Thursday, October 4, 2018

A.G. Underwood & NYC Corporation Counsel Carter Announce $30 Million Settlement With Investment Manager For Tax Abuses


New York Based Investment Manager Harbinger Capital Partners Offshore Manager LLC Evaded New York State and New York City Taxes
Company Admits to Failure in Income Apportionment, State and City Tax Underpayment
This Settlement Follows Earlier $40 Million Settlement with Harbert Management Corporation, Which Sponsored and Organized Principal Hedge Fund Managed by Offshore – Resulting in a Total of $70 Million Recovered
  New York Attorney General Barbara D. Underwood and New York City Corporation Counsel Zachary W. Carter announced a $30 million settlement with Harbinger Capital Partners Offshore Manager LLC (“Offshore Manager”), a hedge fund manager, resolving claims that Offshore Manager knowingly evaded New York State and New York City taxes. 
Offshore Manager earned incentive fees from successful trading that it conducted from an office in New York City. This income was subject to New York State income tax and New York City unincorporated business tax; however, Offshore Manager concealed its New York City business activities from State and City tax authorities. 
“Harbinger Capital Partners Offshore Manager earned hundreds of millions of dollars in New York State and New York City, but deliberately dodged paying its fair share of taxes,” said Attorney General Underwood. “Tax evasion forces ordinary New Yorkers to shoulder the bill. My office will continue to use every tool at our disposal to pursue those who knowingly violate the tax law and hold them accountable.”
NYC Corporation Counsel Carter said, “The New York False Claims Act, which expressly covers tax fraud, provides a powerful tool for government to use to compel tax law compliance. With the assistance of the New York City Department of Finance, we were successful in ensuring that City unincorporated business tax was paid for a hedge fund business that was operating out of a New York City office.”   
As a term of the settlement agreement, Offshore Manager admitted that it had an obligation to apportion income to New York State and to pay New York City unincorporated business tax, but it did not do so for several years. 
The investigation leading to the settlement announced today began with a whistleblower lawsuit filed in March 2015 under the New York False Claims Act. The Act, which expressly covers tax fraud, allows whistleblowers and the government to take legal action against companies or individuals that defraud the government. The settlement follows an earlier $40 million settlement in this investigation, concluded in April 2017, with Harbert Management Corporation (“HMC”), the Alabama-based investment management company that sponsored and organized the principal hedge fund managed by Offshore Manager. As a result, a total of $70 million will be recovered. Whistleblowers are entitled to rewards under the New York False Claims Act, and, as a result of the settlement announced today and the earlier settlement announced in April 2017, the whistleblower here will receive a total of $15.4 million for bringing this misconduct to light.  
Offshore Manager served as the investment manager for a hedge fund that aggregated investment capital from onshore and offshore funding vehicles and for its offshore feeder fund from 2003 through 2009. Offshore Manager’s investment activities were led by Philip Falcone, who rose to become Senior Managing Director of Offshore Manager. Mr. Falcone and others he managed carried on Offshore Manager’s investment activities from an office located at 555 Madison Avenue in Manhattan. The tax positions taken by Offshore Manager were developed and implemented by Offshore Manager’s officers and agents in Alabama, not by Mr. Falcone.    
The Attorney General and New York City Corporation Counsel filed a superseding complaint in the action in Manhattan Supreme Court, which alleges claims against Offshore Manager as described below. The Attorney General and New York City Corporation Counsel will subsequently discontinue those claims, upon compliance with the terms of the settlement agreement. The superseding complaint alleges:
  • Offshore Manager earned incentive fee income in an amount equal to 20 percent of the net profits of the offshore feeder fund. Offshore Manager’s members were required to pay New York State income tax on the incentive fee income earned as a result of Offshore Manager’s investment management activities in New York. Offshore Manager failed to apportion to New York State any of this income, as required, for tax years 2004 through 2009. Offshore Manager also failed to pay New York City unincorporated business tax for tax years 2004 to 2007. Instead of apportioning income to New York, Offshore Manager apportioned all of its income to Alabama, which had lower tax rates. 
  • As a result of Offshore Manager’s tax positions, Offshore Manager’s nonresident members avoided paying the New York State income tax that they owed, and Offshore Manager failed to pay millions of dollars in estimated taxes to New York State for those nonresident members as it was required to do. Further, Offshore Manager’s members who were New York residents paid less New York tax because no income was apportioned to New York State. 
  • Offshore Manager ignored professional advice that it should pay New York State and City tax on its incentive fee income.
  • Offshore Manager’s Chief Administrative Officer acknowledged, in his own handwritten notes, that apportioning none of the income to New York and all of the income to Alabama was “unsupportable.”
  • When first confronted with the prospect of having to pay New York tax, an officer of Offshore Manager, who was an Alabama resident, responded to a question about why the issue arose by writing, “I think [the tax advisors] just figured it out; ugh…. I hate taxes especially having to support some place I don’t live. Another one of those high class problems.”
  • Offshore Manager concealed its business activities in New York from the New York State Department of Taxation and Finance. For example, during a State audit examining the nature of Offshore Manager’s business activity and the source of its income, Offshore Manager’s agents in Alabama amended the company’s limited liability company agreement to change the location of the company’s longstanding principal office from New York, New York to Birmingham, Alabama and then caused statements to be made to state tax officials that highlighted the new Alabama address in the revised agreement without alerting them that the address had been changed during the audit.
As a term of the settlement agreement, Offshore Manager agreed to apportion to New York State and New York City 100 percent of the incentive fee income that it earned in the period 2004 through 2009 but had deferred for tax purposes. Offshore Manager also made a $4.8 million payment to the New York City Department of Finance relating to an outstanding tax judgment against the company. The Attorney General expresses her appreciation to the whistleblower, without whose information the misconduct might have remained concealed from the authorities, and to the whistleblower’s attorneys. 

