"Today's agreement on a budget between the Mayor and City Council can be lauded as a win for everyday New Yorkers. Early childhood workers around the city, such as the dedicated teachers at the Williamsbridge Early Childhood Center in my district, will receive a more fair paycheck, acknowledging their contributions as educators, not babysitters. I appreciate as former chairman of the Council's Library Committee, how $33 million in new funding for programming will impact countless New Yorkers of all ages. More staff in our city parks means more safety, more cleanliness, and more programming. Schools across the city, including my district, will see new security cameras thanks to new funding. I want to thank my colleagues in the Council and our Mayor for these victories, as well as the responsible teamwork that has ensured ample reserves in the city's rainy day fund. But most importantly, I want to thank every hardworking taxpayer who has enabled the funding to push our community in the right direction, ensuring a bright future. Of course, there is more to be done, but it's a good day for residents of New York City."
Friday, June 14, 2019
News From Assemblyman Victor Pichardo
Assemblymember Pichardo: Sweeping housing reform is a huge victory for Bronx tenants
Assemblymember Victor M. Pichardo (D-Bronx) announced that he co-sponsored and helped pass legislation to protect Bronx tenants from unfair landlord practices and safeguard affordable housing (A.8281). The Housing Stability and Tenant Protection Act is the strongest rent regulation legislation ever passed in New York State. Pichardo noted that the laws will be permanent so tenants aren’t left in limbo every few years.
“For too long, Bronx families have been at the mercy of landlords and a system that knocked them down and left them voiceless,” said Pichardo. “But today, we’re giving them their voice back. We stood tall to help ensure fewer families are forced to live in unsafe conditions for fear of landlord retaliation or pushed out of their home because of sky-high rent increases, and we won.”
Pichardo noted that one of the most important and impacful measures in the legislation is the elimination of the vacancy bonus, which allows landlords of rent-regulated units to raise the rent by up to 20% after a tenant leaves. It also prevents the NYC Rent Guidelines Board (RGB) from creating similar bonuses, bars RGBs from setting higher rent increases for certain apartments and limits rent-controlled rent increases to 7.5% or the average of the past five increases, whichever is lower. Pichardo has been vocal about the need for vacancy bonus reform and pushed for its inclusion in the legislation.
Additionally, the legislation eliminates the vacancy deregulation provision, which currently allows a landlord to remove an apartment from rent stabilization if it becomes vacant and the monthly rent exceeds $2,774.76. The provision was enacted in 1994 and caused more than 160,000 apartments to lose their rent-protected status due to vacancy decontrol.[1]
“The vacancy bonus is nothing more than an unfair loophole that allows landlords to take advantage of renters,” said Pichardo. “It encourages landlords to push out tenants in order to raise rent quickly so it becomes deregulated. Eliminating the vacancy bonus will keep affordable housing efforts on the right track – it’s a great victory for the Bronx.”
The bill makes the rent stabilization and rent control regulations that were set to expire on June 15 permanent.
Additionally, it:
- prohibits landlords of rent-regulated apartments from discontinuing preferential rent for a current tenant;
- requires landlords make a good faith effort to re-rent a unit after a tenant breaks the lease;
- keeps landlords from blacklisting prospective tenants by preventing them from using a database of court information;
- limits the amount of a security deposit to be equal to one month’s rent and requires any deposit to be refundable;
- prohibits retaliatory eviction against tenants in buildings with four units or more who make a good faith complaint alleging uninhabitable conditions; and
- limits background check fees to $20 and prohibits lease application fees.
To ensure tenants aren’t blindsided, the tenant protections also require landlords provide 30 days’ notice for a tenant of one year or less, 60 days’ notice for a tenant of one to two years and 90 days’ notice for a tenant of two or more years when refusing to renew a lease.
The legislation also helps prevent abuse of the major capital improvement (MCI) program by capping MCI rent increases at 2% and extends the period over which the rent increases are paid in order to reduce the burden on tenants. It also clarifies the types of projects that qualify as MCIs and directs the state Division of Housing and Community Renewal (DHCR) to audit and inspect 25% of approved MCIs annually. The bill also extends the period over which the individual apartment improvement (IAI) program rent increases are paid, prevents owners from performing more than three IAIs – capped at a total of $15,000 – over 15 years and directs DHCR to audit and inspect 10% of IAIs annually.
To better protect rent-stabilized tenants, the bill eliminates the statute of limitations for tenants to file overcharge complaints and extends the recovery of overcharge penalties to six years. It also requires landlords pay three times the amount owed if the overcharges were intentional.
Additionally, the bill protects New Yorkers living in condominiums and co-ops by halting eviction plans that allow non-purchasing tenants to be evicted, and giving these tenants more time to find a new home.
The legislation would also:
- limit landlord recovery of rent-regulated apartments for personal use to one unit and allow tenants to pursue legal action if the landlord’s claim is fraudulent;
- provide individuals housed by nonprofits with tenant status;
- increase the annual fee to register a rent-regulated unit from $10 to $20, and dedicate that increase in revenue to DHCR’s Office of Rent Administration (ORA) and Tenant Protection Unit (TPU); and
- require DHCR to conduct annual and publicly available reports on the implementation of these regulations.
“Every New Yorker deserves a roof over their head that doesn’t leave them penniless,” said Pichardo. “This legislation will help fulfill that promise.”
Assemblymember Victor M. Pichardo on the Jury's Verdict in the Lesandro Junior Guzman-Feliz Trial
“Justice has been served to the five men who robbed the world of a bright and upstanding young man. I want to thank the District Attorney Darcel Clark for her leadership in this trial, and in making sure that Junior’s murderers were apprehended and convicted.” said Assemblymember Victor Pichardo. “The gang violence culture deemed it acceptable to slaughter a young kid. This grizzly and barbaric violence that was inflicted on another human being is unacceptable and we need to make sure we do more to end this violence through holistic and aggressive ways.”
EDITOR'S NOTE:
Assemblyman Pichardo fails to remember the recent legislation passed by the state legislature which Assemblyman Pichardo was supporting, regarding 16 - 19 year olds.
We would not be surprised to see the lawyers for these young men ask for a new trial under the new law passed by the state legislature where they may be released without bail, and receive just a slap on the wrist.
Thursday, June 13, 2019
Two Men Charged With Murder-For-Hire
Geoffrey S. Berman, United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a federal indictment charging VANCE COLLINS, a/k/a “Big AK,” 50, and RAMON RAMIREZ, a/k/a “Obendy,” 48, with hiring a hitman to murder an individual believed to be having an affair with RAMIREZ’s wife. COLLINS was arrested this morning in the Bronx and RAMIREZ was arrested this morning in Staten Island. The target of their murder-for-hire plan was not killed. Both defendants were presented this afternoon before United States Magistrate Judge Katharine H. Parker and detained. The case has been assigned to United States District Judge P. Kevin Castel.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, Vance Collins and Ramon Ramirez put a price on another human’s life when they hired someone to kill a person believed to be having an affair with Ramirez’s spouse. Thanks to the work of our remarkable law enforcement partners, Collins and Ramirez now stand charged in federal court for their alleged roles in this terrible crime.”
FBI Assistant Director William F. Sweeney Jr. said: “Murder-for-hire cases are more common than one might think, and the FBI has a number of investigative resources and federal laws we can tap into to help us prevent these potential crimes. But the fact that the plan allegedly concocted by Collins and Ramirez was ultimately unsuccessful shouldn’t overshadow the gravity of this situation – the intent was the same, regardless of the outcome.”
According to the allegations in the Indictment[1]:
In or about late 2017, COLLINS and RAMIREZ hired another person to murder a man believed to be having an affair with RAMIREZ’s wife, and conspired to carry out this murder-for-hire plot from 2017 through 2018, in violation of 18 U.S.C. §§ 1958 and 2. Each charge in the two-count indictment carries a maximum penalty of 10 years in prison. The maximum potential sentences in this case 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 outstanding investigative work of the FBI Westchester County Safe Streets Task Force, which comprises agents and task force officers from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Probation Office, New York State Police, New York City Police Department, Mount Vernon Police Department, Yonkers Police Department, Greenburgh Police Department, Peekskill Police Department, Westchester County Police Department, and Westchester County District Attorney’s Office.
[1] As the introductory phase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Claudius English Convicted Of Sex Trafficking Minors, Kidnapping, And Use Of A Firearm
Geoffrey S. Berman, United States Attorney for the Southern District of New York, Angel M. Melendez, Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), and James P. O’Neill, the Police Commissioner of the City of New York (“NYPD”), announced that CLAUDIUS ENGLISH was convicted yesterday of multiple counts of sex trafficking minors, attempted sex trafficking of minors as young as 8 years old, kidnapping of a minor, and using a firearm to commit the kidnapping.
U.S. Attorney Geoffrey S. Berman said: “As a unanimous jury determined without hesitation, Claudius English engaged in a predatory reign of terror and exploitation of children – girls as young as 8 years old. Thanks to HSI and the NYPD, English now awaits a lengthy prison sentence.”
HSI Special Agent-in-Charge Angel M. Melendez said: “English chose a business of preying on children as young at 8 and exploiting their innocence, forcing them to have sex with his already established clientele. He carried out his predatory acts and targeted minors on the internet, once again highlighting the importance of internet safety. The heinous acts of this individual robbed his victims of their childhood, and this guilty verdict will ensure that he faces time for his criminal actions.”
NYPD Commissioner James P. O’Neill said: “The NYPD is committed to ensuring child predators are taken off our streets; we will continue working tirelessly to bring them to justice. We remain committed to working with our law enforcement partners to ensure that individuals who engage in these reprehensible crimes are held accountable for the misery and anguish they cause.”
According to the evidence presented during the trial:
In 2013, CLAUDIUS ENGLISH sex trafficked multiple minor victims out of his apartment in the Bronx. ENGLISH used the Internet to find, recruit, and lure minor victims to his apartment, where he photographed them in sexually suggestive poses. ENGLISH then sent these photographs to his regular clients, and created advertisements that he posted on Backpage. ENGLISH arranged for his clients to pay for sex with at least four minor victims who testified at trial. Additionally, for one of his clients, ENGLISH took substantial steps to obtain and sex traffic girls as young as 13, 11, and 8.
On November 15, 2013, ENGLISH lured a 14-year-old girl from New Jersey to his apartment for the purpose of selling her for sex. When the victim resisted and said she wanted to leave, ENGLISH pointed a loaded gun at her head and refused. After several hours, the victim convinced ENGLISH to accompany her outside. Even though ENGLISH brought his gun with him, the victim ran away and called 911. NYPD officers responded promptly enough that the victim was able to lead them back to ENGLISH’s apartment, where ENGLISH was caught trying to flee.
ENGLISH, 45, of Bronx, New York, was convicted of conspiracy to commit sex trafficking of minors (COUNT ONE), four counts of sex trafficking of minors (COUNTS TWO, THREE, FOUR, and EIGHT), three counts of attempted sex trafficking of minors (COUNTS FIVE, SIX, and SEVEN), kidnapping a minor (COUNT NINE), and the use of a firearm in furtherance of the kidnapping (COUNT TEN). ENGLISH faces a statutory maximum sentence of life, and a mandatory minimum sentence of 27 years.
Mr. Berman praised the outstanding investigative work of HSI and NYPD, and expressed gratitude for the efforts of HSI’s New York Trafficking in Persons Unit. Mr. Berman also expressed gratitude to the Bronx County District Attorney’s Office.
Members Of African Criminal Enterprise Charged With Large-Scale Trafficking Of Rhinoceros Horns And Elephant Ivory And Heroin Distribution
Indictment Alleges Conspiracy to Smuggle at Least 190 Kilograms of Rhinoceros Horns and at Least 10 Tons of Elephant Ivory Valued at More Than $7 Million
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, David Bernhardt, the United States Secretary of the Interior, and Christopher T. Tersigni, the Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that MOAZU KROMAH, a/k/a “Ayoub,” a/k/a “Ayuba,” a/k/a “Kampala Man,” AMARA CHERIF, a/k/a “Bamba Issiaka,” MANSUR MOHAMED SURUR, a/k/a “Mansour,” and ABDI HUSSEIN AHMED, a/k/a “Abu Khadi,” were charged in an indictment for participating in a conspiracy to traffic in rhinoceros horns and elephant ivory, both protected wildlife species, valued at more than $7 million that involved the illegal poaching of more than approximately 35 rhinoceros and more than approximately 100 elephants. In addition, KROMAH, CHERIF, and SURUR were charged with conspiracy to commit money laundering, and SURUR and AHMED were charged with participating in a conspiracy to distribute and possess with intent to distribute more than 10 kilograms of heroin. KROMAH, a citizen of Liberia, was arrested in Uganda on June 12, 2019, and expelled to the United States. He was arraigned before U.S. Magistrate Judge Katharine H. Parker earlier today and detained. CHERIF, a citizen of Guinea, was arrested in Senegal on June 7, 2019, and remains in custody in Senegal pending a process through which his extradition, deportation or other lawful removal to the United States is being considered by Senegalese authorities. SURUR and AHMED, both citizens of Kenya, remain fugitives. The case has been assigned to U.S. District Judge Gregory H. Woods.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants are members of an international conspiracy to traffic in not only heroin but also rhino horns and elephant ivory. The alleged enterprise, responsible for the illegal slaughter of dozens of rhinos and more than 100 elephants, was as destructive to protected species as it was lucrative. The excellent work of the Fish and Wildlife Service and the DEA has put the brakes on an operation that allegedly peddled dead protected species and potentially deadly narcotics.”
