New York Hedge Fund Founder Pleads Guilty To Bankruptcy Fraud In Connection With Neiman Marcus Bankruptcy

 

 Audrey Strauss, the United States Attorney for the Southern District of New York announced today that DANIEL KAMENSKY, the founder and manager of New York-based hedge fund Marble Ridge Capital (“Marble Ridge”), pled guilty to one count of bankruptcy fraud in connection with his scheme to pressure a rival bidder to abandon its higher bid for assets in connection with Neiman Marcus’s bankruptcy proceedings so that Marble Ridge could obtain those assets for a lower price.  KAMENSKY pled guilty before United States District Judge Denise Cote.

U.S. Attorney Audrey Strauss said:  “Daniel Kamensky abused his position as a committee member in the Neiman Marcus Bankruptcy to corrupt the process for distributing assets and take extra profits for himself and his hedge fund.  Kamensky predicted in his own words to a colleague: ‘Do you understand…I can go to jail?’… ‘this is going to the U.S. Attorney’s Office.’ His fraud has indeed come to the U.S. Attorney’s Office and now has been revealed in open court.”

As alleged in the Complaint, the Information, and statements made in court:           

DANIEL KAMENSKY was the principal of Marble Ridge, a hedge fund with assets under management of more than $1 billion that invested in securities in distressed situations, including bankruptcies.  Prior to opening Marble Ridge, KAMENSKY worked for many years as a bankruptcy attorney at a well-known international law firm, and as a distressed debt investor at prominent financial institutions.

The Neiman Marcus Bankruptcy

Neiman Marcus, an American chain of luxury department stores with stores located across the United States, filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) in May 2020.  At the outset of the bankruptcy, Marble Ridge, through KAMENSKY, applied to be on the Official Committee of Unsecured Creditors (the “Committee”) and was thereafter appointed to be a member of the Committee.  As a member of the Committee, KAMENSKY had a fiduciary duty to represent the interests of all unsecured creditors as a group.

During the bankruptcy process, the Committee had negotiated with the owners of Neiman Marcus to obtain certain securities, known as MyTheresa Series B Shares (the “MYT Securities”), and ultimately, the Committee was successful in coming to a settlement to obtain 140 million shares of MYT Securities for the benefit of certain unsecured creditors of the bankruptcy estate.  In July 2020, KAMENSKY was negotiating with the Committee for Marble Ridge to offer twenty cents per share to purchase MYT Securities from any unsecured creditor who preferred to receive cash, rather than MYT Securities, as part of that settlement.

KAMENSKY’s Fraudulent Scheme

On July 31, 2020, KAMENSKY learned that a diversified financial services company headquartered in Manhattan, New York (the “Investment Bank”) had informed the Committee that it was interested in bidding a price between thirty and forty cents per share—substantially higher than KAMENSKY’s bid—to purchase the MYT Securities from any unsecured creditor who was interested in receiving cash.

That afternoon, KAMENSKY sent messages to a senior trader at the Investment Bank (“IB Employee-1”) telling him not to place a bid, and followed those messages up with a phone call with IB Employee-1 and a senior analyst of the Investment Bank (“IB Employee-2,” and collectively the “Employees”).  During that call, KAMENSKY asserted that Marble Ridge should have the exclusive right to purchase MYT Securities, and threatened to use his official role as co-chair of the Committee to prevent the Investment Bank from acquiring the MYT Securities.  KAMENSKY also stated that Marble Ridge had been a client of the Investment Bank in the past but that if the Investment Bank moved forward with its bid, then Marble Ridge would cease doing business with the Investment Bank.

The Investment Bank thereafter decided to not make a bid to purchase MYT Securities and informed the legal advisor to the Committee of its decision.  The Investment Bank further told the legal advisor they made that decision because KAMENSKY—a client of the Investment Bank—had asked them not to.