Comptroller Stringer Expands ‘Making Rent Count’ Program to Address Deep Disparities in Credit Scores Across the City


Program allows residents of Grand Street Guild Apartments to add rent payments to credit histories, helping establish or boost their credit scores

  New York City Comptroller Scott M. Stringer announced the expansion of the “Making Rent Count” program in over 600 units at Grand Street Guild Apartments on Manhattan’s Lower East Side. The opt-in program allows residents to make monthly rent payments count toward their credit scores, just as mortgage payments do for homeowners – helping tenants take control of their credit and secure better rates for loans, insurance, cell phone bills and more.

This launch is offered in collaboration with Enterprise Community Partners, Catholic Charities, and Grand Street Guild property managers Wavecrest Management. The initiative aims to lift scores in a community that faces deep disparities in access to credit. While the Lower East Side zip code encompassing Grand Street Guild boasts a relatively high average credit score of 691, more than 19% of community members currently hold subprime scores, forcing them to pay more for everything from cell phones to car insurance, while denying them access to loans and other financial opportunities.
“A credit score might only be three digits, but it has an outsized effect on New Yorkers financial lives,” said Comptroller Stringer. “As New York City continues to face an affordability crisis, we need commonsense solutions to help the communities hit hardest get ahead. The hard-working tenants of Grand Street deserve the same chance of boosting their credit as homeowners with million dollar mortgages do. I want to thank all of our partners for helping to deliver this vital service to Grand Street residents.”
“Good credit is a powerful tool that enables individuals and families to access financial opportunities that otherwise may have been out of reach. By empowering residents to invest in their financial future, the Rent to Build Credit Program makes communities like Grand Street Guild platforms for opportunity,” said Judi Kende, vice president and New York market leader, Enterprise Community Partners. “Enterprise was proud to develop this pilot program alongside the Comptroller’s Office, Wavecrest Management, and Catholic Charities, and we hope it will continue to serve as a model for other communities seeking to support residents.”
“We’d like to thank Comptroller Scott Stringer, and we are extremely pleased to partner with his office to offer this important initiative to our hard-working residents, giving them a secure and easy way to increase their credit scores,” said Susan Camerata, Chief Financial Officer of Wavecrest Management. “We are always looking to offer valuable amenities to our many residents, so the Comptroller’s ‘Making Rent Count’ program is another telling example of a great team effort.”
The program is the third pilot launched as part of the Comptroller’s “Making Rent Count” initiative, which aims to develop rent reporting programs across the five boroughs. In February, the Banana Kelly Community Improvement Association gave more than 600 tenants in the South Bronx the option of adding rent information to their credit scores. In April, the program extended to 1,400 units within Ocean Bay Apartments in the Far Rockaways, home to the lowest median credit score in New York City. Comptroller Stringer is working with Enterprise Community Partners to develop more pilot programs over the coming year to demonstrate how rent reporting programs can benefit local communities.
The benefits of incorporating rent payment information into credit files are detailed in the Comptroller’s October 2017, “Making Rent Count” report, in which the Comptroller’s Office studied a representative sample of city tenants paying rents under $2,000 and found that reporting rent history would:
Raise credit scores for 76 percent of New York City renters who currently hold a credit score. Specifically:
    More than half (57%) would see their score rise between 1 and 10 points;
    Nearly one in five (19%) would have their score boosted by 11 points or more;
    18 percent would see no change at all;
    6 percent would see a possible decline in their scores.
Provide nearly 30 percent of renters with a credit score for the first time. The average new score for these mostly low-income renters – now categorized as “invisible” or “unscorable” because of the relative dearth of financial information in their credit files — would be a prime score of 700.
To read the Comptroller’s “Making Rent Count” report, click here.

