Statement From Governor Kathy Hochul and Attorney General Letitia James

Following the news today that Instagram will introduce new safety features for minors on its platform, Governor Hochul and Attorney General James jointly released the following statement:

“Our kids are facing a mental health crisis fueled by addictive social media feeds – and the changes announced today by Instagram are proof that New York’s nation-leading laws are already making a powerful impact to protect kids online.

“In June, we enacted the SAFE for Kids Act – our first-in-the-nation law to restrict addictive feeds and stop late-night notifications for minors in New York. Just three months later, Instagram said it will shut down late-night notifications for all minors nationwide, along with creating more supervision tools for parents. By taking strong and decisive action, New York has helped ensure that millions of kids across the nation will have greater protections.

“Let’s be clear – our fight to safeguard kids online is far from over, and Instagram’s announcement is just one step in the right direction. The SAFE for Kids Act will also combat addictive algorithms and our Child Data Protection Act will restrict online sites from collecting and selling our kids' data. Every social media platform – including Instagram – will need to play by these rules in New York, just as they should across the nation. We'll never stop fighting to protect our kids – and we look forward to continuing this vital work.” 

Attorney General James and HCR Return Over 300 Affordable Housing Units to New York City

 

OAG and HCR Compliance Program Will Reregulate 263 Illegally Deregulated Apartments, Reduce Rents in 43 Additional Units

New York Attorney General Letitia James and New York State Homes and Community Renewal (HCR) Commissioner RuthAnne Visnauskas today announced the return of 263 apartments to rent stabilization and reduction of rent for an additional 43 apartments throughout New York City. The apartments, located in 21 buildings in Central Brooklyn, Upper Manhattan, and Queens, were either illegally deregulated or were subjected to illegal rent increases by the former owners, who were landlords affiliated with the Sentinel Real Estate Corporation (Sentinel). Following an investigation, Attorney General James secured $4 million to preserve and expand affordable housing in New York City from the Sentinel-affiliated owners in August 2022. Before the settlement was reached, the former owners had sold some of their buildings to new owners after illegally deregulating units and increasing rents. In order to return these units to affordability, OAG and HCR developed a compliance program and worked with the new owners to reduce rents in more than 300 apartments, including 263 reregulated units. 

“Rent-regulated apartments make it possible for countless New York families to find a safe and affordable place to live,” said Attorney General James. “The previous owners of these buildings broke the law to pad their pockets and denied hardworking families a rightful home. Because we were able to return these units to the rent regulation program, more than 300 families will be able to access the affordable housing they deserve. I thank the new owners for their cooperation and will continue to work with our partners at HCR to protect affordable housing across New York.” 

“Thanks to the strong partnership between Attorney General James and our Tenant Protection Unit, we are recovering illegal profits and securing the rights of hundreds of New Yorkers whose homes were illegally deregulated by predatory landlords,” said Commissioner RuthAnne Visnauskas. “This case demonstrates very clearly that we will do everything in our power to protect New York’s rent-regulated housing stock and the rights of tenants everywhere as we support Governor Hochul’s efforts to make the state more affordable and more livable for all New Yorkers.”

Prior to June 2019, if landlords made improvements to rent-stabilized apartments, they could increase the regulated rents of those units. Increases were calculated based on the cost of those improvements through a system known as Individual Apartment Improvements (IAIs). Some property owners and landlords used IAIs to increase rents enough to bring them over the rent deregulation threshold and convert them to market-rate units in an attempt to increase the buildings’ profits. 

Before the 27 affected buildings were purchased by the current owners, they were owned by landlords affiliated with Sentinel. These affiliates employed two now-defunct property management firms – Newcastle Realty Services, LLC (Newcastle) and Highcastle Management, LLC (Highcastle) – which falsely inflated IAI renovation costs for some rent-stabilized apartments so that they could deregulate them and charge tenants the market rate.

In some cases, Newcastle and Highcastle intentionally set the cost of labor for a renovation project to be equivalent to the amount necessary to deregulate a particular unit, regardless of the amount spent by the contractor. For example, an apartment in one building required $38,000 in IAIs to get over the deregulation threshold, while another apartment in the same building required $52,500 to deregulate. Both units received nearly identical renovations, but Newcastle and Highcastle reported the renovation expenses at $52,500 and $38,000, respectively, so they could deregulate the units and rent them at the market rate.

In August 2022, OAG entered into an agreement with the affiliates, securing $4 million for Attorney General James’ Affordable Housing Fund with the New York City Department of Housing Preservation and Development (HPD) and launching an audit of the rents of apartments still owned by the settling landlords. Following the settlement, OAG and HCR conducted their own audit of the apartments that were no longer owned by the settling affiliates but were nevertheless affected by the deregulation scheme. The OAG, in partnership with HCR, developed a program by which the new owners could work with OAG and HCR to move the units in the buildings they purchased from Sentinel back into compliance.

The 27 buildings involved in the OAG and HCR compliance program. 

The 27 buildings involved in the OAG and HCR compliance program are: 

• Brooklyn
  • 921 Washington Avenue
  • 941 Washington Avenue
  • 80 Woodruff Avenue
  • 2105 Foster Avenue 
  • 70 Dahill Road
  • 230 Ocean Parkway
  • 483 Ocean Parkway
  • 100 Lefferts Avenue
  • 65 Ocean Avenue
  • 31 Ocean Parkway
• Manhattan 
  • 351 W 125th Street
  • 612 W 144th Street
  • 676 Riverside Drive
  • 66 Ft. Washington Avenue
  • 828 Riverside Drive
  • 1090 Saint Nicholas Avenue
  • 974 Saint Nicholas Avenue
  • 80 Fort Washington Avenue
  • 86 Fort Washington Avenue
  • 651 W 188th Street
  • 336 Fort Washington Avenue
  • 130 Wadsworth Avenue
  • 220 Wadsworth Avenue
  • 854 West 180th Street
  • 643 West 171st Street
• Queens
  • 30-60 29th Street
  • 118-80 Metropolitan Avenue 

CONSUMER ALERT: NYDOS Division of Consumer Protection Warns New Yorkers of “Friendly Greeting” Phishing Scams

 

Follow the New York Department of State on Facebook, X and Instagram for “Tuesday’s Tips” – Practical Tips to Educate and Empower New York Consumers on a Variety of Topics  

Secretary Mosley: “It’s important for consumers to be aware of these scams and always be cautious when receiving messages from unknown senders.”

The New York Department of State’s Division of Consumer Protection warns New Yorkers of “friendly greeting” phishing scams, which are deceptive text messages from unknown senders that can lead to a scam. Phishing is a common technique that scammers use to send fraudulent communications that appear to come from a reputable or trusted source but are attempts to trick consumers into revealing personal information or to click on harmful links that can download malware to their devices. Phishing scams are usually performed through text messages, emails or chats in platforms such as What’s App, Signal or Facebook Messenger.

“Scammers are always trying to find new ways to gain your trust so they can steal your information, and phishing scams are one of the latest techniques being used,” said Secretary of State Walter T. Mosley. “Phishing scams come in many different variations and can look like a friendly greeting at first glance. It’s important for consumers to be aware of these scams and always be cautious when receiving messages from unknown senders.”

What The “friendly greeting” Phishing Scam Looks Like:

According to the Federal Trade Commission, scammers are increasingly sending short greeting messages as a conversation starter. This is a common tactic used by scammers to try to establish a connection with you and gain your trust. There are different variations of this scheme. The message may be personalized with your name or other information to make it seem that it’s coming from someone you already know. If you respond to the message, they may ask follow-up questions and engage you in conversation with the goal to scam you.

Examples of “friendly greeting” phishing messages:

• “Hi, How Are You?”
• "Hello. Is this ("your name")?”
• “Do you want to play golf?”
• “How about going shopping together tomorrow?”
• “Do you want to come out to dinner tomorrow?”

Click here to view real examples of phishing scams that have been sent to consumers.

Tips to follow if you or someone you know receives a “friendly greeting” message:

• Don’t reply to text messages from unknown numbers. It could lead to a scam. Be wary of unsolicited messages from unknown senders that send generic or overly friendly greetings and don’t respond to the message.
• Delete and report the message using your phone’s “report junk” option. Forward unwanted texts to 7726 (SPAM) and unwanted emails to your email provider. Use the reporting features that are built into devices or email platforms. Reporting suspicious phishing messages is one of the most efficient methods for protecting you as it helps identify new or trending phishing attacks.
• Block the sender’s email address or phone number.
• Remember, it’s always better to be cautious. If you’re unsure of the legitimacy of a message, avoid engaging with the sender.

