MAYOR DE BLASIO ANNOUNCES APPOINTMENT OF FIVE MEMBERS TO THE RENT GUIDELINES BOARD

Today, Mayor de Blasio announced five appointments to the Rent Guidelines Board. The Mayor appointed David Reiss as Chair; May Yu, German Tejeda, and Alex Schwartz as public members; and Patti Stone as an owner member.

The Rent Guidelines Board determines annual rent adjustments for approximately one million apartments across the city subject to the Rent Stabilization Law.

David Reiss

David Reiss is a Professor at Brooklyn Law School. He concentrates on real estate finance, housing policy, and community development, and is the founding director of the Community Development Clinic. He is the Research Director of the Center for Urban Business Entrepreneurship (CUBE). He is a Fellow of the American College of Real Estate Lawyers and a Fellow of the American Bar Foundation.  He was an associate in the New York office of Paul, Weiss, Rifkind, Wharton & Garrison and at Morrison & Foerster. He also clerked for Judge Timothy Lewis of the U.S. Court of Appeals for the Third Circuit. Prior to attending law school, he worked for Community Access, a not-for-profit organization that assists people who have psychiatric disabilities as they make the transition from shelters and hospitals to independent living.

May Yu

May Yu is the Senior Director of Real Estate & Economic Development at the Downtown Brooklyn Partnership. Prior to this role, Yu served as the Director of Neighborhood Planning within the Neighborhood Development Division at the New York City Department of Small Business Services. She began her career in municipal government as a Senior Project Manager in Development at the New York City Economic Development Corporation. Previously, Yu was a Founding Staff Member & Partner Manager at Citizen Effect, and a Plenary Associate at the Clinton Global Initiative. Yu is an alum of the University of Chicago and a Fellow of the Urban Design Forum.

German Tejeda

German Tejeda currently serves as the National Director of Financial Programs at Single Stop, a nonprofit agency dedicated to reducing poverty by improving access to benefits and helping low-income students across the country stay in college and graduate. Previously, Tejeda worked at the Food Bank for New York City, serving as the Vice President of Anti-Poverty Programming from 2016 to 2018 and as the Senior Director of Income Policy from 2002 to 2016. From 1992 to 2002, Tejeda served as the Director of Homelessness Prevention at the Community Food Resource Center. In his spare time, Tejeda serves on the Board of Directors for the Bronx Legal Services.

Alex Schwartz

Alex Schwartz is a Professor of Urban Policy at the New School.  He served as Program Chair in the Department of Public and Urban Policy from 2001 to 2012. He holds a doctorate in Urban Planning and Policy Development from Rutgers University. Professor Schwartz’s research centers on housing and community development, including public housing and other affordable housing programs, mixed-income housing, fair housing, and community development corporations.  Professor Schwartz is Director of the New School's Urban Policy Lab, in which teams of graduate students advise government agencies and nonprofit organizations on a wide array of policy and management issues. He is the author of Housing Policy in the United States and co-author of Policy Analysis as Problem Solving, both published by Routledge.

Patti Stone

Patti Stone is a Member of Rosenberg & Estis, P.C. within the firm's Administrative Law Department. Ms. Stone has more than thirty years of experience in New York City real estate and has an in-depth understanding of the day-to-day business needs of owners in New York City.  Ms. Stone has successfully handled all types of cases, such as demolition, luxury deregulation, harassment, overcharge, and service issues before the New York State Division of Housing and Community Renewal, from the administrative level through appeals to the Supreme Court and the Appellate Division. Ms. Stone specializes in advice and consultation regarding rent regulatory compliance with the Rent Stabilization Law to prospective purchasers of residential real estate.

WILLIAMS RESPONDS TO THE DE BLASIO EXECUTIVE BUDGET

OFFICE OF THE PUBLIC ADVOCATE FOR THE CITY OF NEW YORK JUMAANE D. WILLIAMS

"The true test of a progressive government is whether, when funding is cut or curtailed, progressive values persist in our budgetary priorities. This is a test that has primarily been kicked down the road with the current executive budget. Fortunately, some of the major fears raised by the preliminary budget have been abated by an increase in revenue. As we move toward adoption, though, fiscal responsibility must be paired with human responsibility. I expect the final budget to be one that recognizes and supports the services and programs that are vital to New Yorkers."

FACT SHEET: MAYOR DE BLASIO RELEASES EXECUTIVE BUDGET FOR FISCAL YEAR 2020

“In February, I spoke about uncertainty in our economic future and announced my Administration’s first-ever mandatory savings program. We’re still in an era defined by fiscal caution, which means we’re focused on deepening our savings and making strategic investments in core priorities that continue to make New York a fairer city.” -Mayor Bill de Blasio

The FY20 Executive Budget is balanced, totaling $92.5 billion. This budget:

• Achieves $916 million in savings over FY19 and FY20, exceeding the City’s original target of $750 million in order to meet over $150 million in additional critical needs identified since February. Of the $916 million in savings, $629 million were achieved through the Administration’s first ever Program to Eliminate the Gap (PEG), a mandatory savings program that includes agency efficiencies, programmatic cuts and a hiring freeze. The original target for the PEG was $545 million.
• Maintains funding for more than $300 million in cuts and unfunded mandates from the State’s Executive Budget related to vital services and recently enacted State legislation.
• Covers additional critical needs to keep the City in a strong fiscal standing and makes strategic investments in vital programs that build upon continued efforts to make New York City the fairest big city in America.

Click here to view the FY20 Executive Budget.

Cuts and Unfunded Mandates from Albany:

In February, the City faced over $600 million in cuts and unfunded mandates from the State. Through the hard work of this Administration and our partners in Albany, the cuts and cost shifts to New York City in the State Executive Budget were limited to over $300 million. These cuts and unfunded mandates include:

• $125 million: financial assistance to families in need (TANF).
• $96 million: unfunded election reform mandates.
• $59 million: vital health services for vulnerable New Yorkers, including services that help combat measles.
• $25 million: education funding shortfall.

These are all funded by the City in the Executive Budget.

Citywide Savings:

In February, the Mayor set a citywide savings target of $750 million, $545 million of which would be reached with the Administration’s first ever PEG. During the budget process, the City identified additional critical needs that pushed the Administration to find additional savings. The end result was $916 million in savings, of which $629 million was the result of the PEG. This brings total savings since last June to $2.5 billion. These savings include:

• Deepening the hiring freeze by removing 1600 vacant positions ($116 million).
• More efficient methods for the purchasing of goods and services at DOE ($27 million).
• $104 million in cuts at the Department of Education, which includes the elimination of extended learning time at Renewal and Rise schools ($19M).
• Modest cuts cultural institutions, including subsidies ($6 million).
• Right-sizing classroom slots for afterschool programs ($2.5 million).
• Providing senior NYCHA residents access to Community Centers by consolidating under-used senior clubs ($900,000).

Responsible Budgeting:

The City is maintaining historic reserves. Specifically:

• The General Reserve is at $1 billion in FY20 and every year of the financial plan.
• The Capital Stabilization Reserve that was established by this Administration is at $250 million in FY20 and every year of the financial plan.

The Retiree Health Benefits Trust Fund is at $4.47 billion, $3.6 billion the result of actions taken by this Administration.

Meeting Critical Needs:

Taking into account State budget cuts, unfunded mandates, additional critical needs and potential future economic uncertainty, the Administration reached and ultimately exceed its savings goal. Savings were then used to meet additional critical needs, including:

• Special Education initiatives for DOE, including new and enhanced programs, hiring school psychologists and speech teachers to support evaluations of student needs ($33 million).
• Additional mandated Charter School Costs ($88 million).
• State cut to Pre-Trial Mental Health Evaluations ($35 million).

Making Strategic Investments:

The Administration also made strategic investments in crucial programs New Yorkers rely on, including the following in Fiscal Year 2020:

• Retrofitting City buildings to make them more energy efficient ($60 million).
• Ramping up for the 2020 Census to ensure a fair count of New York City residents, which will secure fair representation in Congress and the City’s fair share of federal funding ($22 million).
• Improving EMS response times by expanding the “Fly Car” program in the Bronx ($15 million).
• Baselining funding for Bridging the Gap to provide support for students in shelters ($12 million).
• Emergency repairs at NYCHA community centers to refurbish pipes, air conditioning and heating infrastructure ($6 million).

10-Year Capital Strategy:

The City’s 10-Year Capital Strategy is $116.9 billion and includes:

• Expanding school capacity and enhance facilities ($16.4 billion).
• Repairing and implementing safety improvements to roads and bridges ($13.1 billion).
• Building and preserving affordable housing ($9.7 billion).
• Building smaller, safer, borough-based jails ($8.7 billion).
• Maintaining clear water ($6.5 billion).

MAYOR DE BLASIO APPOINTS NOAH GENEL AS COMMISSIONER AND CHAIR OF THE BUSINESS INTEGRITY COMMISSION

  Mayor Bill de Blasio announced the appointment of Noah D. Genel as Commissioner and Chair of the Business Integrity Commission.

Genel is an experienced former prosecutor and has spent the last four years at BIC, most recently as Acting Commissioner and General Counsel for the Commission. He will draw on his two decades in the field to lead the agency’s efforts to eliminate organized crime and various forms of corruption in the trade waste industry and New York City’s public wholesale markets.

Genel will also continue advancing BIC’s initiatives to improve pedestrian and worker safety in the trade waste industry, including joint traffic enforcement operations with the NYPD, registering trade waste unions with BIC, and working with DSNY and the City Council to enact Commercial Waste Zones later this year.

“Noah Genel is a dedicated public servant with a proven track record of fighting organized crime and corruption. As Commissioner, he will ensure the trade waste industry is fair, workers are protected, and our streets are safe,” said Mayor de Blasio.

“It is my honor to serve the City of New York as the Commissioner and Chair of BIC.  BIC will continue to actively enforce its rules and regulations, working to keep the trade waste industry and public wholesale markets free of corruption. We will also pursue companies in the trade waste industry that are operating unsafely, keeping our city’s streets safe for everyone as part of the Mayor’s Vision Zero plan,” said Commissioner and Chair Noah D. Genel.

“Noah Genel is an excellent choice to lead BIC in its critical mission regulating the private carting industry” said Council Member Antonio Reynoso, Chair of the Committee on Sanitation and Solid Waste Management. “BIC oversees an industry that is rife with unsafe labor practices, mistreatment of workers, and poor environmental practices. At a time when we are moving toward comprehensive reform of the commercial sanitation system, it is more important than ever that we have a seasoned hand leading BIC. I want to congratulate Commissioner Genel and I look forward to working closely with him in the coming months.”

Wave Hill events May 9‒May 16: Mother's Day

Thu, May 9

Garden Highlights Walk

Join a Wave Hill Garden Guide for a public tour of seasonal garden highlights. Free with admission to the grounds.

Meet at Perkins Visitor Center, 1PM

Fri, May 10

Garden Highlights Walk

Join a Wave Hill Garden Guide for a public tour of seasonal garden highlights. Free with admission to the grounds.

Meet at Perkins Visitor Center, 1PM

Sat, May 11

Family Art Project: Restore and Re-story the Land

How do you relate to the land? Come tell and plant your story in our collective story garden and celebrate our unique and special relationships with the land that holds us. Together we’ll take inspiration from the work of Robin Wall Kimmerer, SUNY Professor of Environmental and Forest Biology, as we consider how land restoration starts with restoring our relationships to the land. Create a story mobile of your favorite nature spot using natural materials and paper cut-outs. Free, and admission to the grounds is free until noon.

Wave Hill House, 10AM–1PM

Sat, May 11

In The Shop: Spend $75, Receive a Gift for Mom!

Spend $75, and receive a gift for Mom!

Perkins Visitor Center, 10AM–4:30PM

Sat, May 11

Gallery Tour

Tour Glyndor Gallery with Wave Hill’s Curatorial Fellow or Gallery Greeter to get an insider’s view of current exhibitions.Here We Land features three, former Winter Workspace artists Camille Hoffman, Maria Hupfield and Sara Jimenezwho return explore narratives about contested space that draw on personal and cultural touch points in their immersive installations. Rachel Sydlowski fills the Sunroom Project Space walls with complex, screen-print collages of flora and fauna, architectural details and decorative motifs from Wave Hill, Inwood Hill Park and other surrounding green spaces. Free with admission to the grounds.

