and the most serious air pollution problems in the northeast. This surface pollutant should not be confused with the protective layer of ozone in the upper atmosphere.

Ozone is not directly emitted, instead it is produced when sunlight chemically reacts with nitrogen oxides (NOx) and volatile organic compounds (VOCs) from automobile exhaust and industrial emissions. High AQI due to ozone is not as visible as PM2.5 because it is a colorless gas but will produce hazy skies and reduce visibility in high concentrations.

Ozone levels generally decrease at night and can be minimized during daylight hours by curtailment of automobile travel and the use of public transportation where available.

New Yorkers also are urged to take the following energy-saving and pollution-reducing steps: 

• use mass transit or carpool instead of driving, as feasible, as automobile emissions account for about 60 percent of pollution in our cities; 
• conserve fuel and reduce exhaust emissions by combining necessary motor vehicle trips; 
• turn off all lights and electrical appliances in unoccupied areas; 
• use fans to circulate air. If air conditioning is necessary, set thermostats at 78 degrees; 
• close the blinds and shades to limit heat build-up and to preserve cooled air; 
• limit use of household appliances. If necessary, run the appliances at off-peak (after 7 p.m.) hours. These would include dishwashers, dryers, pool pumps and water heaters; 
• set refrigerators and freezers at more efficient temperatures; 
• purchase and install energy efficient lighting and appliances with the Energy Star label; and 
• reduce or eliminate outdoor burning and attempt to minimize indoor sources of PM 2.5 such as smoking.  

Additional information on ozone and PM 2.5 is available on DEC's website and on DOH's website (PM 2.5) / DOH's website (ozone). A DEC fact sheet about the Air Quality Index is available on DEC’s website or by PDF download.   

To stay up-to-date with announcements from DEC, sign up to receive Air Quality Alerts through DEC Delivers: DEC's Premier Email Service. A toll-free Air Quality Hotline (1-800-535-1345) was also established by DEC to keep New Yorkers informed of the latest air quality situation. 

Three Southern California Gang Members Sentenced to Life in Prison for Murder as Part of Homeland Security Task Force Initiative

 

Mike Escobar, also known as “Risky,” 43, a member of the Little Hood gang in Anaheim, California; James Mendez, also known as “Buck,” 47, a Sureño gang member from Garden Grove, California; and Kevin Trejo, also known as “Minor,” 38, a member of the Jeffrey Street gang in Anaheim, California, were each sentenced to life in prison for their trial convictions of murder in aid of racketeering relating to their association with the Mexican Mafia.

The Mexican Mafia, also known as “La Eme,” is a U.S.-based prison gang that has immense control over Hispanic street gangs in Southern California, directing illegal activities from prisons and collecting a portion of the proceeds from drug trafficking, illegal gambling, and other crimes committed on the streets.           

According to the evidence presented at the 10-day trial that occurred in October 2023, the defendants, in August 2017, murdered the victim, a member of a Costa Mesa, California, street gang and associate of the Mexican Mafia. At the time of his murder, the victim was involved in trafficking drugs and collecting taxes from other Orange County gangs on behalf of a Mexican Mafia leader in charge of criminal activities, who was in prison. The Mexican Mafia leader who ordered the murder is scheduled for trial in August 2027. 

“Gang members directing murders from behind bars will be charged and prosecuted just like those who pull the triggers,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “This case charged both the shooters and the perpetrator who ordered the murder. The Criminal Division will maintain its commitment to eradicate gangs at all levels and make America safe.”

“We will never tolerate violence ordered by imprisoned gangsters operating from behind bars,” said First Assistant U.S. Attorney Bill Essayli for the Central District of California. “These life sentences demonstrate our commitment to holding these thugs accountable until their dying day.”

“Gang members committing violent acts of murder on the streets of America violates everyone’s sense of safety and security in our neighborhoods,” said Assistant Director Heith Janke of the FBI’s Criminal Division. “Three more members of the Mexican Mafia who steal from society and degrade our communities are off the streets for the rest of their lives thanks to the joint efforts of the Orange County Violent Gang Task Force and the Homeland Security Task Force.”

On the night of the murder, Escobar, Mendez, and Trejo tricked the victim into driving with them to a residential neighborhood in Orange, California. There, they shot him seven times in the back and once in the head. 

Crime Scene Photos from the Night of the Murder.