Advisors to the Committee informed counsel for Marble Ridge of their call with the Employees, and after speaking with KAMENSKY, counsel for Marble Ridge falsely informed the advisors that KAMENSKY had not asked the Employees not to bid, but instead had told them to place a bid only if they were serious.  Later that evening, KAMENSKY contacted IB Employee-1 and attempted to influence what IB Employee-1 would tell others, including the Committee and law enforcement, about KAMENSKY’s attempt to block the Investment Bank’s bid for the MYT Securities.  KAMENSKY said at the outset of the call, in substance, “this conversation never happened.”  During the call, KAMENSKY asked IB Employee-1 to falsely say that IB Employee-1 had been mistaken and KAMENSKY had actually suggested that the Investment Bank only bid if it was serious, and made comments including the following:  “Do you understand…I can go to jail?”  “I pray you tell them that it was a huge misunderstanding, okay, and I’m going to invite you to bid and be part of the process.”  “But I’m telling you…this is going to the U.S. Attorney’s Office.  This is going to go to the court.”  “[I]f you’re going to continue to tell them what you just told me, I’m going to jail, okay? Because they’re going to say that I abused my position as a fiduciary, which I probably did, right? Maybe I should go to jail. But I'm asking you not to put me in jail.”

During a subsequent interview with the Office of the United States Trustee, which was conducted under oath and in the presence of counsel, KAMENSKY stated that his calls to IB Employee-1 were a “terrible mistake” and “profound errors in lapses of judgment.”

After this series of events, Marble Ridge resigned from the Committee and has advised its investors that it intended to begin winding down operations and returning investor capital.

KAMENSKY, 48, of Roslyn, New York, pled guilty to one count of bankruptcy fraud, which carries a maximum sentence of five years in prison.  Sentencing has been scheduled for May 7, 2021.

U.S. Attorney Strauss praised the work of the FBI.  Ms. Strauss further thanked the Office of United States Trustee and the Securities and Exchange Commission for their cooperation and assistance in this investigation. 

Attorney General James Delivers More Than $573 Million to Communities Across the Nation to Fight Opioid Crisis

 

Nearly Every State in Nation Reaches Agreement Holding McKinsey & Company Accountable for Role in Fueling Opioid Crisis with Purdue Pharma

New York to Receive More Than $32 Million for Opioid Abatement

 New York Attorney General Letitia James today co-led a coalition of nearly every attorney general in the nation in delivering more than $573 million toward opioid treatment and abatement to stem the opioid crisis that has ravaged families across the country. An agreement and consent judgment with McKinsey & Company — one of the world’s largest consulting firms — filed today resolves investigations by the attorneys general into the company’s role in working for opioid companies, helping those companies promote their drugs, and profiting millions of dollars from the opioid epidemic. The funds from today’s agreement — more than $32 million of which will go to New York state — will be used towards abating the effects of excessive opioid use in the participating states. This is the first multistate opioid agreement to result in substantial payment to states to address the crisis.

“McKinsey’s cynical and calculated marketing tactics helped fuel the opioid crisis by helping Purdue Pharma target those doctors they knew would overprescribe opioids,” said Attorney General James. “They knew where the money was coming from and zeroed in on it. Under the terms of today’s agreement, the company will finally end its illegal conduct, deliver more than half a billion dollars into communities across the nation, and will never be able to help perpetrate this type of fraud and deception again. While no amount of money will ever compensate for the pain of the hundreds of thousands dead, the millions addicted, and the countless families torn apart from opioid addiction, we can ensure that those responsible for the crisis help to fund prevention, education, and treatment programs to stop additional New Yorkers and Americans across the country from becoming addicted to opioids in the first place. This is just the beginning of our fight for justice for victims, and we will continue to do everything in our power to prevent the industry from hooking more patients and causing yet additional harm.”

In addition to providing more than $573 million, minus payment of costs, to address the opioid crisis, today’s agreement — filed simultaneously by 47 states, the District of Columbia, and five U.S. territories — calls for McKinsey to release tens of thousands of its internal documents detailing its work for OxyContin manufacturer Purdue Pharma, as well as other opioid manufacturers, for public disclosure online. Additionally, McKinsey agreed to adopt a strict document retention plan, continue its investigation into allegations that two of its partners tried to destroy documents in response to investigations of Purdue Pharma, implement a strict ethics code that all partners must certify each year, and stop advising companies on potentially dangerous opioid-based Schedule II and III narcotics. 

Today’s filing describes how McKinsey contributed to the opioid crisis by promoting marketing schemes and consulting services to opioid manufacturers, including Purdue Pharma, for over a decade. Filed with today’s agreement is a complaint laying out McKinsey’s marketing tactics that detail how the company advised Purdue and members of the Sackler family — who control Purdue — on how to maximize profits from its opioid products, including targeting high-volume opioid prescribers, using specific messaging to get physicians to prescribe more OxyContin to more patients, and circumventing pharmacy restrictions in order to deliver high-dose prescriptions. Acting in concert, McKinsey, Purdue, and the Sacklers sold millions of doses of Purdue’s opioids in New York in violation of New York law.

