Tuesday, March 21, 2017
BOROUGH PRESIDENTS ADAMS & DIAZ HOST GIFTED AND TALENTED EDUCATION HEARING
It was evident from the small turnout that important information is not getting to parents. Under Mayoral Control parent involvement went from high parental involvement to the low point it is at now. Parents just are not getting vital information they should be receiving and this was said by many of the speakers at the hearing.
What was also learned was that Staten Island with only one school district serving about one third the students of the Bronx has the same number of gifted and talented programs as the six Bronx school districts. Bronx School districts 7 and 12 have no gifted and talented programs while the other four Bronx School districts have only two programs each including School District 10 the largest school district in the city (and second largest in the state) serving over forty-five thousand students. Bronx Borough President Ruben Diaz Jr. said that he was enrolled in what was called a 'Special Program' for gifted and talented students while he attend public school, and it is his intention that all children get a chance to be in such programs like he did.
Above and Below - One by one sixteen people spoke about their personal experiences with trying to get into a Gifted and Talented program, the lack of information about Gifted and Talented programs by the DOE, the lack of the programs or even other information about the DOE and Gifted and Talented programs. One speake wanted to know why Staten Island with only one school district has the same number of Gifted and Talented programs as the six Bronx school districts.
Bronx Borough President Ruben Diaz Jr., Brooklyn Borough President Eric Adams, and their education advocates listen to the speakers asking many to see their aides to get the information the speakers need and so that the BP's can know all the problems facing parents in getting their children Gifted and Talented programs or why they can't.
IDC: It’s time to put the brakes on predatory, subprime auto lending; Senators Klein, Savino & Hamilton introduce bills to stop New Yorkers from getting ripped off when buying used cars
Senators Jeff Klein, Diane Savino & Jesse Hamilton introduce bills to stop New Yorkers from getting ripped off when buying used cars
Independent Democratic Conference Leader Senator Jeff Klein, Senator Diane Savino, Committee on Consumer Protection Chair Senator David Carlucci, and Senator Jesse Hamilton introduced a legislative package on Monday to protect consumers from predatory and subprime auto lending.
The issue is a new subprime lending crisis waiting to happen, a practice that HBO host John Oliver blasted over the summer for offering the working-poor, with little or no credit, rates too good to pass up which ultimately leave individuals paying astronomical amounts for used vehicles.
“Theoretically, it is a good thing that car dealers lend money to people who can’t get financing elsewhere, but in practice, these dealerships can trap people with few options into paying vastly more than a car is worth,” Oliver said. “It’s just one of many ways in which when you are poor everything can be more expensive.”
The IDC worked to put the brakes on bad practices in the subprime auto industry to protect consumers, some of whom are stuck paying the price of a new car for a junker because of the terms of the loan.
“We cannot allow our working-class consumers to be taken for a ride. Unscrupulous auto dealerships often engage in lending practices that mirror the subprime mortgage crisis, and we need to take action now to protect our most vulnerable residents from being hurt by these deceptive practices,” said Senator Klein.
“It is simply unconscionable to green-light a loan, knowing that a person could never afford to repay it. The legislature needs to take the wheel because our working-class constituents are getting hurt by these too-good-to-be-true offers made at auto dealerships, and in the end are stuck with outrageous debt,” said Senator Savino.
“As the chair of the Senate Committee on Banks, I take seriously these predatory practices that impact working class citizens who have already suffered through the subprime mortgage crisis. We must take action now to avoid a future crisis in the subprime auto lending industry that preys on those who could least afford it,” said Senator Hamilton, Chair, Senate Committee on Banks.
“Our consumer friendly legislative package keeps used car buyers in the driver’s seat both at the negotiating table and of their own cars. Consumers need to have information given to them as clearly as possible when making auto-purchases and the solutions we are putting forward will help fight subprime auto lending by empowering consumers. As the Chair of the Consumer Protection Committee, I look forward to advancing this package,” said Senator Carlucci, Chair, Senate Committee on Consumer Protection.
The bills introduced by the IDC include:
- Limiting Dealer Mark-Up Discretion - Dealers can add-on anywhere from 0-3% to the financing APR of a vehicle without a consumer’s knowledge, and studies have found widespread racially discriminatory practices at play. Senator Klein’s S.5276 would require disclosure of a dealer mark-up at the time of sale, and would also request the Department of Financial Services to conduct a study on the issue of mark-ups to determine how dire this discrimination problem is, and how we can work to remedy it.
- Regulating Dealer Advertising - Dealers and subprime financiers often target customers with bad credit or no credit through internet advertisements promising a 100% approval rating. Many times these ads deceive those collecting SSI and SSD. Senator Klein’s S.5277 would authorize the State’s Division of Consumer Protection to regulate used auto dealership advertising and ban dealerships from misrepresenting that SSI and SSD are sufficient income sources for loans.
- Transparency Reform - A uniform loan form for used car financing would be created by the State’s Department of Financial Services. Senator Savino’s S.5274 would allow DFS to create a form disclosing all costs and warning consumers that add-on costs are not required to obtain loans and what the loan to value ratio is upon financing. This legislation would also ban all conditional deliveries.
- Require a Cooling Off Period - Most major retail purchases provide a buyer with a window to cancel a transaction, but car purchases have no cooling off period. Senator Savino’s S.5275 would require a three-day cooling off period for used car purchases, giving consumers the opportunity to review lengthy financial documents and return a used automobile within three days. It would also create the same opportunity for new car transactions, although a car must remain in a lot for the duration of the cooling off period since a new vehicle automatically loses value as soon as it’s driven off a lot.
- License Financial managers at Dealerships - The State’s Department of Financial Services would license all financial managers who provide loans to customers at auto dealerships under Senator Hamilton’s S.5278, and would require all dealerships who issue financing or facilitate financing to designate and license a finance manager.
In April 2015 the IDC released an investigative report, “Road to Credit Danger: Predatory Subprime Auto Lending in New York,” that examined the deceptive practices used by car dealers to take advantage of consumers. The introduction of these bills is a continuation of the work that the IDC has done to shine light on this issue.
Last year, Senator Klein’s bill S.5485A which requires increased surety bonds at used car dealerships was signed into law. Now, if the dealer sells more than 50 used cars annually, the surety bond, held as a consumer protection raised from $10,000 to $100,000. Smaller used car dealers can take out $20,000 bonds if they sell fewer than 50 vehicles a year.
Senator Savino’s bill S.5152, which passed the Senate, would grant courts the power to make the assignee of an auto loan pay reasonable attorney's fees if a consumer sues the assignee and wins, over and above the limitation on assignee liability that currently exists in statute. This bill responds to the reality that in auto loan transactions, while the dealer often technically originates the loan, the actual lender is termed the assignee for purposes of the transaction, despite the fact that the "assignee" often exercises a great degree of control over the terms of the transaction.
NYC Council Parks Committee to Address Maintenance Workers, Park Security, and Federal Funding Cuts at Budget Hearing
The NYC Council Parks Committee, chaired by Council Member Mark Levine will hear testimony from the NYC Department of Parks and Recreation (DPR) and parks advocates regarding the department’s Fiscal Year 2018 budget.
Key topics to be addressed will include:
· Calling upon the Mayor to baseline $9.7m in expense funding for 150 gardening and maintenance workers left out of the Mayor’s preliminary budget
· The addition of 80 Park Enforcement Patrol (PEP) officers, in response to a 28% increase in crimes committed in City parks between FY15 and FY16, including an even higher rate during the first four months of FY17
· The potential loss of $4.5m in federal Community Development Block Grant funding, devastating the GreenThumb program which works mainly in low and moderate income neighborhoods, and has a 40 year history of community improvement, beautification and community building
· Major new and renewed investment in Parks capital projects and programs over the next decade coupled with continued attention into the length and efficiency of the overall Parks capital process.
Where: City Hall Committee Room
When: Thursday, March 3 @ 10 AM
Who:
· Parks Committee Chair Council Member Mark Levine
· Members of the City Council Parks Committee
· Parks Commissioner Mitchell Silver
· Park Advocates
SENATOR KLEIN TOURS RIKERS ISLAND, VISITING THE BRONX DISTRICT ATTORNEY’S PROSECUTION UNIT & JAIL FACILITY THAT HOUSES ADOLESCENT MALES
Senator Klein, joined by Bronx DA Darcel D. Clark and DOC Commissioner Joseph Ponte, announced $100,000 in funding for the Rikers Island Prosecution Bureau
Senator Klein, accompanied by Bronx District Attorney Darcel D. Clark and DOC Commissioner Joseph Ponte, visited the Rikers Island Prosecution Bureau, where Klein was briefed on how his $100,000 funding allocation helped equip the Bronx DA satellite office. The state funding was used to provide two work vehicles for the bureau’s staff, computer equipment and security enhancements for their office.
