Independent Democratic Conference & Advocates to City: Clock is ticking to take our kids off Rikers Island; IDC celebrates passage of Raise the Age and urges City to plan quickly

IDC celebrates passage of Raise the Age and urges City to plan quickly

Senators Jeff Klein, Jesse Hamilton, Jose Peralta, Tony Avella, Diane Savino, Marisol Alcantara, joined by Akeem Browder and criminal justice advocates, called on the city to plan to remove juveniles from Rikers Island within a year as required by recently passed Raise the Age legislation

The new legislation requires the city to remove all 16- and 17-year-olds currently held at Rikers Island to specialized juvenile detention facilities by April 1, 2018, to the extent practicable, but no later than October 1, 2018.

“This year’s passage of Raise the Age comes with an especially important aspect that will ensure that 16- and 17-year-olds are removed from Rikers Island as quickly as possible. Though there have been reforms there is no question that the best course of action to protect young vulnerable New Yorkers is to keep them off Rikers Island. By moving them into appropriate facilities we can focus on rehabilitation rather than incarceration,” said Senator Jeff Klein.

“Passing Raise the Age took our collective determination. Determination that young people receive the opportunity to get on the right track and become productive New Yorkers. Determination that our justice system turn away from an unjust and unwise course and turn towards compassion and common sense. And determination that we honor the victims of a system that brutalized our fellow New Yorkers, like Lywan Reed, and honor the memory of those who we have lost, like Kalief Browder. We take that same determination and turn it toward seeing Raise the Age through in full. That means insisting that the City honor the timeline our legislation sets out and remove 16- and 17-year-olds from Rikers within the next 12 months. Raise the Age is an important milestone, we remain focused on the milestones ahead and upholding values that will make for a more just justice system in New York State,” said Senator Jesse Hamilton.

“Violence seems to be the common denominator at Rikers Island. The jail complex is a harsh environment for anyone, and this is particularly true for 16- and 17-year-olds. I am very glad that we, at the Independent Democratic Conference, were able to deliver Raise the Age in this year’s budget. Under the agreement, teenagers who are currently jailed in the troubled facilities will have to be transferred within one year to age appropriate facilities. In 2017, there is no excuse to incarcerate adolescents with adults, especially 16- and 17-year-olds who are simply awaiting trial,” said Senator Jose Peralta.

“As the Chairman of the Committee on Children & Families, I made Raise the Age my top priority and vowed that this would be the year we accomplished it. After holding the first public hearing dedicated solely to this issue and hearing testimony from every side of the justice system I knew this was something that needed to happen immediately. I am incredibly proud of the IDC for working to get Raise the Age included in this year’s budget and not allowing it to fall by the wayside. Getting children off Rikers Island is a great first step in instituting this legislation. I cannot wait to see the lives of families across the state improved as a result of raising the age,” said Senator Tony Avella.

“Since I first started advocating for Raise the Age in 2011 it has been far too long that youthful offenders found themselves in the adult criminal justice system. It is our responsibility to give our youth a fighting chance for their future, and this starts with removing 16- and 17-year-olds from Rikers Island as quickly as possible. In this year's budget, we took the first steps in ensuring we change lives for the better and I will continue to advocate for reforms that do so,” said Senator Diane Savino.

“I am proud of my role in finally Raising the Age of criminal responsibility in New York. Out of all the achievements in the state budget, this one is close to my heart. It is especially important to me that the budget contains a first step to closing Rikers Island. Moving current 16- and 17-year-old inmates to a juvenile detention center by 2018 will show advocates and our communities that New York is serious about reforming a criminal justice system that can be cruel, arbitrary, and disproportionately harsh to people of color,” said Senator Marisol Alcantara.

The treatment of 16- and 17-year-olds on Rikers Island has recently come under fire from advocates and prosecutors. A 2014 report by United States Attorney Preet Bharara found that those under 18 experienced 1,057 injuries.

Currently, there are approximately 150 children incarcerated at Rikers Island each day.

