Former Mobile Phone Industry CEO Sentenced In Manhattan Federal Court To 10 Years In Prison For Role In Multimillion-Dollar Consumer Fraud Scheme

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DARCY WEDD was sentenced yesterday to 10 years in prison for his participation in a fraudulent scheme to charge mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages without the customers’ knowledge or consent – a practice known as “auto-subscribing.”  The fraud committed by WEDD and his co-conspirators resulted in the theft of over $150 million from consumers throughout the United States.  WEDD was convicted by a jury on December 15, 2017, following a two-week trial, and was sentenced yesterday in Manhattan federal court by the Honorable Katherine B. Forrest. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Darcy Wedd was convicted of engaging in a large-scale auto-subscribing scheme that forced mobile phone users to pay charges for unsolicited and unwanted text messaging services.  The conduct of Wedd and his co-conspirators ultimately netted over $150 million in illegal profits.  Today’s sentence reflects the seriousness of Wedd’s predatory consumer fraud.”

According to the Superseding Indictment filed in Manhattan federal court, the evidence presented at trial, and statements made in connection with WEDD’s sentencing:

WEDD was the chief operating officer, and eventually the chief executive officer, of Mobile Messenger, a U.S. aggregation company in the mobile phone industry.  In the relevant time period, mobile aggregators like Mobile Messenger compiled, or “aggregated,” charges for premium text messaging services – such as monthly horoscopes, celebrity gossip, and trivia facts – on consumers’ mobile phone bills.  Between 2011 and 2013, WEDD and others engaged in a massive scheme to defraud ordinary consumers by placing unauthorized charges for premium text messaging services on their cell phone bills, through a practice known as auto-subscribing.

The auto-subscribing scheme essentially involved two main players in the mobile phone industry: mobile aggregators, such as Mobile Messenger, and content providers, which sent consumers the unwanted text messages that ultimately resulted in them being billed for services they had not authorized.  Mobile Messenger worked with four different content providers in the scheme, each of which was essential to the scheme’s success.  WEDD participated in auto-subscribing through three of those content providers:  Tatto, which was operated by co-conspirator Lin Miao, and CF Enterprises and DigiMobi, which were operated by co-conspirator Eugeni Tsvetnenko, a/k/a “Zhenya.” 

In or about 2010, Miao, who was the CEO of Tatto, decided to begin auto-subscribing mobile phone users to Tatto’s premium text messaging services in order to boost Tatto’s sagging revenues.  Miao and others built a computer program that could spoof the required consumer authorizations for premium text messaging services – i.e., a program that could generate the text message correspondence that one would ordinarily see if a consumer was genuinely signing up to receive the services, which was operational by in or about the middle of 2011.  In or about October 2011, Miao met with WEDD and told him, in sum and substance, that Miao wanted to auto-subscribe consumers through Mobile Messenger’s billing platform and needed phone numbers to do so.  WEDD agreed to assist Miao.  WEDD further told Miao, in sum and substance, that co-conspirator Michael Pajaczkowski, who was the Vice President of Compliance and Consumer Protection at Mobile Messenger, would provide phone numbers and assistance to Miao, and that all payments made in connection with the scheme needed to go through Pajaczkowski.  WEDD later received his portion of the payments from Miao through Pajaczkowski.

In or about early 2012, WEDD, Pajaczkowski, and two other co-conspirators, Erdolo Eromo and Fraser Thompson, who were also Mobile Messenger executives, had discussions about how to increase revenue at Mobile Messenger in the wake of the decreasing profitability of premium text messaging services.  Tsvetnenko had been kicked off Mobile Messenger’s aggregation platform in the past due to suspicious subscribing practices, including past incidents of auto-subscribing.  Nevertheless, in early 2012, WEDD, Pajaczkowski, Eromo, and Thompson agreed to allow Tsvetnenko to establish two new content providers, CF Enterprises and DigiMobi, to conduct a scheme to auto-subscribe on Mobile Messenger’s aggregation platform.  WEDD, Pajaczkowski, Eromo, and Thompson also devised a method of receiving and distributing their cut of the proceeds from the auto-subscribing scheme through multiple layers of shell companies, in an effort to conceal the nature and purpose of the money. 