When states began to sue Purdue’s directors for their implementation of McKinsey’s marketing schemes, McKinsey partners began emailing about deleting documents and emails related to their work for Purdue.

The opioid epidemic has caused massive harm to individuals and communities in New York and in states across the nation over the last 20 years. During this time, nearly 500,000 Americans have died from an opioid overdose, including more than 20,000 New Yorkers. On an economic level, these deaths — and the impacts on New Yorkers who have struggled with opioid use — have created significant costs to New York in the form of health care, child welfare, criminal justice, and many other programs needed to lessen the epidemic. It has also resulted in lost economic opportunity and productivity. On the social level, opioid addiction, abuse, and overdose deaths have torn families apart, damaged relationships, and eroded the social fabric of communities. 

Today’s agreement is the latest action Attorney General James has taken to combat the opioid epidemic and to hold accountable those who are responsible for creating and fueling the crisis. In March 2019, Attorney General James filed a lawsuit to hold accountable the various manufacturers and distributors responsible for the opioid epidemic. The manufacturers named in the complaint included Purdue Pharma and its affiliates, members of the Sackler Family (owners of Purdue) and trusts they control, Janssen Pharmaceuticals and its affiliates (including its parent company Johnson & Johnson), Mallinckrodt LLC and its affiliates, Endo Health Solutions and its affiliates, Teva Pharmaceuticals USA, Inc. and its affiliates, and Allergan Finance, LLC and its affiliates. The distributors named in the complaint are McKesson Corporation, Cardinal Health Inc., Amerisource Bergen Drug Corporation, and Rochester Drug Cooperative Inc. The cases against Purdue, Mallinckrodt, and Rochester Drug are now all in U.S. Bankruptcy Court. Attorney General James’ lawsuit expanded on an earlier suit, filed in August 2018 by the Office of the New York Attorney General, against Purdue Pharma for a decades-long and continuing pattern of deceptive, illegal conduct in the marketing of the opioid OxyContin.

BRONX DISTRICT ATTORNEY DARCEL D. CLARK ANNOUNCES DISMISSAL OF CHARGES IN ALLEGED SEX ABUSE OF FDNY EMT AND RELEASES VIDEO OF INCIDENT SHOWING SUSPECT HAD APPARENT SEIZURE

 

 Bronx District Attorney Darcel D. Clark today announced that her office dismissed charges against a Bronx man accused of groping an FDNY Emergency Medical Services technician at a fire scene, after surveillance video and other evidence established that there was indeed a medical emergency involving a seizure. 

 District Attorney Clark said, “I will not tolerate assaults on first responders, who courageously serve our city, especially during this pandemic; and I will not prosecute anyone unless there is evidence to support charges. After an intensive investigation, we have dismissed and will not charge forcible touching, sex abuse or felony assault on a police officer, firefighter or EMS professional, against Aaron Cervantes-Mejia. He was the subject of a false narrative that spread quickly through the media and social media.” 

The investigation also included interviews of people who have witnessed Mr. Cervantes-Mejia suffer multiple seizures in the past during which he grabbed at anything within reach. Furthermore, a review of medical records confirmed a history of seizures where on at least one prior occasion he was transported to a hospital by EMS for treatment of a seizure.  The Bronx District Attorney’s Child Abuse/Sex Crimes Bureau and NYPD Bronx Special Victims Squad reviewed surveillance video from a nearby store camera that shows Mr. Cervantes-Mejia, 52, stagger and fall in a crosswalk at the intersection of Commonwealth Avenue and Westchester Avenue as he was walking to work at 7:06 a.m. on Thursday, January 28, 2021. Passersby stopped to assist and waved over EMTs that were across the street on Westchester Avenue. A female EMT responded to the requests for help. Mr. Cervantes-Mejia is seen lying on the ground in the crosswalk and grabs the EMT’s clothing in what appears to be the throes of a seizure. The EMT moved his hand away without any assistance while covered in protective gear from head to toe. Mr. Cervantes-Mejia did not appear to have control of his hands.

The investigation also included interviews of people who have witnessed Mr. Cervantes-Mejia suffer multiple seizures in the past during which he grabbed at anything within reach. Furthermore, a review of medical records confirmed a history of seizures where on at least one prior occasion he was transported to a hospital by EMS for treatment of a seizure.