The FBI’s Los Angeles Field Office; the Orange Police Department; the Santa Ana Police Department; the Placentia Police Department; the Orange County District Attorney’s Office; and the California Department of Corrections and Rehabilitation investigated the case.

Trial Attorneys Grace Bowen and Christopher Matthews of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Greg Staples for the Central District of California are prosecuting the case, with substantial assistance from Assistant U.S. Attorney Greg Scally for the Central District of California.

This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of U.S. law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders.

Secretary Mullin Tours Olympic Training Facility and Visits ICE Office in Colorado

 

On Thursday, United States Department of Homeland Security (DHS) Secretary Markwayne Mullin visited a U.S. Immigration and Customs Enforcement (ICE) office in Florence, Colorado, followed by a tour of the Olympic training facility in Colorado Springs, Colorado. 

“Yesterday, I met with ICE personnel in Florence, Colorado who are working every day to remove the worst of the worst from that state. Meeting with these men and women who are on the frontlines across the country, I’m reminded of how they truly are the best of the best,” said Secretary Mullin. “I then had the privilege of touring the Olympic training facility in Colorado Springs and meeting with our world-class athletes. DHS just had enormous success in securing the FIFA World Cup earlier this summer, and now we’re ready to repeat that same success with the Olympics in 2028.”

Secretary Mullin meets with ICE personnel at the ERO Denver office in Florence, Colorado.

At ICE’s Enforcement and Removal Operations (ERO) Denver office in Florence, Secretary Mullin met several agents, toured the facility, and received a briefing on their operations. He was joined at the facility by Acting Field Office Director George Valdez and Acting Deputy Field Office Director Robert Coultrip.

Secretary Mullin tours the U.S. Olympic and Paralympic Training Center in Colorado Springs, Colorado.

Secretary Mullin was joined by U.S. Representative Jeff Crank (CO-05) at the Olympic training facility.

While at the U.S. Olympic and Paralympic Training Center, Secretary Mullin toured the weightlifting room and sports medicine facility, watched the U.S. men’s paralympic basketball team practice, and met with several of the U.S. wrestlers at the wrestling gym.

Earlier this week, Secretary Mullin visited the southern border in Brownsville, Texas, where he was joined by U.S. Customs and Border Protection (CBP) Commissioner Rodney Scott and U.S. Border Patrol Chief Rosario Vasquez, and met with U.S. Coast Guard personnel and Border Patrol agents.

Attorney General James Secures More Than 140,000 Eggs for Central New York Families

 

Eggs Delivered After DOJ Investigation into Price Fixing by Major Egg Producers

Food Banks Throughout New York Will Receive Over 4.9 Million Eggs

New York Attorney General Letitia James announced the delivery of more than 140,000 eggs to Food Bank of Central New York in Syracuse as part of a bipartisan multistate settlement with Cal-Maine Foods (Cal-Maine), Versova/Centrum (Versova), and Hickman’s Egg Ranch (Hickman’s) for years of price fixing. A multistate investigation led by the Office of the Attorney General (OAG), alongside the U.S. Department of Justice (DOJ) and 16 other states, revealed that Cal-Maine, Versova, and Hickman’s illegally coordinated to influence a daily price index for eggs. The investigation alleged that this coordination artificially increased prices for retailers and consumers throughout the country for years. Under a settlement with the states, the three egg producers will deliver 53 million eggs to food banks in the 17 participating states, including 4,968,000 eggs to New York. In addition to the egg deliveries, the companies will pay $3.3 million to the states and make changes to their practices to prevent future violations of the law. The delivery of 11,700 cartons of a dozen eggs to Food Bank of Central New York is the fourth in a series of egg deliveries planned to food banks statewide.

“When businesses conspire to raise the price of everyday grocery items, shoppers across the country suffer,” said Attorney General James. “As a result of our investigation, we have secured a major delivery of eggs to Central New York families in need. I will continue to go after any company that seeks to take advantage of New Yorkers by illegally inflating prices.”

“Eggs are an important source of protein and one of the most requested items among the families and neighbors we serve. We are grateful to Attorney General James for securing this delivery,” said Andrew Katzer, Director of Procurement at Food Bank of Central New York. “These eggs will be distributed through our network of community partners, helping provide nutritious food to households throughout Central and Northern New York.” 