The auto-subscription scheme, through all of the content providers that it involved, affected hundreds of thousands of consumers and generated over $150 million in proceeds, which the co-conspirators apportioned among themselves and used to fund lavish lifestyles of expensive vacations, luxury cars, and gambling.  WEDD, moreover, personally received over $1.7 million in fraud proceeds as a result of his participation in the illegal scheme. 

In addition to the 10-year prison term, WEDD, 40, of New York, New York, was sentenced to three years of supervised release.

To date, eight defendants, Andrew Bachman, Miao, Pajaczkowski, Eromo, Jonathan Murad, Francis Assifuah, Jason Lee, and Christopher Goff have pled guilty in connection with their participation in the fraud.  One additional defendant, Thompson, was convicted by a jury on September 5, 2017, following a three-week trial. 

Mr. Berman praised the investigative work of the Internal Revenue Service-Criminal Investigation Division and the Federal Bureau of Investigation, and expressed his sincere gratitude to the Federal Trade Commission for their support and assistance with the investigation.

If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900.  For additional information, go to:

http://www.usdoj.gov/usao/nys/victimwitness.html.

Settlement With Norwegian Not-For-Profit, Resolving Claims That It Provided Material Support To Iran, Hamas, And Other Prohibited Parties Under U.S. Law

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Ann Calvaresi Barr, Inspector General for the U.S. Agency for International Development (“USAID”), announced today the filing and settlement of a civil fraud complaint against NORWEGIAN PEOPLE’S AID (“NPA”), a non-profit, non-governmental organization headquartered in Norway, that receives funding from USAID.  The settlement resolves claims that NPA violated the False Claims Act (the “FCA”) by providing material support to Iran, Hamas, the Popular Front for the Liberation of Palestine (“PFLP”), and the Democratic Front for the Liberation of Palestine (“DFLP”), contrary to federal funding requirements.  At all times relevant to the lawsuit, Iran was included on the U.S. Department of State’s list of state sponsors of terrorism (the “State Sponsors of Terrorism List”), and Hamas, PFLP, and DFLP were included on the U.S. Office of Foreign Assets Control’s specially designated nationals and blocked persons list (the “SDN List”).  The State Sponsors of Terrorism List includes countries that have repeatedly provided support for acts of international terrorism, and the SDN List includes individuals and entities that support terrorism or otherwise engage in conduct antithetical to U.S. interests. 

On March 30, U.S. District Court Judge Gregory H. Woods approved a settlement agreement that resolves the Government’s claims against NPA.  Under the settlement, NPA is required to pay $2.025 million to the United States (that amount is based on an analysis of NPA’s ability to pay a monetary settlement), and it has revised its internal policies to ensure that it complies with applicable U.S. sanctions laws and the terms of its USAID grants.  In addition, in connection with the settlement, NPA has admitted to and accepted responsibility for its conduct.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “For years, Norwegian People’s Aid obtained grant money from USAID by falsely representing that it had not provided, and would take reasonable steps to ensure that it did not knowingly provide, material support to prohibited parties under U.S. law.  With this settlement, NPA is being made to pay a significant financial penalty for its conduct, and importantly, has admitted to its conduct and agreed to put proper precautions in place to ensure that it does not happen again.”

USAID Inspector General Ann Calvaresi Barr said:  “USAID depends on the integrity of its contractors and grantees to effectively reduce poverty, promote economic growth and democratic values, and deliver aid in crises worldwide.  Making false representations to secure grant funding not only violates U.S. law, it is a serious breach of trust.  And, when false claims hide an organization’s material support to designated terrorist organizations and a state sponsor of terrorism, the violation is all the more severe.  My office makes these cases a top priority and we will continue to investigate them aggressively.”

As alleged in the Government’s complaint and set forth in the parties’ settlement agreement, both of which have been filed in Manhattan federal court:

Since at least 2012, NPA has received monetary grants from USAID to fund various projects and programs.  As a condition of receiving those grants, NPA submitted certifications to USAID each year in which it represented that, “to the best of its current knowledge, it did not provide within the previous ten years, and will take all reasonable steps to ensure that it does not and will not knowingly provide, material support or resources to any individual or entity that commits, attempts to commit, advocates, facilitates, or participates in terrorist acts . . . .”  In these annual certifications, NPA also represented that “[b]efore providing any material support or resources to an individual or entity,” it would (1) “verify that the individual or entity does not appear . . . on the [SDN List],” and (2) “consider all information about that individual or entity . . . that is reasonably available to it or of which it should be aware.”  The annual certifications defined “material support and resources” to include “training [and] expert advice or assistance.” 