Secretary of the Interior David Bernhardt said: “Wildlife trafficking will not be tolerated. It is often intertwined with other major types of criminal activity including conspiracy, smuggling, money laundering and narcotics – all of which are included in the indictment today. The U.S. Department of the Interior remains committed to combating the illegal wildlife trade through the END Wildlife Trafficking Act and the President’s Executive Order on Transnational Organized Crime. I would like to thank the U.S. Fish and Wildlife Service Office of Law Enforcement, U.S. Attorney’s Office, U.S. Department of Justice, and others who help bring wildlife traffickers, and other criminals, to justice. Together, we can protect some of the world’s most iconic species while ensuring the safety and livelihood of the American people.”
DEA Special Agent in Charge Christopher T. Tersigni said: “DEA’s global investigations with our foreign counterparts often involve transnational criminal networks involved in a wide array of unlawful acts – from drug trafficking to conspiring to commit acts of terror to international money laundering to human trafficking – that undermine the rule of law everywhere. These suspected criminal masterminds not only conspired to traffic huge amounts of heroin to New York, but also directed a multimillion-dollar poaching scheme to traffic in rhinoceros horns and elephant ivory – both endangered wildlife species. DEA investigations throughout the world consistently illustrate the lengths and heinous acts these global criminal individuals and networks will commit to further their illicit enterprises.”
According to allegations in the Indictment unsealed today in Manhattan federal court[1]:
KROMAH, CHERIF, SURUR, and AHMED were members of a transnational criminal enterprise (the “Enterprise”) based in Uganda and surrounding countries that was engaged in the large-scale trafficking and smuggling of rhinoceros horns and elephant ivory, both protected wildlife species. Trade involving endangered or threatened species violates several U.S. laws, as well as international treaties implemented by certain U.S. laws.
From at least in or about December 2012 through at least in or about May 2019, KROMAH, CHERIF, SURUR, and AHMED conspired to transport, distribute, sell, and smuggle at least approximately 190 kilograms of rhinoceros horns and at least approximately 10 tons of elephant ivory from or involving various countries in East Africa, including Uganda, the Democratic Republic of the Congo, Guinea, Kenya, Mozambique, Senegal, and Tanzania, to buyers located in the United States and countries in Southeast Asia. Such weights of rhinoceros horn and elephant ivory are estimated to have involved the illegal poaching of more than approximately 35 rhinoceros and more than approximately 100 elephants. In total, the estimated average retail value of the rhinoceros horn involved in the conspiracy was at least approximately $3.4 million, and the estimated average retail value of the elephant ivory involved in the conspiracy was at least approximately $4 million.
Typically, the defendants exported and agreed to export the rhinoceros horns and elephant ivory for delivery to foreign buyers, including those represented to be in Manhattan, in packaging that concealed the rhinoceros horns and elephant ivory in, among other things, pieces of art such as African masks and statues. The defendants received and deposited payments from foreign customers that were sent in the form of international wire transfers, some which were sent through U.S. financial institutions, and paid in cash.
On a number of occasions, KROMAH, SURUR, and AHMED met with a confidential source (“CS-1”), both together and separately, concerning potential purchases of elephant ivory and rhinoceros horn. During these meetings and at other times via phone calls and an electronic messaging application, CS-1 discussed with KROMAH, SURUR, and AHMED, in substance and in part, the terms of the sale, including the price, weight, or size of the rhinoceros horns, payment, destination, and delivery options. CS-1 also discussed with CHERIF via phone calls and electronic messages, in substance and in part, the terms of the sales, as well as how to send payment for the rhinoceros horns from a United States bank account located in Manhattan. On or about March 16, 2018, law enforcement agents intercepted a package containing a black rhinoceros horn sold by the defendants to CS-1 that was intended for a buyer represented to be in Manhattan. From in or about March 2018 through in or about May 2018, the defendants offered to sell CS-1 additional rhinoceros horns of varying weights, including horns weighing up to seven kilograms. On or about July 17, 2018, law enforcement agents intercepted a package containing two white rhinoceros horns sold by the defendants to CS-1 that was intended for a buyer represented to be in Manhattan.
Separately, from at least in or about August 2018 through at least in or about May 2019, SURUR and AHMED conspired to distribute and possess with intent to distribute more than approximately 10 kilograms of heroin to a buyer represented to be located in New York.
KROMAH, 49, CHERIF, 54, SURUR, 59, and AHMED, 56, are each charged with one count of conspiracy to commit wildlife trafficking and two counts of wildlife trafficking, each of which carries a maximum sentence of five years in prison. KROMAH, CHERIF, and SURUR are also each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years. Finally, SURUR and AHMED are each charged with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, which carries a maximum sentence of life imprisonment, and a mandatory minimum sentence of 10 years’ imprisonment. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the United States Fish and Wildlife Service and the DEA, and he thanked law enforcement authorities and conservation partners in Uganda for their assistance in the investigation. Mr. Berman also thanked the U.S. Department of Justice’s Office of International Affairs for their assistance and noted that the investigation is continuing.
The charges contained in the Indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and its description set forth below constitute only allegations, and every fact described should be treated as an allegation.
Attorney General James Cracks Down On Pharmacies Failing To Comply With Drug Pricing Transparency Law
44 Pharmacies Failed to Post Drug Prices, Leaving Consumers in the Dark
Attorney General Letitia James today announced the conclusion of an investigation into pharmacies across New York State that found many have failed to post the costs of drugs to consumers, as required by law. As a result of the investigation, the Attorney General’s Office sent cease and desist letters to 44 pharmacies found to be in violation of the law, mandating compliance with consumer protection laws that require that pharmacies maintain a list of their prices for the 150 most commonly prescribed drugs. State law also mandates that pharmacies update this Drug Retail Price List at least weekly, distribute the list to consumers upon request, and post a sign notifying consumers of the availability of the list. The sign is required to be posted in the pharmacy where prescriptions are accepted or dispensed, or in the pharmacy’s waiting area.
“Posting prices of drugs is a basic method of transparency that enables individuals to make informed decisions about their health and their finances,” said Attorney General Letitia James. “Our investigation revealed that too many pharmacies throughout the state have flouted these consumer protection laws, potentially resulting in New Yorkers paying significantly more for medications they depend on every day. We will continue to hold pharmacies accountable and work to bring down the costs of prescription drugs.
The requirement to maintain a price list and to post a conspicuous sign is not just a mere formality. The investigation revealed that pricing between pharmacies for the same exact drug can vary by as much as 300 percent. One drug’s price ranged over $600 between pharmacies.
Over the course of the investigation, the Attorney General’s Office visited more than 100 pharmacies across the state to request price lists and observe compliance with signage. The sweep revealed that 38 percent of pharmacies were in violation of the list and signage law. Those pharmacies in violation of these laws were located in: Binghamton, Brooklyn, Buffalo, Nassau County, Northern Manhattan, Plattsburgh, Rochester, Suffolk County, Syracuse, Utica, Watertown, and Westchester County.
The cease and desist letters required the pharmacies to come into full compliance with the law within 15 days of receipt.
New York Attorney General James Moves To Block T-Mobile And Sprint Megamerger
States allege merger is anticompetitive and will drive-up prices for consumers throughout the country
A.G. James: “This is exactly the sort of consumer-harming, job-killing mega merger our antitrust laws were designed to prevent.”
New York Attorney General Letitia James and California Attorney General Xavier Becerra filed a multi-state lawsuit, along with eight other State Attorneys General to halt the proposed merger of telecom giants T-Mobile and Sprint. The complaint, filed in New York federal court in coordination with Colorado, Connecticut, the District of Columbia, Maryland, Michigan, Mississippi, Virginia, and Wisconsin alleges that the merger of two of the four largest national mobile network operators would deprive consumers of the benefits of competition and drive up prices for cellphone services.
“When it comes to corporate power, bigger isn’t always better,” said Attorney General Letitia James. “The T-Mobile and Sprint merger would not only cause irreparable harm to mobile subscribers nationwide by cutting access to affordable, reliable wireless service for millions of Americans, but would particularly affect lower-income and minority communities here in New York and in urban areas across the country. That’s why we are going to court to stop this merger and protect our consumers, because this is exactly the sort of consumer-harming, job-killing megamerger our antitrust laws were designed to prevent.”
“Although T-Mobile and Sprint may be promising faster, better, and cheaper service with this merger, the evidence weighs against it,” said Attorney General Xavier Becerra. “This merger would hurt the most vulnerable Californians and result in a compressed market with fewer choices and higher prices. Today, along with New York and eight other partner states, we’ve filed a lawsuit to block this merger and protect the residents of our state.”
T-Mobile US Inc. and Sprint Corporation are the third and fourth largest mobile wireless networks in the U.S., and are the lower-cost carriers among the “Big Four” — Verizon Wireless and AT&T round out the market. Intense competition, spurred in particular by T-Mobile and Sprint, has meant declining prices, increased coverage, and better quality for all mobile phone subscribers. According to the Labor Department, the average cost of mobile service has fallen by roughly 28 percent over the last decade, while mobile data consumption has grown rapidly. The merger, however, would put an end to that fierce competition, which has delivered a great number of benefits to consumers.
Currently, the average U.S. household spends approximately $1,100 annually on cellphone services. For many families, especially those with lower incomes, even a small price increase can result in suspension or cancellation of cellphone service.
“Low- and moderate-income (LMI) New Yorkers put a greater share of their household income toward their phone bill, and when you are looking at a budget that is already stretched thin, every dollar counts,” added Mae Grote, CEO of the Financial Clinic. “Cellphones now not only give us the ability to communicate with friends and family, here and abroad, but are increasingly the way we engage with many critical services. Our customers use cellphone apps to access public information, send and receive money, manage their SNAP benefits, look for a job, and even communicate with their doctors, and maintaining competition in the market for this critical service ensures LMI consumers have the same access to quality, affordable service as the more financially secure. The Clinic is proud to advocate on behalf of the communities we serve to protect their inclusion in the modern economy.”
While T-Mobile and Sprint have made promises that their merger would offer lightning-fast speeds and increased capacity, the Attorneys General’s investigation found that many of the claimed benefits were unverifiable and could only be delivered years into the future, if ever. By contrast, if the merger were to go through, the combined company would immediately have the power and incentive to raise prices, while cutting quality. In short, any theoretical efficiencies that could be realized from the merger would be outweighed by the transaction’s immediate harm to competition and consumers.
Additionally, the merger would harm thousands of hard-working mobile wireless independent dealers in New York and across the nation. The ten states are concerned that further consolidation at the carrier level would lead to a substantial loss of retail jobs, as well as lower pay for these workers in the near future.
"CWA applauds the Attorneys General and especially General Letitia James' leadership in taking decisive action today to prevent T-Mobile and Sprint from gaining anti-competitive power at the expense of workers, customers, and communities," added Chris Shelton, president of the Communications Workers of America (CWA). "Reducing the number of national wireless carriers from four to three would mean higher prices for consumers, job loss for retail wireless workers, and downward pressure on all wireless workers' wages. The states’ action today is a welcome development for American workers and consumers, and a reminder that regulators must take labor market concerns seriously when evaluating mergers.”
Before filing suit, the states gave significant consideration to T-Mobile and Sprint’s claims of increased coverage in rural areas. However, T-Mobile has yet to provide plans to build any new cell sites in areas that would not otherwise be served by either T-Mobile or Sprint. As stated in the complaint, the U.S. previously won the “race to LTE” as a direct result of vigorous competition among wireless carriers. Finally, continued competition, not concentration, is most likely to spur rapid development of a nationwide 5G network and other innovations.
“This merger is bad for competition, and it is bad for consumers, especially those living in or traveling through rural areas, who will experience fewer choices, price increases, and substandard service,” stated Carri Bennet, general counsel for the Rural Wireless Association. “We are pleased that the New York Attorney General, along with nine states have filed their lawsuit to block the merger. The process at the FCC has not been transparent and the FCC appears to be blindly accepting New T-Mobile’s words as truth.”
The complaint was filed under seal in United States District Court for the Southern District of New York.
T-Mobile currently has more than 79 million subscribers, and is a majority-owned subsidiary of Deutsche Telekom AG. Sprint Corp. currently has more than 54 million subscribers, and is a majority-owned subsidiary of SoftBank Group Corp.