“I am proud to have secured $100,000 in state funding for the Bronx DA's Rikers Island Prosecution Bureau. It was an honor to visit the unit, where I got to see the wheels of justice spinning before my eyes. I applaud Bronx District Attorney Darcel Clark, who upon her inauguration, made opening this crucial unit a priority of hers. This bureau truly is a key component to reforming Rikers Island, making the grounds safer for our hardworking DOC workers who maintain order day in and day out," said State Senator Jeff Klein.
“We are grateful to Senator Klein for his assistance in outfitting the bureau, which opened last September. His funding has enabled us to have a safe, secure and efficient environment for our staff as they work to prosecute crimes committed on Rikers Island,” said Bronx District Attorney Darcel D. Clark. “The grant went to the purchase of two vehicles which the staff needs to respond to jail facilities on the Island and to travel to and from Bronx courts, as well as for computer and other office equipment. It was also used for crucial security implementations as recommended by NYPD’s Technical Assistance Response Unit.”
The Bureau opened last September under the leadership of Bronx DA Clark, who made it a priority to establish a physical presence on Rikers Island. The Bureau consists of a team of assistant district attorneys, investigators and administrative support staff. The office speeds up the prosecutions of jailhouse crimes, promoting a safer environment on the Island.
Following the funding announcement on Friday, March 17, Senator Klein was given a tour by DOC staff of The Robert N. Davoran Center, which houses 16- and 17-year-old males. Senator Klein is a lead proponent of Raise the Age legislation, which would raise the age of criminal responsibility from 16 to 18.
SENATOR KLEIN & COUNCILMAN COHEN ANNOUNCE $800,000 IN FUNDING FOR RIVERDALE KINGSBRIDGE ACADEMY
Funds will upgrade school’s 60-year-old auditorium
Senator Jeff Klein and Councilman Andrew Cohen announced $800,000 in joint funding for the Riverdale Kingsbridge Academy. The two elected officials each secured $400,000 for RKA, which will be used for a host of upgrades to the school’s 60-year-old auditorium.
“I’m proud to jointly allocate funds with Councilman Cohen for auditorium upgrades at Riverdale Kingsbridge Academy. RKA is a premier public school that deserves a modernized auditorium to accommodate the talented middle and high school students it serves. This $800,000 in joint funding will provide beneficial renovations to bring their auditorium into the 21st century,”said Senator Jeff Klein.
“RKA’s auditorium is not only used by over 1,000 students, but it’s also used extensively by the community. The funds that Senator Klein and I were able to secure for these necessary renovations will modernize the auditorium and enhance the space for the entire community to enjoy,” said Council Member Andrew Cohen.
“Many thanks to our local elected officials, State Senator Jeffrey Klein and Council Member Andrew Cohen for providing generous funding to support the renovation of our 60-year-old auditorium. The funding will allow us to install much-needed air conditioning units, new lighting, A/V system, curtains and overhead rigging,” said Lori O'Mara, Principal of Riverdale Kingsbridge Academy. “Without this sizable influx of funding we would not be able to upgrade so many items at once. On behalf of the entire Riverdale community, of which many organizations use our auditorium facilities, I would like to express my sincere gratitude. Thank you, Senator Klein and Council Member Cohen!”
Sunday, March 19, 2017
Former Chairman And Ceo Of Credit Union And Operator Of Unlawful Bitcoin Exchange Found Guilty In Manhattan Federal Court Of Bribery And Fraud Scheme
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that TREVON GROSS, the former Chairman and CEO of Helping Other People Excel Federal Credit Union (“HOPE FCU”), located in Lakewood, New Jersey, and YURI LEBEDEV, a former member of HOPE FCU’s Board of Directors and a former employee of Coin.mx, an internet-based Bitcoin exchange, were found guilty today in Manhattan federal court, in connection with a bribery scheme to take over control of HOPE FCU and a fraud scheme in furtherance of the operations of Coin.mx. The jury convicted GROSS and LEBEDEV on all counts with which they were charged in the controlling indictment following a four-week trial before U.S. District Judge Alison J. Nathan.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As a unanimous jury found today, Yuri Lebedev and others at Coin.mx, an unlawful Bitcoin exchange, tricked banks into processing millions of dollars in transactions by hiding the true nature of their business. When the banks caught on to their scheme, Lebedev and others bribed Trevon Gross so they could have a captive credit union to process those transactions, undermining the credit union’s safety and solvency. Despite elaborate efforts to hide their schemes, the defendants’ conduct was exposed at trial and found for what they were, federal crimes.”