Parque de Los Ninos Groundbreaking Ceremony



  It was the groundbreaking ceremony for the new Parque de Los Ninos park reconstruction located on Metcalf Avenue just off Westchester Avenue. Bronx Borough President Ruben Diaz Jr. spoke of him and his brother playing ball in the park, and of his children also playing there. Diaz Jr. added that as Bronx Borough President he has placed park improvements as one of his priorities so people and children can enjoy what the Bronx has to offer them. On hand for the groundbreaking was the new District Leader from the 87th Assembly District Mr. John Perez (far left), Bronx Parks Commissioner Iris Rodriguez was joined by her boss NYC parks Commissioner Mitchel Silver, and children from IS 127 to move the earth to help get the two new ball fields and one new soccer field construction going.


Above - What the two new ball fields, soccer field, and surrounding area will look like when construction is completed.
Below - Bronx BP Ruben Diaz Jr. tells about the history he had and his children have had in the park.




Above - NYC Parks Commissioner Mitchel Silver talks about why parks are important to people.
Below - Bronx Parks Commissioner Iris Rodriguez quickly said a few words about what this park will feature, as the construction equipment sits in the background waiting to resume work on restoring the park.



Wave Hill Events October 18‒October 25


Sat, October 20
Family Art Project: Wormy, Squirmy Decomposers Parade
Listen to storyteller Rama Mandel read Up in the Garden and Down in the Dirt, by Kate Messner, with art by Christopher Silas Neal, and hear about the critters at work in the cool damp earth beneath the ground. On a tall hat, make a dark and murky ecosystem of insects and decomposers, like earthworms, ants, protozoa and fungi. Then top it with a flower and march your decomposing troop in a fall parade. Free, and admission to the grounds is free until noon. Scavengers & Decomposers Weekend event.
WAVE HILL HOUSE, 10AM‒1PM
Sat, October 20
In The Shop: 20% Off Recycled ‘Decomposition’ Notebooks
For Scavengers & Decomposers Weekend, browse creepy, crawly critters, books on composting and sustainable living and more! The Shop offers 20% off all ‘Decomposition’ notebooks this weekend. Michael Roger of Brooklyn New York creates these contemporary interpretations of traditional composition books, using 100% post-consumer-waste pages, with whimsical designs printed with soy ink. Scavengers & Decomposers Weekend event.
PERKINS VISITOR CENTER, 10AM–4PM
Sat, October 20
Decomposer Detectives Family Walks
Are you curious about worms, insects, fungi and other creatures that live on the forest floor? Grab a magnifying glass and join us as a Decomposer Detective! Learn all about how organisms help break down dead leaves, wood and other organic matter in Wave Hill’s Abrons Woodland. Please wear closed-toed shoes and appropriate clothing for a woodland adventure!Appropriate for ages five and older with an adult. Free, and admission to the grounds is free until noon. Scavengers & Decomposers Weekend event.
MEET AT WAVE HILL HOUSE, 11AM, NOON AND 1PM
Sat, October 20
Garden Highlights Walk
Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.
MEET AT PERKINS VISITOR CENTER, 11AM
Sat, October 20
Decomposition Central
What do lowly millipedes, mushrooms and land mollusks have in common? They are star players on the decomposition squad that makes life on earth sustainable for all of us. Stop by Decomposition Central to observe scavenging dermestid (flesh-eating) beetles at work and try to reassemble a skeleton. Chat with entomologist Lawrence Forcella and naturalistPam Golben as they de-mystify the de-composition process. Visit the Scavenger and Decomposer Petting Zoo to see and touch some friendly scavengers and decomposers, and observe scavenging dermestid (flesh-eating) beetles at work. Then pick up a self-guided garden scavenger hunt to look for—what else?—scavengers! Free, and admission to the grounds is free until noon. Scavengers & Decomposers Weekend event.
