MAYOR DE BLASIO, COMPTROLLER STRINGER, AND TRUSTEES ANNOUNCE COMMITMENT TO ACHIEVE NET ZERO GREENHOUSE GAS EMISSIONS IN PENSION INVESTMENT PORTFOLIOS BY 2040

 

New York City is among the first cities in the nation to commit to a net zero emissions goal in their public pension funds; first city in the nation to set an ambition of reaching net zero emissions by as early as 2040

 

Goal to double investments in climate change solutions to over $8 billion by 2025 and achieve a total of $37 billion in investments by 2035 across three pension funds in line with a total of $50 billion in all pension fund investments  

 Mayor Bill de Blasio, Comptroller Scott M. Stringer, along with trustees of three of the City’s pension funds, today announced these funds have adopted a commitment to achieve net zero greenhouse gas emissions in their investment portfolios by 2040. This includes a goal to double investments in climate change solutions, such as renewable energy, energy efficiency and green real estate, to over $8 billion by 2025 and achieve a total of over $37 billion in climate solutions investments by 2035 across the three funds, in line with achieving the Mayor’s State of the City goal of $50 billion in total pension fund investments in climate change solutions by 2035.

 

The goal and plan to achieve net zero emissions by 2040, which were proposed jointly by the Mayor and Comptroller, addresses the vast financial, environmental and social risks that climate change poses to the funds and planet, will further align the funds’ investments with the accelerating transition towards a low carbon economy, and help limit global warming to 1.5 degrees Celsius to prevent the most devastating impacts of climate change. New York City is among the first cities in the nation to commit to a net zero emissions goal in their public pension funds, and is the first city in the nation to set an ambition of reaching net zero emissions by as early as 2040. The three New York City pension funds have also adopted the Net Zero Asset Owner Commitment of the Paris Aligned Investment Initiative (PAII), a former partner of the United Nations Framework Convention on Climate Change’s (UNFCCC’s) Race to Zero campaign, joining asset owners and investors globally in developing best practices to achieve net zero emissions.

 

“Climate change poses an existential threat to New York City, and we must do everything in our power to confront this crisis head on,” said Mayor Bill de Blasio. “In my State of the City address in January, I urged our pension funds to move to net zero greenhouse gas emissions by 2040 and to increase investments in climate change solutions to $50 billion by 2035. Today’s vote by the trustees will help the pension system meet these goals and ensure we have a livable planet for future generations to come.”

 

“We must act now and act boldly on climate change to protect the long-term interests of our beneficiaries, the sustainability of our pension investments and the stability and growth of the global economy,” said New York City Comptroller Scott M. Stringer. “Every year, the crisis of climate change becomes more stark and immediate. Achieving net zero emissions is an imperative for investors, businesses and government to maintain economic viability as well as livable conditions on the planet. As fiduciaries, we must mitigate the tremendous systemic risk that climate change poses to our pension funds and, to do this, we must ensure our investments support limiting global warming below 1.5 degrees Celsius. I thank the trustees for their adopting this commitment.”

 

The New York City Employees’ Retirement System (NYCERS) and New York City Teachers’ Retirement System (TRS) voted to approve a commitment to achieve net zero emissions by 2040 today and the New York City Board of Education Retirement System (BERS) is expected to move forward on a vote imminently. The goal is accompanied by a Climate Action Plan that outlines key elements of the commitment including (1) Increasing climate change solutions investments that achieve competitive market rate risk-adjusted returns, with an initial goal of doubling such investments in the portfolio to over $8 billion by 2025 and achieving a total of over $37 billion by 2035; (2) Developing and updating interim targets for reducing portfolio greenhouse gas emissions beginning with a target for 2030 or earlier using Scope 1 and 2 emissions and eventually including Scope 3 emissions; (3) Considering climate change risk and opportunity and net zero alignment in the evaluation,  selection and monitoring of asset managers; (4) Analyzing the carbon footprint of public markets investments annually for Scope 1, 2 and 3 emissions and appropriately expanding to additional asset classes; (5) Exploring appropriate tools for evaluating climate risks to the portfolio; and (6) Prioritizing proxy voting, engagement and policy advocacy that promote net zero emissions.

