Thursday, December 16, 2021

Former Analyst Pleads Guilty To Securities Fraud For Committing Insider Trading By Front-Running Employer’s Pending Trades

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced today that SERGEI POLEVIKOV, a former analyst employed by an asset management firm, pled guilty to one count of securities fraud in connection with his multi-year scheme to commit insider trading by misappropriating confidential information about pending trades by his former employer.  POLEVIKOV was arrested in September of this year, and pled guilty today in Manhattan federal court before U.S. District Judge Lewis J. Liman. 

U.S. Attorney Damian Williams said: “As he admitted in court today, Sergei Polevikov broke the law when he exploited material, nonpublic information to make personal trades ahead of his employer’s large institutional trades.  Polevikov now awaits sentencing for his crime, and he must also forfeit more than $8 million in illicit profit.”

According to the Information to which POLEVIKOV pled guilty, the complaint that was filed in this case, and statements made during court proceedings:

From at least in or about 2014 through in or about October 2019, POLEVIKOV was employed as a quantitative analyst at an asset management firm with headquarters in New York, New York (the “Employer Firm”).  In his role at the Employer Firm, POLEVIKOV had regular access to information regarding contemplated securities trades on behalf of the Employer Firm’s clients, which included investment companies.  During the period charged in the Complaint, POLEVIKOV engaged in a front-running scheme to misappropriate confidential, material, nonpublic information about the securities trade orders of the Employer Firm on behalf of its clients in order to engage in short-term personal securities trading in a brokerage account opened in his wife’s name.  POLEVIKOV’s trading scheme was designed to take advantage of relatively small price movements in a company’s stock that followed from large securities orders executed by the Employer Firm on behalf of its clients.  In total, POLEVIKOV’s scheme yielded more than $8.5 million in illicit profits.     

As part of his plea agreement, POLEVIKOV has agreed to forfeit $8,564,977 on or before April 1, 2022. 

POLEVIKOV is scheduled to be sentenced by Judge Liman on April 12, 2022.

Mr. Williams praised the investigative work of the Federal Bureau of Investigation.  Mr. Williams also thanked the Securities & Exchange Commission, which brought a related civil action against POLEVIKOV.

Attorney General James Fights to Protect Dreamers, Pushes Back on Texas Lawsuit Attacking DACA

 

 New York Attorney General Letitia James today continued her fight to protect hundreds of thousands of Dreamers across New York and the rest of the nation. Co-leading a coalition of 23 attorneys general from around the nation, Attorney General James filed an amicus brief in support of the Deferred Action for Childhood Arrivals (DACA) policy in Texas v. United States, where the coalition highlights the critical contributions of hundreds of thousands of DACA recipients to public health efforts, the economy, and communities across the country — and pushes back on the Texas-led efforts to end DACA. Since 2012, DACA has provided access to work authorization and protected from removal approximately 825,000 individuals who grew up in this country, most of whom have known no home other than the United States.

“Home is here for hundreds of thousands of Dreamers who know no other home but the United States, and that has never been more evident than during the COVID-19 pandemic, when Dreamers stepped up and served on the frontlines to save millions,” said Attorney General James. “Despite Texas’ false and bigoted claims, DACA recipients are vital to our economy, vital to our communities, and vital to our way of life. We will continue to fight against these immoral threats of deportation, but the court has the opportunity here to preserve DACA and send a message that Dreamers are valued, that they are loved, and that they are crucial members of our society. Si se puede!”

DACA has allowed recipients to live, study, and work across the United States, free from the fear of being forcibly separated from their families and communities. The policy has enabled hundreds of thousands of grantees to enroll in colleges and universities, complete their education, start businesses that help improve the economy, and give back to communities as teachers, medical professionals, and entrepreneurs. These contributions became especially evident as the deadly coronavirus disease 2019 (COVID-19) pandemic began to sweep through the nation and thousands of DACA recipients served on the frontlines as essential workers. As of November 2021, an estimated 34,000 health care workers and support staff depend on DACA for their authorization to work in the United States, including nurses, dentists, pharmacists, physician assistants, home health aides, technicians, and others.

DACA also plays a vital role in supporting economies at the national, state, and local level. For instance, DACA recipients and their households pay an estimated $9.5 billion in federal, state, and local taxes each year. Allowing new initial DACA requests would lead to an estimated increase of $2.5 billion in state and local tax revenue over the next 20 years. Additionally, DACA recipients’ estimated spending power — $25.3 billion — is important to the overall economic health of the amici states. Without DACA, national economic growth over the course of a decade is projected to fall by $280 billion. Such a scenario would also lead to an estimated loss of $33.1 billion in Social Security contributions and $7.7 billion in Medicare contributions — funds that are critical to ensuring the financial health of national programs upon which Americans across the country rely.

In the amicus brief — filed in the U.S. Court of Appeals for the Fifth Circuit — Attorney General James and the coalition explain, among other things that:

  • DACA grantees are vital to communities, economies, and public universities;
  • DACA increases public safety and decreases the strain on safety net programs;
  • Abrupt termination of DACA would cause substantial disruption and harm, including to amici states;
  • Any remedy in this case must account for the significant reliance interests at stake;
  • Amici states have structured programs, policies, and laws in reliance of DACA and the benefits it confers; and
  • The appellate court should reverse the district court’s order, which vacated and enjoined DACA, and erroneously concluded that the policy is unlawful.

After former President Donald Trump broke the promises made to Dreamers by ordering his administration to change the DACA policy in 2017, a prolonged legal battle began in September 2017 that made its way through multiple courts before landing at the U.S. Supreme Court in November 2019. During this legal battle, in 2018, Texas filed its own lawsuit, alleging DACA was unlawful. That suit has been proceeding through the courts.

In June 2020, the Supreme Court ruled in favor of Attorney General James' arguments that the Trump Administration’s attempt to cancel the DACA policy was unlawful.

After the Supreme Court ruled, the policy was supposed to resume, but the Trump Administration announced that new DACA applications would not be granted. In August 2020, Attorney General James co-led a coalition of 17 attorneys general in a lawsuit that sought to vacate, as unlawful, a memo from the U.S. Department of Homeland Security (DHS) that sought to make changes to DACA. In November 2020, a federal district court issued an order granting Attorney General James’ request for partial summary judgment. And, in December 2020, that same federal court issued a remedial order granting Attorney General James’ request for DHS to reopen DACA to first-time applicants, restore protections to a two-year period instead of one year, and make Advanced Parole available to DACA recipients again without restrictions.

On January 20, 2021 — on his first day in office — President Joe Biden signed an executive order rescinding the Trump Administration policy that threatened these Dreamers with deportation.

Just last month, Attorney General James co-led a coalition of 24 attorneys general in sending a comment letter to DHS and the U.S. Citizenship and Immigration Services in support of the Biden-Harris Administration's efforts to preserve and fortify the DACA policy

Joining Attorney General James in filing today’s amicus brief are the attorneys general of California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, Wisconsin, and the District of Columbia.

Assemblywoman Nathalia Fernandez Gets COVID Booster Shot


Today I got my booster for the COVID-19 vaccine to protect myself from new and emerging variants. I encourage all New Yorkers to do the same!

Protect yourself. Protect your family. Protect each other.
#WeInThisTogether


The photo is from December 15th posted on the assemblywoman's Twitter page. 

We hope Assemblywoman Fernandez knew what was being injected into her arm, and hope that she did not have a  reaction to the booster shot as some people are saying they are having.