ONENYC: MAYOR ANNOUNCES ENVIRONMENTAL REMEDIATION OF 500TH PROPERTY AND ACHIEVEMENT OF 75% OF GOAL

Program milestone 18 months ahead of schedule

  To kick off Earth week, today Mayor Bill de Blasio announced the completion of environmental remediation on the 500th tax lot under NYC oversight since his administration began in 2014, achieving 75% of his OneNYC cleanup goal 18 months ahead of schedule. Each of the remediated properties has achieved rigorous state cleanup standards. The remediated land has been redeveloped with over 27 million square feet of new building space, representing private investment of $8.2 billion in new construction and producing an estimated 3,700 permanent new jobs, 3,600 new units of affordable and supportive housing and is expected to generate over $960 million in new, long-term tax revenue for NYC and a comparable amount to New York State. Construction of these new buildings also employed over 13,500 construction workers. Remediation since 2014 has cleaned up a total of 138 acres of land, including removal of more than 300 underground storage tanks.

“We are cleaning up vacant lots and revitalizing neighborhoods across the city – and hitting our goals a year-and-a-half ahead of schedule,” said Mayor Bill de Blasio. “New York’s city cleanup program is a commitment to combatting pollution that disproportionately affects already disadvantaged communities. Our environmental remediation program is also a boon to the economic vitality of neighborhoods, creating jobs and cleaning up land to welcome new businesses and housing.”

These cleanups eliminate pollutant exposure and have occurred in many NYC neighborhoods, with over 50% of the 577 remediated lots located in moderate- and low-income communities. All of these lots have been redeveloped, enabling safe reuse and revitalization of property that has been vacant for an average of over 10 years. Eighty-one (81) of these remediated properties are located in the coastal flood zone, where pollutant removal reduces risks from storm surge, achieving over 80% of the OneNYC goal to clean up sites in the floodplain. Remediation is managed by the NYC Office of Environmental Remediation (OER) which operates the NYC Voluntary Cleanup Program (VCP) under a collaborative agreement with New York State that delivers high quality cleanups that meet stringent state land remediation standards. The VCP is the only municipally-run environmental remediation program in the nation, and it manages lightly- and moderately-contaminated property. OneNYC is Mayor de Blasio’s plan for a strong and just city.

Mayor de Blasio also announced the establishment of new grants under OneNYC to assist community-directed revitalization of vacant land in city neighborhoods. These grants, part of OER’s Place-Based Community Planning program for vacant land, provide between $10,000 and $25,000 to help community-based organizations and faith-based developers identify strategic vacant and contaminated properties and plan environmental remediation to pave the way for community-oriented development.

The 500th remediated tax lot is located on Adam Clayton Powell Jr. Boulevard and West 127th Street in Central Harlem. The property has been redeveloped with a 10-story building that is now the home for Harlem Dowling-West Side Center for Children & Family Services and The Children’s Village, two of the oldest charitable organizations in the U.S. (founded in 1836 and 1851, respectively), 47 units of affordable housing, and 12 units of supportive housing for youth at risk of homelessness as they transition out of foster care. The project was funded by the NYC Department of Housing Preservation & Development and the NYC Housing Development Corporation and is a joint venture with affordable housing developer Alembic Community Development. The project created 117 construction jobs and will support 85 permanent jobs, including 20 new jobs that include local Harlem residents. Children’s Village serves families and vulnerable children across NYC.

Harlem Dowling provides child-care and foster care services and established the first orphanage for children of color located on West 12th St. near Sixth Avenue. In the next decade, larger quarters were constructed on Fifth Avenue between 43-44th Streets. This facility was burned down during the NYC draft riots in 1863, forcing the organization to relocate several times since. The new building, known as the Home for Harlem Dowling, is dedicated to the original building that was destroyed. The remediation resulted in the removal and regulated disposal of over 7,000 tons of soil and achieved the highest standard for soil cleanup established by New York State. The property was awarded a Green Property Certification by OER, signifying that it is now one of the safest buildings in NYC to live and work.  The project also received $70,000 in cleanup grant funding from OER. The property was vacant for 23 years before remediation and redevelopment.

“We have limited available land for new development, and it is vitally important to rehabilitate our vacant and abandoned land. This administration recognizes the disproportionate impact of environmental pollution in low-income communities and has focused city resources in disadvantaged areas to pursue greater equity in environmental quality and economic opportunity,” said First Deputy Mayor Anthony Shorris. “We will continue to build new programs and find innovative ways to improve our environment and help communities achieve their grass-roots vision for reuse of vacant land.”

Bronx Chamber of Commerce - MORE Bronx Business Referrals HERE

  

Join before May 1, 2017 and Save $100 on the application fee. Take advantage of a wide range of programs, service and networking opportunities through the Bronx Chamber of Commerce.  Do not miss out on referral business!

Following is the 2017 Chamber Brochure which includes the Membership Application: https://chambermaster.blob.core.windows.net/userfiles/UserFiles/chambers/1983/CMS/Brochure-2017-legal-size.pdf.

The Digital Edition of the 2017 BRONX BUSINESS DIRECTORY & RESOURCE GUIDE includes hyperlinks to company advertisers, member websites and email addresses listed in the alphabetical and category listings to generate business referrals and help grow your Bronx Business. The BRONX BUSINESS DIRECTORY & RESOURCE GUIDE is updated each month with an addendum and inserted into the glossy edition. You can view the Digital Edition by clicking the following link: http://digital-editions.todaymediacustom.com/bronx-chamber/2017/.

Visit www.BronxChamber.org. Small business members have the opportunity to sponsor events at affordable costs. For more information, click on the following link: https://chambermaster.blob.core.windows.net/userfiles/UserFiles/chambers/1983/CMS/GROW-YOUR-SMALL-BUSINESS-2017-Sponsorship-Opportunities-(002).pdf.

Following is the link to the News 12 interview highlighting the 2017 BRONX BUSINESS DIRECTORY & RESOURCE GUIDE and how it can help you grow your Bronx Business! https://drive.google.com/file/d/0B-gJd70JrGpYTGM2bWk0Y0tJb1k/view.

  

For larger companies or organizations, The Bronx Chamber of Commerce provides members the opportunity to write 1 check each year and receive significant value promoting your company or organization and provide financial support to the business community. For more information, click on the following link: https://chambermaster.blob.core.windows.net/userfiles/UserFiles/chambers/1983/CMS/Corporate-Sponsor-Package-Itemized-(002).pdf.

The Bronx Chamber of Commerce is one of the most influential, professional, successful organizations and voice for 30,000 businesses in Bronx County. Professionals and companies are drawn to the successful companies and active members affiliated with The Bronx Chamber of Commerce. Membership includes businesses ranging from large corporations, Cultural Institutions, Universities and Colleges, Hospitals and Medical Centers, non-profits, and mid-sized to small companies.

 

Helping you grow your Bronx Business is our Goal!

 

Nunzio Del Greco
President and CEO
Bronx Chamber of Commerce

"The Network For Business Success"
1200 Waters Place, Suite 106
Bronx, NY 10461
718-828-3900
Nunzio@bronxchamber.org

 

"You never know where your next big deal is going to come from"!

Comptroller Stringer Analysis: Cost of Hotel Room Shelters Soars by 33 Percent over Four Months

Commercial hotel room bookings for homeless New Yorkers has risen from $400,000 per day to $530,000 per day

More than 160 bookings were made for $400 per night or more, including 10 bookings for $549 per night

The average daily cost for commercial hotel bookings jumped 601% to $576,203 from November 2015 to February 2017

Comptroller Stringer calls for greater transparency from the Department of Homeless Services

   Commercial hotel bookings for homeless New Yorkers have surged by 38 percent over a four-month period, with the City spending $530,000 per day as of February 28, 2017, according to a new analysis released today by New York City Comptroller Scott M. Stringer. The Comptroller’s analysis estimates that the number of individuals now being placed in commercial hotels by the Department of Homeless Services (DHS) has jumped by 33 percent to nearly 7,800 New Yorkers between October 2016 and February 2017.

Commercial hotel shelters often offer limited services, have limited privacy and lack kitchens. As such, they are largely inappropriate long-term solutions for families trying to get back on their feet. The City recently announced a goal to phase out commercial hotel rooms as a form of homeless shelter six years from now.

To ensure the City reaches that goal, openness and benchmarks are critical. Today, the Comptroller called for greater transparency from DHS and a more public approach to solving the challenge. Currently, the Department maintains a Data Dashboard – which has not been updated in over a year – and the Comptroller called on DHS to also share more information publicly on progress around reducing commercial hotel and cluster shelter use. The more transparent the process, the more likely it will be to succeed.

“Homeless New Yorkers don’t belong in hotels – this is a practice that has to end. Hotel Rooms are not only a Band-aid solution to a complex problem, but they’re also very expensive. If families are going to get back on their feet, we need to help get them the services they need,” Comptroller Scott M. Stringer said. “The rising costs are extraordinary, and we are calling for more transparency from the City because the more open we are about our challenges, the more likely we are to solve them. Openness will help deliver results.”

The new analysis shows:

• The cost of commercial hotel bookings for homeless New Yorkers surged from $399,604 on October 31, 2016 to $529,622 on February 28, 2017 – a 33 percent increase.

• The average daily cost for commercial hotel bookings has increased by 601%, rising from $82,214 in November 2015 to $576,203 in February 2017.

• The estimated number of homeless New Yorkers booked in commercial hotels per day soared from 5,881 to 7,790 – a 33 percent jump between October 31, 2016 and February 28, 2017.

• The total number of rooms booked per day from October 31, 2016 to February 28, 2017 rose by nearly 38 percent to 2,852, as the City has increased its reliance on commercial hotels to stem the overall crisis.

• The highest room rate was $549/night at a hotel near Times Square. DHS booked a block of 10 rooms at this rate for a stay on December 30, 2016.

• Daily booking totals exceeded $600,000 twice in December 2016, peaking at an all-time high of more than $648,000 on December 30, 2016.

• Between November 1, 2016 and February 28, 2017, there were a total of 162 room bookings for $400/night or higher in five different Manhattan hotels.

  

Comptroller Stringer has laid out a series of measures that could help mitigate the City’s homeless crisis, including the creation of a New York City land bank that could help to transform some 1,100 City-owned vacant lots identified in a previous audit into more than 50,000 permanently affordable units. The Comptroller has also called for setting aside more NYCHA apartments for families with children who are currently housed in commercial hotels to confront the escalating crisis.

The new data released today updates figures on commercial hotel spending released in a report in November 2016 that covered the period between November 1, 2015 and October 31, 2016.

A recent investigation by Comptroller Stringer’s Office found that the number of homeless children three-years-old and younger placed in commercial hotels skyrocketed 224 percent during the summer of 2016 – despite the fact that they have no on-site child care services at all.

BRONX DISTRICT ATTORNEY DARCEL D. CLARK ANNOUNCES SHE WILL MOVE TO VACATE MURDER CONVICTION OF STEVEN ODIASE AND CONSENT TO HIS RELEASE AFTER SIX YEARS BEHIND BARS

  Bronx District Attorney Darcel D. Clark today announced that she will move today to vacate the conviction of a Bronx man in the 2009 murder of a teenage boy, after a review of the case by the District Attorney’s Conviction Integrity Unit determined that the defendant did not receive a fair trial.  

  District Attorney Clark said, “Steven Odiase is serving 25 years-to-life for murder, but the Conviction Integrity Unit has uncovered potentially exculpatory evidence that was not provided to the defense at the time of trial. Because Odiase did not receive a fair trial, I will ask the Court on Monday, April 17, 2017, to vacate Odiase’s conviction in the interest of justice so he can be freed as soon as possible while we determine whether to retry him.

  “The unearthing of the exculpatory evidence highlights the value of a Conviction Integrity Unit (CIU). The unit did an exhaustive re-investigation of this case, which involved the senseless killing of a 15-year-old boy.” 

   The hearing on vacating the conviction will take place at 2 p.m. today before Bronx Supreme Court Justice Steven Barrett in Room 300 in the Bronx Hall of Justice.

  Odiase, 31, was sentenced to 25 years to life in prison after a trial in Bronx Supreme Court in 2013. He was convicted by a jury of second-degree Murder and second-degree Criminal Possession of a Weapon in the fatal shooting of 15-year-old Juan Jerez, who was shot at the corner of Minerva Place and Creston Avenue on June 12, 2009. 

   His co-defendant, Daikwan Giles, confessed to the shooting, and was identified by eyewitnesses. He was convicted in the same trial.

  Odiase’s lawyers filed a post-conviction motion to set aside the verdict in July 2015, and then in 2016, his attorneys Pierre Sussman, Jonathan Edelstein and Robert Grossman asked the CIU to review the case and agreed to stay the motion. 