 

This new goal builds upon the funds’ recent actions to address the risks and opportunities presented by a global transition to a low carbon economy. In January 2021, the trustees voted to divest their portfolios of an estimated $4 billion in securities of fossil fuel reserve owners. This decision followed an extensive and thorough fiduciary process to assess the portfolio’s exposure to fossil fuel stranded asset risk and industry decline and other financial risks stemming from climate change, showing the prudent nature of the divestment actions adopted by the Boards. The divestment is expected to be complete within the original five year timeline.

 

In his State of the City speech in January of this year, Mayor de Blasio urged the City’s pension funds to move to net zero greenhouse gas emissions by 2040 and to increase investments in climate change solutions to $50 billion by 2035. The Mayor and Comptroller jointly introduced today’s resolution to adopt a goal to achieve net zero emissions by 2040. With their actions today the boards of NYCERS, Teachers and BERS have put the entire pension system on track to achieve these goals.

 

In March 2021, the Mayor, Comptroller and other trustees announced the funds have more than doubled investments in climate change solutions to over $6 billion with allocations and commitments by the end of this year. This surpasses the goal set in September 2018 to double the then $2 billion investment across all asset classes over three years to reach $4 billion of investment in companies that generate revenue from climate mitigation, adaption and resiliency such as renewable energy, energy efficiency, sustainable waste management, green buildings, and pollution prevention. It also includes companies that are measurably helping to facilitate the transition to a low-carbon economy consistent with goals established by the Paris Climate Accord.

 

Climate change creates both risks to some investments and opportunities for other investments.  As part of their fiduciary responsibility, city pension funds are working to address the risks and maximize the opportunities for its beneficiaries. Specific investments will be reviewed by the boards of individual pension systems consistent with their portfolio strategies.

 

Climate change poses significant threats to New York City. Rising temperatures; stronger, more destructive hurricanes; severe flooding; and increasing precipitation tied to climate change have already affected neighborhoods and communities across all five boroughs and are projected to become increasingly severe and costly over the coming decades. Only by achieving net zero emissions before 2050 and eliminating the use of fossil fuels can these challenges be fully addressed. Since net zero global emissions cannot be achieved by any one city, state, or country, the funds have joined the United Nations accredited Net Zero Asset Owners Commitment of the PAII to work collaboratively with other asset owners and pension funds toward this goal.

The participating New York City Pension Funds’ trustees are: 

 

New York City Employees’ Retirement System (NYCERS): Mayor Bill de Blasio’s Representative, John Adler (Chair); New York City Public Advocate Jumaane Williams; Borough Presidents: Gale Brewer (Manhattan), Donovan Richards (Queens), Eric Adams (Brooklyn), James Oddo (Staten Island), and Ruben Diaz, Jr. (Bronx); Henry Garrido, Executive Director, District Council 37, AFSCME; Tony Utano, President Transport Workers Union Local 100; Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.

Teachers’ Retirement System (TRS): Mayor Bill de Blasio’s Appointee, John Adler; Chancellor’s Representative, Lindsey Oates, New York City Department of Education; Natalie Green Giles; and Debra Penny (Chair), Thomas Brown and David Kazansky, all of the United Federation of Teachers.

 

Board of Education Retirement System (BERS): Schools Chancellor Meisha Porter; Mayoral: Isaac Carmignani, Natalie Green Giles, Vanessa Leung, Gary Linnen, Lori Podvesker, Eric C. Henry, Kathy Park Price; Thomas Sheppard (CEC); Michael Kraft (Manhattan BP), Deborah Dillingham (Queens BP), April Chapman (Brooklyn BP), Geneal Chacon (Bronx BP) and Jaclyn Tacoronte (Staten Island BP); and employee members John Maderich of the IUOE Local 891 and Donald Nesbit of District Council 37, Local 372.

 

Permits Filed For 1701 Clay Avenue In Concourse, The Bronx - The Beginning of the Destruction of a Residential Block

 

Permits have been filed for a six-story residential building at 1701 Clay Avenue in Concourse, The Bronx. Located between East 173rd and East 174th Streets, the interior lot is within walking distance of the 174-175 Streets subway station, serviced by the B and D trains. Chananya Bineth of Pointy Developments is listed as the owner behind the applications.

The proposed 74-foot-tall development will yield 11,202 square feet designated for residential space. The building will have 17 residences, most likely rentals based on the average unit scope of 659 square feet. The steel-based structure will also have a cellar, mezzanine level, and a 30-foot-long rear yard, but no accessory parking.

Joseph Frankl of JFA Architects & Engineers is listed as the architect of record.

Demolition permits were filed in April 2021 for the two-story residential structure on the site. An estimated completion date has not been announced.

Former Pain Management Doctor Charged In Manhattan Federal Court With Sexually Abusing Patients Across Multiple States Over The Course Of Over 15 Years

 

Ricardo Cruciani Sexually Abused Numerous Female Patients as a Pain Management Doctor Employed at Various Times By Prominent Medical Institutions in New York, New Jersey, and Pennsylvania

 Damian Williams, the United States Attorney for the Southern District of New York, announced that RICARDO CRUCIANI was arrested this morning and charged in connection with his sexual abuse of numerous pain management patients over the course of over 15 years.  The Indictment unsealed today alleges that from at least in or about 2002 up to and including at least in or about 2017, CRUCIANI enticed and induced multiple victims to travel to his medical offices in New York, New York, Hopewell, New Jersey, and Philadelphia, Pennsylvania, to subject them to unlawful sexual abuse.  CRUCIANI was arrested this morning and is expected to be presented later today before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court.  The case is assigned to U.S. District Judge John P. Cronan in the Southern District of New York.

U.S. Attorney Damian Williams said:  “Doctors like the defendant take an oath to do no harm.  It is difficult to imagine conduct more anathema to that oath than exploiting patients’ vulnerability in order to sexually abuse them.  As alleged, Ricardo Cruciani’s sexual abuse involved developing personal relationships with victims to engender trust, and prescribing addictive pain medication that caused his patients to become dependent on him as he engaged in a course of increasingly abusive conduct.  The alleged pattern of abuse in this case is outrageous, and Cruciani now faces federal charges for it.”

If you believe you are a victim of the sexual abuse perpetrated by RICARDO CRUCIANI, please contact the United States Attorney’s Office for the Southern District of New York at (646) 372-0364, and reference this case.

According to the Indictment[1] unsealed today in Manhattan federal court:

CRUCIANI was a pain management doctor who treated patients from multiple states who suffered from, among other things, severe and chronic pain.  Between at least in or about 2001 and in or about 2014, CRUCIANI was employed by and affiliated with a prominent medical hospital and medical center located in New York, New York, and maintained medical offices in New York, New York.  Between at least in or about 2013 and in or about 2016, CRUCIANI was a practicing pain management doctor employed by and affiliated with a prominent medical hospital and medical center located in Hopewell, New Jersey, and maintained medical offices in Hopewell, New Jersey.  Between at least in or about 2016 and in or about 2017, CRUCIANI was a practicing pain management doctor employed by and affiliated with a prominent medical hospital and university located in Philadelphia, Pennsylvania, and maintained medical offices in Philadelphia, Pennsylvania.

Over the course of at least approximately 15 years, between at least in or about 2002 and in or about 2017, CRUCIANI sexually abused numerous adult female patients who suffered from severe and chronic pain and were under his medical care as a pain management doctor.  CRUCIANI exploited and leveraged his position of trust as a healthcare provider at prominent medical institutions, the significant pain suffered by the victims, and his ability to prescribe or withhold pain medication, including highly addictive opioids, so that he could sexually abuse his patients.  In order for them to obtain prescription refills, CRUCIANI required victims to travel to his medical offices and other locations for in-person appointments.  CRUCIANI enticed and induced victims to travel interstate at least in part for the purpose of subjecting them to unlawful sexual abuse. 

CRUCIANI’s sexual abuse of victims involved developing personal relationships with victims to engender trust, and prescribing addictive pain medication that caused the victims to become dependent on CRUCIANI as he engaged in a course of increasingly abusive conduct.    The abusive sexual conduct included, among other things, forcible kissing, touching victims’ breasts and genitals, oral sex acts, vaginal sexual intercourse, and attempted anal sexual intercourse. 

CRUCIANI, 63, of Wynnewood, Pennsylvania, is charged with five counts of enticing and inducing individuals to travel interstate to engage in illegal sexual activity, each of which carries a maximum sentence of 20 years in prison.  The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.

Mr. Williams praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York.

The charges contained in the Indictment are merely accusations.  The defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.  The defendant is presumed innocent unless and until proven guilty.

Comptroller Stringer Releases Analysis of Remote Work’s Impact on New York City Sales Tax Revenue

 

For New Yorkers who work and live in the city, spending near the office will be largely replaced with spending closer to home

City sales tax revenue could be reduced by $111 million annually

 New York City Comptroller Scott Stringer released an analysis of the impact that remote work will have on New York City sales tax revenue. As work from home becomes more routine in the aftermath of the pandemic, City retailers will be impacted by reduced spending by commuters — roughly one million of whom came into the City each day prior to the pandemic, many of whom are likely to do so on a less frequent basis going forward.

“Our analysis shows that the pandemic has fundamentally altered the way people work, with far reaching implications on the city’s economy and tax base,” said Comptroller Stringer. “As remote work and hybrid work schedules keep many workers closer to home, small businesses in residential districts may see a boost from New Yorkers spending more in their neighborhoods. However, the loss of foot traffic and lower sales may be severely felt by small businesses in the city’s commercial districts.  We must ensure that all our small businesses get the support they need in this economy; that means cutting red tape and making government more user-friendly, helping immigrant entrepreneurs scale up to new markets, and closing the digital divide so that brick-and-mortar small businesses can effectively compete with larger online retailers. My office will continue to monitor the pandemic’s impacts on New York City’s economy, people, and businesses.”

Specifically, the Comptroller’s report finds

• If the roughly 500,000 office workers who commute into the City return to the office on a three-day a week basis, retail demand would be lowered by $1.6 billion annually with a resulting loss in tax revenue of nearly $146 million
• This could be partially offset by increased demand from the 110,000 City residents who work outside the City and going forward will spend more time and purchase more in the City. This would be expected to generate new sales of $350 million and sales tax revenue of $35 million
• For the 3.7 million City residents who both live and work in the City, spending near the office will be largely replaced with spending closer to home
• Overall, City sales tax revenue is estimated to be reduced by $111 million annually as a result of increased work from home. While the loss in revenue is relatively minor when compared to the $7 billion in sales tax revenue that the City is expected to raise in 2022, the impact will be severely felt by the many small businesses that operate in the commercial districts which will face lower sales.

For more details, the full report can be downloaded here.

Governor Hochul Announces State Police Arrest 207 People for Impaired Driving Over Columbus Day Weekend

 

Troopers Issue Nearly 18,000 Tickets During Campaign, Including More Than 7,300 Tickets For Speeding

 Governor Kathy Hochul today announced that New York State Police issued 17,797 tickets and arrested 207 people for impaired driving during the special traffic enforcement detail over Columbus Day weekend. The initiative - which targeted speeding and impaired drivers - began on Thursday, October 7th and continued through Tuesday, October 12th. Statewide, law enforcement issued a total of 38,255 tickets during the enforcement period, including 828 for impaired driving and 10,593 for speeding.

"The tragedies caused by speeding and impaired driving are completely avoidable if we all commit to making safety our top priority when we are behind the wheel," Governor Hochul said. "We will continue to have zero tolerance for impaired drivers who put others in danger."

State Police Superintendent Kevin P. Bruen said, "The results of this campaign show that far too many people put their lives and the lives of others at risk through the poor choices they make while driving. Our troopers will continue to crack down on reckless and impaired drivers in an effort to keep our roads safe for all users."

During the special enforcement period, which was funded by the Governor's Traffic Safety Committee, the New York State Police increased patrols and conducted sobriety checkpoints to deter, identify and arrest impaired drivers.

State Troopers arrested 207 people for impaired driving and investigated 1,031 automobile crashes, including one fatal crash and 159 personal injury crashes.

As part of the enforcement, Troopers also targeted speeding, aggressive and distracted drivers across the State.

Below is a sampling of the total tickets that were issued.

Speeding                    7,389

Distracted Driving          410

Seatbelt violations         707

Move Over Law             143

Troopers used both marked State Police vehicles and Concealed Identity Traffic Enforcement (CITE) vehicles as part of this crackdown in order to more easily identify motorists who are violating the law. CITE vehicles allow the Trooper to better observe driving violations.  These vehicles blend in with every day traffic but are unmistakable as emergency vehicles once the emergency lighting is activated.

Statement from Commissioner Raquel Batista on Pathway to Citizenship

 

New York City has always recognized our undocumented immigrant residents--including Dreamers, TPS holders, and others--as integral members of our vibrant community. Over the past year and a half, COVID-19 reminded us all how much we rely on our immigrant neighbors, who served disproportionately on the frontlines of the crisis as essential workers. The work of properly recognizing and honoring this community is more important than ever. We urge Congressional leaders to pursue all available options to deliver lasting protections, including a pathway to citizenship, to our immigrant community.

Australian National Sentenced To More Than 9 Years In Prison For Multimillion-Dollar Text-Messaging Consumer Fraud Scheme

 

 Damian Williams, United States Attorney for the Southern District of New York, announced that MICHAEL PEARSE, an Australian national who was extradited to the United States from Australia in January 2021, was sentenced today to 109 months in prison for his participation in a fraudulent scheme to charge hundreds of thousands of mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages without the customers’ knowledge or consent – a practice the conspirators referred to as “auto-subscribing.”  PEARSE played a key role in the scheme as CEO of a company that created the computer program that was used to enroll victims into the text message services without their knowledge or consent.  PEARSE previously pled guilty before United States District Judge Analisa Torres, who imposed today’s sentence. 

U.S. Attorney Damian Williams said: “Michael Pearse played a vital role in an international consumer fraud conspiracy that swindled hundreds of thousands of mobile phone customers out of millions, and ‘earned’ Pearse and his co-conspirators at least $50 million, of which Pearse pocketed more than $10 million.  Thanks to IRS Criminal Investigation and the FBI, as well as our international partners, Pearse was apprehended, prosecuted, and now sentenced for his crime.”

According to the allegations contained in the Indictment, evidence presented at the trial of co-conspirator Darcy Wedd, court filings, and statements made during plea proceedings:

From in or about 2011 through in or about 2013, PEARSE and his co-conspirators engaged in a multimillion-dollar scheme to defraud U.S.-based consumers (and others) by placing unauthorized charges for premium text messaging services on consumers’ cellular phone bills.  To carry out the scheme, PEARSE and others caused unsolicited and recurring text messages to be sent to mobile phone users containing content such as horoscopes, celebrity gossip, or trivia facts.  The victims of the fraud scheme never ordered these services, which were known in the industry as premium text messaging (“PSMS”) services, but were fraudulently “auto-subscribed” and billed for them at a rate of $9.99 per month.  The $9.99 charge recurred each month unless and until consumers noticed the charges and took action to unsubscribe.  Even then, consumers’ attempts to dispute the charges and obtain refunds were often unsuccessful.

During the relevant period, co-conspirator Lin Miao operated a company called Tatto Inc., a/k/a “Tatto Media” (“Tatto”), that offered PSMS services to mobile phone customers.  PEARSE was the CEO of a company called Bullroarer, which was affiliated with Tatto.  To enable Tatto to auto-subscribe consumers to unwanted PSMS services, PEARSE and co-defendant Yongchao Liu, a/k/a “Kevin Liu,” who worked as a Java Development Engineer for Bullroarer, agreed to build a computer program that could spoof the required consumer authorizations – i.e., a program that could generate the text message correspondence that one would ordinarily see with genuine PSMS subscriptions.  PEARSE and Liu agreed to build the program (the “Auto-Subscription Platform”), which was operational by in or about the middle of 2011.  PEARSE, Liu, and Miao then used the Auto-Subscription Platform to fraudulently auto-subscribe hundreds of thousands of mobile phone customers, using phone numbers provided by co-conspirators at Mobile Messenger, a U.S. aggregation company operated by Darcy Wedd that served as a middleman between content providers such as Tatto and mobile phone carriers.  Through their successful orchestration of the fraudulent scheme, PEARSE and his co-conspirators generated more than $50 million in fraud proceeds for themselves and PEARSE personally pocketed more than $10 million.        

In addition to the prison sentence, PEARSE was ordered PEARSE to forfeit $10,162,937.96, as well as his interest in three real properties in Australia and other assets, representing proceeds traceable to the fraud that PEARSE personally obtained.

To date, nine other defendants – Liu, Miao, Andrew Bachman, Michael Pajaczkowski, Erdolo Eromo, Jonathan Murad, Francis Assifuah, Jason Lee, and Christopher Goff – have pled guilty in connection with their participation in the fraud.  Two additional defendants, Darcy Wedd and Fraser Thompson, were convicted in 2017 following jury trials.

Mr. Williams praised the outstanding investigative work of the Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation.  In addition, Mr. Williams thanked law enforcement partners in Australia, as well as the U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division, for their support and assistance with the extradition of PEARSE and codefendant Liu.

73 Days and Counting - What's That the Reporter From the Bronx Chronicle Wants to Ask Me a Question? He is on My Do Not Call On List.

 

I'm in the Bronx with my good friend Councilman Oswald Feliz shooting some baskets back on July 28th, a few days after a shooting right here in this very playground. That Pesky reporter from the Bronx Chronicle Robert Press took this and other photos of me not wearing a mask, and come to think of it no one else here is wearing a mask. That reporter always asks me questions I don't want to answer so with my video Media Availability I tell my moderator not to take any calls from the Bronx Chronicle and from Robert Press. Now that we are going back to full in class school, full inside dining, full inside almost everything, reporters who I thought were my friends are asking me when are we going back to regular in person press conferences.  

I have only 72 days left in office, and I am going to make sure I don't take any questions from reporters I don't want to. I don't want to hear about how bad our homeless population situation is, how bad our NYCHA buildings are, how bad our public schools are, how people are afraid all over the city to go out with crime at such high levels, gangs roaming the streets at night on dirt bikes and other off road vehicles, quality of life is at its lowest its ever been in the city, and our city jails are a mess to name only a few things that are wrong. I don't want to hear about that. That is why I only take questions four days a week Monday through Thursday, and from only eight reporters whom I thought were my friends I take no questions at events I attend without wearing a mask. Here is a photo from that Bronx Chronicle reporter Robert Press of me speaking at the groundbreaking of the New Hip Hop Museum in the South Bronx back in May of this year before any mandates went into effect.