140,000 eggs delivered to Food Bank of Central New York in Syracuse that will be distributed throughout Central New York  

Attorney General James and the coalition’s investigation found that beginning at least as early as 2022, these three major egg producers secretly coordinated their bidding strategies to influence the daily egg price quotes published by Urner Barry, a benchmark pricing service widely used in egg supply contracts. The companies submitted sham bids at artificially inflated prices to distort the market, then withdrew those bids, intentionally aiming to raise the Urner Barry price quotes. By manipulating the Urner Barry benchmark, the companies artificially inflated the price of eggs paid by retailers and consumers nationwide.

As a result of settlements with OAG and the coalition of states, the three companies will deliver a total of 53 million eggs to food banks and nonprofit organizations across the participating states and pay a combined $3.3 million. Under a separate settlement with DOJ and the coalition of states, the companies will also adopt compliance measures to prevent future illegal coordination. New York will receive 4,968,000 eggs, all of which will be distributed through Feeding New York, the statewide network overseeing New York’s food banks. The first truckload of 280,800 eggs was delivered to City Harvest in Brooklyn, and on Tuesday, 280,800 eggs were delivered to Foodlink in Rochester. In addition to the Central New York delivery, more than 140,000 eggs were delivered to Food Bank of the Southern Tier in Elmira earlier today. Deliveries statewide will continue through mid-October. 

Joining the DOJ in securing this settlement were the attorneys general of Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, New York, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin.

Calabasas Man Sentenced to 27 Years in Federal Prison for Running ‘DoorDash for Drugs’ Service that Led to Two Fatal Fentanyl OD’s

 

A Calabasas man was sentenced to 324 months in federal prison for running what prosecutors called a “DoorDash for drugs” service that delivered illicit narcotics to buyers in Los Angeles and Ventura counties and resulted in two fatal fentanyl overdoses.

Erick Oved Estrada, 37, a.k.a. “Franco Sanchez” and “Eric Freddy Hook,” was sentenced by United States District Judge Michael W. Fitzgerald, who also ordered him to pay $43,145 in restitution.

Estrada, who has been in federal custody since November 2023, pleaded guilty in October 2025 to one count of conspiracy to distribute controlled substances resulting in death and one count of distribution of fentanyl resulting in death.

According to court documents, from May 2019 to March 2023, Estrada obtained narcotics, including cocaine and purported oxycodone pills that contained fentanyl. Estrada and his accomplices then provided these drugs to a network of drug delivery drivers for further distribution to customers or other drug distributors. The delivery drivers then directly provided the drugs to customers or distributors and collected payment.

On June 8, 2022, Estrada sold 25 fentanyl-laced oxycodone pills to co-defendant Arian Alani, 37, a Danish national living in Burbank, and a delivery driver. The following day, Alani sold some of these pills to the victim, identified in the indictment as “C.N.,” who ingested them and died of a drug overdose. Two days later, Alani confronted Estrada via text message and wrote, “my boy just died yesterday” – a reference to C.N. – and that Estrada “[s]houldn’t be selling [expletive] with fentanyl.”

In March 2023, Estrada knowingly and intentionally distributed fentanyl to a victim – identified in court documents as “S.M.” The victim earlier had texted someone to purchase two Xanax pills and two oxycodone pills for $80. 

On the evening of March 8, 2023, Estrada’s driver, on Estrada’s behalf, provided to S.M. the purported Xanax pills and oxycodone pills, which contained fentanyl. S.M. then returned home, where she ingested the fentanyl she received from Estrada’s drug delivery service, which caused her to suffer a fatal drug overdose.

Alani pleaded guilty in September 2025 to one count of possession with intent to distribute fentanyl and is scheduled for sentencing on December 2 and faces up to 20 years in federal prison.

The Drug Enforcement Administration and IRS Criminal Investigation investigated this matter. The DEA Overdose Justice Task Force, the Simi Valley Police Department, the Burbank Police Department, and the Los Angeles County Sheriff’s Department provided assistance.

Anthony Chrysanthis, Special Agent in Charge of the Drug Enforcement Administration Los Angeles Division, said, “The level of harm inflicted by this large-scale drug distributor is incalculable. Families and loved ones of those poisoned by fentanyl are left to deal with heart-wrenching and fluctuating waves of grief, every single day. We hope today’s sentencing brings some form of closure and solace to the victims’ families. DEA will continue to work with our law enforcement partners to ensure that drug criminals face the full force of the law.”

This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders.