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Friday, September 3, 2021
Governor Hochul Secures Emergency Disaster Declaration from President Biden after Tropical Depression Ida Devastates New York
Emergency Disaster Declaration For 14 Affected Counties Provides Up to $5 Million in Immediate Federal Funding to Support Response Operations Ahead of Completion of FEMA Damage Assessments
FEMA to Begin Damage Assessments on September 3 and Will Expedite Process at Governor Hochul's Request
State Agency Emergency Response Assets Continue to Assist Localities in Cleanup and Restoration Efforts in Wake of Historic Rainfall and Flooding Event
7,900 Customers Still Without Power
DEC Staff Continue to Monitor for Potential Damage to Wastewater Infrastructure, Respond to Reports of Petroleum Spills and Survey Integrity of Dams and Levees
Closures Persist on U.S. Route 9, State Route 100, and the Saw Mill River Parkway in Westchester County
Service on Metro-North's Hudson Line and New Canaan and Danbury Branches Remain Suspended
Department of Financial Services Mobile Command Center Located in Yonkers, Westchester County, on September 3; DFS Staff on Site at Grinton I. Will Public Library, 1500 Central Park Avenue, Yonkers, NY, 10710
Governor Kathy Hochul today announced that President Biden has approved an Emergency Disaster Declaration for New York following the devastation caused by Tropical Depression Ida and its unprecedented, historic rainfall. The counties covered by the declaration include: Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Sullivan, Ulster, and Westchester.
Under an Emergency Declaration, up to $5 million in immediate federal funding is made available to impacted counties to support ongoing response and rescue operations prior to issuance of a traditional Major Disaster Declaration.
Governor Hochul also announced that at her request, FEMA will work with the State Division of Homeland Security and Emergency Services, as well as local partners to begin an expedited damage assessment process, which is required for a Major Disaster Declaration, on September 3.
At Governor Hochul's direction, State agencies' emergency response assets are on the ground helping local partners with cleanup and restoration efforts.
"As Downstate areas recover from this extreme weather event, I have requested and secured an Emergency Disaster Declaration from the federal government that will help provide localities with funding and relief in the initial restoration efforts. I will continue to urge the federal government to expedite the damage assessment process to provide all the federal resources available to ensure New Yorkers get what they need to recover from this historic storm," Governor Hochul said. "We are committed to providing all the necessary resources for New Yorkers to recover from the historic, devastating flooding, and I have directed all State agencies on the ground to continue to help these impacted areas with cleanup missions."
Tax Preparer Pleads Guilty To Stealing From His Clients And Filing False Tax Returns
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that CARLOS DE LA TORRE pled guilty before United States District Judge Naomi Reice Buchwald to one count of mail fraud and two counts of filing false income tax returns in connection with a years-long scheme to steal from the clients of his tax preparation business and defraud the Internal Revenue Service (“IRS”) and New York State Department of Taxation and Finance (“NYSDTF”).
U.S. Attorney Audrey Strauss said: “As he admitted today, Carlos De La Torre defrauded his tax preparation clients by converting to his own use money the clients had been told they owed the IRS and New York State. As he further admitted, De La Torre defrauded the IRS and the State by seeking refunds for overpayments of his taxes that were actually the funds he stole from his clients, and by failing to report those stolen funds as income. Now Carlos De La Torre awaits sentencing for his crimes.”
According to the allegations in the Complaint, Information, and statements made in court:
DE LA TORRE is a tax preparer and the sole proprietor of a bookkeeping and tax preparation business in New York, New York. From at least in or about 2014, through at least in or about 2020, DE LA TORRE represented certain small businesses based in New York City and their owners (the “Victims”) in connection with the preparation and filing of their personal and business federal and state tax returns. During that time period, DE LA TORRE told the Victims how much they allegedly owed in state and federal personal and business taxes, and the Victims gave DE LA TORRE checks in those amounts.
Instead of submitting the Victims’ checks as payments to be applied toward the Victims’ federal and state tax liabilities, DE LA TORRE fraudulently altered the checks and mailed them to the IRS and the NYSDTF as estimated tax payments to be credited against his own personal tax liabilities. Those payments greatly exceeded DE LA TORRE’s own tax liabilities each year. At the end of each tax period, DE LA TORRE fraudulently sought and received refunds from the IRS and the NYSDTF for the total amount of the altered checks he submitted to each agency, less any amount DE LA TORRE actually owed in taxes. Refunds from the IRS and the NYSDTF were wired by the U.S. Treasury and New York State, respectively, directly into DE LA TORRE’s personal bank account. In total, DE LA TORRE stole more than $466,000 from the Victims through this scheme.