Glyndor Gallery, 2PM

Sun, May 12

Mother’s Day

A Sunday in mid-May, in a garden as deeply loved as Wave Hill, is the perfect setting for celebrating Mom. NaturalistGabriel Willow leads a birding walk, a good lead-in to brunch—please make your reservations by May 8. Or start with family art-making, then brunch and cap it off on a nature walk for the whole family. Last stop: The Shop at Wave Hill, where goodies abound just for Mom. Admission to the grounds on Mother's Day is $12 adults, $6 students and seniors 65+ and $4 for children ages six to 18. As always, admission is free to Wave Hill Members and children under six. Reciprocal benefits, guest passes and family passes are not accepted this weekend.

Sun, May 12

Spring Birding

Welcome migratory birds back to Wave Hill this spring. Explore the gardens and woodlands with naturalist Gabriel Willow on a quest to spot both resident and rare birds as they pass through on their northern journey or settle down for the season. Severe weather cancels. Ages 10 and older welcome with an adult. Free with admission to the grounds. NYC Audubon Members enjoy two-for-one admission.

Meet at Perkins Visitor Center, 9:30AM

Sun, May 12

Yoga in the Garden

With a garden setting for your yoga practice, find your breath and become connected to the landscape. Classes are led by certified Yoga Haven instructors. All levels welcome. Please bring a mat and be on time. Rain or shine; Glyndor Gallery is the rain location. $25 includes admission to the grounds; Wave Hill Members save 10%. Registration suggested, online.

On the grounds, 9:30AM

Sun, May 12

Family Art Project: Restore and Re-story the Land

How do you relate to the land? Come tell and plant your story in our collective story garden and celebrate our unique and special relationships with the land that holds us. Together we’ll take inspiration from the work of Robin Wall Kimmerer, SUNY Professor of Environmental and Forest Biology, as we consider how land restoration starts with restoring our relationships to the land. Create a story mobile of your favorite nature spot using natural materials and paper cut-outs. Free with admission to the grounds.

Wave Hill House, 10AM–1PM

Sun, May 12

In The Shop: Spend $75, Receive a Gift for Mom!

Spend $75, and receive a gift for Mom!

Perkins Visitor Center, 10AM–4:30PM

Sun, May 12

Mother’s Day Brunch

Provided by Wave Hill exclusive caterer Great Performances, brunch seatings take place at 10:30AM and 1:30PM in Armor Hall. $60/$55 Wave Hill Member, excluding tax, parking and gratuity. (Admission to the grounds is included.) Children $35/$30 for each Member child. (Brunch is free for children under the age of five.) Check out the menu, then make your reservation by noon, Wednesday, May 8, by calling 718.549.3200 x395 or by emailing wavehillreservations@greatperformances.com. A valid Wave Hill Member number is required to reserve at Member prices. Reservations will not be held without payment, and payment will not be accepted on Mother’s Day. Seatings are at 10:30AM and 1:30PM. For an outdoor option, enjoy the rare opportunity to picnic on the Conifer Slope just north of Wave Hill House. Bring your own lunch, or pre-order a gourmet, boxed lunch from The Café. Check out the menu—prices vary—and be sure to place your order by Wednesday, May 8.

Wave Hill House, 10:30AM & 1:30PM

Sun, May 12

Family Nature Walk

Join naturalist and educator Gabriel Willow on a family-friendly walk through the gardens or woodlands. Ages five and older welcome with an adult. Severe weather cancels.

Meet at Wave Hill House, 1PM

Sun, May 12

Garden Highlights Walk

Join a Wave Hill Garden Guide for a public tour of seasonal garden highlights. Free with admission to the grounds.

Meet at Perkins Visitor Center, 2PM

Mon, May 13

Closed to the public.

Tue, May 14

Gallery Tour

Tour Glyndor Gallery with Wave Hill’s Curatorial Fellow or Gallery Greeter to get an insider’s view of current exhibitions.Here We Land features three, former Winter Workspace artists Camille Hoffman, Maria Hupfield and Sara Jimenezwho return explore narratives about contested space that draw on personal and cultural touch points in their immersive installations. Rachel Sydlowski fills the Sunroom Project Space walls with complex, screen-print collages of flora and fauna, architectural details and decorative motifs from Wave Hill, Inwood Hill Park and other surrounding green spaces. Free with admission to the grounds.

Glyndor Gallery, 2PM

Wed, May 15

Garden Highlights Walk

Join a Wave Hill Garden Guide for a public tour of seasonal garden highlights. Free with admission to the grounds.

Meet at Perkins Visitor Center, 1PM

Thu, May 16

Garden Highlights Walk

Join a Wave Hill Garden Guide for a public tour of seasonal garden highlights. Free with admission to the grounds.

Meet at Perkins Visitor Center, 1P

A 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 – $10 adults, $6 students and seniors 65+, $4 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.

Michael Blake Will Run for New York's 15th Congressional District

  

Michael Blake Will Run for New York's 15th Congressional District

  Today, Bronx Assembly Member Michael A. Blake filed the required paperwork with the Federal Elections Commission announcing his intention to ​run for New York’s 15th Congressional District in the U.S. House of Representatives. With exactly fourteen months until the primary election, Michael is uniquely qualified for this new role as a local organizer, former White House aide to President Obama, effective three-term Assembly Member and coalition builder.

“When we come together and Believe in The Bronx, anything is possible – for our families, for our communities and for our collective future. With a member of Congress in Washington fighting for better-paying jobs, fighting for affordable housing, fighting for better health care coverage and education for children, fighting to protect the dignity of immigrants and our South Bronx families, and fighting for the funding and resources that our neighborhoods need, we will accomplish extraordinary things together. I want to be that fighter for you, which is why I have decided to run for the 15th Congressional District in The Bronx.” 

“My team and I continue to keep Congressman Serrano and his family in our prayers as he battles Parkinson’s and stands up for us in Washington, and, I pledge to build on his legacy while seeking to take the South Bronx to new heights.

“I have had the honor to serve this country in The White House in President Obama's administration as the Director of African-American, Minority and Women Business and county and statewide elected official outreach. Yet, my greatest honor was returning home to The Bronx to bring positive changes as an Assembly Member, from the My Brother's Keeper program and Raise The Age to Diversity In Medicine scholarships and funding for NYCHA improvements. I am asking the people of the 15th Congressional District to give me the opportunity to be our next voice in Washington, D.C. where I will use my federal and local experience along with my vision focused on equity to represent our district.”

  

“I am committed to bringing all people within our district together, regardless of our different nations of origin, immigration status, languages, races, ethnicity, gender and sexual orientation to enact policies that serve all of the people. It is time for us to prove once more that public service is here for the people and to make clear that we have and always will Believe in The Bronx.  Join us on this journey at blakeforcongress.nyc."

Michael Blake se postulará para el 15 ° Distrito Congresional de Nueva York

Hoy, el miembro de la Asamblea del Bronx, Michael A. Blake, presentó la documentación requerida ante la Comisión Federal de Elecciones y anunció su intención de postularse para el 15 ° Distrito Congresional de Nueva York en la Cámara de Representantes de los EE. UU.  Con exactamente 14 meses hasta la elección primaria, Michael tiene una calificación única para este nuevo papel como organizador local, ex asesor de la Casa Blanca para el presidente Obama, miembro efectivo de la Asamblea por 3 mandatos y creador de coaliciones.

“Cuando nos unimos y creemos en el Bronx, todo es posible, para nuestras familias, para nuestras comunidades y para nuestro futuro colectivo.  Con un miembro del Congreso en Washington luchando por empleos mejor pagados, por viviendas asequibles, por una mejor cobertura de atención médica y educación para los niños, por proteger la dignidad de los inmigrantes y nuestras familias del sur del Bronx, y luchando por la financiación y los recursos  Que nuestros vecindarios necesitan, podemos lograr cosas extraordinarias. Quiero ser ese luchador para ti, por lo que he decidido postularme para el 15º Distrito del Congreso en el Bronx ".

“Mi equipo y yo continuamos manteniendo al Congresista Serrano y su familia en nuestras oraciones mientras él lucha contra la enfermedad de Parkinson y nos sigue defendiendo en Washington. Yo me comprometo a continuar con su legado mientras busco llevar al Sur del Bronx a nuevas alturas”.

