This Week: New York State Comptroller DiNapoli Issues NYC Adopted Budget Report

Comptroller DiNapoli Issues NYC Adopted Budget Report

New York City’s $127.8 billion fiscal year (FY) 2027 budget, inclusive of prepayments of certain expenses, is nearly $5.9 billion more than projected at the same point last year, a significant increase that includes addressing known costs that were left out of previous financial plans. While the city was able to achieve budgetary balance in FY 2027, it shows a structural imbalance that could worsen if sustainable solutions are not found, according to a report released by Comptroller DiNapoli.

Comptroller DiNapoli presented his findings at the August 12, 2026 meeting of the New York City Financial Control Board.

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Read Comptroller DiNapoli's Full Remarks

Audit Finds Improvements Needed in Oversight of Recycling Facilities

An audit by Comptroller DiNapoli found the Department of Environmental Conservation (DEC) lacks reliable information on how much material is recycled across New York State. Auditors found missing reports, inaccurate data and inconsistent oversight of recycling facilities are limiting the state’s ability to accurately measure recycling efforts and track progress toward its environmental and emissions reduction goals. According to DEC, solid waste accounts for about 12% of New York’s greenhouse gas emissions. The audit examined whether DEC’s monitoring, inspection, and enforcement actions provided adequate oversight of recycling facilities.

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S T A T E   A G E N C Y   A U D I T S

• Department of State – Office for New Americans: Connecting and Providing Immigrants With Legal Services

• New York City Administration for Children’s Services & New York City Department of Youth and Community Development – Identifying, Reporting, and Providing Services for Youth at Risk of Sexual Human Trafficking in New York City

• State Education Department – English Language Learners Programs (Follow-Up)

• State Education Department (Preschool Special Education Audit Initiative) – William T. Dillon Child Study Center at St. Joseph’s University, New York: Compliance With the Reimbursable Cost Manual

• Olympic Regional Development Authority – Security Over Critical Payment Systems

M U N I C I P A L  &  S C H O O L   A U D I T S

• Blue Point Fire District – Financial Management

• Moravia Joint Fire District – Procurement

• Big Flats Fire District No. 1 – Procurement

• Deansboro Fire District – Claims Auditing

• Holley Central School District – Building Access

• Red Hook Central School District – Building Access

• Batavia City School District – Building Access

• Central Square Central School District – Building Access

• North Collins Central School District – Building Access

• Orange-Ulster Board of Cooperative Educational Services – Building Access

• New York Mills Union Free School District – Building Access

A L S O  I N  T H E  N E W S

• Mamdani’s first NYC budget gets cheers for bookkeeping, jeers for big budget gaps, from state oversight board
• Report: New York has a solid waste management problem
• New York failed to maximize housing spending for veterans
• State Comptroller Report Reveals New Trends About NYC Business Costs
• Homelessness proving to be an intractable problem

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P O S T   O F   T H E   W E E K

Suspended Broker Sentenced To Two Years In Prison For Defrauding Social Media Followers

 

United States Attorney for the Southern District of New York, Jamie McDonald, announced that KENNETH THOM, a/k/a “K$,” a/k/a “K Money,” was sentenced by U.S. District Judge Edgardo Ramos to two years in prison for investment adviser fraud.  

“Kenneth Thom sold his social media followers the image of a successful trader when, in reality, he was a suspended broker,” said U.S. Attorney Jamie McDonald.  “He took nearly $800,000 from investors who believed he would invest their money and instead spent it on luxury goods for himself.  That deception ends with this federal prison sentence.” 

According to the Indictment and other information in the public record: 

In 2011, the Financial Industry Regulatory Authority (“FINRA”) suspended THOM’s broker registration after he failed to pay an arbitration award to an investor.  THOM then reinvented himself online as a successful Wall Street trader.  Using the monikers “K$” and “K Money,” THOM described himself as a financial “luminary” and “beacon of knowledge.”  Through various social media channels, including Facebook, Instagram, and Twitch, THOM built an online following, to whom he sold trading lessons and daily text message alerts containing his trade suggestions. 

Beginning in late 2023, THOM invited members of his Facebook group to participate in “shared accounts” that THOM would manage in exchange for half of the trading profits.  THOM eventually raised nearly $800,000 from approximately 66 clients.  Of this sum, THOM invested only approximately $350,000, diverting most of the remainder for his own personal use, including international travel, dining, and luxury goods.  Of the $350,000 that THOM invested, he lost approximately 73% between approximately March 2024 and March 2025.  Despite these massive losses, THOM regularly published updates in his Facebook group purporting to show dramatic gains in the shared accounts. 

In January 2025, THOM changed the name of the Facebook group to “AYBABTU”—an acronym for the Internet meme “all your base are belong to us”—and stopped responding to his clients.  At the time of his sentencing, THOM still maintained three luxury vehicles: a Maserati and two Porsches.   

