NYC EMERGENCY MANAGEMENT ISSUES TRAVEL ADVISORY FOR FRIDAY EVENING

Snow expected to cause slippery conditions during the evening commute

  The New York City Emergency Management Department today issued a travel advisory for Friday evening. The National Weather Service has issued a Winter Weather Advisory for New York City through 10 p.m. Friday. A total of 1 to 3 inches of snow is forecast, with locally higher amounts possible. Light snow is expected to develop Friday between 2 p.m. and 4 p.m., and is forecast to continue through the evening commute. Snow will taper off after 7 p.m., and is expected to end around midnight. A Winter Weather Advisory for snow means periods of snow will primarily cause travel difficulties. New Yorkers should prepare for snow covered roads, slippery conditions and possible limited visibilities, and are advised to exercise caution when driving, walking, or biking.

“We are expecting snow that can cause slippery road conditions during this evening’s rush,” saidNYC Emergency Management Commissioner Joseph Esposito. “Take it slowly during the evening commute home and allow for extra travel time.”

NYC Emergency Management also advised New Yorkers to prepare for cold temperatures, as the arctic air continues into the weekend. Temperatures remain below freezing Friday night, hovering around the upper 20s, with wind chill values between 15 and 20 degrees. Temperatures are forecast to return above freezing Saturday, with highs in the upper 30s, but strong winds will cause wind chill values to remain in the 20s. Winds Saturday are expected to be between 15 mph to 20 mph, with gusts up to 30 mph. Saturday night temperatures and wind chill values are expected to be in the 20s.  Temperatures increase above freezing Sunday, with highs near 40 degrees.

Cold weather can cause or worsen health problems. Certain individuals, including the unsheltered homeless, people with disabilities and those with access and functional needs are at an increased risk for injuries, illness or death. Others at an increased risk also include people who drink heavily or use drugs and become incapacitated outdoors, or those who live in homes without heat, and:

·         Are 65 years of age or older.

·         Are infants.

·         Have certain medical conditions such as heart or lung disease, high blood pressure, diabetes.

·         Have serious mental health conditions or developmental disabilities.

·         Have disabilities or access and functional needs (e.g. limited mobility, trouble leaving home).

New Yorkers are also encouraged to check on neighbors, friends, and relatives. Please take the following precautions:

Safety Tips

For Motorists

·         Drive slowly. Vehicles take longer to stop on snow and ice than on dry pavement.

·         Four-wheel drive vehicles may make it easier to drive on snow-covered roads, but they do not stop quicker than other vehicles.

·         Use major streets or highways for travel whenever possible.

·         Know your vehicle’s braking system. Vehicles with anti-lock brakes require a different braking technique than vehicles without anti-lock brakes in snowy conditions.

·         If you are driving and begin to skid, ease your foot off the gas and steer in the direction you want the front of the car to go. Straighten the wheel when the car moves in the desired direction. If you have an anti-lock braking system (ABS), apply steady pressure to the brake pedal. Never pump the brakes on an ABS equipped vehicle.

·         Try to keep your vehicle’s gas tank as full as possible.

·         Keep the name and phone number of at least one local towing service in your car in case you break down or become stuck.

For Pedestrians

·         Exercise caution and avoid slippery surfaces; some ice may not be visible. Wear sturdy boots that provide traction to reduce slipping. Use handrails when using stairs.

·         Seniors should take extra care outdoors to avoid slips and falls.

·         Have heightened awareness of cars, particularly when approaching or crossing intersections.

·         If you have to go outdoors, wear dry, warm clothing and cover exposed skin. Keep fingertips, earlobes, and noses covered. Wear a hat, hood, scarf, and gloves.

·         Shivering is an important first sign that the body is losing heat. Shivering is a signal to return indoors.

·         Be careful when shoveling snow. Follow your doctor’s advice if you have heart disease or high blood pressure. Cold weather puts an extra strain on the heart.