“He tenido el honor de servir a este país en la Casa Blanca en la administración del Presidente Obama como Director de Afro-Americanos, Minorías y Negocios de Mujeres.  Sin embargo, mi mayor honor fue regresar a mi hogar en el Bronx para traer cambios positivos como miembro de la Asamblea, como el  programa My Brother's Keeper, becas y fondos en Raise The Age to Diversity In Medicine y fondos para la mejora de NYCHA.  "Le pido a los residentes  del 15 ° Distrito Congressional que me dé la oportunidad de ser nuestra próxima voz en Washington, DC, donde utilizaré mi experiencia federal y local junto con mi visión sobre la equidad para representar a nuestro distrito".

“Estoy comprometido a reunir a todas las personas dentro de nuestro distrito, independientemente de nuestro origen, estatus migratorio, idioma, raza, etnicidad, género y orientación sexual. Es hora de que probemos una vez más que el servicio público está aquí para la gente y que quede claro que tenemos y creemos en el Bronx.  Únase a nosotros en este viaje en blakeforcongress.nyc". 

Paid for by Michael Blake for Congress

www.blakeforcongress.nyc

PO Box 4853 NY, NY 10185 

Manhattan U.S. Attorney And DEA Announce Charges Against Rochester Drug Co-Operative And Two Executives For Unlawfully Distributing Controlled Substances

First Ever Felony Criminal Charges Against a Distributor and its Executives for Illegal Distribution of Controlled Substances

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Ray Donovan, the Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), announced criminal charges against Rochester Drug Co-Operative, Inc. (“RDC”), one of the 10 largest pharmaceutical distributors in the United States; Laurence F. Doud III, the company’s former chief executive officer; and William Pietruszewski, the company’s former chief compliance officer, for unlawfully distributing oxycodone and fentanyl, and conspiring to defraud the DEA.  Mr. Berman’s Office also filed a lawsuit against RDC for its knowing failure to comply with its legal obligation to report thousands of suspicious orders of controlled substances to the DEA. 

Mr. Berman also announced an agreement (the “Agreement”) and consent decree under which RDC agreed to accept responsibility for its conduct by making admissions and stipulating to the accuracy of an extensive Statement of Facts, pay a $20 million penalty, reform and enhance its Controlled Substances Act compliance program, and submit to supervision by an independent monitor.  Assuming RDC’s continued compliance with the Agreement, the Government has agreed to defer prosecution for a period of five years, after which time the Government will seek to dismiss the charges.  The consent decree is subject to final approval by the court. 

U.S. Attorney Geoffrey S. Berman said:  “This prosecution is the first of its kind:  executives of a pharmaceutical distributor and the distributor itself have been charged with drug trafficking, trafficking the same drugs that are fueling the opioid epidemic that is ravaging this country.  Our Office will do everything in its power to combat this epidemic, from street-level dealers to the executives who illegally distribute drugs from their boardrooms.” 

DEA Special Agent in Charge Ray Donovan said:  “Today’s charges should send shock waves throughout the pharmaceutical industry reminding them of their role as gatekeepers of prescription medication.  The distribution of life-saving medication is paramount to public health; similarly, so is identifying rogue members of the pharmaceutical and medical fields whose diversion contributes to the record-breaking drug overdoses in America.  DEA investigates DEA Registrants who divert controlled pharmaceutical medication into the wrong hands for the wrong reason.  This historic investigation unveiled a criminal element of denial in RDC’s compliance practices, and holds them accountable for their egregious non-compliance according to the law.”

According to the documents filed today in Manhattan federal court[1]:

Violations of the Federal Narcotics Laws

From 2012 through March 2017, as alleged, RDC knowingly and intentionally violated the federal narcotics laws by distributing dangerous, highly addictive opioids to pharmacy customers that it knew were being sold and used illicitly.  At the direction of its senior management, including Doud and Pietruszewski, RDC supplied large quantities of oxycodone, fentanyl, and other dangerous opioids to pharmacy customers that its own compliance personnel determined were dispensing those drugs to individuals who had no legitimate medical need for them.  RDC distributed controlled substances to those pharmacies even after identifying “red flags” of diversion, including dispensing highly abused controlled substances in large quantities; dispensing primarily controlled substances; dispensing quantities of controlled substances in amounts consistently higher than accepted medical standards; accepting a high percentage of cash for controlled substance prescriptions; dispensing to out-of-state patients; and filling controlled substances prescriptions issued by practitioners acting outside the scope of their medical practice, under investigation by law enforcement, or on RDC’s “watch list.”  In addition, and at Doud’s direction, RDC frequently brought on pharmacy customers that had been terminated by other distributors. 