ON THE GROUNDS, 11AM–4PM
Sat, October 20
The Boneyard
Skulls, bones, teeth, shells, antlers—see what’s left after an animal carcass decomposes. Meet Alex Minnot, an oddities expert and learn about osteology, the study of bones and skeletal elements. Team up to try to reassemble a skeleton! Free, and admission to the grounds is free until noon. Scavengers & Decomposers Weekend event.
ON THE GROUNDS, 11AM–4PM
Sat, October 20
Urban Composting and Worm Composting Demo
Find out how you can do some decomposing of your own at home, master composters from the NYC Compost Projecthosted by the New York Botanical Garden. No space for a bin? Chat with the Organics Associates from DSNY’scitywide Organics Collection Program to see if curbside organics recycling is available in your neighborhood. Free, and admission to the grounds is free until noon. Scavengers & Decomposers Weekend event.
ON THE GROUNDS, NOON–2PM
Sat, October 20
Wave Hill History Walk
Discover the fascinating history of Wave Hill’s architecture and landscape on a walk with a Wave Hill Garden Guide. Hear about the people who once called Wave Hill home, among them Mark Twain, Theodore Roosevelt, Bashford Dean and Arturo Toscanini. Free with admission to the grounds.
MEET AT PERKINS VISITOR CENTER, 1PM
Sat, October 20
Vulture Culture: A Live Bird Presentation
Often misunderstood, vultures and other scavengers are essential members of nature’s clean-up crew, eating dead animals and halting the spread of dangerous diseases. Observe vultures and other scavenging birds of prey and hear about their adaptive (and somewhat cringe-worthy) behaviors with Brian Robinson of Robinson Wildlife Lectures. Free with admission to the grounds. Scavengers & Decomposers Weekend event.
ECOLOGY BUILDING, 2PM
Sat, October 20
Gallery Tour
Learn about Glyndor Gallery exhibitions on a tour led by Wave Hill’s Curatorial Fellow. In a new collaboration, Wave Hill is partnering with the American Society of Botanical Artists (ASBA) to produce and host ASBA’s 21st Annual International. ASBA’s mission is to provide a thriving, interactive community dedicated to perpetuating the tradition and contemporary practice of botanical art. This juried exhibition consists of two-dimensional original botanical art, including some specimens found at Wave Hill. In the Sunroom Project Space, Ashton Agbomenou’s new project stems from his time in Wave Hill’s 2018 Winter Workspace. Seeking synchronicity in the African diaspora, Agbomenou constructs visual mementos through his collage-like, layered-painting process, drawing inspiration from Wave Hill’s natural resources. Bronx-born, Dominican-American artist Yelaine Rodriguez works on a new series for the Sun Porch. Using photography, video and performance, Rodriguez creates a unique narrative that examines self-identity and draws inspiration from the colors and textures in nature and from her experience of Wave Hill’s landscape during the 2018 Winter Workspace program. Free with admission to the grounds.
GLYNDOR GALLERY, 2PM
Sun, October 21
Family Art Project: Wormy, Squirmy Decomposers Parade
Listen to storyteller Rama Mandel read Up in the Garden and Down in the Dirt, by Kate Messner, with art by Christopher Silas Neal, and hear about the critters at work in the cool damp earth beneath the ground. On a tall hat, make a dark and murky ecosystem of insects and decomposers, like earthworms, ants, protozoa and fungi. Then top it with a flower and march your decomposing troop in a fall parade. Free with admission to the grounds. Scavengers & Decomposers Weekend event.
WAVE HILL HOUSE, 10AM‒1PM
Sun, October 21
In The Shop: 20% Off Recycled ‘Decomposition’ Notebooks