·         Be safe at work. Workers who spend a lot of time outdoors are at risk for cold-related health impacts. If you are an employer, implement safe work practices, provide appropriate protective equipment, and train workers on how to stay safe during cold and winter weather.

·         Limit alcohol intake. Drinking alcohol may make you feel warmer but it causes your body to lose heat faster. Alcohol also impairs your judgment which limits your ability to take appropriate precautions or remove yourself from a dangerously cold environment in time. As a result, alcohol actually increases your chances of hypothermia and frostbite.

Prolonged exposure to cold can lead to hypothermia, frostbite, and can worsen existing medical conditions such as heart and lung diseases.

Hypothermia occurs when the body temperature drops to a dangerously low level. It can lead to death. Symptoms include:

·         Intense shivering

·         Dizziness

·         Trouble speaking

·         Lack of coordination

·         Sluggishness

·         Drowsiness

·         Confusion

·         Shallow breathing

                                   

Frostbite occurs when parts of the body freeze, such as finger, toes, ears, nose, and cheeks. It can cause permanent damage. Symptoms include:

·         Red or painful skin

·         Pale skin

·         Unusually firm or waxy skin

·         Numbness

Call 911 and follow instructions, or go to the emergency room if you see symptoms of hypothermia or frostbite.

Department of Sanitation

The NYC Department of Sanitation is pre-deploying 693 salt spreaders Friday. PLOWNYC will be activated and with 500 plows will be dispatched when more than two inches of snow accumulates, with additional plows available if necessary.

Department of Social Services

A Code Blue Weather Emergency notice is issued when the temperature is forecast to drop to 32 degrees Fahrenheit or less between 4 p.m. and 8 a.m., including National Weather Service calculations for wind chill values.  No one who is homeless and seeking shelter in New York City during a Code Blue will be denied. Should you see an individual who appears to be homeless and in need out in the cold, please call 311 and an outreach team will be dispatched to offer assistance. During Code Blue Weather emergencies, experienced outreach teams work to connect homeless New Yorkers with the following resources:

·         Shelters: During a Code Blue, shelter is available system-wide to accommodate anyone who is reasonably believed to be homeless and is brought to a shelter by outreach teams. Accommodations are also available for walk-ins.

·         Drop-in centers: All drop-in centers are open 24-hours per day, including when Code Blue procedures are in effect, and will assist as many people as possible for the duration of the emergency. Drop-in staff and the dedicated outreach teams they work closely with each and every day can also make arrangements for homeless individuals at other citywide facilities.

·         Safe havens and stabilization beds: Chronically homeless individuals may be transported directly to these low-threshold housing programs.

·         Street homeless outreach: Teams will contact vulnerable individuals on their Code Blue Priority Lists a minimum of once every four (4) hours beginning at 8 p.m. during Code Blue Alerts and once every two (2) hours beginning at 8 p.m. for Enhanced Code Blue Alerts to encourage them to accept services, including transportation to a shelter placement. DSS coordinates borough-level Code Blue efforts directly with partner City agencies, including but not limited to NYPD, DSNY, and the Parks Department.

For more information, visit nyc.gov/emergencymanagement. New Yorkers are encouraged to sign up for Notify NYC, the City’s free emergency communications program. To sign up for Notify NYC, download the free mobile application, visit NYC.gov/NotifyNYC, call 311, or follow @NotifyNYC on Twitter.

FIVE-BOROUGH BIKE SHARE: MAYOR DE BLASIO ANNOUNCES NYCDOT PLANS TO EXPAND PUBLIC BIKE SHARE WITH NEW “DOCKLESS” TECHNOLOGY

City will review and select ideas to complement Citi Bike system by bringing bike sharing to more outer-borough neighborhoods, including in the Bronx and on Staten Island

  Mayor Bill de Blasio announced that the NYC Department of Transportation is today releasing a Request for Expressions of Interest aimed at bringing bike sharing to outer-borough neighborhoods that Citi Bike has not yet reached — including in the Bronx and on Staten Island. The RFEI seeks innovative companies and ideas around next-generation “dockless” public bike share systems. The City will continue to support and strengthen Citi Bike, and prioritize new systems that complement existing service. Citi Bike has had more than 53.5 million trips since its launch in 2013.

“New Yorkers have embraced public bike sharing faster than anyone expected. These past four years, we’ve strengthened Citi Bike and doubled its size. Now it’s time to take the next big step and bring safe, reliable and affordable bike sharing to even more of the city,” said Mayor Bill de Blasio.

“Citi Bike has been a unparalleled success story in providing New Yorkers affordable, safe and green transportation, but as we are learning from around the U.S. and the world, the next generation of bikeshare in New York City may not even require that the bikes themselves be parked in docks,” said DOT Commissioner Polly Trottenberg. “With so many companies anxious to prove their skills in serving our City’s diverse, demanding and lucrative market, this RFEI allows us to create different pilots and evaluate what works best, allowing us to move far beyond the limited neighborhoods in Manhattan, Brooklyn and Queens that Citi Bike now so ably serves.”

The RFEI seeks ideas from innovative companies that can provide additional bike sharing outside of the current Citi Bike service area. This will ensure new systems do not undermine current bike share service, and bring bike share to underserved areas.

The new RFEI will allow the City to evaluate emerging dockless models for bike share service that have lower capital and operating costs and may help bring bike share service to more outer borough neighborhoods, at a faster rate, than is possible under the current model for Citi Bike expansion.  The priorities of the new RFEI will include:

·         Exploring the concepts of “dockless” models for providing bike share services and investigate the feasibility of instituting such options in areas of New York City not currently served by the City’s existing Citi Bike Program.

·         Examining the practicality of a “free-locking” bike share in New York City. Free-locking bicycles include mechanisms that unlock bikes via mobile phone and render  them inoperable when not in use.  They are otherwise free-standing, i.e. not locked to a dock, bike rack, or any other fixed object. 

·         Seeing that dockless bike share operations are safe for both riders and pedestrians, and that vendors can ensure their bikes do not obstruct other street and sidewalk uses.

·         Examining vendors’ plans and capabilities for keeping bicycles within a designated service area.

·         Determining standards for “rebalancing” (making sure bikes are evenly distributed across a service area to meet community demand) ahead of any pilot launch.

·         Exploring bike share models that are both sustainable and affordable for New Yorkers.  (In other American cities with dockless systems, trips are often priced at $1 per 30-minute ride.)

The RFEI defines a dockless system as a network of publicly available bicycles with technology that allows for all essential system and locking components to be installed in the bicycles themselves, and thus eliminates the need for docking stations. Bikes may be parked and rented from any point within the service area boundary where bicycle parking is permitted.  Bicycles may also be required to meet functional standards set by DOT and the City would define standards for any permissible parking areas as part of its role in prioritizing the safe and orderly management of public space.

The RFEI could be followed by pilots that would allow the City to determine the practicality of the service, evaluate individual vendors and their equipment, observe how multiple operators interact and coordinate in area served by multiple vendors, and monitor the rates at which New Yorkers adapt to dockless formats.

"The people of The Bronx have shown incredible enthusiasm for bike sharing programs, and this RFEI represents an excellent opportunity to explore and examine innovative new ideas that could finally make bike sharing a reality in our borough,” said Bronx Borough President Ruben Diaz Jr. “As we continue to advocate for the expansion of Citi Bike to The Bronx we should explore other potential bike sharing possibilities that could also meet the demand of Bronxites who patiently wait for such opportunities to come to our borough. I look forward to seeing the responses to this RFEI, and I will continue to work with partners at all levels to bring bike sharing to The Bronx." 

Since its arrival in 2013, bike share has proven an effective and popular component of advancing the City’s transportation, traffic safety and sustainability goals, alongside the de Blasio Administration’s commitment to double cycling by 2020.  More than 60,000 Citi Bike trips are taken per day during peak season.  Annual Citi Bike subscriptions stand at over 130,000.

The newest RFEI comes as New York City nears full implementation of the de Blasio administration’s expansion of Citi Bike, which in 2017 has expanded its reach to Upper Manhattan, brownstone Brooklyn and into Long Island City and Astoria in Queens.  In 2014, Administration officials created a new management structure for Citi Bike, bringing in Motivate, the company that has stabilized and improved Citi Bike, doubled its size to 12,000 bikes and 750 stations.  Supporting and enhancing existing Citi Bike service remains among the City’s top priorities.

The RFEI can be found here.  For more information on New York City’s bike share system please go to www.nyc.gov/bikeshare

Nigerian Man Sentenced To 41 Months In Prison For Participating In Business Email Compromise Scams

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that DAVID CHUKWUNEKE ADINDU was sentenced today in Manhattan federal court to 41 months in prison for participating in a wire fraud conspiracy and identity theft conspiracy.  These charges stemmed from ADINDU’s participation in fraudulent business email compromise scams that targeted thousands of victims around the world, including the United States.  Collectively, the scams attempted to defraud victims of more than $25 million.  Today’s sentence was imposed by U.S. District Judge Paul A. Crotty.

Acting U.S. Attorney Joon H. Kim said:  “As part of a business email compromise scam, David Chukwuneke Adindu tricked thousands of victims around the world into fraudulently wiring him over $25 million.  As Adindu learned today, building a business based on fraud can come with a steep price, and that is years in a federal prison.”

           

According to publicly filed court documents and statements made at public court proceedings:

Between 2014 and 2016, ADINDU participated in Business Email Compromise scams (“BEC scams”) targeting thousands of victims around the world, including in the United States.  As part of the BEC scams, emails were sent to employees of various companies directing that funds be transferred to specified bank accounts.  The emails purported to be from supervisors at those companies or third party vendors that did business with those companies.  The emails, however, were not legitimate.  Rather, they were either from email accounts with a domain name that was very similar to a legitimate domain name, or the metadata in the emails had been modified so that the emails appeared as if they were from legitimate email addresses.  After victims complied with the fraudulent wiring instructions, the transferred funds were quickly withdrawn or moved into different bank accounts.  In total, the BEC scams attempted to defraud over $25 million from victims.

ADINDU and others carried out BEC scams by exchanging information regarding: (1) bank accounts used for receiving funds from victims; (2) email accounts for communicating with victims; (3) scripts for requesting wire transfers from victims; and (4) lists of names and email addresses for contacting and impersonating potential victims.                

In addition to the prison term, ADINDU, 30, of Lagos, Nigeria, and Guangzhou, China, was ordered to pay over $1.4 million in restitution. 

Mr. Kim praised the investigative work of the Federal Bureau of Investigation.  Mr. Kim also thanked the Yahoo! E-Crime Investigations Team, and noted that the investigation is continuing.

         

Former Chief Financial Officer Arrested And Charged In Manhattan Federal Court With Defrauding Company Of Over $2 Million

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Angel M. Melendez, Special Agent in Charge of the New York Field Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”), announced today that RANDY WANG was arrested this morning on wire fraud charges stemming from his scheme to defraud his former employer, a company based in Manhattan that manages a global airline alliance whose members consisted of approximately 13 international airlines and their affiliates (the “Company”), by incurring more than $2.2 million in unauthorized charges on the Company’s credit card account, and then making changes to the Company’s accounting system to evade detection. WANG was arrested this morning in Long Island City, New York, and was presented today before United States Magistrate Judge Katharine H. Parker.

Acting U.S. Attorney Joon H. Kim said:  “As alleged, Randy Wang took advantage of his position at a major New York-based company to charge millions of dollars’ worth of non-business-related purchases on the company’s credit card.  Wang allegedly purchased hundreds of electronic devices, including cell phones, computers, and tablets, and then falsified paperwork to hide the transactions.  Wang allegedly tried to take his employer for a ride, but instead he may be facing a trip to prison.”