Notwithstanding the above-referenced certifications, NPA provided training and expert advice or assistance to Iran, as well as to Hamas, PFLP, and DFLP.  With respect to Iran, from 2001 through 2008, NPA performed mine clearance activities in Iran that were integral to an Iranian oil development project.  Among other things, NPA (1) conducted risk assessments of the areas in Iran where the oil exploration and processing activities were to occur, (2) surveyed those areas for landmines and other unexploded ordnance, (3) trained members of the Iranian Army on how to conduct mine clearance activities, (4) accompanied and advised members of the Iranian Army as they conducted mine clearance activities in the relevant areas, and (5) conducted some mine clearance activities itself. 

With respect to Hamas, PFLP, and DFLP, from 2012 through 2016, NPA provided representatives of those three SDN List entities with training and expert advice or assistance by funding a project called “Youth of Today . . . Leaders of Tomorrow.”  Through this project, young people in the Gaza Strip, aged 15 through 28, who were affiliated with one of the project’s partner political parties – which included Hamas, PFLP, and DFLP – received training aimed at making them more effective participants in the political process.  Such training included programs intended to improve the participants’ ability to organize, debate, negotiate, advocate for their positions, and resolve conflicts.  In addition, through the Youth of Today project, NPA funded numerous workshops attended by young people in the Gaza Strip and senior officials from the partner political parties, including Hamas, PFLP, and DFLP.  Hamas, PFLP, and DFLP used information that they obtained from these workshops to alter their behavior in order to become more attractive to youth and, thereby, benefit from increased youth support. 

Because NPA provided training and expert advice or assistance to Iran (through the above-referenced oil development project), as well as to Hamas, PFLP, and DFLP (through the Youth of Today project), its certifications to USAID that, to the best of its knowledge, it had not provided and would take all reasonable steps to ensure that it did not knowingly provide material support or resources to any prohibited parties were false.  As a result of those false certifications, NPA induced USAID to provide it with grant funding that, but for the false certifications, USAID would not have provided.

As part of the settlement, NPA admitted, acknowledged, and accepted responsibility for its conduct, including that: (1) “NPA’s participation in the [Iranian] oil development project was inconsistent with its Certifications to USAID”; and (2) “[t]he ‘Youth of Today . . . Leaders of Tomorrow’ training programs and workshops were conducted in a manner that was inconsistent with NPA’s Certifications to USAID, in that they were attended by representatives of entities that were prohibited parties under U.S. law, including entities that were identified on the SDN List as prohibited parties.”

In connection with the settlement, NPA has also revised its internal policies to ensure that it complies with applicable U.S. laws and the terms of any grants it receives.  Such revisions include changes to its “Policy on Compliance with USAID Grants and U.S. Economic Sanctions Programs” to provide for additional training of NPA managers and administrative staff on compliance with applicable U.S. laws and grant terms; regular audits by an external auditor of NPA’s compliance with applicable U.S. laws and grant terms; and periodic reviews for purposes of making appropriate updates to relevant NPA internal policies and procedures.  Moreover, upon request by USAID or any other U.S. agency that provides NPA with grants or any other type of funding, NPA shall provide such agency with, among other things, a written report, prepared by the external auditor, of the results of each of the above-referenced audits, and a description of any actions taken by NPA in response to such audits.

In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that previously had been filed under seal pursuant to the False Claims Act. 

This is the second case that this Office has pursued successfully against a recipient of USAID grant funds based on allegations that it provided material support to prohibited parties under U.S. law.  In March 2017, the Office resolved a similar case against the American University of Beirut.

Mr. Berman thanked the USAID Office of Inspector General for its investigative efforts and assistance with the case.

A.G. Schneiderman Files Suit To Block Trump Administration From Demanding Citizenship Info In 2020 Census

AG Schneiderman Leads Coalition of 18 Attorneys General, 6 Cities, Bipartisan U.S. Conference of Mayors in Suit Filed Today 

Citizenship Demand Would Depress Turnout in States with Large Immigrant Populations – Threatening States’ Fair Representation in Congress and Electoral College, as Well as Billions in Critical Federal Funds

  Today, New York Attorney General Eric T. Schneiderman – leading a coalition of 18 Attorneys General and six cities and the bipartisan U.S. Conference of Mayors – filed a lawsuit to block the Trump administration from demanding citizenship information in the 2020 decennial Census. Demanding citizenship information on the Census would depress turnout in states with large immigrant populations, directly threatening those states’ fair representation in Congress and the Electoral College, as well as billions of dollars in critical federal funds for education, infrastructure, Medicaid, and more.

“One of the federal government’s most solemn obligations is a fair and accurate count of all people in the country, citizen and non-citizen alike,” said Attorney General Schneiderman. “For decades, administrations from both parties have treated this constitutional requirement with the respect and reverence it deserves. Now, the Trump administration is breaking with that tradition – recklessly abandoning nearly 70 years of practice by demanding to know the citizenship status of each resident counted. With immigrant communities already living in fear, demanding citizenship status would drive them into the shadows, leading to a major undercount that threatens billions in federal funding for New York and our fair representation in Congress and the Electoral College. I’m proud to lead this coalition in the fight for a full and fair Census.”

The lawsuit, which was filed this morning in the U.S. District Court for the Southern District of New York, was led by Attorney General Schneiderman and joined by the Attorneys General of New York, Connecticut, Delaware, Illinois, Iowa, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Virginia, Vermont, Washington, and the District of Columbia; the cities of New York City, Chicago, Philadelphia, Providence, San Francisco, and Seattle; and the bipartisan U.S. Conference of Mayors.

Under the Constitution, the Census Bureau has an obligation to determine “the whole number of persons in each state.” Yet demanding citizenship information in the Census is expected to depress participation among immigrants, causing a population undercount that would disproportionately harm states and cities with large immigrant communities. Non-citizens are counted in the Census for the purposes of federal funds, apportioning of congressional seats and Electoral College votes, and the drawing of state and local districts.

On December 12, 2017, the U.S. Department of Justice requested that the Census Bureau demand citizenship information in the 2020 census form sent to every household in the United States, even though the Census is supposed to count all persons—citizens and non-citizens alike. The Department of Justice argued that the collection of such information was necessary to ensure proper enforcement of the 1965 Voting Rights Act. Yet as Attorney General Schneiderman and 18 other states argued in a letter sent to the Commerce Secretary in February, the demand would have precisely the opposite effect by driving down participation in immigrant communities—a concern that is even more acute in today’s political climate. The resulting undercount would deprive immigrant communities of fair representation when legislative seats are apportioned and district lines are drawn.

The lawsuit filed today is brought under the Enumeration Clause of the U.S. Constitution, as this action by the Trump administration will impede an “actual Enumeration” required by the Constitution. It is also brought under the Administrative Procedure Act, which permits courts to set aside unlawful or arbitrary and capricious agency decisions.

As the Census Bureau’s own research shows, the decision to demand citizenship information will “inevitably jeopardize the overall accuracy of the population count” by significantly deterring participation in immigrant communities, because of concerns about how the federal government will use citizenship information. These concerns are amplified by President Trump’s anti-immigrant rhetoric and pattern of actions that target immigrant communities.

In 1980, the Census Bureau rejected the addition of a citizenship question, saying, “Any effort to ascertain citizenship will inevitably jeopardize the overall accuracy of the population count. Obtaining the cooperation of a suspicious and fearful population would be impossible if the group being counted perceived any possibility of the information being used against them. Questions as to citizenship are particularly sensitive in minority communities and would inevitably trigger hostility, resentment, and refusal to cooperate.”

In 2009, all eight former Directors of the Census Bureau dating back to 1979 – who served under both Democratic and Republican presidents – affirmed that a citizenship question would depress participation and lead to a significant undercount, undermining the purpose of the Census itself.

As today’s lawsuit describes, the administration’s decision is inconsistent with the Census Bureau’s constitutional and statutory obligations, is unsupported by the stated justification, departs from decades of settled practice without reasoned explanation, and fails to consider the availability of alternative data that can effectively serve the federal government’s needs.

The lawsuit also emphasizes the irreparable harm that will result from inaccuracies in the 2020 Census caused by demanding citizenship information. Hundreds of billions of dollars in federal funds are directly tied to demographic information obtained through the census, including the Highway Trust Fund and other Department of Transportation grants, Child Care Development Grants, and Medicaid. Consequently, inaccurate counts can potentially deprive states of much-needed funds designed to protect low-income and vulnerable communities.