   Assistant District Attorney Risa Gerson, a veteran appellate defender who joined the CIU in September, 2016, was given the case and reviewed hundreds of documents and interviewed key witnesses. Gerson discovered in the case file a DD5 (a detective’s form summarizing the canvass of the murder scene) that apparently was not provided to the defense. 

   Gerson turned it over to the defense in February, 2017. In March, 2017, Sussman told Gerson that Odiase’s defense team had been given the DD5, but information had been redacted from their version. The missing information was a witness’ description of the shooter that did not match Odiase.

Acting Manhattan U.S. Attorney Settles Civil Lawsuit Against HSBC Bank USA, N.A., Regarding Failure To Disclose Fraud Or Potential Fraud In Guaranteed Loans

Defendant HSBC Bank USA, N.A., Admits Submitting Dozens of Loans for Payment on SBA Guarantees Without Disclosing that Loans Had Been Identified as Fraudulent or Potentially Fraudulent

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Eric S. Benderson, the Acting General Counsel of the U.S. Small Business Administration (“SBA”), announced today that the United States has settled a civil fraud lawsuit against HSBC BANK USA, N.A. (“HSBC”). The Government’s complaint, filed on April 10, 2017 (the “Complaint”), sought damages and civil penalties under the False Claims Act for misconduct in connection with HSBC’s participation in the SBAExpress loan program, which was designed to help start-ups and existing small businesses. The Complaint alleged that, as part of an internal review designed to identify reasons for defaults on loans to small and medium-size enterprises, HSBC identified dozens of SBAExpress loans as fraudulent or potentially fraudulent, since borrowers appeared to have submitted false information to HSBC to obtain the loans. The Complaint further alleged that after 42 of these loans defaulted, HSBC sought reimbursement from the SBA without revealing the facts suggesting that borrowers submitted false information to HSBC to obtain many of the loans, or the fact that HSBC had included the loans on an internal list of fraudulent or potentially fraudulent loans. In the settlement approved today by U.S. District Judge Lorna G. Schofield, HSBC agreed to pay $2,118,861.36 to resolve the Government’s claims, and admitted, acknowledged, and accepted responsibility for conduct alleged in the Complaint.

Manhattan Acting U.S. Attorney Joon H. Kim said: “Lenders must disclose material information for our agency partners like the SBA, who administer federal loan programs. When they fail to do so – as HSBC did here, by submitting loans for repayment on SBA guarantees without disclosing that the loans had been identified as potentially fraudulent – they need to be held to account. This settlement reflects the Office’s continuing commitment to keep lenders who participate in federal lending programs honest.”

SBA Acting General Counsel Eric S. Benderson said: “This case is yet another example of the tremendous results achieved through the joint efforts of the SBA and the Department of Justice to uncover and forcefully respond to civil fraud committed by those who participate in SBA’s lending programs. Identifying and aggressively pursuing instances of civil fraud by participants in the Agency’s lending programs is one of SBA’s top priorities.”

The Government’s lawsuit alleged as follows:

In or around 2006, HSBC conducted an internal review to identify reasons for the default rates on loans it had made to small and medium-size enterprises, including but not limited to loans issued pursuant to SBAExpress. HSBC created a list of known fraud accounts as part of the review. HSBC identified many SBAExpress loans as fraudulent or potentially fraudulent in which borrowers may have submitted false information to HSBC in obtaining their loans, including 42 loans (the “Loans”) referenced in an exhibit attached to the Complaint.

After the Loans defaulted, HSBC sought reimbursement from SBA for the guaranteed amount on each of these Loans (up to 50 percent of the principal of the Loans) without telling SBA that many of the Loans were fraudulent or potentially fraudulent. Specifically, HSBC did not inform SBA of all of the facts indicating that borrowers may have submitted false information to HSBC in connection with the origination of many of the Loans, or that HSBC had included these Loans on an internal list of fraudulent or potentially fraudulent loans. HSBC’s failure to disclose that it had determined that many of the Loans were fraudulent or potentially fraudulent rendered HSBC’s reimbursement requests for losses incurred in connection with the Loans false, misleading, and/or fraudulent. The submissions made to SBA in connection with seeking reimbursement on many of these Loans contained half-truths and material omissions by failing to disclose facts about fraud or potential fraud by borrowers when the Loans were originated.

The case was initially brought by a whistleblower under the False Claims Act, and the Government intervened in the case.