On Thursday, the Bronx District Attorney’s Office deferred prosecution and released Mr. Cervantes-Mejia pending investigation. 

The Bronx District Attorney’s Office remains committed to protecting those who serve our city as members of the FDNY and EMS. In 2018, the Bronx District Attorney’s Office secured guilty pleas to Manslaughter in the marijuana grow house explosion that killed FDNY Battalion Chief Michael Fahy, in an extremely rare instance in which someone was held criminally responsible for conditions that caused the death of a firefighter in the line of duty in New York City. The prosecution of Jose Gonzalez for the murder of EMT Yadira Arroyo in 2017 is pending. 

The video can be viewed through this link: https://youtu.be/sB8rO3JAN9Q

331 Days and Counting

 

331 days left until Mayor Bill de Blasio is term limited out.

Partnership for Parks News

 

HIGHLIGHTS

It’s Our Park: 25 Years of Communities in Action A virtual opening of our first-ever exhibition entitled It’s Our Park: 25 Years of Communities in Action.

Featured speakers include PfP Founder Tim Tompkins, PfP Director Sabina Saragoussi, City Parks Foundation Executive Director Heather Lubov, NYC Parks Commissioner Mitchell J. Silver, FAICP, and others who will discuss the past, present, and future of parks.  Wednesday, February 17 from 6:00 pm to 8:00 pm REGISTER

What Can We Learn? Leading Community Groups during COVID-19 Hear from experienced community leaders who’ve navigated challenges in 2020 and have wisdom to share on fundraising, volunteer recruitment, and working with NYC Parks.

We will also invite leaders like YOU to share experiences leading community efforts in times of crisis. Thursday, February 25 from 6:30 pm to 8:00 pm REGISTER

COASTAL CLASSROOM AFTER SCHOOL Using multimedia virtual lessons and authentic learning experiences students will learn about the ecology of the aquatic ecosystems in NYC waterfront parks and the species living in them. FREE

For 6th to 8th grade students  Start Date: March 17th-8 Weekly Virtual Sessions on Wednesdays or Thursdays 3:30 pm – 5:00 pm APPLY

WE'RE HIRING! Partnerships for Parks is looking for two Catalyst Program organizers. Check out this opportunity to work with us. Click the link for details and instructions on how to APPLY

COMMUNITY EVENTS

The Bronx River Alliance Annual Virtual Assembly 2021 Please join us for our annual Assembly in celebrating the 20th anniversary of the Bronx River Alliance. We will reflect on the years of successful partnerships and the milestones we’ve achieved. We’ll like to open the floor to any guests who would like to share their 2021 visions so if interested, please contact us to reserve a slot. info@bronxriver.org Date/Time:  Thursday, February 4, 7:00am-8:30pm Location: Virtual (Zoom Link)  More info: Contact: RSVP to get zoom link in invitation   Frisch Field Community Input Meeting Wednesday February 17, 6:00pm Virtual Meeting:  Please Join us to share your thoughts on the reconstruction of Frisch Field. The meeting information will be provided to the registered applications one hour before the start of the event. Registration Link: https://www.nycgovparks.org/reg/community-input-meetings/10483 Must Register by: Wednesday February 17, at 5:00pm. Goble Playground Community Input Meeting Tuesday February 23, 6:00pm Virtual Meeting:  Please join us to discuss your ideas for the reconstruction of Goble Playground. The meeting information will be provided to the registered applications one hour before the start of the event. Registration Link: https://www.nycgovparks.org/reg/community-input-meetings/10484 Must Register by: Tuesday February 23, at 5:00pm. SAVE THE DATE:  The 27th Bronx Parks Speak Up The Bronx Coalition for Parks and Green Spaces invites you for an all-virtual Speak Up. The Speak Up is an annual community networking conference for park and environmental stakeholders. We’ll have tabling, a candidates forum, presentations, and workshops. Date/Time:  Saturday, February 27, 10:00am-1:30pm Location:  Virtual  More info: www.bronxspeakup.org, FB Bronx Speak Up Page Contact: bxspeakup@gmail.com GRANTS AND RESOURCES All in Neighborhood Grants Citizens Committee for New York City  Grassroots organizations responding to the immediate needs of struggling New Yorkers will receive unrestricted grants of up to $10,000 to open food pantries, distribute surgical masks, arrange elderly check-ins, or design other projects to meet their neighborhoods’ urgent needs amid the COVID-19 crisis. This grant program is a renaming of their keystone Neighborhood Grants program, which for decades has been awarding micro-grants to resident-led groups to improve the quality of life in their neighborhoods. Grants supported projects in arts, health, environmental justice, beautification, tenants’ rights, and more.  Deadline: Application process opening in February 2021  Link: Learn more here! American Honda Foundation - Scientific Education  American Honda Foundation The American Honda Foundation supports youth education in science, technology, engineering, and mathematics; the environment; job training; and literacy. Grants range from $20,000 to $75,000. The 2021 deadlines for organizations that have never received funding from the foundation are February 1 and August 1. Click here for more information regarding eligibility. Deadline: February 1, 2021 - August 1, 2021 Link: Learn more here! NBC Universal’s Project Innovation  NBC Universal  Grants support local nonprofits that are helping to move communities forward by encouraging a culture of equity and inclusion, creating pathways for individuals to participate and volunteer in community engagement efforts, fostering the next generation of storytellers and providing youth with the tools they need to succeed across multiple disciplines including entrepreneurship. Deadline: February 12, 2021 Link: Learn more here! The New York City Council - Discretionary Funding  New York City Council The New York City Council is accepting applications for community organizations interested in applying for discretionary funding for the upcoming fiscal year. Deadline: February 16, 2021 Link: Learn more here! The New York Yankees Stadium Community Benefits Fund Bronx Yankee Fund Description: The New Yankees Stadium Community Benefits Fund’s mission is to give grants to improve the quality of life in the Bronx by addressing civic, socioeconomic and or educational needs and providing recreational, social arts, health, and cultural opportunities. They are offering three different types of grant opportunities to support education, health, cultural arts, and recreation. Small Grants- $500- $1,500; Sports Equipment Grants-$500-$2,500; and Large Grants- $1,500-$15,000. Your organization must be based in the Bronx. Please read the application eligibility requirements.  Deadline: Feb. 19. 2021 -  Sports Equipment March 26.2021 - Spring Link: Learn more here!

MAYOR DE BLASIO AND GOVERNOR CUOMO ANNOUNCE VACCINATION SITE AT YANKEE STADIUM TO OPEN FRIDAY

 

Bronx Mega-Site Will Be Reserved for Bronx Residents by Appointment Only, Bolstering State and City’s Commitment to Ensuring Fairness and Equity in Vaccine Distribution Process

15,000 Appointments Available During First Week

Mayor Bill de Blasio and Governor Andrew M. Cuomo today announced that Yankee Stadium will open this week as a mega vaccination site, beginning to administer COVID-19 vaccinations to eligible Bronx residents on Friday, February 5. The site, established through a partnership between New York State, New York City, the New York Yankees, SOMOS Community Care and the New York National Guard, will help address and mitigate the ongoing impact of COVID-19 in the Bronx, including positivity rates in nearby communities, and promote equitable distribution of the vaccine, including in the borough’s hardest-hit neighborhoods. Bronx residents interested in scheduling appointments should visit Somosvaccinations.com or call 1-833-SomosNY.

 

“This mega site shows what our grassroots, equity-driven NYC Vaccine for All effort is all about,” Mayor de Blasio said. “Yankee Stadium has always been known for its World Series banners, but now it’ll be recognized as a place where the people of the surrounding community in the Bronx can receive the vaccine doses that they need and deserve. This is about justice and standing up for the neighborhoods that were hardest hit by COVID-19.”

 

“It’s abundantly clear that Black, Latino and poor communities have been hit the hardest by COVID, and the Bronx is no exception,” Governor Cuomo said. “Our efforts to target vaccinations by locations with higher positivity rates have been working to not only keep the infection rate down, but to help ensure equity in our vaccine distribution process, and opening a mass vaccination site at Yankee Stadium – the Bronx’s most iconic landmark - is the perfect solution to helping this borough get vaccinated and defeat COVID once and for all.”

 

The New York Yankees said, “The New York Yankees recognize the devastating effect COVID-19 has had on our borough, and it is our privilege to have Yankee Stadium as a host site for providing vaccines to Bronx residents. These vaccinations will make an immediate difference in improving the health of our local community — which has been so overwhelmed by this pandemic — and we extend our appreciation to all those involved with bringing this effort to fruition, including Governor Andrew Cuomo, the State of New York, Mayor Bill De Blasio, the City of New York and SOMOS Community Care. We will do whatever is needed to make this a success.”

 

The vaccination site at Yankee Stadium is a key component of the City’s ongoing work to ensure equitable distribution of the COVID-19 vaccine, including by making the vaccine as accessible as possible and working to address vaccine hesitancy at the local community level. Last month, to continue expanding the City’s Vaccine for All effort, the City’s Task Force on Racial Inclusion and Equity (TRIE) updated its analysis of neighborhoods hardest-hit by COVID-19 and which have experienced long histories of racism and inequity, resulting in health and socioeconomic disparities, from 27 to 33 neighborhoods. The City will increase vaccine access and uptake in neighborhoods with significant gaps, through brick-and-mortar actions like this new site as well as expanded community engagement. This includes parts of the South Bronx, and areas around Yankee Stadium. For example, ahead of the Yankee Stadium vaccine site opening on Friday, the City will deploy canvassers to conduct on-the-ground outreach to Bronxites in these communities, providing vaccine facts to neighborhood residents and helping eligible individuals make vaccination appointments.

 

To achieve the City’s equity goals and reach as many New Yorkers as possible with the vaccine, including and especially Black and Latinx New Yorkers, the City continues to deepen and expand outreach through its agency partners and trusted community voices, including:

• Opening more hubs in more hard-hit neighborhoods as supply allows
• Offering free transportation to vaccination appointments for seniors
• Expanding vaccination clinics at NYCHA developments
• Conducting comprehensive outreach, including knocking on doors, placing direct calls and robocalls, and holding virtual townhalls
• Partnering with local organizations to get the word out about accessible and safe vaccinations in New York City, including community health providers and more, ensuring neighborhood residents can access appointments at vaccination sites near them.

 

Overall, the City continues to expand its citywide network of vaccine access points open to the eligible public, with 63 percent of public sites already in Task Force neighborhoods. More sites will be opened as supply allows.

 

Governor Cuomo Announces Five New York Companies to Produce COVID-19 Related Equipment and Supplies to Support In-State Needs

 

Nearly $2 Million in Incentives Awarded to Manufacturers Across the State Will Provide Faster and More Secure Access to Life-Saving Medical Products and Create New Jobs

New York State Has Announced More Than $20 Million to 36 New York Companies to Manufacture Vital Supplies; Companies to Collectively Create/Retain 3,500 Jobs

 Governor Andrew M. Cuomo today announced that four additional New York companies and one company that has previously received state support will be awarded nearly $2 million in state support to produce needed supplies to help combat the COVID-19 pandemic. These grant funds will help alleviate product shortages due to supply chain issues that could lead to unfair pricing practices. The companies will also increase the State's manufacturing capacity while creating new jobs and market opportunities. To date, New York State has announced more than $20 million in grants to 36 qualifying New York-based companies to retool their business lines and pivot to manufacturing vital supplies for ongoing response and recovery efforts. These 36 companies will collectively create and retain over 3,500 jobs.

"The COVID-19 pandemic exposed serious issues in our nation's medical supply chain, and we were forced to compete overseas and pay exorbitant prices for these life-saving products," Governor Cuomo said. "We learned the hard lesson that these resources need to be manufactured here in the U.S., and we are taking steps to build the infrastructure we need here in New York to keep us prepared for future crises while helping local companies create new jobs."

"Our country was ill-prepared for a global pandemic when it arrived early in 2020, and New York State was left to scour the earth in search of personal protective equipment," said Lieutenant Governor Kathy Hochul. "We are proud to support domestic manufacturing of critical medical equipment that will not only save lives and reduce dependency on overseas products, but also retain local jobs and support New York State companies."

In March, Governor Cuomo asked companies with New York-based operations to retool production lines in order to manufacture approved COVID-19 critical supplies, such as ventilators, test kits and PPE. Companies manufactured N95 respirators, surgical masks, gowns and face shields, among other products. On July 30, 2020, Governor Cuomo announced 12 New York companies had received support from the State to produce needed supplies to help combat the COVID-19 pandemic, in addition to 8 companies announced by Empire State Development on May 15, 2020. On October 23, 2020, Governor Cuomo announced that an additional 8 New York companies had received support to start producing COVID-19 related equipment and supplies. The program was designed to ensure that New York State's health facilities will have access to PPE if and when they need it. 

To further promote domestic manufacturing of critical medical supplies and devices and to reduce dependency on overseas products, Governor Cuomo has also proposed the Medical Supplies Act to prioritize buying American-made PPE and medical supplies as part of his 2021 Reimagine | Rebuild | Renew agenda. This new policy will help create and retain local jobs while ensuring the health and dependability of this sector for years to come.

Empire State Development Acting Commissioner and President & CEO-designate Eric Gertler said, "New York State is home to many of the world's most innovative companies. ESD's support for these businesses not only answers Governor Cuomo's call for New York industries to assist with efforts to fight the coronavirus, but also reflects the investment that is being made to strengthen the State's manufacturing sector to adapt quickly to new market opportunities and continue its record of smart growth as we build back better." 

1 Atelier - $500,000 - New York City - 1 Atelier is a maker of handbags in New York City. When the pandemic hit the City in March, the company's CEO decided that she needed to help the medical community get the PPE they needed while at the same time keeping her staff of 60 employed through what they knew would be a hard time. With the assistance of this grant, 1 Atelier shifted to making N95 respirators for the medical community and expects to have its National Institute for Occupational Safety and Health approval early next year. 1 Atelier has committed to producing an initial run of 250,000 N95 respirators.

Aero Healthcare US LLC - $800,000 - Mid-Hudson - Aero Healthcare is a global healthcare supply manufacturer and distributor. The company will expand its existing facility to bottle hand sanitizer and manufacture the plastic bottles and pumps for its containers. The ramp up will include the purchase of machinery and equipment and raw materials. At full production, Aero Healthcare will produce 200,000 units of hand sanitizer per week. This is the first phase of a larger plan to bring the batching and mixing of hand sanitizer to the company's Rockland County facility. The project will include an investment of $2.1 million and 10 new jobs to reach full capacity.

ARX Sciences- $200,000 - Western New York - ARX Sciences was founded in 2019 and is headquartered in Western New York. The company designs, develops and manufactures reagents for use in in-vitro diagnostics. ARX also offers a number of biochemicals for use by scientists and clinical researchers. The company successfully applied for a COVID-19 grant in order to begin manufacturing viral transport mediums, or VTMs, and the company will produce 250,000 units, creating 20 new jobs in its manufacturing facility in Western New York.

Borden Manufacturing - $46,000 - New York City - Borden Manufacturing fabricates hospital equipment such as disposable cubicle curtains and medical waste bags. The company is receiving a grant to retool its facility to produce Level 1 disposable hospital gowns and disposable masks. The ramp-up will include the purchase of machinery and equipment, raw materials and the hiring of four new staff. The approximately $166,000 project will allow Borden to produce 365 masks and 3,276 gowns per week at full ramp-up, which is a total of 46,800 units during the first 90-day period. The company plans to continue manufacturing the gowns and masks indefinitely.   

Genesis Disposables LLC - Grant: $400,000 - Mohawk Valley - (second grant) - Genesis Disposables has been manufacturing disposable garments and accessories for a diverse customer base for over 30 years at its facility located in Frankfort, NY. The company carries a wide range of raw materials that can be quickly converted into finished goods, enabling it to deliver exceptional turnaround time. Genesis Disposables has reached capacity at its current manufacturing facility and is looking to move into a larger facility and purchase machines and manufacturing equipment to increase production. The project will entail a $6.8 million investment to expand production of Level 1 and Level 2 isolation gowns at 100,000 a month initially, then ramping up to 250,000 a month by the end of 2021, creating 55 jobs in the first year.

AG James Statement on the Preservation of Brooklyn Underground Railroad Site

 

 In response to the New York City Landmarks Preservation Commission’s decision to preserve 227 Duffield Street as a historical landmark, New York Attorney General Letitia James issued the following statement:

“Brooklyn’s 227 Abolitionist Place, formerly Duffield Street, represents one of the most important ties that New York has to our abolitionist roots — roots that every Black New Yorker is proud of. During this time of national reckoning over the legacy of slavery and continued injustice faced by Black communities, maintaining that piece of history is critical in remembering how far we’ve come, and how far we still must go. Since my time in the City Council, I have fought for the protection of this important site, and now, I am immensely proud that during Black History Month, we can finally say it’s here to stay. This piece of Black New York history will be forever safeguarded so that future generations may know its story.”

Since her time on the New York City Council, Attorney General James has worked to preserve this historic site. In 2007, she passed legislation to rename the block of Duffield Street “Abolitionist Place” and successfully stopped the city from tearing down the structure for new development. In July 2020, she testified before the Landmarks Preservation Commission about the importance of designating the site as a landmark and protecting it for generations to come.