The decennial census is also used to apportion seats in the House of Representatives, and each plaintiff state relies on population information from the Census Bureau to draw statewide redistricting plans for their Congressional and state legislative districts. Demanding citizenship information would cause disproportionate undercounts in communities with immigrant populations and therefore prevent plaintiff states from fulfilling the one-person, one-vote constitutional requirement, as well as create distributional inaccuracies in the data states use to draw district lines. 

In addition, the citizenship demand would depress Census participation within the states’ diverse immigrant and undocumented populations, leading to inaccurate responses and a significant undercount of the states’ residents. As a result, an undercount of population in states that are home to large immigrant communities will impair fair representation, a principle fundamental to the fabric of our democracy.

MAYOR DE BLASIO ANNOUNCES NEW FRAMEWORK TO CLARIFY LEGALITY OF PEDAL-ASSIST BICYCLES

New DOT rule will define and regulate pedal-assist bicycles for use on New York City streets

  Mayor Bill de Blasio today announced that DOT will begin the rule-making process to clarify that pedal-assist bicycles are legal to operate in New York City. The new rule will recognize that pedal-assist bicycles are permissible, whereas throttle e-bikes, capable of travel at speeds over 20 MPH, cannot be legally operated on City streets under State law.

“As cycling continues to grow in popularity for commuting, deliveries and tourism, we are seeing the demand for pedal-assist bicycles that can help cyclists travel longer distances and more easily climb steep hills,” said Mayor de Blasio. “With new and clear guidelines, cyclists, delivery workers and businesses alike will now understand exactly what devices are allowed.”

“By creating the framework for pedal-assist bicycles, our goal is to join other world cities that are opening the door for delivery workers, older or less able-bodied cyclists, and other casual aspiring cyclists to experience a safe and low-emission mode of travel,” said DOT Commissioner Trottenberg.  “Cycling, including on pedal-assist bikes, is not only fun, it’s a fast, affordable, healthy and sustainable way of getting around.   With challenges like the L train tunnel closure on the horizon, our aim is to balance moving even more New Yorkers on two wheels with the need to manage that growth safely.”

“The NYPD supports the clarification of the legal status of electric bicycles being operated on New York City streets,” said Chief Thomas Chan, the NYPD’s Chief of Transportation. “The NYPD will continue to work closely with the Department of Transportation to ensure the safety of the city’s bicyclists.”

The City outlined the following benefits to its new legal framework and the expansion of pedal-assist bicycles:

Increased Cycling Options for Delivery Workers and Commuters: The new rule will also help meet the City’s goals of doubling the number of active cyclists by 2020.  In addition to creating more ways to get around in neighborhoods and areas underserved by transit, the rule will be helpful for those considering new commuting options during the closure of the L train tunnel starting in April 2019. The Williamsburg Bridge currently has over 7,000 daily bicycling trips; during the tunnel closure, cycling trips over the bridge are expected to more than double.

Health and Sustainability: Pedal-assist bicycles contain a rechargeable battery that can be used to travel longer distances or boost power going up hills -- and are among the fastest-growing and most environmentally sound modes of urban travel, both around the U.S. and around the world.  One European study has shown substantial health and environmental benefits, including that pedal-assist bicycles increase cycling, especially among older users.  Research has also shown that pedal-assist bicycle trips most often replace car trips; with the ability to avoid car traffic and parking costs, trips on pedal-assist bicycles are usually both faster and cheaper.

In October 2017, Mayor de Blasio and the NYPD announced increased enforcement against improper use of electric bikes, with a particular focus on the hazardous operation of e-bikes and businesses that use them or permit employees to ride them.  Under the framework announced today, DOT and NYPD will sanction low-speed pedal-assist bicycles that operate with the assistance of human power, specifying the exact type of permissible equipment. E-bikes possessing throttle capacity or any capacity to operate without human power remain illegal under State and local law. Several bills addressing e-bikes are active in Albany, and New York City would also be open to further clarification.

Under the new rule, cyclists as well as delivery workers who currently do not travel by bike will have an alternative that is legal, sustainable (zero-emission) and safe. Throughout the rulemaking and implementation process, the Administration will continue to work with and hear from a variety of stakeholders, including immigrant and delivery worker advocates.