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - DECEMBER 15, 2021

 COVID-19 Vaccine Vials

Announces New New York State Vaccine, Testing, and Booster Site Open in Broome County

277,391 Vaccine Doses Administered Over Last 24 Hours         

71 COVID-19 Deaths Statewide Yesterday 


 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19. Governor Hochul also announced the opening of a new NewYork State vaccine, testing, and booster site in Broome County at the Former Davis College-Robb Activity Center (400 Riverside Drive, Johnson City, NY). The site will open tomorrow, December 16, at 12PM and will operate from 8AM to 7PM moving forward. The site will conduct testing on Mondays, Wednesdays, and Fridays, and vaccinations on Tuesdays, Thursdays, and Saturdays. It will be closed on Sundays. Vaccinations at the site will be available by appointment and for walk-ins and serve those aged 5 and above. Both Pfizer/BioNTech and Janssen/Johnson & Johnson vaccines will be available and the first-doses, second-doses and booster-doses will be offered.  

"As we continue to combat the winter surge in COVID-19 cases and hospitalizations, it is more important than ever to make vaccines, testing and boosters widely available across the state in order to keep ourselves and each other from getting seriously ill due to COVID-19," Governor Hochul said. "There is no time like the present to get your vaccine if you haven't yet and your booster if you have. Mask up, wash your hands, and let's enjoy a COVID-free holiday season with our loved ones."   

Today's data is summarized briefly below:  

  • Test Results Reported - 232,509
  • Total Positive - 12,944
  • Percent Positive - 5.57%
  • 7-Day Average Percent Positive - 4.83%
  • Patient Hospitalization - 3,784 (+12)
  • Patients Newly Admitted - 557
  • Patients in ICU - 727 (-4)
  • Patients in ICU with Intubation - 423 (+4)
  • Total Discharges - 221,299 (+493)
  • New deaths reported by healthcare facilities through HERDS - 71
  • Total deaths reported by healthcare facilities through HERDS - 47,316 

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only.  

  • Total deaths reported to and compiled by the CDC - 60,148 

This daily COVID-19 provisional death certificate data reported by NYS DOH and NYC to the CDC includes those who died in any location, including hospitals, nursing homes, adult care facilities, at home, in hospice and other settings.  

  • Total vaccine doses administered - 31,734,013
  • Total vaccine doses administered over past 24 hours - 277,391
  • Total vaccine doses administered over past 7 days - 974,879
  • Percent of New Yorkers ages 18 and older with at least one vaccine dose - 87.3%
  • Percent of New Yorkers ages 18 and older with completed vaccine series - 79.5%
  • Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 93.6%
  • Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 82.0%
  • Percent of all New Yorkers with at least one vaccine dose - 75.9%
  • Percent of all New Yorkers with completed vaccine series - 68.4%
  • Percent of all New Yorkers with at least one vaccine dose (CDC) - 81.2%
  • Percent of all New Yorkers with completed vaccine series (CDC) - 70.5%

 

STATEMENT FROM LABOR STRONG 2021 ON CITY COUNCIL SPEAKER’S RACE

 

 The Labor Strong 2021 Coalition, including 32BJ SEIU, DC37, CWA District 1, and NYSNA released the following statement regarding the New York City Council Speaker’s Race:

 

“With enthusiasm, the union coalition of 32BJ, DC37, CWA District 1, and NYSNA has made the case for Adrienne Adams to be the next City Council Speaker. She is hard-working, well-liked, and has the proven ability to unite the council behind a worker-led recovery from COVID-19. We’re thrilled that her candidacy has galvanized a majority of the council and we look forward to seeing her make history as the next leader of New York City’s legislative body.”

 


Former Management Consulting Firm Partner Pleads Guilty To Insider Trading

 

Defendant Was a Lead Consulting Firm Partner Advising an Investment Bank on Its Acquisition of GreenSky, Inc.

 Damian Williams, the United States Attorney for the Southern District of New York, announced today that PUNEET DIKSHIT, a former partner in a global management consulting firm (the “Consulting Firm”), pled guilty to one count of securities fraud in connection with his scheme to commit insider trading based on material, nonpublic information regarding the upcoming public announcement that an investment bank (the “Investment Bank”) – which DIKSHIT and the Consulting Firm were advising – would be acquiring GreenSky, Inc. (“GreenSky”).  The defendant pled guilty before U.S. District Judge Colleen McMahon.

U.S. Attorney Damian Williams said: “Barely a month after he was charged, Puneet Dikshit admitted in court today that he used his access to material nonpublic information about a pending acquisition of GreenSky, Inc., to trade in GreenSky call options.  This conduct, which netted the defendant nearly half a million dollars in tainted profits, broke the law and violated the defendant’s duties to his firm and its client.  Now Puneet Dikshit awaits sentencing for his admitted crime.”

According to the allegations in the Complaint, Information, and statements made in public court proceedings:

GreenSky was a publicly traded financial technology company that provided technology to banks and merchants to make loans to consumers for home improvement, solar, healthcare, and other purposes.  GreenSky’s common stock traded under the symbol “GSKY” on the NASDAQ.

Between on or about November 2019 and on or about July 2020, and again between on or about April 2021 and on or about September 2021, the Investment Bank engaged the Consulting Firm to provide various consulting services related to its consideration of an acquisition of GreenSky and the post-acquisition integration of GreenSky.  DIKSHIT was one of the Consulting Firm partners leading these engagements.  In that role, he had access to material nonpublic information, which he misappropriated and, in violation of the duties that he owed to the Investment Bank and the Consulting Firm, used to trade GreenSky call options. 

DIKSHIT engaged in this trading between on or about July 26, 2021, and on or about September 15, 2021 – at the same time he was leading the Consulting Firm team that was advising the Investment Bank about its potential acquisition of GreenSky.  At various times between on or about July 26, 2021, and on or about September 13, 2021, DIKSHIT purchased and sold relatively small numbers of GreenSky call options, which had expiration dates weeks or months from the time of purchase.  However, in the two days before the September 15, 2021, public announcement that the Investment Bank would be acquiring GreenSky, DIKSHIT sold all of these longer-dated GreenSky call options and purchased approximately 2,500 out-of-the-money GreenSky call options that were due to expire just a few days later, on September 17, 2021.  After the deal to purchase GreenSky was announced, DIKSHIT sold these options and realized profits of approximately $450,000.

DIKSHIT, 40, of New York, New York, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.  The statutory maximum sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  DIKSHIT is scheduled to be sentenced by Judge McMahon on March 30, 2022, at 2:00 p.m.

Mr. Williams praised the outstanding work of the Federal Bureau of Investigation.  Mr. Williams further thanked the U.S. Securities and Exchange Commission for its assistance and cooperation in this investigation. 

Councilman Mark Gjonaj's NYCHA Toy Giveaway

 

It was a mild Tuesday afternoon as everything was coming together for Councilman Mark Gjonaj's last event as a city councilman. This was a toy giveaway at the NYCHA Houses on Waring Avenue. Members of the 49th Precinct were on hand as the line was around the corner by three PM. Councilman Gjonaj and his staff members were caught in traffic, and other volunteers were waiting for the councilman to show up. 


Within minutes that yellow oversized van arrived with the famous "Because he cares, Councilman Mark Gjonaj" on it arrived. The back door opened and hundreds of toys were unloaded, with gloves, hats and two giant urns of hot water with boxes of cocoa mix for the children.


Then one of Councilman Gjonaj's staffers disappeared into the van, to come out a few minutes later as the Grinch who Stole Christmas. When the Grinch came out into the open, at first some of the children screamed, but then they wanted their picture taken with the Friendly Grinch. 


Hundreds of toys were set up on tables, one area for boys, one area for girls, and the third area with games and other toys that boys or girls could play with.


While the toys were being set up, Councilman Gjonaj went around to the children handing out candy canes, and face masks for the adults. 


One of Councilman Gjonaj's staffers dressed up as the Grinch who stole Christmas.


Some children were afraid of the Grinch, and this officer from the 49th Precinct was about to arrest him when the children said not to.


It seemed that many children wanted their picture taken with the Grinch.


Even Officer Fernandez wanted her picture with the Grinch.


The children would first be asked if they wanted hot cocoa, then move to the toy area to choose which of the toys on display they wanted. 


It was strange that the police officers were holding toys to give to the children, but the children would walk right by them, and take the same toy off one of the tables. The Children also received a pair of gloves and wool hat. 


After the last child received a toy, everyone gathered around the few toys left, that will be given to shelters, for a group photo.

Wednesday, December 15, 2021

MAYOR DE BLASIO CELEBRATES HISTORIC PASSAGE OF SOHO/NOHO REZONING

 

SoHo/NoHo Neighborhood Plan will bring 900 affordable homes and economic opportunity to iconic, centrally located neighborhoods

 Mayor Bill de Blasio today celebrated the City Council’s approval of the SoHo/NoHo Neighborhood Plan, the first overhaul of this area’s local zoning regulations in half a century. The plan will bring approximately 900 permanently affordable homes, support existing historic districts, invest in arts and culture through an innovative arts fund model, and introduce flexible zoning for ground floor and other uses.
 
“Today, New York City has taken a generational step toward building a recovery for all of us,” said Mayor Bill de Blasio. “This rezoning victory sends a powerful message that every community can and should join the fight to help solve our affordable housing crisis and make this city accessible for working families. SoHo and NoHo are two of the most iconic neighborhoods in the country for a reason – and now, we are one step closer to them finally reflecting all the diversity that makes our city great.”
 
“The approval of the SoHo/NoHo Neighborhood Plan is a critical, precedent-setting milestone towards a fairer New York City,” said Deputy Mayor for Housing and Economic Development Vicki Been. “Creating more housing opportunities in well-resourced, centrally located neighborhoods is a moral, economic, and environmental imperative. Thank you to Council Member Chin, Council Member Rivera, and the stakeholders and advocates engaged in the process for the extraordinary efforts that have helped make this a reality.”
 
“As we recover from the COVID-19 pandemic, equity must be at the forefront of our work to increase affordable housing and economic opportunities. Today’s approval of the SoHo/NoHo Neighborhood Plan stands for the idea that all neighborhoods can and should play a part in solving the planning challenges we, as New Yorkers, share. Through permanently affordable housing requirements, support for the arts, and a balance between historic preservation and continued growth, this initiative is a much-needed step towards a fairer, more livable city. Thanks to Council Members Chin and Rivera for their leadership and collaboration on this vital plan,” said Department of City Planning Director Anita Laremont.
 
“The rezoning of SoHo and NoHo represents a significant milestone that realizes our commitment in Where We Live NYC to make sure that all our neighborhoods contribute to building a more equitable and affordable city,” said Department of Housing Preservation and Development Commissioner Louise Carroll. “For the first time affordable housing will be a permanent feature of the neighborhoods’ growth while ensuring that the community’s architectural, historical and cultural essence will continue to flourish. We commend the residents, local officials and various stakeholders for their critical partnership on this long awaited achievement.”
 
"Soho's artistic legacy is part of our collective cultural heritage as New Yorkers," said NYC Cultural Affairs Commissioner Gonzalo Casals. "We applaud this historic rezoning effort, and the investments it signals in preserving and strengthening the creative landscape of Soho/NoHo and across all of Lower Manhattan."
 
“Open space and affordable housing are key to a livable city, and the SoHo/NoHo Neighborhood Plan will create rare opportunities for new and improved parkland in this area,” said NYC Parks Commissioner Gabrielle Fialkoff. “As part of this plan, we are proud to make improvements at Sara D. Roosevelt Park, work with DEP to transform two sites into new public spaces for the community, and partner with DOT to reconstruct and expand the Pike and Allen Street Malls and explore the renovation of Petrosino Square and other neighborhood locations.”
 
The SoHo/NoHo Neighborhood Plan will, for the first time, permit housing and require affordable housing in all new developments, allowing as many as 3,500 new homes to be created, approximately 900 of which would be permanently affordable via the City’s Mandatory Inclusionary Housing (MIH) program. In addition to new homes created on vacant and underutilized land, conversion of existing non-residential space to residential with a MIH requirement will create a more diverse, mixed-income neighborhood. Existing rent-regulated homes, many covered by the Loft Law, will remain protected under State tenant protections and supported by a wide range of City resources.
 
This initiative furthers the priorities developed in Where We Live NYC, the City’s fair housing plan that calls for changes to ensure every neighborhood contributes to the City’s affordable housing development goals. By allowing affordable housing development in SoHo and NoHo, the plan will offer opportunities for lower-income New Yorkers to live in these amenity-rich, high-income, disproportionately white communities – while also lowering housing pressures on surrounding neighborhoods.
 
Covering an area generally bounded by Canal Street to the south, Houston Street and Astor Place to the north, Lafayette Street and the Bowery to the east, and Sixth Avenue and West Broadway to the west, the plan updates antiquated zoning rules that were tailored for a 1970s SoHo/NoHo that has greatly changed in the last 50 years. 
 
The Plan includes land use changes alongside a range of initiatives and investments, including:
  • Sensible retail regulations: Rather than a patchwork of variances and zoning rules for a manufacturing landscape that no longer exists in SoHo/NoHo, the plan removes obsolete regulations that hurt small businesses and introduces sensible use rules that recognize its status as a major economic engine and retail destination. The Plan also includes investments to bring Small Business Service’s Storefront Startup to SoHo/NoHo to address storefront vacancies. This program pairs small businesses, including artists and creative entrepreneurs, without a physical location to vacant storefronts to help them launch and grow.
  • SoHo/NoHo Arts Fund: The Plan supports the legacy of arts and culture in and around SoHo and NoHo over the long term with a new arts fund model to ensure a future stream of investments into the area’s artistic vibrancy. The SoHo/NoHo Arts Fund creates a voluntary mechanism for those living in Joint Living Work Quarters for Artists (JLWQA) who wish to convert to a legal residential use through a contribution to a neighborhood arts fund. The JLWQA program will also remain an option for certified artists in perpetuity.
  • Tools to protect and enhance the historic context: New York City Landmarks Preservation Commission’s review and certification of appropriateness remains unchanged throughout the historic districts, which is about 85% of total rezoning area. The Plan will add height limits to the area for the first time, which will further encourage beloved loft-like structures. To enhance and protect the neighborhoods’ historic character and building forms, no towers will be allowed. The new height limits include:
  • Outside of the historic districts and along Canal Street and the Bowery, “Opportunity Areas” allow increased density and a maximum height of 275 feet, in line with the existing context. In comparison, the tallest existing building in the “SoHo West” Opportunity Zone is the approximately 400-foot Telephone Building.
  • Along historic district commercial corridors, including Broadway, the maximum height is 205 feet.
  • In the historic cores of the project areas, maximum height is 145 feet.
  • New affordable housing on nearby city-owned sites: The City will prioritize the development of affordable housing at 388 Hudson Street and 324 East 5th Street, two City-owned sites in the surrounding neighborhoods.
  • Resources to support existing residents: To support existing tenants, the City will fund one or more local community organizations to conduct proactive outreach to tenants in the rezoning area and continue proactive tenant outreach via the Mayor’s Public Engagement Unit’s Tenant Support Unit. The City will also fund additional staff resources within the Loft Board to support a faster process for residents who wish to converting from Interim Multiple Dwelling (IMD) to legal residential use.
  • Investments in neighborhood amenities and infrastructure: The Plan includes initiatives focused on comprehensive improvements to transportation, public realm, and sanitation throughout the area, such as:
  • Reconstruction and expansion of the Pike and Allen Street Malls, with potential enhancements including expanded landscaping, seating areas, lighting, protected greenways, and more.
  • Improvements to Sara D. Roosevelt Park, including reopening the Stanton Street building for community use.
  • Exploring the redesign of Petrosino Square and Cooper Triangle, well-used public spaces by the SoHo/NoHo communities.
  • Comprehensive studies of the Broadway and Canal Street corridors for transportation and public realm improvements.
  • Advancing the Commercial Waste Zone and Clean Curbs programs to address sanitation and quality of life concerns in the area.