According to the Indictment, other filings in Manhattan federal court, and evidence admitted at trial:
The Unlawful Bitcoin Exchange
Between 2013 and July 2015, LEBEDEV helped operate Coin.mx, an unlawful internet-based Bitcoin exchange, along with Anthony Murgio, the founder of Coin.mx. LEBEDEV and his co-conspirators engaged in substantial efforts to evade detection of their unlawful Bitcoin exchange by operating through a phony front company called “Collectables Club.” Coin.mx used the “Collectables Club” to open financial accounts in order to trick financial institutions into believing the unlawful Bitcoin exchange was simply a members-only association of individuals who discussed, bought, and sold collectible items and memorabilia. LEBEDEV and his co-conspirators deceived financial institutions by deliberately misidentifying and miscoding Coin.mx customers’ credit and debit card transactions, in violation of bank and credit card company rules and regulations. Through the illegal Coin.mx scheme, LEBEDEV and his co-conspirators caused more than $10 million in Bitcoin-related transactions to be processed illegally through financial institutions.
The Federal Credit Union Scheme
In 2014, in an effort further to evade scrutiny from financial institutions about the nature of the business engaged in by Coin.mx, LEBEDEV, Murgio, and their co-conspirators gained control of HOPE FCU, a federal credit union in New Jersey with primarily low-income members. After making more than $150,000 in illegal bribes at GROSS’s direction to bank accounts in the name of a church where GROSS served as the pastor, Murgio, LEBEDEV, and their co-conspirators took control of HOPE FCU. With GROSS’s assistance, Murgio installed LEBEDEV and various co-conspirators on HOPE FCU’s Board of Directors and transferred Coin.mx’s banking operations to HOPE FCU. GROSS also ceded operational control of the credit union to the board members installed by Murgio, including LEBEDEV. Thereafter, GROSS, LEBEDEV, and others worked to run tens of millions of dollars of ACH (Automated Clearing House) transactions through the credit union without adequate controls, thus putting its financial condition at risk.
GROSS, LEBEDEV, Murgio, and their co-conspirators also obstructed an examination of HOPE FCU by the National Credit Union Administration (“NCUA”) and made false statements to the NCUA in order to perpetuate LEBEDEV and Murgio’s control of the credit union. These included deliberately failing to disclose the bribe payments; misrepresenting the location of Coin.mx-affiliated businesses, including the “Collectables Club,” so as to claim that they were eligible to be members of the credit union and to serve as Board members; and manipulating the accounting at HOPE FCU so as to hide its true financial condition and the fact that it was processing tens of millions of dollars of transactions without adequate controls. HOPE FCU was operated as a captive bank by MURGIO and his co-conspirators until the end of 2014.
In October 2015, the NCUA placed HOPE FCU into conservatorship, and subsequently liquidation.
LEBEDEV, 39, of St. John’s, Florida, and GROSS, 52, of Jackson, New Jersey, were found guilty of one count of making corrupt payments to an officer of a financial institution and one count of receipt of corrupt payments by an officer of a financial institution, respectively, each of which carries a maximum sentence of 30 years in prison. LEBEDEV and GROSS also were each found guilty of participation in a conspiracy to make and receive corrupt payments, as well as to obstruct the examination of the NCUA and make false statements to the NCUA, which carries a maximum sentence of five years in prison. LEBEDEV was also found guilty of one count of wire fraud, one count of bank fraud, and one count of conspiracy to commit wire and bank fraud, each of which carries a maximum sentence of 30 years in prison. Their sentencings are set for July 20, 2017, before the Honorable Alison J. Nathan.
All four of LEBEDEV and GROSS’s co-defendants, including Anthony Murgio, have pled guilty and are awaiting sentence.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI and the Secret Service. He also thanked the NCUA for its assistance with the investigation and prosecution.