For more information on e-bikes and enforcement, please visit: http://www.nyc.gov/html/dot/html/bicyclists/commercial-cyclists.shtml

STATEMENT FROM STATE SENATOR GUSTAVO RIVERA ON THE NYS BUDGET 2018-2019

State Senator Gustavo Rivera joined his colleagues in the New York State Senate to vote on the 10 bills of the 2018-2019 Budget. Senator Rivera voted against bills that did not include critical measures to improve the lives of New Yorkers: Public Protection and General Government (S7505C), Education, Labor, & Family Assistance (S7506B), and Transportation, Economic Development, & Environmental Conservation (S7508C).

2018-2019 BUDGET OVERVIEW

"This year the Democratic Conference experienced the same closed-door process of deciding the New York State Budget that forces legislators in our conference to vote on appropriations and language without contributing to the negotiations and with insufficient time to properly review the bills we must vote on," said State Senator Gustavo Rivera. "Too many decisions that affect the people we represent, like communities of color facing injustice, people battling health issues, overburdened families, beleaguered tenants, and hardworking New Yorkers, were made without us in the room. This year was particularly absurd: sexual harassment policies that should protect every worker in this great state were cobbled together while excluding the only female legislative leader, ultimately rendering the product inadequate to protect people from harassment, abuse, and retaliation. "

After a rushed, combative process, our State finally announced the passage of the 2018-2019 New York State Budget totaling approximately $168 billion. "I am proud of the leadership of our Democratic Leader, Senator Andrea Stewart-Cousins. Yet, without her in the room, the interests of New Yorkers across this State went unheard. New Yorkers have made their priorities explicitly clear, yet common sense measures were not passed," said State Senator Gustavo Rivera

People who were abused as children deserve the passage of the Child Victims Act, but Senate Republicans chose to protect the abusers and the people who stand in the way of justice for them. New York is falling behind on protecting immigrants during a time when the Federal Government is attacking them daily, and once again the DREAM Act wasn't even brought up for a vote. Demands for gun control reform went unheard by my colleagues as we passed a fraction of the reforms put forth. Women's rights to control their reproductive health are being threatened across the nation as some try to overturn Roe v. Wade, and our state can't even codify language to enshrine that protection in law. New Yorkers should know that the Senate Republican Majority did not include election and campaign finance reforms like Early Voting, Online Voter Registration, or closing the LLC Loophole, which would have increased participation in elections by the people, instead of wealthy interests. The Senate Democratic Conference will continue the fight to make these reforms a reality. Some further highlights are below.

HEALTH

Hospitals and labor unions won $525 million in capital money for providers, combined with $500 million from last year, and the indigent care pool formula was renewed for another year. Changes to the safety net hospitals program will create "enhanced safety nets," which will provide better funding streams for hospitals with large populations of Medicaid or uninsured patients. We saw millions of dollars allocated specifically for community based health care providers, residential health care facilities, and Assisted Living Programs.

"I am proud that the budget supports hospitals serving impoverished people who have a right to adequate healthcare and receiving it at their local hospitals, no matter who they primarily serve. We must do more to guarantee that everyone can receive the services they need to be healthy, which is why I carry the bill to create Healthcare for All in our great state," said State Senator Gustavo Rivera. "I am very pleased at the inclusion of language requiring rape kits and sexual assault evidence to be stored and maintained for 20 years from collection to better enable the victims of these heinous crimes to find justice. However, we are not doing enough to change the conversation about the opioid crisis: every person in every county deserves health care for their substance dependency issues, and the criminal justice system is not where they will receive this care. I look forward to details of how the new funding stream plan will be spent by the NYS Office of Alcoholism and Substance Abuse Services."

NEW YORK CITY HOUSING AUTHORITY

The budget will provide some capital funding for the New York City Housing Authority to address health hazards like lead and mold and includes Design Build provisions that will significantly expedite the installation of desperately-needed upgrades, like heat and hot water systems.

"NYCHA residents are not to be used as a political talking point. New York State's leaders should not be debating whether NYCHA should receive capital funding to ensure homes are safe and healthy." said State Senator Gustavo Rivera. "The new funding stream is a lot of money, but it is just the beginning-- we should be enacting a long-term commitment that isn't up for negotiation every year. Design Build and oversight will ensure that we address the priorities of residents and the health hazards in a timely manner, but we must continuously address the health crises in public housing and support an Authority that provides over 300,000 affordable apartments to families in New York City amidst a mounting housing affordability crisis."