Clicking a link from a phishing scam puts your personal information and money at risk. Scammers can:

• Install ransomware or other programs in your device that can spy on your online activity or hold your device hostage by encrypting your data and demanding payment to unscramble it.
• Steal your personal or sensitive information including passwords, credit card numbers, banking PINs, etc. This information can be used to take out loans or credit cards in your name, or perform other fraudulent financial transactions.
• Gain access to your private computer systems to steal information or impersonate you and commit other scams.

 

About the New York State Division of Consumer Protection

Follow the New York Department of State on Facebook, X and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has been unsuccessful at reaching a resolution on their own. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumerprotection. The Division can also be reached via X at @NYSConsumer or Facebook.

NYC Comptroller Lander Unveils Four Step Plan to Guard Against Corruption in City Government Contracting

With questions swirling around abuse of municipal contracts, New York City Comptroller Lander laid out four steps to root out fraud, minimize corruption risks, and strengthen oversight in a new report, Prevent Corruption in Procurement.  

“Public integrity is the linchpin of City government,” said Comptroller Brad Lander. “New York City relies on contractors for many of our basic services — from childcare and home-delivered meals for seniors, to school construction and technology — so we must be able to count on City agencies to conduct fair and transparent bidding, without favoritism, and make sure we’re getting what we pay for. But right now, we increasingly rely on no-bid contracts, and much of the time we don’t even know which subcontractors we’re paying. This is an urgent moment for change.”  

The report recommends that the City:  

1. Strengthen oversight and accountability of subcontractors: While City procurement rules specify that each subcontractor must be approved by the contracting agency before starting the work, the reality is that those reviews, approvals and disclosures rarely happen. Across the three fiscal years since FY 2020, 17 agencies recorded no approved subcontractors in the City’s Payee Information Portal (PIP), as required. This basic lack of transparency has created significant risks for corruption and nepotism.
2. Reduce over-reliance on emergency procurement and mitigate risks for corruption in non-competitive procurement: In emergency situations in particular, like a building collapse or rapid spread of Mpox, New Yorkers rely on the City to act as quickly as possible to avoid or mitigate an unforeseen circumstance. However, emergency procurements are exempt from certain transparency and accountability procedures that exist for other contracting methods, creating risks for corruption, fraud, and abuse. Similarly, non-competitive procurement processes, which are made available to provide agencies with the flexibility and streamlined processes they need to expedite high-priority projects and comply with M/WBE goals, come with less rigorous oversight measures creating risks for corruption, fraud, waste, and abuse.
3. Close corruption vulnerabilities in the City’s oversight of not-for-profit human service contracts (per the 2021 Department of Investigation report): While the vast majority of human service nonprofits are dedicated to providing high-quality services and make best efforts to administer public funds responsibly, the 2021 Department of Investigation report revealed significant gaps in oversight that have increased corruption vulnerabilities. With over 40% of the City’s contracting portfolio and $12 billion in public funds dedicated to not-for-profit human services, Comptroller Lander echoes his office’s reform proposals that were made to the City in an October 2022 request to convene the City’s Procurement Policy Board emphasizing that the City must close corruption vulnerabilities in this sector to protect public integrity and restore trust in the non-profit institutions.
4. Increase transparency to promote accountability, including the un-met promise of ContractStat: As a partner on the Joint Task Force to Get Nonprofits Paid on Time, Comptroller Lander recommended the development of ContractStat, a system of performance management to shed light on where delays are occurring and direct agency and oversight efforts to clear backlogs and delays. This administration’s ongoing failure to meaningfully launch ContractStat and share information is extremely concerning. ContractStat alongside the additional disclosures of executive pay and recent history of campaign contributions would significantly strengthen transparency across all contract types to protect public integrity and prevent corruption and abuse.  

Comptroller Lander continued, “New Yorkers deserve an honest, trustworthy, well-managed city government that safeguards our taxpayer dollars against waste, fraud, and abuse. We should use this moment of crisis to make real change — so people can wake up every day trusting that their government is working for them.” 

The City entered into 12,820 new procurement contracts in FY 2023, valued at $38.22 billion – more than budgets of 30 states—and the City should have robust procedures in place to ensure integrity, safeguard City resources, and prevent corruption.  