Pursuant to the settlement, HSBC will pay the United States $2,118,861.36. As part of the settlement, the bank admitted, acknowledged, and accepted responsibility for the following conduct:

• In or around 2006, HSBC voluntarily commenced an internal effort to gain an understanding of the reasons for the default rates on loans that it had made to small and medium-size enterprises, including but not limited to loans issued pursuant to the SBAExpress program. HSBC’s efforts included an attempt to identify whether any of the loans involved fraud or potential fraud by borrowers;
  
  
• As part of this effort, HSBC identified a number of loans as fraudulent or potentially fraudulent in which borrowers may have submitted false information to HSBC in obtaining their loans, including the Loans;
  
  
• HSBC subsequently sought from SBA the guaranteed amounts on each of these Loans (i.e., up to fifty percent of the principal of the Loans) after the loans defaulted;
  
  
• In submitting the requests for payment to SBA of the guaranteed amounts of certain Loans, HSBC did not inform SBA of all of the facts indicating that borrowers may have submitted false information to HSBC in connection with the origination of these loans, or that as a result HSBC had identified these loans as fraudulent or potentially fraudulent. 

Mr. Kim thanked SBA for its investigative efforts and assistance with the case.

Software Engineer Arrested For Attempted Theft Of Proprietary Trading Code From His Employer

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DMITRY SAZONOV was charged with attempted theft of trade secrets for his alleged attempted theft of proprietary computer code for a trading platform from his employer, a financial services firm with an office in New York, New York, that trades securities and other financial products (“Firm-1”). SAZONOV was arrested yesterday afternoon and presented today before U.S. Magistrate Judge Andrew J. Peck in federal court.

Acting U.S. Attorney Joon H. Kim said:  “As alleged, Dmitry Sazonov attempted to steal valuable proprietary computer code that took his employer years to develop.  Sazonov allegedly took elaborate steps to conceal his attempted theft, including camouflaging pieces of source code within harmless-looking draft emails on his work computer.  Thanks to the FBI, Sazonov has been stopped and is now in custody.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “As we allege, Sazonov went to great lengths to conceal source code for a trading platform in order to steal it from his former employer.  He researched and ultimately used the technique of steganography to hide the code within other PDF files like personal tax and immigration documents on his work computer. He also uploaded encrypted zip files to a third-party website to complete his heist.  Stealing from an employer is a serious offense especially when it comes to proprietary source code that companies have invested heavily in, and that they rely on to generate revenue.  The FBI is committed to enforcing laws that protect U.S. companies from the theft of trade secrets.”

According to the allegations contained in the Complaint unsealed today[1]:

Firm-1 acts as a market maker, facilitating trading and liquidity in a variety of financial markets.  A substantial portion of the trading done by Firm-1’s employees is facilitated by a proprietary computer trading platform (the “Trading Platform”), which deploys a computer program to take in many different pieces of market data, to use that data to develop trading strategies, and then to generate orders and automatically submit those orders to an exchange or market center.  Firm-1’s use of the Trading Platform accounts for a substantial volume of Firm‑1’s total trading activity.  For example, Firm-1 executes approximately $300 million in options trades through the Trading Platform every day.  The strategies and efficiency resulting from Firm-1’s use of the Trading Platform contribute substantially to Firm-1’s market share in the financial markets in which Firm-1 trades and to its overall trading profits. 

For at least approximately five years, Firm 1 has been in the process of developing an updated and improved version of the Trading Platform (the “Updated Trading Platform”).  Firm‑1 has, to date, invested more than approximately $5 million in the development of the Updated Trading Platform.  The Updated Trading Platform is expected by representatives of Firm-1 to continue to enhance the position of Firm-1 in the markets in which it participates and to contribute substantially to Firm-1’s market share and profits.  Accordingly, Firm-1 has put in place measures designed to protect the computer source code (the “Source Code”) underlying the Updated Trading Platform.

From July 2004 through February 6, 2017, SAZONOV was employed as a software engineer by Firm-1.  In that role, SAZONOV was involved in the development of trading strategies to be implemented in conjunction with the deployment of the Updated Trading Platform; as a result, SAZONOV had access to the Source Code.  On February 2, 2017, SAZONOV learned that his immediate supervisor at Firm-1 had resigned and began looking for a new job outside of Firm-1.  On Friday, February 3, 2017, SAZONOV learned that he would be meeting with another supervisor about the future of his role at Firm-1 the following Monday.   