For Scavengers & Decomposers Weekend, browse creepy, crawly critters, books on composting and sustainable living and more! The Shop offers 20% off all ‘Decomposition’ notebooks this weekend. Michael Roger of Brooklyn New York creates these contemporary interpretations of traditional composition books, using 100% post-consumer-waste pages, with whimsical designs printed with soy ink. Scavengers & Decomposers Weekend event.
PERKINS VISITOR CENTER, 10AM–4PM
Sun, October 21
Decomposer Detectives Family Walks
Are you curious about worms, insects, fungi and other creatures that live on the forest floor? Grab a magnifying glass and join us as a Decomposer Detective! Learn all about how organisms help break down dead leaves, wood and other organic matter in Wave Hill’s Abrons Woodland. Please wear closed-toed shoes and appropriate clothing for a woodland adventure!Appropriate for ages five and older with an adult. Free with admission to the grounds. Scavengers & Decomposers Weekend event.
MEET AT WAVE HILL HOUSE, 11AM, NOON AND 1PM
Sun, October 21
Decomposition Central
What do lowly millipedes, mushrooms and land mollusks have in common? They are star players on the decomposition squad that makes life on earth sustainable for all of us. Stop by Decomposition Central to observe scavenging dermestid (flesh-eating) beetles at work and try to reassemble a skeleton. Chat with entomologist Lawrence Forcella and naturalistPam Golben as they de-mystify the de-composition process. Visit the Scavenger and Decomposer Petting Zoo to see and touch some friendly scavengers and decomposers, and observe scavenging dermestid (flesh-eating) beetles at work. Then pick up a self-guided garden scavenger hunt to look for—what else?—scavengers! Free with admission to the grounds.Scavengers & Decomposers Weekend event.
ON THE GROUNDS, 11AM–4PM
Sun, October 21
The Boneyard
Skulls, bones, teeth, shells, antlers—see what’s left after an animal carcass decomposes. Meet Alex Minnot, an oddities expert and learn about osteology, the study of bones and skeletal elements. Team up to try to reassemble a skeleton! Free with admission to the grounds. Scavengers & Decomposers Weekend event.
ON THE GROUNDS, 11AM–4PM
Sun, October 21
Urban Composting and Worm Composting Demo
Find out how you can do some decomposing of your own at home, master composters from the NYC Compost Projecthosted by the New York Botanical Garden. No space for a bin? Chat with the Organics Associates from DSNY’scitywide Organics Collection Program to see if curbside organics recycling is available in your neighborhood. Free, and admission to the grounds is free until noon. Scavengers & Decomposers Weekend event.
ON THE GROUNDS, NOON–2PM
Sun, October 21
Vulture Culture: A Live Bird Presentation
Often misunderstood, vultures and other scavengers are essential members of nature’s clean-up crew, eating dead animals and halting the spread of dangerous diseases. Observe vultures and other scavenging birds of prey and hear about their adaptive (and somewhat cringe-worthy) behaviors with Brian Robinson of Robinson Wildlife Lectures. Free with admission to the grounds. Scavengers & Decomposers Weekend event.
WAVE HILL HOUSE, 2PM
Sun, October 21
Garden Highlights Walk
Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free with admission to the grounds.
MEET AT PERKINS VISITOR CENTER, 2PM
Mon, October 22
Closed to the public.
Tue, October 23
Garden Highlights Walk
Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.
MEET AT PERKINS VISITOR CENTER, 11AM
Tue, October 23
Gallery Tour
Learn about Glyndor Gallery exhibitions on a tour led by Wave Hill’s Curatorial Fellow. In a new collaboration, Wave Hill is partnering with the American Society of Botanical Artists (ASBA) to produce and host ASBA’s 21st Annual International. ASBA’s mission is to provide a thriving, interactive community dedicated to perpetuating the tradition and contemporary practice of botanical art. This juried exhibition consists of two-dimensional original botanical art, including some specimens found at Wave Hill. Free with admission to the grounds.
GLYNDOR GALLERY, 2PM