Since 2022, Comptroller Lander has strengthened the Office’s role in reviewing and approving City contracts, identifying systemic challenges and proposing common-sense reforms to protect public integrity, while balancing the need for efficiency and flexibility. Comptroller Lander helped create the Joint Task Force to Get Nonprofits Paid on Time, called out the overreliance on emergency procurements, audited service providers who overly rely on undisclosed subcontracts, and promoted the increased transparency in contracting through dashboards and oversight tools.  

Read the full report here: https://comptroller.nyc.gov/reports/preventing-corruption-in-procurement  

Six Men Charged in Cockfighting Operation

 

Six men were arrested and had their initial court appearances yesterday after being charged in a five-count indictment with violating the Animal Welfare Act in connection with a cockfighting operation. A federal grand jury sitting in Providence, Rhode Island, returned the indictment last week.

The indictment alleges that on March 6, 2022, Miguel Delgado, 73, hosted a series of individual cockfights, known as “derbies,” at his Providence home. Delgado is also charged with sponsoring and exhibiting roosters in an animal fighting venture on multiple dates, buying and transporting sharp instruments or “gaffs” for use in the cockfights and unlawfully possessing roosters for use in an animal fighting venture.

Onill Vasquez Lozada, 39, and Antonio Ledee Rivera, both of Rhode Island, were charged with unlawfully possessing roosters in April 2021 for use in an animal fighting venture and for sponsoring and exhibiting roosters at the March 2022 derby at Delgado’s home. Rivera was additionally charged in connection with an earlier derby at Delgado’s home.

Germidez Kingsley Jamie, 31; Jose Rivera, 67; and Luis Castillo, 35, all residents of Massachusetts, were charged with sponsoring and exhibiting roosters at an animal fighting venture at the March 2022 derby. Jamie and Jose Rivera are also charged with one count of buying and transporting gaffs for use in an animal fighting venture.

Cockfighting is a contest in which a person attaches a knife, gaff or other sharp instrument to the leg of a “gamecock” or rooster and then places the bird a few inches away from a similarly armed rooster. This results in a fight during which the roosters flap their wings and jump while stabbing each other with the weapons that are fastened to their legs. A cockfight ends when one rooster is dead or refuses to continue to fight. Commonly, one or both roosters die after a fight.

If convicted of Animal Welfare Act violations, the defendants each face a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Zachary A. Cunha for the District of Rhode Island made the announcement.

The Department of Agriculture’s Office of Inspector General (USDA-OIG), Postal Inspection Service, Food and Drug Administration’s Office of Criminal Investigation and Rhode Island Society for the Prevention of Cruelty to Animals investigated the case. Valuable assistance was provided by the U.S. Marshals Service, U.S. Fish and Wildlife Service’s Office of Law Enforcement, U.S. Customs and Border Protection, Rhode Island State Police, Massachusetts State Police, Animal Rescue League of Boston’s Law Enforcement Division and Providence, Woonsocket, and Attleboro Police Departments.

To report animal fighting crimes, contact your local law enforcement or the USDA-OIG’s complaint hotline.

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

NYS Office of the Comptroller DiNapoli: Local Sales Tax Collections Up 3.8% in August

 

Local sales tax collections in New York state increased by 3.8% in August compared to the same month in 2023, according to data released today by State Comptroller Thomas P. DiNapoli. Overall, local collections totaled $1.85 billion for the month, up $68 million year over year.

“Growth in local sales tax collections improved in August, year over year, after being flat in July,” DiNapoli said. “While this growth is certainly encouraging, local officials must keep in mind sales tax revenues can be volatile and budget cautiously.”

In August:

• New York City’s collections totaled $793 million, an increase of 4.4%, or $33 million, compared to the same time last year.
• County and city collections in the rest of the state totaled $945 million, an increase of 3.5%.
• Most (45 of 57) counties experienced year-over-year increases.

These monthly sales tax collections are from the cash distributions made to counties and tax-imposing cities by the state Department of Taxation and Finance. The amounts are based on estimates of what each municipality is due. In the third month of each calendar-year quarter, these distributions are adjusted upward or downward, so that the quarter as a whole reflects reported sales by vendors. The next quarterly numbers (for July-September) will be available in October.

Data 

Monthly Local Sales Tax Collections by County and Region 

Related Report 

Second Quarter 2024 Local Sales Taxes

Sean Combs Charged In Manhattan Federal Court With Sex Trafficking And Other Federal Offenses

Alleged Conduct Occurred Over More Than a Decade in Multiple States 

Damian Williams, the United States Attorney for the Southern District of New York, and William S. Walker, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced that SEAN COMBS, a/k/a “Puff Daddy,” a/k/a “P. Diddy,” a/k/a “PD,” a/k/a “Love,” was arrested this morning and charged in a three count Indictment with racketeering conspiracy, sex trafficking, and transportation to engage in prostitution.  The Indictment unsealed today alleges that between 2008 and the present, COMBS abused, threatened, and coerced women and others, and led a racketeering conspiracy that engaged in sex trafficking, forced labor, kidnapping, arson, bribery, and obstruction of justice, among other crimes.  COMBS is expected to be presented in Manhattan federal court this afternoon before Magistrate Judge Robyn F. Tarnofsky.  

U.S. Attorney Damian Williams said: “As alleged in the Indictment, for years, Sean Combs used the business empire he controlled to sexually abuse and exploit women, as well as to commit other acts of violence and obstruction of justice.  Today, he is charged with racketeering and sex trafficking offenses.  If you have been a victim of Combs’ alleged abuse – or if you know anything about his alleged crimes – we urge you to come forward.  This investigation is far from over.” 

HSI Acting Special Agent in Charge William S. Walker said: “Today, we shatter any false notion of impunity as we uncover the defendant's alleged pattern of manipulation, exploitation, and outright abuse.  Make no mistake: we are here today only because of the unwavering strength of victims and witnesses who have already endured unspeakable hardships.  I commend them for their courage and urge anyone who believes they are a victim of sex trafficking to contact HSI by email at Sextrafficking_outreach@hsi.dhs.gov, or via our mobile tip-line: 1-877-4-HSITIP.”

According to the Indictment unsealed today:[1]

From at least 2008 through the present, COMBS led a criminal enterprise that existed to facilitate his abuse and exploitation of women, to protect his reputation, and to conceal his conduct.  As part of that criminal enterprise, COMBS, along with other members and associates of the enterprise, committed crimes including sex trafficking, forced labor, kidnapping, arson, bribery, and obstruction of justice. 

Among other things, COMBS’ sexual abuse of women included causing them to engage in frequent, days-long sexual activity with male commercial sex workers, some of whom were transported over state lines.  These events, which COMBS referred to as “Freak Offs,” were elaborate sex performances that COMBS arranged, directed, and often electronically recorded.  To ensure participation in Freak Offs, COMBS used violence and intimidation, and leveraged his power over victims—power he obtained through obtaining and distributing narcotics to them, exploiting his financial support to them and threatening to cut off the same, and controlling their careers.  COMBS also threatened his victims, including by threatening to expose the embarrassing and sensitive recordings he made of Freak Offs if the women did not comply with his demands.   

COMBS’ efforts to control women included repeated physical abuse.  COMBS assaulted women by, among other things, striking, punching, dragging, throwing objects at, and kicking them.  COMBS similarly assaulted witnesses to his abuse.  These assaults often resulted in injuries to the victims, which took days or weeks to heal. 

To commit these crimes, COMBS relied on his power as the leader of a multi-faceted business empire.  Employees of COMBS businesses—including high ranking supervisors, security staff, personal assistants, and household staff—acted as COMBS’ intermediaries to, among other things, arrange travel and hotel rooms; stock the hotel rooms for COMBS’ commercial sex activity; contact or locate women and other individuals whom he targeted for abuse; and conceal and cover up the abuse.  This criminal concealment included efforts to prevent law enforcement from learning about his abuse.

If you believe you are victim of a crime perpetrated by Sean Combs, please contact HSI at Sextrafficking_outreach@hsi.dhs.gov or via their mobile tip-line at 1-877-4-HSITIP, and reference this case.

COMBS, 54, of Miami, Florida, is charged with one count of racketeering conspiracy, which carries a maximum sentence of life in prison; one count of sex trafficking by force, fraud, or coercion, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison; and transportation for purposes of prostitution, which carries a maximum sentence of 10 years in prison. 

The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

Mr. Williams praised the outstanding investigative work of HSI and the Southern District of New York Special Agents, Digital Forensic Unit, and the Complex Analytical and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area. 

This case is being handled by the Office’s Civil Rights Unit in the Criminal Division.  Assistant U.S. Attorneys Meredith Foster, Emily A. Johnson, Christy Slavik, Madison Reddick Smyser and Mitzi Steiner.

The charges contained in the Indictment are merely accusations.  The defendant is presumed innocent unless and until proven guilty.   

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