CRIMINAL JUSTICE

New Yorkers accused of a crime should be treated as innocent until proven guilty, yet important criminal justice reforms were not included, like Bail Reform, Speedy Trial, or Automatic Discovery, to ensure that this right is guaranteed so everyone can enjoy the rights that this country's constitution requires.

"I was proud to pass a law to create the Charitable Bail program six years ago, which has had a real impact on the lives of people in this state. Sadly, it could not save people like Kalief Browder, who lived in my district before he languished in Riker's for three years, simply because he and his family could not afford bail," said State Senator Gustavo Rivera. "The system is allowing people to lose their livelihoods, their dignity, and tragically their very lives, in favor of perpetuating the criminalization of black and brown people. It is unconscionable that this state will let people languish in jails awaiting trial, punished for being poor, because bail, speedy trial, and real criminal justice reforms for every New Yorker were not a priority in budget negotiations this year."

TRANSPORTATION

The budget increases MTA Funding by $334 million, which includes funds for the $836 million Subway Action Plan, but leaves New York City responsible for contributing the remaining half after many renovations of late have been focused on the system infrastructure beyond the boroughs.

"I have great concerns for our subways and our public transit system's viability if we continue to defer its upgrades. The signal system must be brought into the 21st century and delays need to be addressed with investments in its functionality, not its aesthetics. My colleagues should also remember that New York City taxpayers are not the only group who rely on this system, so this State has failed to ensure that the basic needs of commuters were met by placing half the burden of funding on the City," said State Senator Gustavo Rivera. "The congestion pricing plan, which will help improve air quality, ease traffic on critical roadways, and would help fund the system that most New Yorkers in the metropolitan area use, and the lockbox language I saw, are moves in the right direction. We need increased transparency and more cost-effective investments, so the fight is certainly not over."

WHAT YOU SHOULD KNOW - By Councilman, Rubén Díaz Sr. District 18 Bronx County, New York

Scott Stringer goes against the only 2 Dominican State Senate Members

You should know that apparently, it seems that the New York City Scott Stringer does not like Latinos, especially Dominicans to occupy state elected office. 

It is important for you to know that all of the seven members in the “New York State Senate Independent Democratic Conference” are facing primaries from other Democrats supported by the Senate Regular Democrats headed by Senator Andrea Stewart Cousins. 

Since 2010 Senator Jeff Klein broke away from the “Regular” Democrats and created the Independent Democratic Conference (IDC).   Since then Senator Klein has been joined by six other dissatisfied senators, thereby creating an alliance with the Republicans and Governor Cuomo.    As a result of said alliance, the IDC members obtain benefits for their respective districts while the “Regular” Democrats are left out in the cold not acquiring any benefits. 

The IDC is made up of a pretty well balance ethnic composition.  Jeff Klein, Diane Savino, David Valesky and Tony Avella are Caucasian.  Senator Jessie Hamilton is African American and Marisol Alcantara and Jose Peralta are Dominican. 

Rumor has it that Mr. Scott Stringer has joined those who hate to see the members of the “IDC” bringing the bacon to their districts while the rest are being left salivating and angry to see how impotent they have become. 

Rumor also has it that Mr. Stringer has seen the opportunity to divide and get even with the Dominicans for past rifts between him and the Dominican Leadership. 

So, like a warrior that hungers for vengeance, Mr. Stringer has decided to support candidates against the only two Dominicans (Alcantara and Peralta) leaving Jeff Klein and his White Senators out of Stringer’s firing range. 

Remember my dear readers all the seven (7) members of the (IDC) all of them have primary challenges……All of them. 

Scott Stringer, owes an explanation to the Dominican Community.  Why is he supporting candidates that are challenging the only two Dominicans?    Why is he not supporting those candidates that are running against the other member’s.

On the other hand I must ask myself where are the voices of those so called Leaders of the Dominican Community?

This is Councilman Ruben Diaz, and this is what you should know.  

Rev. Ruben Diaz, Sr.

New York City Council Member 18^th District  

EDITOR'S NOTE:

It did not take long for new Councilman Ruben Diaz Sr. to go after the number one contender for mayor in 2021. A race that will see many elected officials who will be running for mayor including his son the current Bronx Borough President Ruben Diaz Jr. I can not wait to read what Ruben Diaz Sr. has to say about other possible Democratic mayoral candidates such as the current Public Advocate Letitia James, Brooklyn Borough President Eric Adams, Queens Borough President Melinda Katz, the current City Council Speaker Corey Johnson, Brooklyn Congressman Hakeem Jeffries, and possibly even a celebrity candidate such as the one running for governor this year.   