28-acre public garden and cultural center overlooking the Hudson River  and Palisades, Wave Hill’s mission is to celebrate the artistry and legacy of its gardens and landscape, to preserve its magnificent views, and to explore human connections to the natural world through programs in horticulture, education and the arts. 
HOURS  Open all year, Tuesday through Sunday and many major holidays: 9AM–5:30PM,  March 15–October 31. Closes 4:30PM, starting November 1.

ADMISSION  $8 adults, $4 students and seniors 65+, $2 children 6–18. Free Saturday and Tuesday mornings until noon. Free to Wave Hill Members and children under 6.

PROGRAM FEES  Programs are free with admission to the grounds unless otherwise noted.

Visitors to Wave Hill can take advantage of Metro-North’s one-day getaway offer. Purchase a discount round-trip rail far and discount admission to the gardens. More at http://mta.info/mnr/html/getaways/outbound_wavehill.htm
  
DIRECTIONS – Getting here is easy! Located only 30 minutes from midtown Manhattan, Wave Hill’s free shuttle van transports you to and from our front gate and Metro-North’s Riverdale station, as well as the W. 242nd Street stop on the #1 subway line. Limited onsite parking is available for $8 per vehicle. Free offsite parking is available nearby with continuous, complimentary shuttle service to and from the offsite lot and our front gate. Complete directions and shuttle bus schedule at www.wavehill.org/visit/.

Information at 718.549.3200. On the web at www.wavehill.org.

Tuesday, October 2, 2018

New York City Police Commissioner O'Neal Visits a Build a Block Precinct Meeting




  This meeting is between the New York City Police Department 47th precinct, and the community of the local church located at 1015 East Gun Hill Road. It was important enough for Police Commissioner O'Neal to attend and answer questions from the community. 

  The Build a Block Program by the NYPD is to hold meetings between the community and the police officers who are patrolling the area. The NYPD has gone to a Neighborhood Community Officer  (NCO) program to be at the community level and try to stop crime before it even happens. These Build a Block meetings are being held in every police precinct which now have the NCO program. 


Police Commissioner O'neal listens to a question from Ms. Grace Lovag, and then responded. With the commissioner were the Precinct commanders of the 47th, 49th, and 52nd precincts. Also sitting next to the commissioner is Chief Hoffman, who is in charge of community affairs for the NYPD, and is the former commanding officer of the 52nd precinct. 

Borough President Diaz, Assemblyman Dinowitz, and Councilman Cohen Break ground on New Library



    After each elected official spoke about the lack of adequate funding to the Bronx Public Library system, and how this new library will benefit the community, all grabbed shovels to officially break ground for the new Van Cortlandt Village public library which will be located in a much larger two story building on Cannon Place. This new library is just a few blocks away from the old out dated one story building the city has been leasing on Sedwick Avenue. The building is an already existing building that is being converted to house the new library branch, which will be one of the most up to date libraries in the New York Public Library system. The projected first day of operation is expected by July 2019.


Above - Mr. Tony Marks of the NYPL tells a little about the new features of that this library will have, as he introduced the elected officials who were on hand.
Below - Councilman Andrew Cohen says a  few words about helping to secure funding so this new public library could be built. 




Above - Bronx Borough President Ruben Diaz Jr. was also proud to have allocated funding for this new area public library.
Below - Assemblyman Jeffrey Dinowitz the veteran elected official of the three in attendance was glad to see this new library be built,




Bronx Borough President Diaz Jr. marveled at the back of the new library with its rock outcroppings and vegetation. There is a large area behind the building that will be used for several different events and learning experiences. 

MAYOR DE BLASIO ANNOUNCES SEA CHANGE IN JUVENILE JUSTICE AS THE AGE OF CRIMINAL RESPONSIBILITY IS RAISED TO 18 YEARS OLD


16- and 17-year-olds have moved off Rikers Island into more age-appropriate facilities with expanded access to programs and services

  Mayor de Blasio welcomed the beginning of a series of fundamental reforms that treat 16- and 17-year-old juveniles involved with the legal system in an age appropriate manner. “Raise the Age,” which passed last year, builds upon the tremendous work that has already been done to transform the juvenile justice system in New York City, including the implementation of the Close to Home Program and cutting the juvenile population by more than half over the last four years. As of today, all 16- and 17-year-olds have moved from Rikers Island to dedicated juvenile facilities with the services they need to help them get their lives back on track. 

“No one under 18 will go to Rikers Island. Kids will be treated like kids instead of adults,” said Mayor de Blasio. “This is an historic moment for criminal justice reform and another step toward replacing Rikers Island with smaller, safer, more humane facilities that are closer to communities and loved ones.”

New York State Assembly Speaker Carl Heastie said, “As Speaker of Assembly I have made Raise the Age and comprehensive criminal justice reforms in New York a top priority. Evidence shows that 16- and 17-year-olds should not be treated the same as adults – in the courts or in our prisons. Passing this legislation and removing youth from Rikers are significant steps that give young people a second chance to grow up and pursue meaningful rehabilitation for non-violent mistakes without forfeiting their futures. While there are still some wrinkles that need to be ironed out and addressed, these critical changes to our criminal justice system would not be possible without the tireless advocacy of my colleagues in the Assembly Majority and support of our partners in government. I thank Mayor de Blasio for his efforts in helping to make a difference in the lives of so many young people.”

Over the last year, New York City has completely overhauled an entire facility to prepare for entry of these young people into the juvenile justice system. Raise the Age takes effect today for 16-year-olds and for 17-year- olds on October 1, 2019, but as of today, no 16- or 17-year-old will be detained on Rikers Island and they will all receive the same treatment as other juveniles in New York City custody, including programs and services. Once fully implemented, most cases involving 16-and 17-year-olds will be moved to Family Court, with others going to a new specialized Youth Part to address 16- and 17-year-olds charged with more serious crimes. 

The City worked closely with State agencies to meet these shared goals, including close collaboration with New York State Division of Criminal Justice Services, Commission of Correction and the Office of Children and Family Services.

As of yesterday, New York City has successfully transferred all 16- and 17-year-olds off of Rikers Island and into overhauled facilities, which provide services and programming aimed at reducing re-offending and helping them get their lives back on track. Teens moving off of Rikers Island have been transferred to the newly renovated Horizon Juvenile Detention Center, where they will have better access to age-appropriate services, including education and counseling. To reduce the number of 16- and 17-year-olds in detention, the de Blasio administration has also invested $8 million in diversion programming like supervised release, case expediting, and intensive mentorship.

The de Blasio administration completed the overhaul of the Horizon facility on a greatly accelerated timeline and with significant investment. The facility has been renovated top-to-bottom, including reconstruction of housing units, intake, administrative facilities, staff service areas and upgraded recreational areas as well as new building systems. The facility is staffed by ACS program counselors, Correction Officers, and DOE staff. Over the next 18 months, DOC will gradually phase out correction officers and ACS will take over administration of the facility completely. 

The renovations join significant investments into the entire system. There is $329 million in capital funding dedicated to upgrading juvenile facilities for Raise the Age, with over $100 million in work well underway at Crossroads and Horizon, ACS's two secure detention facilities. Implementation of other facets of Raise the Age includes an initial investment of $108 million in Fiscal Year 2019, growing to $131 million in FY20. The renovation and upgrade of the Crossroads and Horizons facilities were managed by the New York City Department of Design and Construction for ACS.

The passage of Raise the Age legislation is a significant moment for the state of New York. Moving these youth off of Rikers Island — into facilities that are closer to their families and community supports — is aligned with the City’s broader mission of replacing Rikers Island with a smaller, safer, community-based jail system. Until now, New York and North Carolina were the only two states in the country not to recognize and codify what research has confirmed—adolescents are children, and prosecuting and punishing them in adult facilities neither advances the goal of rehabilitating youth nor protects public safety.

“This is a historic day, as we witness the implementation of one of the most groundbreaking juvenile justice reforms in New York’s history: Raise the Age,” said ACS Commissioner David A. Hansell. “Under Raise the Age, New York State’s justice system will finally acknowledge what volumes of research in adolescent brain science has shown us: treating young people as young people produces better outcomes for youth who are involved in the justice system. We have developed a unified set of standards and practices to ensure the law and spirit of Raise the Age is implemented with youth development as the focus, all while preserving the safety and security of youth and staff and protecting public safety. Under Raise the Age, youth—including those who were at Rikers—will be provided with education, counseling, family support and more. This is an opportunity to build on the successful work that has already been done to transform the juvenile justice system in New York City through the Close to Home program, a national and international model.” 