Before that meeting took place, SAZONOV took various steps to attempt to steal the Source Code.  On the morning of February 6, 2017, SAZONOV downloaded the Source Code to his Firm-1 computer.  He ran Internet searches and viewed websites related to steganography, the practice of concealing messages or data within other files, among other things.  SAZONOV then deployed a computer program that appears to have used steganography, in order to break up a PDF file believed to contain the Source Code, and append pieces of the PDF file to various apparently innocuous documents and files contained in a folder on SAZONOV's desktop computer, including personal tax and immigration documents and images taken from the Internet, among others (the “Payload Documents”).  The program also appears to have produced a manifest, permitting the reassembly of the Source Code from the various Payload Documents.  SAZONOV used his Firm-1 computer to upload an encrypted zip file containing the manifest to a third-party website.  He also saved two draft emails to his Firm-1 email account, attaching the encrypted zip file containing the manifest to one email and a zip file containing the Payload Documents to the other email; the draft emails were addressed to an email address associated with SAZONOV.  SAZONOV did not send the emails before reporting to the meeting with the supervisor.  In the course of that meeting, SAZONOV was fired by Firm-1.  After being fired, SAZONOV repeatedly asked to be permitted to return to his desk to retrieve files from his computer.  Pursuant to Firm‑1 policy, however, SAZONOV was not permitted to return to his desk prior to being escorted out of Firm-1’s New York, New York, office.    

On multiple occasions following his termination by Firm-1, SAZONOV contacted individuals employed by Firm-1 by telephone and by email seeking the return of computer files on his Firm-1 desktop computer, which he claimed were personal documents.  Indeed, SAZONOV repeatedly requested that Firm-1 return to him the documents contained in the file in which the Payload Documents were saved.  On April 12, 2017, SAZONOV reported to the lobby of the building in which the New York, New York, office of Firm-1 is located and retrieved a disk he believed contained those files.  He was subsequently arrested.

SAZONOV, 44, of Rockland County, New York, is charged with one count of attempted theft of trade secrets, which carries a maximum sentence of 10 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 will be determined by the judge.

Mr. Kim praised the outstanding investigative work of the FBI. 

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

[1] As the introductory phase 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 should be treated as an allegation.

New Community Board 8 District Manager to be Michael Heller

  It seems that Assemblyman Jeffrey Dinowitz has been able to get his choice for District Manager of Community Board 8 voted in at the monthly Community Board 8 meeting. But wait the normal second Tuesday full Community Board meeting is being held on Wednesday April 19th, so how would I know that Michael Heller was (or is going to be) voted in as the new District Manager?

  As you have seen on this blog I had left up a writing sample of the Traffic and Transportation Chair's minutes, which he submitted to be approved. If you went over the September 2016 minutes you found several mistakes. How could a non board member who was not even present at the September T & T meeting vote not once, but twice during the meeting as if they were a full board member. How could a board member who was no longer on the T & T committee (and listed as such) vote as a committee member. How could the vote be 9 - 0 - 0 when there were only eight voting members of the committee. When you subtract myself and the one board member who was not able to vote that leaves only seven committee members who voted (if they did) leaving out a long time female committee member who was in attendance. Could it be that the T & T chair Mr. Heller thought that the missing female committee member was me, or was Mr. Heller hallucinating when he wrote the minutes of the meeting. 

  What makes this worse is the fact that at the October 2016 T & T committee meeting the September 2016 Minutes were approved unanimously without any changes, but no names of who voted are mentioned. To make matters even more strange the T & T committee in its November meeting voted to approve the minutes of the October meeting without any changes once again unanimously without any changes, and no names of who voted again. To make sure these minutes were not changed at the last minute I received a certified copy of the September, October, and November Traffic and Transportation Committee minutes from the Chair of CB 8 who certified them.

  It seems that this type of problem happened once before on Community Board 8 by the Economic Development committee chair who had a problem submitting minutes, and there were calls for his removal. I guess if you have Assemblyman Jeffrey Dinowitz in your corner and when you screw up royally like the T & T chair Michael Heller has done you get voted in as the new District Manager.