DE LA TORRE also filed false tax returns with the IRS and NYSDTF in connection with this scheme, by failing to report on his tax returns the money he stole from the Victims. Had DE LA TORRE reported that income, as he was required to do, his total tax liability each year would have been much greater than it was, and he would not have been entitled to the refunds that he claimed. As a result, DE LA TORRE defrauded the IRS and NYSDTF of a total of at least $91,663 (including interest).
DE LA TORRE, 79, of Little Neck, New York, pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341, which carries a maximum sentence of 20 years in prison, and to two counts of subscribing to false individual tax returns, in violation of Title 26, United States Code, Section 7206(1), each of which carries a maximum sentence of three years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. DE LA TORRE is scheduled to be sentenced by Judge Buchwald on December 21, 2021.
Ms. Strauss praised the outstanding investigative work of IRS Criminal Investigation and NYSDTF.
Attorney General James Calls on NYC to Provide Emergency Housing Vouchers to New Yorkers Living in Unregulated Basement Apartments
New York Attorney General Letitia James today called on the City of New York to provide special emergency housing vouchers to all New Yorkers living in unregulated basement apartments following the deaths and devastation caused by Hurricane Ida:
“We know that New York’s housing crisis has gone too far when tenants have to risk their lives just to have a roof over their heads. Today, I’m calling on the City of New York to provide a special emergency housing voucher to all New Yorkers living in unregulated basement apartments. Extreme rainfall and other severe weather events are now the rule, not the exception, in New York. In the face of that risk, it is our duty to move these New Yorkers out of harm’s way by offering them safer, regulated housing. To prevent these problems in the future, we must also ensure that basement units are safe for human occupancy and regularly inspected. Overcoming the twin threats of climate change and a housing crisis will not be simple, but we must ensure measures are in place to protect our neighbors and prevent a future catastrophe.”
125 Days and Counting - I will Take no Questions From That Reporter From the Bronx Chronicle, Because I Can't Answer Them.
A conversation between Mayor Bill de Blasio and the moderator of his morning media briefings.
I made sure I only take questions from eight reporters, and you know who my favorites are. You can put in one question at the end from reporters who are not my favorites, but make sure you do not put Robert Press from the Bronx Chronicle through to me. He asks me questions like why am I going against my Department of Homeless policy of not putting more than 25% single adult males into a community board's responsibility. I am putting 400 single adult males into Bronx Community Board 11, even if it will be over 60% of that boards homeless responsibility. I told him ever since that new No Cash Bail Law was passed They were all let out of Rikers Island, and we have no place for those who were homeless.
He beats me up on other issues like NYCHA. He was the first to ask me why residents in Nycha buildings have to wait over five years for replacement stoves and refrigerators. I couldn't answer him and said it was the state and federal government' fault, blaming it on President Trump who is no longer in office. He asked me why Bronx public school children are far behind the children in the other four boroughs then I brought in Chancellor Richard Carranza. He couldn't fix it and quit, and I was lucky I could blame it on the pandemic now. He also kept beating me up on crime stats in the Bronx.
I don't want you to take any questions from Robert Press of the Bronx Chronicle, because I can't answer them. He will probably ask me about the new Delta plus and other COVID variant that is coming to your Thanksgiving dinner table from South Africa that we haven't found a name for. I have four months left, and I don't want to take any questions from that reporter. Let Eric Adams try to answer his questions, I can't.
Progress Towards Reforming the UAW
Acting U.S. Attorney Saima S. Mohsin announced that progress has been made towards reforming the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”). The UAW represents over 400,000 active members and over 580,000 retired members in more than 600 local unions across the United States.
Previously, numerous high-level officials of the UAW had been the subject of criminal prosecutions based on fraud, corruption, embezzlement, and labor law violations. These prosecutions had resulted in the criminal convictions of two UAW Presidents, Gary Jones and Dennis Williams, two UAW Vice Presidents, Joseph Ashton and Norwood Jewell, as well as seven other senior UAW officials.
Following the completion of a significant portion of the criminal investigation, the United States brought an anti-corruption and anti-fraud civil action against the UAW in December 2020 seeking injunctive and equitable relief in order to stop the fraud and corruption and to reform the UAW. After the United States filed its civil complaint against the UAW in United States of America v. UAW, Case No. 20-cv-13293-Lawson, and after extensive negotiations, the United States and the UAW entered into an agreement to resolve the case through a Consent Decree. The Consent Decree governing the UAW was entered by the Honorable David M. Lawson, United States District Judge, on January 29, 2021.
Under the terms of the Court’s Consent Decree, the Court appointed an independent Monitor who has the authority to exercise disciplinary powers within the UAW, to investigate possible fraud or corruption within the union, and to seek discipline against UAW officers and members before a UAW Trial Committee, or before an independent Adjudications Officer appointed by the Court. Members can report misconduct by UAW officials to the Monitor at https://www.uawmonitor.com. The Monitor’s oversight of the union will last for six years, with a possible early termination if the Monitor were to find that his work is complete, and the UAW no longer needs the Monitor’s services, or extension if the Monitor or the parties feel that a longer period is appropriate.
The Consent Decree fully and finally resolved the criminal and civil investigation of the UAW as an entity. The UAW agreed to resolve a tax investigation by making a payment of $1.5 million to the Internal Revenue Service in connection with administrative fees that the union received from the three joint training centers that were operated with the three car manufacturers. The UAW has made that payment to the IRS. In addition, the UAW has already paid back over $15 million to the training centers for improper chargebacks that the union received from two of the training centers. This money will be used by the joint programs for the health and safety of auto workers. The National Training Center, which was the mechanism whereby FCA US LLC executives corruptly funneled money and other things of value to UAW officials will be dissolved and replaced with an untainted entity.
After undergoing a rigorous selection process, the U.S. Attorney’s Office selected Neil M. Barofsky to serve as the Monitor of the UAW and asked the Court to so appoint him. On May 12, 2021, Judge Lawson entered an order appointing Mr. Barofsky as the UAW Monitor. Mr. Barofsky is a partner at the law firm of Jenner & Block. There, he leads the firm’s monitorship practice, and has served as a monitor in other matters, including his appointment to monitor Credit Suisse Securities LLC and Credit Suisse AG following billion dollar settlements. In these matters, Mr. Barofsky was separately appointed by the Department of Justice and the New York State Department of Financial Services. Prior to Mr. Barofsky’s employment with Jenner & Block, he worked as an Assistant United States Attorney in the United States Attorney’s Office in the Southern District of New York. He was also appointed to be the initial Special Inspector General for the Troubled Asset Relief Program (or TARP), an investigative agency that he built from scratch. The Monitor’s staff includes experts in auditing, compliance, internal investigations, labor law, and labor elections.
Since Mr. Barofsky became the Monitor in May 2021, he has taken a number of actions in furtherance of the Consent Decree’s goal of reforming the UAW and blocking additional criminal conduct.
First, the Monitor has been diligently working towards holding the referendum provided for by the Consent Decree. The Consent Decree requires that the referendum occur by November 12, 2021. The Monitor has directed that the referendum take place by a secret-ballot vote of all of the membership, overseen by the Department of Labor. The referendum will determine whether to change the UAW’s election method from the current delegate system to a direct election model, where the entire UAW membership could vote for the UAW President and the other members of the UAW’s International Executive Board. Through the referendum, members will decide whether the UAW’s constitution will be changed to provide for a direct election system in the union, sometimes referred to as “one member, one vote,” starting in the 2022 election cycle.
The Monitor has been working closely with officials from the Department of Labor’s Office of Labor Management Standards (“OLMS”) to plan and organize the referendum. OLMS is the department’s expert in conducting and overseeing labor union elections. The Monitor has directed that the referendum will be conducted by mail-in voting so-as-to ensure that all active and retired UAW members will have an opportunity to participate fully in the referendum. The Monitor has issued interim rules governing the conduct of the referendum. The rules direct that no UAW dues money can be used to campaign for or against the referendum. The rules can be found here: https://www.uawmonitor.com/electionsreferendum.
Acting US Attorney Mohsin stated, “The UAW Monitor has made significant progress over the past three months in implementing reform in the UAW. The November referendum provides a historic opportunity for the UAW’s rank and file membership to be heard on whether to change the union’s election system. We insisted that the Consent Decree give the union’s membership the opportunity to decide for themselves whether to change to a direct election system because of the pervasive culture of corruption that has plagued the UAW’s leadership for so many years. We encourage all UAW members to educate themselves on the issues in the referendum, make up their own minds, and let their voices to be heard by casting a vote in the referendum.”
As part of the referendum process, the UAW Monitor has gone live with a Website, www.uawmonitor.com, to provide information to the UAW’s membership and to the public about the Referendum and about the Monitor’s activities. The Monitor is planning a joint webcast in the fall so that both sides on the issue presented by the referendum will be able to make their case to the UAW’s membership.
A second aspect of the work of the UAW Monitor is to investigate misconduct by UAW officials and then, where appropriate, to bring internal UAW charges against any official found by the Monitor to have engaged in misconduct. The UAW Monitor will present and try these charges before the UAW Adjudications Officer. The Adjudications Officer is another official to be appointed under the terms of the Consent Decree. The Adjudications Officer will have the power to act as the judge and factfinder of the disciplinary charges brought by the UAW Monitor. The Adjudications Officer will have the power to punish UAW officials who engage in misconduct as found by the Monitor. The punishments could include, for example, expulsion from the UAW or termination from UAW positions.
The UAW Monitor has already begun investigating historical acts of misconduct that were discovered by the United States during the criminal investigation in instances where the United States has decided not to bring criminal charges. As part of this process, prosecutors with the U.S. Attorney’s Office and federal law enforcement agents have been meeting with the Monitor’s staff to provide information about historical misconduct. As part of this process, the United States has provided the Monitor, as an arm of the Court and pursuant to Court order, with various investigative materials to assist the Monitor in investigating historical misconduct. The United States has also sought and received permission from the Court to provide the Monitor with certain grand jury materials relating to closed matters and with copies of sealed search warrant applications. Finally, members of the Monitor’s staff have met with a number of individuals who have been cooperating with the government’s criminal investigation. The Monitor is seeking to gather additional information for purposes of deciding whether any internal disciplinary charges are appropriate against any UAW officials or members.
Besides planning and organizing the upcoming referendum and beginning to investigate possible internal misconduct, the Monitor is also in the process of reviewing audit, accounting, and financial controls at the UAW. The Monitor is assessing the controls the UAW has implemented to meet its obligations under the Consent Decree, is identifying gaps and areas of improvement through rigorous testing protocols, and is overseeing the implementation of further reforms by the UAW and its consultants. In addition, the Monitor has the right under the Consent Decree to disapprove certain employment and contractual decisions by the UAW, and to review relevant financial data, books, records, audit findings, and other similar records.
The United States will soon propose to the Court a candidate to serve as the UAW Adjudications Officer. The Court will then decide whether to appoint that individual as the Adjudications Officer. If appointed, the Monitor will be able to bring internal UAW disciplinary matters before the Adjudications Officer if appropriate.
Governor Hochul Announces $53 Million for Clean Water Systems and Drinking Water Infrastructure Projects Statewide
Projects Located in Central New York, Mid-Hudson Valley, Long Island, North Country, Southern Tier and Western New York Regions`
Governor Kathy Hochul today announced that the New York State Environmental Facilities Corporation has approved more than $53 million to help nine municipalities finance their drinking water and wastewater projects. The grants, interest-free financings and low-cost financings approved by the EFC Board of Directors help provide innovative solutions for critical infrastructure projects across the state that protect or improve water quality. Of the project financings announced today, over $20 million will be allocated to plan, design and construct a regional wastewater treatment plant for the villages of Watkins Glen and Montour Falls in Schuyler County.
"By investing in clean water and drinking water infrastructure, New York is helping to protect public health, quality of life and the environment," Governor Hochul said. "We will continue to work hard to help local governments access the resources they need to complete critical water infrastructure improvement projects and lay the groundwork for growth and resiliency for generations to come."
Environmental Facilities Corporation President and CEO Joseph Rabito said, "Water infrastructure investments are tough decisions for our communities. Governor Hochul has a unique understanding of these challenges having led on these issues at every level of government. Governor Hochul's announcement today puts a premium on the partnerships that makes our communities healthier and more vibrant. Through EFC, New York State is partnering with local governments and providing grant funding for effective planning that gets shovels in the ground faster through the Engineering Planning Grant program (EPG), leading to affordable financing and completion of these critical investments."
Department of Environmental Conservation Commissioner and EFC Board Chair Basil Seggos said, "As a leader with experience serving at all levels of government, Governor Hochul understands how sustained investments through New York's robust Clean Water Infrastructure Act and Clean Water State Revolving Fund provide communities across the state with the financial flexibility to fund critical clean water infrastructure improvements. Clean water projects help safeguard public health and the environment, keep our economy running, and create good paying jobs."
New York State Health Commissioner Dr. Howard Zucker said, "New York's aging infrastructure requires modernization in many municipalities where resources are tight. This latest funding will assist communities that are facing significant costs for addressing drinking water system upgrades and improve wastewater storage through projects that are both cost-effective and environmentally sound."
The Board's approval includes financing through the Clean Water State Revolving Fund ("CWSRF") and Drinking Water State Revolving Fund ("DWSRF") and grants pursuant to the Water Infrastructure Improvement Act (WIIA).
The project financings approved at the September 2 meeting include:
Drinking Water Projects:
- Village of Cattaraugus in Cattaraugus County - $848,477 in long-term, interest-free financing to upgrade spring water sources, replace the water transmission main from the spring sources to the water distribution system, treatment system upgrades and water meter replacement.
- Town of Hume in Allegany County - $2,018,700 grant from the Drinking Water State Revolving Fund and $1,279,600 in short-term, interest-free financing to extend the town system to serve the Hume-Sanford Springs water system.
- Town of Lewisboro in Westchester County - $289,500 WIIA grant to install water treatment software, new equipment and flushing valves and hydrants.
Clean Water Projects:
- Village of Watkins Glen in Schuyler County - $13,806,415 in long-term, interest-free financing for the planning, design and construction of a regional wastewater treatment plant facility to serve the villages of Watkins Glen and Montour Falls.
- Village of Montour Falls in Schuyler County - $5,662,103 in long-term, interest-free financing for the planning, design and construction of the aforementioned regional wastewater treatment plant facility with Watkins Glen.
- Village of Phoenix in Oswego County - $2,734,136 in long-term, interest-free financing for wastewater system improvements.
- Village of Potsdam in St. Lawrence County - $12,078,502 in long-term, interest-free financing for improvements to the wastewater treatment plant and pump station.
- Town of Highlands in Orange County - $1,569,584 in long-term, interest-free financing for wastewater treatment plant repairs and improvements.
- Village of Westhampton Beach in Suffolk County - $1,784,500 WIIA grant, $3,025,378 in short-term, interest-free financing and $8,025,377 in short-term, market rate financing to construct a new sewer collection system and upgrade the county sewer district sewage treatment plant.
In addition, the Board approved a $255 million bond that will refinance 64 existing wastewater and drinking water projects at a lower interest rate, saving approximately $24 million for ratepayers across the state. The bond issuance will also provide long-term financing for 37 existing infrastructure projects, helping municipalities to continue moving forward with meaningful projects that protect public health and resources in a cost-effective manner.
As part of its financial services that save communities time, money and staff resources, EFC annually reviews its portfolio and leverages its high credit rating and market demand to help its municipal partners recognize savings on qualified existing bonds.
The communities that will benefit from refinancing their projects through the $255 million bond issuance had participated in earlier project financings through EFC with various drinking water and wastewater infrastructure projects through the State Revolving Funds. Refunding bond sales deliver additional savings for EFC's municipal partners by refinancing the original bonds that funded their projects at an even lower interest rate.
The CWSRF and the DWSRF are the EFC's core funding programs. With its partner DEC, EFC is responsible for the operation and administration of the CWSRF. The CWSRF allows EFC to provide interest-free or low-interest rate financing and grants to support a variety of eligible water quality improvement projects. EFC similarly operates and administers the DWSRF, with its partner DOH, provide interest-free or low-interest rate financing and grants for drinking water infrastructure projects. To learn more about how EFC provides access to low-cost capital, grants and expert technical assistance, visit EFC's website at www.efc.ny.gov.
Declaration of Local State of Emergency City of New York
WHEREAS, the public safety is imperiled by a flash flood emergency caused by the remnants of Hurricane Ida that has flooded roads, impacted mass transit, and stranded motorists;
WHEREAS, it is necessary to take all measures to protect life and property; and
WHEREAS, on September 1, 2021, I declared a state of emergency to exist within the City of New York;
NOW THEREFORE, by the power vested in me as Mayor of the City of New York pursuant to law, including Executive Law § 24, I hereby order:
Section 1. I hereby direct that the State of Emergency declared in Emergency Executive Order No. 230, dated September 1, 2021, is extended for three (3) days.
§ 2. Alternate side of the street parking rules shall be suspended on Friday, September 3, 2021 and Saturday, September 4, 2021.
§ 3. This order shall take effect immediately and shall remain in effect for three (3) days unless it is terminated or modified at an earlier date.
Bill de Blasio
MAYOR