“I want to personally thank the officers and staff members who worked hard to ensure this transition is a smooth one,” said Department of Correction Commissioner Cynthia Brann. “Our officers underwent special, youth-based training to prepare them for this historic move. The safety of both the 16 and 17-year-olds and our personnel remain our highest priority and we look forward to partnering with ACS on this critical move. We are committed to helping make sure these young people live in a safe and constructive environment.”

Elizabeth Glazer, Director of the Mayor’s Office of Criminal Justice, said, “Today is a landmark day when New York State joins the rest of the nation in adhering to a basic standard of decency that ensures that children are treated as children in our justice system.  It came about because of decades of work by armies of dedicated public servants, service providers, advocates, scholars and others. They deserve tremendous credit for making our system fairer and we are grateful for their ongoing partnership as New York City continues its push to make every aspect of our justice system as fair and effective as possible.”

Chief Judge Janet DiFiore said, “The New York State Courts have worked tirelessly to prepare for this groundbreaking law. We’ve created and staffed new Youth Parts, expanded capacity for Family Court proceedings, especially in New York City, for the older adolescents that court will now address, and expanded access to court for youth arrested after hours to ensure they go before specially trained criminal court “accessible magistrate” judges to be promptly heard on detention status.  In addition, we’ve created a new case management system to carefully track and provide statewide data regarding all raise the age impacted youth.  Our Judges and non-judicial staff are well-trained and prepared.” 

Since the law passed last year, New York City has been working to create this new system for older youth and to establish the infrastructure to support it. The Department of Probation has increased its staff to accommodate the influx of new cases and will continue to leverage its expertise to offer diversion options for appropriate cases coming into Family Court as well as effective alternative to placement programs to keep young people safely in their communities and new pre-trial options in the Youth Parts. 

Currently, ACS operates two secure detention facilities—Horizon in the South Bronx and Crossroads in Brooklyn. Under the initial phase of Raise the Age implementation, Crossroads will house youth under the age of 17 who are charged with certain levels of crimes, and will be staffed primarily by ACS, with DOC serving in an advisory capacity on security issues. Horizon will house the adult-charged 16- and 17-year-olds who are currently on Rikers, as well as newly arrested 17-year-olds who will continue to be charged as adults until October 1, 2019. Horizon will be jointly operated by both ACS and DOC during this transition phase. 

Youth in Crossroads and Horizon receive education, health care, mental health services (including psychiatric and psychological care), dental care, access to recreational activities, and case management onsite. Youth also attend the NYC Department of Education’s (DOE) District 79 Passages Academy, a full-time educational program that is operated by DOE across the City’s entire juvenile justice residential landscape. 

Raise the Age will impact youth across the entire juvenile justice continuum in New York City. For instance, Crossroads and Horizon Juvenile Detention Centers house arrested youth who are awaiting their court resolution. New York City also operates the Close to Home Program for youth who have been convicted of a crime. Close to Home is inextricably linked to Raise the Age because many of the 16- and 17- year old youth who otherwise would have gone through the adult criminal justice system will now be placed in Close to Home residences within the City and close to their families and communities. 

The legislation also establishes a Youth Part in the New York State Unified Court System, which includes a presumption of releasing Adolescent Offenders on their own recognizance. 

The City has launched a number of programs to ensure that young people in the criminal justice system are treated in a developmentally appropriate way, maximizing their opportunity to build a productive future. According to the Columbia University Justice Lab, since the launch of New York’s Close to Home program, there’s been a significant improvement in public safety outcomes. Specifically, there has been a 53 percent decline in youth arrests and a 37 percent decline in youth detention.

"The Raise the Age legislation will allow us to create a developmentally-appropriate justice system, which our young people deserve and require,” said Commissioner Ana M. Bermúdez, Department of Probation.  “The Department of Probation has learned what works in engaging with young people and will be providing them with the kinds of evidence-based programs, resources and people, such as credible messenger mentors, that can make the biggest difference in their lives.  Our probation officers who work with young people have been trained in how to engage with them in an age-appropriate, one-size-fits-one way.  We are ready and honored to be part of this historic shift in how we, as a system, effectively respond to young people who have made mistakes, so that they can avoid a future of justice involvement.”