HSI Special Agent in Charge Angel M. Melendez said:  “Using his position as business manager, Wang allegedly developed a scheme to defraud his employer of millions of dollars by means of unauthorized credit card purchases and altered accounting records.  Twenty-five years ago, HSI New York formed the El Dorado Task Force specifically to target all levels of financial crime, including wire fraud like today’s arrest.  With more than 30 local, state, and federal law enforcement partners under one roof, El Dorado continues to be a leader in financial fraud investigations, working together to bring these perpetrators to justice.”

According to the Complaint unsealed today in Manhattan federal court[1]:

During the relevant time period, WANG was employed as a business manager for the Company, and for approximately the last two months of the scheme, WANG also served as the Company’s interim chief financial officer.  From January 2016 through October 2017, WANG incurred more than $2.2 million of unauthorized charges on the Company’s credit card account by making hundreds of purchases at both online and brick-and-mortar retailers.  WANG’s purchases, which were entirely unrelated to his official duties and were not for the benefit of the Company, included approximately 443 laptop computers, 241 mobile electronic devices, 24 tablet computers, and numerous other electronics.  In order to evade detection of his criminal conduct, WANG made changes to the Company’s accounting records to disguise the nature of the credit card charges.

WANG, 33, of Long Island City, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the court.

Mr. Kim praised the work of HSI and the El Dorado Task Force.  

The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 

[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.

FIFTEEN RIKERS ISLAND INMATES INDICTED IN BRUTAL GANG ASSAULT OF NYC DOC CAPTAIN ON THANKSGIVING DAY

Defendants Held Meeting To Plan Attack Captain Beaten In Retaliation For Disciplining Bloods Member

  Bronx District Attorney Darcel D. Clark today announced that 15 Rikers Island inmates have been indicted in the assault of a New York City Department of Correction captain on Thanksgiving Day in an orchestrated, retaliatory attack. 

 District Attorney Clark said, “This case presents a chilling picture of the society of violence on Rikers Island, with gang members who think they control the jails. But they do not; the rule of law does. Defendant Jason Reid gathered several of the defendants and 90 minutes later, a coordinated attack was unleashed on Captain Awais Ghauri in a show of gang power. Three weeks earlier, the captain deployed pepper spray to defuse a tense situation after a fight between inmates, and Reid — a member of the Bloods — threatened to assault the captain if he sprayed.

 “These inmates are sorely mistaken if they think they can mete out punishment to correction staff who are doing their jobs. If you play any role in making Rikers Island unsafe, we will arrest you, prosecute you and urge consecutive sentences if you’re convicted.

 “I urge the Board of Correction to work with DOC to find a way to implement severe consequences for inmates who repeatedly assault other inmates and correction officers. They cannot continue to brutalize with impunity. The mindset must be changed because this violence must be prevented.”

 Department of Correction Commissioner Cynthia Brann said, “Each of these inmates is accused of playing a part in the unprovoked assault of a Correction Captain on Thanksgiving Day, and they are all now facing charges that can lead to additional jail time. We will never tolerate any assault on our officers. As demonstrated by these indictments and arrests, anyone involved in such an assault will face consequences. We would like to thank our Correction Intelligence Bureau and the Bronx District Attorney’s office for expediting this case.”

 District Attorney Clark said 15 defendants are charged with first-degree Robbery, Attempted Gang Assault in the first-degree, second and third-degree Assault, second and third-degree Robbery, Attempted Robbery in the first, second and third-degree, first-degree Riot; defendants are variously charged with first and second-degree Promoting Prison Contraband, Unlawfully Possessing Noxious Material, fifth-degree Criminal Possession of Stolen Property, second-degree Obstructing Governmental Administration, Tampering with Physical Evidence and second-degree Harassment. If convicted of the top charge of first degree Robbery, the defendants face up to 25 years in prison.

 Seven of the defendants were arraigned on December 12, 2017 before Bronx Supreme Court Justice Robert Neary and remanded. They are due back in court on March 14, 2018. Eight defendants were due to be arraigned on December 14, 2017.

 According to the investigation, on November 2, 2017, in the Otis Bantum Correctional Center (OBCC), Reid threatened to “cut” Captain Ghauri after the captain used his pepper spray to diffuse an inmate altercation. On November 23, 2017, Reid, 33, allegedly called a meeting with multiple inmates in Housing Area 3 North of OBCC.

 Surveillance video shows the defendants meeting at 12:15 p.m., and approximately 90 minutes later, surveillance video shows Reid leading the attack, striking Captain Ghauri from behind, knocking him to the floor and repeatedly punching him. When Captain Ghauri began to defend himself, defendants Maurice Hennegan and Lyemel Summerville allegedly joined in the assault, punching the Captain several times. He suffered multiple injuries including a laceration on his neck and multiple abrasions.

 According to the investigation, 14 defendants stole a canister of pepper spray from a Correction Officer, attempted to steal another officer’s canister, and acting in concert they stood watch and physically blocked and threatened other Correction Officers from aiding Captain Ghauri. A Correction Officer assigned to the housing area came to the aid of the Captain, and she fought off several inmates.

 Defendant Juan Dejesus who, on December 11, 2017, was sentenced to 15 years for a Bronx shooting/stabbing case, aided in the robbery of the pepper spray and the assault on the captain by raising a chair to menace correction personnel. He also helped to dispose of the cannister.

 A 16th defendant, Christian Martinez, who was locked in his cell during the assault, later took possession of the pepper spray can and disposed of it. The investigation is ongoing.

 District Attorney Clark thanked the Department of Correction Intelligence Bureau and Investigators Anthony Scoma and Scott Frank under the supervision of Captain Johannah Banks and Acting Deputy Commissioner Antonio Cruz for their assistance. She also thanked Bronx Supreme Court Administrative Justice Robert Torres for facilitating the arraignments.

 An indictment is an accusatory instrument and not proof of a defendant’s guilt.

Defendants Jason Reid AKA Chuk, 33, Bronx - Lyemel Summerville, 19, Brooklyn - Maurice Hennegan, 24, Brooklyn - Jakwan Ramos AKA Floss, 21, Bronx - Juan DeJesus AKA J Dollar, 25, Bronx - Menelick McQuicken, 26, Brooklyn - Aphell James, 36, Queens - Laquan Russell, 25, Brooklyn - Pirterson Loiseau AKA Pistol, 21, Queens - Isreal Jimenez, 22, Brooklyn - Jonathan Scott, 25, Brooklyn - Kenneth Threatts AKA Bloody, 21, Virginia, - Nathaniel Williams, 29, Bronx - Sherwin Benn AKA GT, 34, Queens - Amara Toure, 22, Bronx - Christian Martinez, 29, Manhattan.

A.G. Schneiderman: I Will Sue To Stop Illegal Rollback Of Net Neutrality

A.G. Schneiderman Will Lead Multistate Lawsuit

AG’s Investigation into 2 Million Comments that Stole Real Americans’ Identities Also Continues  

  New York Attorney General Eric T. Schneiderman released the following statement upon the Federal Communications Commission’s vote, announcing that he will lead a multistate lawsuit to stop the rollback of net neutrality:

“The FCC’s vote to rip apart net neutrality is a blow to New York consumers, and to everyone who cares about a free and open internet. The FCC just gave Big Telecom an early Christmas present, by giving internet service providers yet another way to put corporate profits over consumers. Today’s rollback will give ISPs new ways to control what we see, what we do, and what we say online. That’s a threat to the free exchange of ideas that’s made the Internet a valuable asset in our democratic process. 

Today’s new rule would enable ISPs to charge consumers more to access sites like Facebook and Twitter and give them the leverage to degrade high quality of video streaming until and unless somebody pays them more money. Even worse, today’s vote would enable ISPs to favor certain viewpoints over others.

New Yorkers deserve the right to a free and open Internet. That’s why we will sue to stop the FCC’s illegal rollback of net neutrality.

Today’s vote also follows a public comment process that was deeply corrupted, including two million comments that stole the identities of real people. This is a crime under New York law – and the FCC’s decision to go ahead with the vote makes a mockery of government integrity and rewards the very perpetrators who scammed the system to advance their own agenda. 

This is not just an attack on the future of our internet. It’s an attack on all New Yorkers, and on the integrity of every American's voice in government – and we will fight back.”

For seven months, Attorney General Schneiderman has been investigating the flood of fake comments submitted during the net neutrality comment process. The Attorney General’s latest analysis shows that two million comments stole the identities of real Americans – including over 100,000 comments per state from New York, Florida, Texas, and California. Yet the FCC has repeatedly refused to cooperate with the Attorney General’s investigation, despite widespread evidence that the public comment process was corrupted.

A.G. Schneiderman Sues U.S. Department Of Education For Unlawful Collection Activity Targeting Defrauded Student Loan Borrowers

Multistate Lawsuit Also Alleges that Trump Administration Unlawfully Failed to Act on Loan Discharge Applications Submitted by Defrauded Students; Since July, Unreviewed Claims Ballooned from 65,000 to 95,000

   Today, Attorney General Eric T. Schneiderman, together with the Attorneys General of Massachusetts and Illinois, filed a lawsuit against the U.S. Department of Education (the “Department”) and Secretary Betsy DeVos for unlawfully pursuing collection actions against federal student loan borrowers who were victimized by Corinthian College, Inc. (“Corinthian”). The complaint also alleges that the Department has unlawfully delayed review of the thousands of pending loan discharge applications that have been submitted by defrauded students that were victimized by a variety of for-profit colleges.

“Despite finding that Corinthian engaged in widespread fraud, the Department of Education continues to seize tax refunds and withhold the wages of victims of Corinthian’s fraud,” said Attorney General Schneiderman. “The Department has also failed to act on the thousands of loan discharge applications submitted by defrauded students, leaving many fraud victims with growing interest, ruined credit, and insurmountable debt.  The Department of Education is failing to do its job and protect student borrowers – so we are suing to hold the federal government accountable.”

Click here to read the complaint.

After intense scrutiny by various government entities, Corinthian abruptly ceased operation in 2015. Corinthian owned and operated Everest Institute Rochester in Rochester, New York, as well as online and in-person programs based outside of New York that enrolled New York students. The Department’s own investigation of Corinthian concluded that Corinthian made widespread misrepresentations about post-graduation employment rates for certain programs, including programs that enrolled New York borrowers. 

Federal law provides that federal student loan borrowers may assert a defense to repayment of their loans where a school’s conduct violates state law. This law reflects the common-sense conclusion that defrauded students should not be required to pay for loans when their schools engaged in fraud to induce them to enroll. After the collapse of Corinthian in 2015, the Department received thousands of loan discharge applications. The Department approved discharges for more than 30,000 borrowers. However, after the transition to the Trump Administration, the Department stopped approving pending borrower defense claims. 

The number of total claims awaiting review has ballooned from 65,000 in July to over 95,000 in November. More than 1,600 of these claims are from New York borrowers, including approximately 900 New York borrowers who attended Corinthian. Defaulted borrowers with pending claims are significantly harmed by this delay because interest on the loans continues to accrue, borrowers’ credit reports remain marred, and borrowers’ are often unable to get additional financial aid to return to school.

In April 2017, Attorney General Schneiderman reached out to Corinthian students who attended certain programs at Corinthian Colleges to notify them about the loan discharge process.

Attorney General Schneiderman has been active in working to secure relief for victims of predatory for-profit colleges. In June 2017, Attorney General Schneiderman joined 18 attorneys general in demanding that the Department stop delaying loan discharges for defrauded students. In July 2017, Attorney General Schneiderman joined a coalition of attorneys general in filing a lawsuit against the Department for unlawfully delaying the Borrower Defense Rule, which was designed to hold abusive higher education institutions accountable for cheating students and taxpayers out of billions of dollars in federal loans.  

In October 2017, Attorney General Schneiderman joined a coalition of attorneys general in filing a lawsuit against the Department for unlawfully delaying the Gainful Employment Rule, a Rule that is designed to protect students and taxpayers from predatory for-profit schools.       

Attorney General Schneiderman has also obtained restitution and debt relief for victims of predatory for-profit colleges, including $2.25 million restitution for DeVry students who were misled about employment and salary prospects and $2.4 million in loan forgiveness for students that took out private loans offered by Aequitas Capital Management to attend Corinthian Colleges.

STATEMENTS ON THE FCC DECISION TO REPEAL NET NEUTRALITY RULES

Today, Congressman Adriano Espaillat released the following statement on the Federal Communications Commission (FCC) decision to repeal net neutrality protections.

“An open internet is an empowering, enabling platform, one that allows communities across the country to fulfill their economic and educational potential,” said Rep. Espaillat. “Without net neutrality, broadband internet providers would be able to charge more for access and create a tiered system in which wealthy and powerful corporations can pay to have their content delivered to consumers at a faster speed. Smaller websites with less money would be left with slower loading times and consumers would have less access to the internet. This favors the wealthy and powerful, and particularly harms communities of color who rely on an open internet as a level playing field.

“Net neutrality has a broad range of support from a coalition of small businesses, artists, church leaders, students, and many more from around the country, and the FCC received more than 4 million statements of support during its public comment period. Simply, the FCC’s net neutrality rule protects Americans’ freedom of speech by maintaining an open internet for all.

“I stand firm in my belief that the internet should remain open and available to all Americans, regardless of their class, status, or geographic location. I strongly oppose FCC Chairman Ajit Pai’s efforts to roll back net neutrality protections, and vow to continue my work to ensure first amendment rights for all.”

Engel Calls FCC Decision to Repeal Net Neutrality "Outrageous, Terribly Disappointing"

Congressman Eliot Engel, a member of the House Energy and Commerce Committee, issued the following statement on the Federal Communication Commission’s (FCC) net neutrality vote:

“I am terribly disappointed by today’s outrageous FCC vote to overturn net neutrality protections. This stunning example of regulatory overreach is bad for consumers and will have a chilling impact on American innovation. As such, Congress must now begin working on a legislative solution to reverse the FCC’s decision.

“Open Internet access is the foundation of freedom and innovation in the 21st century. Yet, the FCC’s dangerous assault on net neutrality gravely jeopardizes that freedom by punishing entrepreneurs and small businesses, throttling competition, and stifling the innovation that drives our economy. The FCC’s rule change could hit consumers with higher costs and less choice, and put control of their browsing experience into the hands of big providers.

“Millions of Americans across the country have raised their voices in the growing fight to protect net neutrality. Unfortunately, the Republican-controlled FCC has decided to ignore those voices. 

“Now is not the time to be silent. We must continue to make our voices heard on the street, in the media, in the halls of Congress, and ultimately at the polls. I will continue working with my colleagues to overturn this misguided decision.”

STATEMENT FROM BRONX BOROUGH PRESIDENT DIAZ

“Today's vote by the FCC to roll back Net Neutrality is a complete catastrophe. Technology, data and free access to both is ingrained into every facet of our lives, and this vote is the first step towards an impending system crash for New York City and in fact the entire nation. Congress needs to intervene to protect freedom and preserve equal access to the Internet.

“If the Republican-led Congress should refuse to act, New York State, including the Public Service Commission, should analyze what can be done now that the FCC has failed to protect a free and fair Internet. This should include the creation of a ‘State Uniform Telecommunication Code’ where states can together create a single standard for ISPs that protects the rights of consumers and the principles of Net Neutrality.

“It’s time to ask the question: ‘How can states protect Net Neutrality and a free Internet?,’” said Bronx Borough President Ruben Diaz Jr.