Not only has Ruben Diaz Sr. insulted the White voters of the city, but he also has insulted the Dominican leaders and elected officials of the city. 

It is going to be a fun next three years watching Bronx Borough President Ruben Diaz Jr, go from a contender for Mayor to a candidate for City Comptroller.  

DE BLASIO ADMINISTRATION OUTLINES NYCHA HEATING PROJECTS AWAITING STATE’S NEW $250 MILLION COMMITMENT

  Deputy Mayor for Housing and Economic Development Alicia Glen today issued a letter to New York State Budget Director Robert Mujicia urging the Governor to release the $250 million dedicated in the State’s Fiscal Year 2019 budget. The City outlined a list of priority projects that would improve heat and hot water systems at 14 NYCHA developments where 32,000 resident live. The City also urged the release of $200 million allocated to NYCHA but not yet spent from last year’s State budget. The letter is below and attached.

April 2, 2018

Budget Director Robert Mujica

NYS Division of the Budget

Capitol

Albany NY, 12224

Dear Budget Director Mujica,

Improving the lives of people living in public housing is the responsibility of every level of government—City, State and federal.

The State budget passed on Friday evening allocated a further $250 million to the New York City Housing Authority. Public housing tenants deserve that funding to be quickly applied to NYCHA’s most pressing needs. And that means this funding cannot be held hostage to the same delays and dynamics as in previous years.

NYCHA has developed a list of priority projects—replacing 63 poorly rated boilers and decoupling heat and hot water in 14 developments—on which it would spend $250 million provided by the State. These projects represent the heating plants most in need of replacement—the most urgent following those previously funded by HUD, NYCHA’s FEMA grant, the City’s $200 million announced in January (for which we have already begun design work) and last year’s State allocation.  The oldest heating plant on this list is 54 years old. All boilers on the list are rated Level 4 or 5—meaning they face chronic outages and there is little or no means of replacing individual parts as they fail. More than 32,000 residents live in these developments.

It is critical we begin design work this spring. With design-build authority granted to NYCHA in the State budget, combined with recent reforms across City agencies, we can deliver these projects in 18 to 24 months—an aggressive timeframe. The City has already initiated the required approval process with HUD. But the clock on actual design work can only begin once the State has released funding.

NYCHA tenants cannot afford business as usual.

It has been 357 days since the State allocated $200 million in its Fiscal Year 2018 budget. Not a dollar of that funding has yet been delivered to NYCHA’s tenants. The clock on those repairs--$100 million for elevator replacement and $100 million to replace boilers at 10 developments—has not even begun. It is time for the State to fulfill its promises and deliver that funding.

It has been 1076 days since the State allocated $100 million in it Fiscal Year 2016 for security and quality of life projects at NYCHA, to be spent and administered by the Dormitory Authority of the State of New York. To date—three years later—fewer than 25 percent of those projects have been completed.

NYCHA’s spending on capital projects has averaged approximately $580 million annually over the past four years. All told, we have put more than $2.3 billion in capital to work for our residents under this administration.  Just as NYCHA has done with its FEMA work, it would contract with one or more private general contractors to do the construction enabled by the State’s funding.

It is time to make good on these previous commitments. And it is time to chart a better course with this year’s funding.

We are ready to work with the State today to expedite the delivery of this year’s $250 million and the vital repairs it can provide immediately.

We look forward to collaborating on this important shared priority.

Sincerely,

Alicia Glen

Deputy Mayor for Housing and Economic Development

City of New York.

Statement From IDC Leader Jeff Klein on NYCHA

  For years, members of the Independent Democratic Conference demanded an Independent Monitor, transparency and funding to fix the deplorable conditions in New York City’s most affordable housing stock, NYCHA. Today, we put out the welcome mat to a new era for the 400,000 tenants who for too long suffered under management’s watch through subhuman conditions through an Emergency Declaration that installs an Independent Monitor, an additional $250 million that brings available funding to $550 million to remediate mold, lead, and to repair boilers and the most critical issues. I’m proud that through issuing reports over the years, the latest “The New Flint,” and “Break the Mold: Cleaning Up NYCHA’s Mess,” the members of the IDC will be able to make a profound difference in the living conditions for tenants.