RDC’s employees, including in conversations with Doud and Pietruszewski, described some of the company’s customers as “very suspicious,” and even characterized particular pharmacies as a “DEA investigation in the making” or “like a stick of dynamite waiting for [the] DEA to light the fuse.”  Nonetheless, throughout the period in question, RDC, at the direction of Doud, increased its sales of oxycodone and fentanyl exponentially.  From 2012 to 2016, RDC’s sales of oxycodone tablets grew from 4.7 million to 42.2 million – an increase of approximately 800 percent – and during the same period RDC’s fentanyl sales grew from approximately 63,000 dosages in 2012 to over 1.3 million in 2016 – an increase of approximately 2,000 percent.  During that same time period, Doud’s compensation increased by over 125 percent, growing to over $1.5 million in 2016.

 Conspiracy to Defraud the DEA

From 2012 through March 2017, as alleged, RDC took steps to conceal its illicit distribution of controlled substances from the DEA and other law enforcement authorities.  Among other things, RDC made the deliberate decision not to investigate, monitor, or report to the DEA pharmacy customers that it knew were diverting controlled substances for illegitimate use.  Because it knew that reporting these pharmacies would likely result in the DEA investigating and shutting down its customers, RDC’s senior management, including Doud, directed the company’s compliance department – and in particular Pietruszewski – not to report them, and instead to continue supplying those customers with dangerous controlled substances that the company knew were being dispensed and used for illicit purposes.  Among other things, pursuant to Doud’s instructions, and contrary to the company’s representations to the DEA, RDC opened new customer accounts without conducting due diligence, and supplied those customers – some of whom had been terminated by other distributors – with dangerous controlled substances.

Additionally, RDC knowingly and willfully avoided filing suspicious order reports with the DEA as required by law.  Between 2012 through 2016, the company identified approximately 8,300 potentially suspicious “orders of interest,” including thousands of oxycodone orders, but the company reported only four suspicious orders to the DEA.  As alleged, RDC did not report suspicious orders in order to protect the profit being generated by customers dispensing large quantities of controlled substances.  As a result, the DEA’s ability to identify and prevent the illicit dispensing of highly addictive controlled substances by several of RDC’s pharmacy customers was impeded. 

ROCHESTER DRUG CO-OPERATIVE, INC., is a wholesale distributor of pharmaceutical products, including controlled substances, headquartered in Rochester, New York.  It is one of the nation’s 10 largest distributors of pharmaceutical products – and the fourth largest in the New York area – with over 1,300 pharmacy customers and over $1 billion in revenue per year.  RDC has been charged in an Information with conspiracy to violate the narcotics laws, conspiracy to defraud the United States, and willfully failing to file suspicious order reports.  RDC has also been sued in a civil complaint for its failure to file suspicious order reports.      

LAURENCE F. DOUD III, 75, of New Smyrna, Florida, has been charged with one count of conspiracy to distribute controlled substances, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years, and one count of conspiracy to defraud the United States, which carries a maximum prison term of five years. 

WILLIAM PIETRUSZEWSKI, 53, of Oak Ridge, New Jersey, has been charged with one count of conspiracy to distribute controlled substances, which carries a maximum sentence of life in prison and a mandatory minimum prison term of 10 years; one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison; and one count of willfully failing to file suspicious order reports with the DEA, which carries a maximum sentence of one year in prison.  PIETRUSZEWSKI pled guilty to these charges, pursuant to a cooperation agreement, on April 19, 2019.

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. 

Mr. Berman praised the investigative work of the DEA’s Westchester Tactical Diversion Team, comprising Special Agents, Diversion Investigators, and Task Force Officers from the DEA, Westchester County Police Department, Town of Orangetown Police Department, Rockland County Sheriff’s Office, Woodbury Police Department, Yonkers Police Department, New Windsor Police Department, and Putnam County Sheriff’s Office.

The charges contained in the Doud Indictment and RDC Information are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

 [1] As the introductory phrase signifies, the entirety of the text of the Indictment against Doud and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation