|
|
|
|
|
|
|
|
|
|
|
|
|
Tuesday, June 1, 2021
Attorney General James Asks Court to Force Kodak CEO to Publicly Testify on Insider Trading During COVID-19 Pandemic
Kodak CEO Unlawfully Traded Company Stock While Negotiating Confidential, Game-Changing $655 Million Loan with Trump White House Early in Pandemic
Kodak Doubled Down on Fraud and Misled Investors
New York Attorney General Letitia James, today, announced a new action taken in her investigation of insider trading by the chief executive officer (CEO) of the Eastman Kodak Company (Kodak). Attorney General James filed a petition with the New York County State Supreme Court to have Kodak CEO Jim Continenza publicly testify about his purchase of more than 46,000 shares of Kodak stock early last summer and Kodak’s subsequent false statements about that trading to investors last month. Continenza’s stock purchase occurred in the midst of the coronavirus disease 2019 (COVID-19) public health crisis last June, as the pandemic exposed domestic shortages in the chemical building blocks used to make medicines. Continenza made the purchase while he was leading secret discussions with the Trump White House and the federal government for a $655 million loan to enable Kodak to repurpose legacy assets in Rochester to produce chemicals to address this need. Attorney General James’ petition also asks the court to order public testimony from Kodak’s general counsel, as well as for the company to produce related documents.
“Corporate greed will never go unchecked in New York,” said Attorney General James. “As millions of New Yorkers and Americans across this nation lost their jobs and were waiting for unemployment checks, Kodak’s CEO was using insider information to illegally trade company stock. Kodak even double downed on this fraud by relaying false information to investors before the company’s annual meeting that took place last month. Corporate executives don’t get to play by their own rules, which is why today’s action seeks to shine a light on Kodak and Mr. Continenza’s unlawful behavior and level the playing field. We are asking the court to order Mr. Continenza to testify in open court, so the facts can be exposed before the American people. My office will use every tool at its disposal to hold those who violated the law accountable.”
Attorney General James’ petition shows that, on June 23, 2020, Continenza bought 46,737 shares of Kodak stock at a weighted average price of $2.22 per share. Continenza bought the stock just a week after Kodak had filed a confidential application for a $655 million loan from the federal government to develop a new business to produce chemicals to manufacture supplies for medicines for patients hospitalized with COVID-19. The new pharmaceutical project, alone, was expected to increase revenue at the company by more than $300 million annually by 2025.
Kodak’s loan application followed extensive confidential dealings — led by Continenza personally — held directly with the White House and other federal officials.
Just over a month after Continenza’s stock purchase, Kodak signed a public letter of interest with the federal government for the loan — which by then had grown to $765 million — causing Kodak stock to soar. The day after the news was announced, Kodak’s stock price reached a high of $60 per share — more than 27 times what Continenza had paid for the stock mere weeks earlier.
Attorney General James’ petition also informs the court about false statements Kodak made to investors about the circumstances of Continenza’s insider trading. Specifically, on May 17, 2021 — in two separate public filings with the Securities and Exchange Commission — Kodak disclosed that it anticipated being sued by the Office of the Attorney General (OAG) because of Continenza’s illegal trading. Kodak falsely stated, in the disclosures, that Continenza’s June 23, 2020 trading was “in compliance with the Company’s insider trading policy, including pre-approval by its general counsel.” But, in truth, Kodak’s insider trading policy requires pre-clearance to be sought by email at least one day prior to the trading and for the requester to “receive” a “response” approving the trading — neither of which occurred.
These false and misleading disclosures occurred just two days before Kodak’s annual meeting during which shareholders voted on retaining Continenza as executive chairman of the company and on endorsing his compensation package
Attorney General James filed today’s petition under Section 354 of the Martin Act — New York’s powerful securities law. Section 354 specifically authorizes Attorney General James to take public, judicially-supervised testimony in conducting investigations into fraudulent securities practices when, as here, it has determined to commence an action.
In the past, Attorney General James has used Section 354 of the Martin Act to shine a light on and halt the illegal behavior of other companies; most notably iFinex Inc. and Tether Limited. In April 2019, Attorney General James obtained a court order enjoining iFinex — operator of the Bitfinex virtual asset trading platform — and Tether Limited — issuer of the “tether” virtual currency — and their related entities from further violations of New York law in connection with activities that defrauded New York investors that trade in virtual or “crypto” currency. Earlier this year, Attorney General James was able to get Bitfinex and Tether to end all trading activity with New Yorkers, pay $18.5 million in penalties, and take a number of steps to increase transparency — all as a result of the original 354 action she brought in 2019.
A RECOVERY FOR ALL OF US: CITY TO EXPAND CHILD CARE FOR WORKING FAMILIES
Proposal could expand child care access to 15,000 high need children
Mayor de Blasio today announced an initiative to expand low-cost and free child care for thousands of families across New York City. Through the passage of State legislation that would raise the qualifying income threshold for subsidized child care and extend full-time child care support to families who work part-time, the City could expand child care access to an additional 15,000 high-need children.
"Red tape can’t get in the way of our city’s recovery,” said Mayor Bill de Blasio. “To really bring our city back, we need our State partners to step up and help more working families qualify for childcare. Together we can beat back COVID and create a stronger and fairer city.”
“We must put families, and most importantly our children, at the center of our recovery,” said Melanie Hartzog, Deputy Mayor of Health and Human Services. “There is no better way to do that than to expand child care access and stabilize the child care sector. Quality early education and care is something every child deserves, and is a proven investment in our future. The need is urgent and we must respond.”
The Administration has invested significantly in child care and early childhood education through signature programs such as 3k and Pre-K, but the city is seeking to serve even more families and support the child care sector. Many families across the city are struggling with job, economic, health and housing instability, and enabling them to access child care is a critical step towards recovery from the pandemic.
To start, the City is supporting legislation sponsored by Assembly member Hevesi and State Senator Brisport that could expand child care access to an additional 15,000 children at minimum by:
- Enabling NYC to raise the income threshold to 70,000 for a family of four to help more working families qualify for subsidized child care.
- Providing full-time child care to people who work 20 hours a week or more. Under current state law, qualified families only receive child care for the hours they work.
In addition, New York State has received, but not yet distributed more than $2 billion in federal stimulus money, which would help further expand child care for working families citywide as part of the recovery from the COVID-19 pandemic. This funding, coupled with additional state and federal flexibility, could expand child care access to thousands more families, and provide workforce supports, capacity building and other supports for the child care providers that have provided invaluable care to our children throughout the pandemic. New York City has just submitted a plan to the State detailing the additional flexibility needed to reach families in need of child care.
Providers and child care workers are the backbone of the City’s child care system and they need access to the flexible federal funding the federal government has allocated specifically to help this critical sector recover from the pandemic. Furthermore, for families, the current State eligibility and documentation rules are outdated and rigid. While current state legislation is an important first step, New York City is also calling on New York State to work collaboratively to expand access to child care in the neighborhoods hit hardest by COVID and to reduce the administrative burden to families and providers.
“To address the citywide challenges of income inequality, homelessness, and housing instability, we need all levels of government working together to find, develop, test, and implement solutions,” said Department of Social Services Commissioner Steven Banks. “These reforms would ensure families and working parents facing hard times can access the childcare they need, without jumping through arbitrary hoops, which is good for the whole family – helping children grow and providing parents with vital supports during challenging times. We urge the State to pass this legislation.”
“Expanding access to child care services is crucial to ensuring an equitable recovery,” said Health Commissioner Dr. Dave A. Chokshi. “Helping more families access child care will help our city recover quicker and provide much needed services and jobs across New York City.”
“For New York City to fully recover from the pandemic, we must ensure that all families have the resources and support they need to stabilize their lives. Ensuring that thousands more children have access to low-cost child care, especially children from communities across the City hit hardest by the pandemic, is an essential step in NYC’s recovery for all. I thank Senator Brisport and Assembly Member Hevesi for introducing legislation needed to expand access to affordable child care, and I look forward to working with the State to make our plan a reality as quickly as possible,” said ACS Commissioner David A. Hansell.
“Access to free and affordable child care is critical to New York City’s recovery from the pandemic, and this legislation would allow thousands of additional families to receive care, including through year round 3-K and Pre-K for All services,” said Schools Chancellor Meisha Porter. “Expanding access to child care will give more children a strong start in school and life, while providing a pivotal resource to communities across the City when they need it most.”
“Child care and early childhood education helps children and their families thrive. Now is the time to get this assistance to as many families as we can,” said Executive Director of the Children’s Cabinet Megan Tackney. “We must do this alongside support for our child care providers, who are the foundation of this critical system.”
Governor Cuomo Announces 7-Day Average COVID-19 Positivity Rate Continues to Drop to New Lows
7-Day Average Drops to 0.65%; 57 Straight Days of Decline
7-Day Average Positivity Rate in Every Region Below 1.50% for First Time Since September 25
36,552 Vaccine Doses Administered Over Last 24 Hours
Statewide Positivity Rate is 0.77%;
Hospitalizations Drop to 1,032—Lowest Since October 24
8 COVID-19 Deaths Statewide Yesterday
Governor Andrew M. Cuomo today announced that the statewide 7-day average COVID-19 positivity rate dropped to 0.65 percent yesterday, a new low.
"New Yorkers are continuing to beat back COVID every day and as the numbers keep going down we are able to get our economy back up and running and move our state into the future," Governor Cuomo said. "We've followed the science and the data and reduced restrictions on people and businesses, but our priority remains getting more people vaccinated. With the vaccination rate starting to slow, we've used creative solutions to get even more shots in arms - we've offered park passes, transportation tickets and even a $5 million lottery to encourage New Yorkers to take the shot while opening new pop-up sites at places New Yorkers frequently go as part of their daily routines. The days ahead continue to look bright, but we need New Yorkers who haven't yet taken the vaccine to make an appointment or walk into a site to secure that future for all of us."
Today's data is summarized briefly below:
- Test Results Reported -50,528
- Total Positive - 391
- Percent Positive - 0.77%
- 7-Day Average Percent Positive - 0.65%
- Patient Hospitalization - 1,032 (+0)
- Patients Newly Admitted - 95
- Patients in ICU - 255 (+3)
- Patients in ICU with Intubation - 138 (-12)
- Total Discharges - 182,384 (+90)
- Deaths - 8
- Total Deaths - 42,723
- Total vaccine doses administered - 19,081,184
- Total vaccine doses administered over past 24 hours - 36,552
- Total vaccine doses administered over past 7 days - 549,946
- Percent of New Yorkers ages 18 and older with at least one vaccine dose - 65.3%
- Percent of New Yorkers ages 18 and older with completed vaccine series - 57.1%
- Percent of all New Yorkers with at least one vaccine dose - 53.7%
- Percent of all New Yorkers with completed vaccine series - 45.9%
215 Days and Counting Updated to include Dr. Varma's comments
Let me sip on this cup of coffee while I tell you what my experts on COVID-19 think they know about the virus. Today my experts tell me that if you had COVID-19 your immunity may be as good as getting vaccinated. Although even if you are vaccinated or immune and get a symptom of the virus you should be tested for the virus.
We are at the lowest infection rate, and we want to get rid of this virus just like what happened in 1918, even though back then they had no vaccines and got over that pandemic which ended in 1919.
Update to include Dr. Varma's comments
Mayor: Dr. Varma, you want to speak about what COVID looks like in the future?
Senior Advisor Varma: Yeah, no, of course. I'll start with the most important caveat, which is that you know, this is a virus that continues to surprise us and do things that we may not have thought were high likelihood. So, with that important caveat in mind, I think there's some important uncertainties that play into the different scenarios. The first uncertainty is will immunity from vaccination continue to be as strong as it is a year or two years out. So, if that immunity, you know, is weaker in some way, like it is for some vaccines, that you need boosters, that may change the dynamics. The second is we know that some people have declined or delayed vaccination right now because they were infected at some point. We also don't know how long and how broadly protective their immunity will be. And the third is we don't know for sure what the virus’ evolution will be. We've seen variants emerge that are more transmissible, that provide a little bit of escape possibly from the vaccines, but overall, we've seen how effective the vaccines are protecting against them. So, if you look at all those three things together, the most likely scenario, at least for this coming fall, is that, as you mentioned, there will be sort of localized clusters. I mean, any place where people share indoor air and large numbers of unvaccinated people are present.
So, it's going to be very important that we continue to message to people that if you don't have symptoms, you should continue to get tested regularly for COVID, and we, as a city, are going to continue to provide those testing services for people so that you can continue to get tested and screened. The second is that if you have symptoms, even if you've been vaccinated, it's going to be important to get tested for COVID just as you might get tested for the flu or other things, and the sooner that we have that information, the more rapidly going to be able to respond. And then the next point is I think our response to these epidemics is going to be, to really try to push hard on vaccination in certain neighborhoods. You know, we have a template for that. We've had measles outbreaks in selected communities, you know, over the past 10 years, and our response to that is a very comprehensive one that tries to identify people, separate those who are potentially infected or infectious to others, and then vaccinate as many people at risk along with very intensive community engagement. So, I do think that we're going to be able to follow a template that we have used for many other diseases, but of course are open to things changing as we learn more about the virus and immunity.
Scam Alert - National Warranty Services
Scam Alert.
If you receive a call from 929-563-7643 or 929-563- 6305 (and who knows how many other phone numbers they have) it is form National Warranty Services and it is a scam. I sold my old car over a year ago, but got two calls today right after each other, that my cars extended warranty is up. I never had an extended warranty, and the warranty of the car I got rid of never ran out on me.
The number 929-563-7643 was used by the first caller on me, who asked what type of car I have. I responded, you called me don't you know what type of car I have? I then heard a click.
I called 929-563-7643 National Warranty Services, and when I asked how do you know who's car warranty is up, there was a click.
Less than five minutes later I received a call from 929-563-6305 about my cars extended warranty expiring again from National Warranty Services. This time I asked for the person's name, and the response was Mark. I then asked him since I have two cars, which warranty is up, you should know since you called me Mark. Again I heard a click.
The New York State Attorney's General's office should look into this scam, they are the office that is suppose to protect people from scams like this. Neutral Tandem is listed as the carrier Attorney General James.
100 PERCENT Primary Day 2021 - Bronx Borough President and City Council Races
Primary Day is Tuesday June 22nd, with Early Voting beginning Saturday June 12th running through Sunday June 20th. Information about Early Voting poll sites and hours can be found at https://vote.nyc/page/primary-election-june-22-2021
There are five candidates running for Bronx Borough President to replace term-limited Ruben Diaz Jr. The five candidates as they appear on the ballot are, Fernando Cabrera, Nathalia Fernandez, Luis Sepulveda, Sammy Ravelo, and Vanessa Gibson.
City Council races - I have skipped the 8th district where all the candidates in this mostly Manhattan District live in Manhattan.
11th CD - Abigail Martin, Eric Dinowitz, Jessica Haller, Daniel Padernacht, Marcos Sierra, Mino Lora, and Carlton Berkley. It should be noted that Ms. Haller has suspended her campaign according to the CFB. Mr. Dinowitz is the incumbent.
12th CD - Pamela A. Hamilton-Johnson, Shanequa Moore, and Kevin Riley. Mr. Riley is the incumbent.
13th CD - Monique S. Johnson, Irene Estrada, Marjorie Velazquez, Marilyn Soto, and John Perez. There is no incumbent.
14th CD - Haile Rivera, Yudelka Tapia, Adolfo Abreu, Pierina Ana Sanchez, Socrates S. Solano, and Fernando A. Aquino. There is no incumbent.
15th CD - Bernadette Ferrara, Oswald Feliz, Troy Blackwell, John E. Sanchez, Kenny G. Agosto, Ischia J. Bravo, Lillithe Lozano, Latchmi Devi Gopal. Only Ischia Bravo, Bernadette Ferrara, John Sanchez, and incumbent Oswald Feliz have gotten Matching funds from the CFB.
16th CD - Althea V. Stevens, Yves T. Filius, Ahmadou T. Diallo, and Abdourahamane Diallo. There is no incumbent.
17th CD - Helen Hines, and incumbent Rafael Salamanca Jr.
18th CD - Amanda Farias, Darlene Jackson, Mirza M. Rashid, William Russell Moore, Mohammed Mujumder, Eliu A. Lara, Michael Beltzer, and William Rivera. There is no incumbent.
While there have been several interesting forums/debates for Bronx Borough President, there have been few for individual city council districts with none in the 13th City Council District. We have been told that candidate Marjorie Velazquez had cancelled and the debates were to be rescheduled, but have not yet. We caught up with candidate Marjorie Velazquez at a Memorial Day event, and asked her why she was not attending the debates in the 13th Council District. Marjorie Velazquez turned around and did not answer as she walked away. We will have more on this, and if candidate Marjorie Velazquez refuses to debate we have been told that the CFB will be asked to take back the matching funds given to her for not debating as is required by the CFB.