In addition to the prison term, THOM, 42, of Belleville, New Jersey, was sentenced to two years of supervised release.  THOM was also ordered to pay forfeiture and restitution to his victims, each in the amount of $724,756.09. 

Mr. McDonald praised the outstanding work of the Federal Bureau of Investigation.  Mr. McDonald also thanked the U.S. Securities and Exchange Commission for its assistance in the investigation. 

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. 

Federal Grand Jury Indicts 7 for Kentucky Meth Trafficking Conspiracy following Homeland Security Task Force Investigation

 

Following a lengthy Homeland Security Task Force investigation, a federal grand jury in Bowling Green, Kentucky, returned an indictment on July 15, 2026, charging seven defendants, including three Mexican and two Guatemalan nationals, as part of an Owensboro-based methamphetamine and cocaine trafficking conspiracy. The defendants were arrested and the indictment was unsealed in federal court this week.

U.S. Attorney Kyle G. Bumgarner of the Western District of Kentucky, Special Agent in Charge Todd C. Smith of the Drug Enforcement Administration Chicago Field Division, Special Agent in Charge Olivia Olson of the FBI Louisville Field Office, and Chief Arthur Ealum, Jr. of the Owensboro Police Department made the announcement. 

According to the indictment, Ramon Molina-Torres,47, of Mexico, Francisco Pablo Alonzo, 23, of Guatemala, Diego Pablo Alonzo, 25, of Guatemala, Christopher Blaine McLimore, 41, of Owensboro, Deven Bellamy, 23, of Owensboro, Ayseymer Soto-Gomez, 24, of Mexico, and Eliazar Lopez-Pedraza, 46, of Mexico, were all charged with one count of conspiring together and with others to possess with the intent to distribute 50 grams or more of methamphetamine and 5 kilograms or more of cocaine from October 2025 through July 14, 2026, in Daviess County, Kentucky, and elsewhere.

Additionally, Molina-Torres was charged with 5 counts of distributing methamphetamine and having a prior serious drug felony conviction; Francisco Pablo Alonzo was charged with 2 counts of distributing methamphetamine; and Diego Pablo Alonzo was charged with 1 count of distributing methamphetamine.

On Aug. 11, 2026, Molina-Torres, Francisco Pablo Alonzo, Diego Pablo Alonzo, Bellamy, and Soto-Gomez made an initial court appearance before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky. Lopez-Pedraza will make an initial appearance on Aug. 12, 2026. McLimore is currently in state custody on unrelated charges and will make an initial appearance at a future date. If convicted, each of the defendants face a minimum sentence of 10 years in prison and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. 

“This investigation demonstrates the value of coordinated law enforcement efforts to disrupt drug trafficking organizations operating in our communities,” said DEA Special Agent in Charge Smith. “Through the Homeland Security Task Force and in partnership with the U.S. Attorney’s Office, federal, state and local law enforcement agencies combined intelligence, resources and investigative expertise to target individuals allegedly involved in the distribution of methamphetamine and cocaine. DEA remains committed to working alongside our law enforcement partners to dismantle drug trafficking networks, remove dangerous drugs from our communities, and hold those responsible accountable."

“The Homeland Security Task Force continues to investigate and charge significant drug trafficking organizations throughout Western Kentucky. The success of the Homeland Security Task Force results from interagency cooperation and the dedication of the men and women of law enforcement who have devoted their careers to public safety," said U.S. Attorney Bumgarner.

“This indictment should serve as a wake-up call to criminal organizations who are fueling the deadly drug trade throughout the Commonwealth. The FBI, as part of the Louisville Homeland Security Task Force, is working alongside our law enforcement partners at every level to ensure those who exploit our communities for their own profit face the full force of the law,” stated FBI Special Agent in Charge Olson.

“The Owensboro Police Department will continue its efforts to arrest and prosecute criminals who exploit those who suffer from addiction. We hope narcotics traffickers will someday realize the risk of mandatory federal prison time far outweigh the benefits of selling drugs in our community,” said Owensboro Police Chief Ealum, Jr. “We appreciate the continued collaboration with our federal, state and local partners to combat the flow of narcotics in and around the Greater Owensboro Metropolitan Area.”

There is no parole in the federal system.

This case is being investigated by the DEA Evansville Resident Office, the FBI Owensboro Resident Agency, and the Owensboro Police Department, with assistance from IRS-CI, HSI Bowling Green Office, and the Indiana State Police.  

Assistant U.S. Attorneys Frank Dahl and Mark Yurchisin are prosecuting the case with assistance from Paralegal Specialist Aaron Cooper.

This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The 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. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Louisville comprises agents and officers from FBI, HSI, DEA, ATF, and IRS, with the prosecution being led by the United States Attorney’s Office for the Western District of Kentucky.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Husband And Wife Sentenced To Life In Prison For Charges Related To 2020 Murder Of Wife’s Ex-Husband

 

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Superintendent of the New York State Police, Steven G. James, announced that on August 11 and August 13, 2026, JAMIE AND NICHOLAS ORSINI, respectively, were each sentenced to life in prison by U.S. District Judge Philip M. Halpern for one count of carjacking resulting in death and one count of participating in a conspiracy to commit carjacking in connection with the murder of JAMIE ORSINI’s ex-husband, Steven Kraft.  The ORSINIs were convicted following a two-week trial in 2024 before Judge Halpern. 

“Justice has now been served in this tragic case,” said U.S. Attorney Jamie McDonald.  “In 2020, Jamie and Nicholas Orisini orchestrated a sophisticated scheme to kill Jamie Orsini’s ex-husband, Steven Kraft, and cover up their crime.  Their actions took a life, devastated a family, and left behind years of unanswered questions.  Kraft’s body has never been found, and for years, his family has been forced to live with the unimaginable pain and uncertainty of not knowing what happened to their loved one.  While no sentence can undo the loss of a life or erase the suffering endured by Kraft’s family, these sentences bring the Kraft family a measure of finality and hold Jamie and Nicholas Orsini accountable for their horrific crimes.  Our prosecutors and law enforcement partners will not stop seeking justice for victims, their families, and our communities.” 

“The actions taken by Jamie and Nicholas Orsini that resulted in the death of Steven Kraft are a tragic and senseless crime,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Our hearts remain with the victims and their families as they confront this profound loss.  The FBI is steadfast in its commitment to pursuing violent crime investigations and will continue working closely with the United States Attorney’s Office for the Southern District of New York.  This investigation was the result of the dedicated work of the FBI Hudson Valley Safe Streets Task Force, whose local and state law enforcement partners play an essential role in bringing violent offenders to justice and ensuring the safety of our communities.

“This week’s sentencings send a strong message that prison is the only future for those who take the lives of others,” said New York State Police Superintendent Steven G. James.  “We hope these sentencings bring a sense of closure that the defendants will never commit a heinous crime like this again.  I commend the dedication of our members, partners at the US Attorney’s Office, and law enforcement colleagues for the justice served in this case.”

According to the Indictment, public court filings, and evidence presented at trial:

In 2020, JAMIE and NICHOLAS ORSINI plotted and executed the murder of JAMIE ORSINI’s ex-husband and the father to two of her children, Steven Kraft, as well as a sophisticated cover-up of their crime.  The murder and cover-up involved, among other things, the use of burner phones, the movement of Kraft’s car to a different city, and the destruction and disposal of all physical evidence.  Before the murder, the ORSINIs purchased items—such as a 1,000-square-foot tarp and a full-body coverall—to allow them to commit the murder and dispose of evidence, repeatedly practiced “dry runs” for how they would move Kraft’s car, and purchased a “burner phone” to use without law enforcement being able to trace the phone to them.  On April 28, 2020, Kraft dropped his children off at the ORSINIs’ home in Beacon, New York.  The ORSINIs killed Kraft in their home, taking his car and one of his cellphones.  In order to make it look as if Kraft left their home in Beacon alive and was killed elsewhere, NICHOLAS ORSINI drove Kraft’s car into Newburgh, New York, leaving it in a high-crime neighborhood, got rid of Kraft’s cellphone, and used the burner phone to call a taxi to bring him back to Beacon, throwing the burner phone out before getting into the taxi, while JAMIE ORSINI sent text messages to and from NICHOLAS ORSINI’s phone—which he had left at home—to pretend that NICHOLAS ORSINI never left the house that night.

After the murder, the ORSINIs destroyed evidence of their crimes—including Kraft’s body—buying a new burner phone to use while repeatedly driving to and from upstate New York, as well as creating large homemade incinerators.  JAMIE ORSINI sent multiple text messages to make it look like she believed that Kraft was still alive, and, having dumped Kraft’s car in Newburgh, when speaking with the police, professed ignorance, while hinting that perhaps something might have happened to Kraft had he gone to Newburgh after leaving her home.

If you believe you have information related to the location of Steven Kraft’s body, please consider reporting using the following link: https://www.justice.gov/usao-sdny/report-crime.

JAMIE ORSINI, 38, and NICHOLAS ORSINI, 36, both of Amsterdam, New York, were sentenced to life in prison to be followed by five year of supervised release on count one (carjacking resulting in death, in violation of 18 U.S.C. § 2119(3)) to run concurrently with five years in prison to be followed by three years of supervised release on count two (conspiracy to commit carjacking, in violation of 18 U.S.C. § 371).

Mr. McDonald praised the outstanding work of the FBI and the New York State Police, which also supported the prosecution through trial.  He also thanked the Dutchess County District Attorney’s Office, the Ulster County District Attorney’s Office, the City of Beacon Police Department, the Town of Marlborough Police Department, and the City of Newburgh Police Department.

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