STATEMENT FROM MAYOR ERIC ADAMS AND COMMISSIONER MANUEL CASTRO ON EXTENDED HUMANITARIAN RELIEF FOR UKRAINE

 

“As the City of New York continues to monitor the Russian invasion of Ukraine closely, we stand in solidarity and support with Ukrainians in New York City and all over the world. We encourage the Biden administration to consider the use of every tool at their disposal — including parole, Temporary Protected Status, and extended humanitarian protections — to protect Ukrainians here who are unable to return to their home country and welcome those seeking safety and freedom.

 

“Ukrainian New Yorkers should know that their city has their back. We are ready to work hand-in-hand with our federal and state partners in ensuring that New York is a place of refuge.”

 

The Adams administration is asking the federal government to provide work permits and protection from deportation for Ukrainian non-citizens in the U.S. — including Ukrainian DACA recipients and F-1 international students — who cannot safely return home.

 

Ukrainian New Yorkers can call the Mayor’s Office of Immigrants Affairs’ Immigration Legal Services Hotline at 800-354-0365 for connections to city-funded, free and safe immigration legal help.

 

Borough President Mark Levine - Putting Pressure on the Putin Regime

 

Robert --   This has been a week of significant news both globally and locally.   The Governor and Mayor announced that as of next Monday (3/7) a number of Covid measures will be lifted, including masking in schools and screening for vaccination in restaurants, museums, and other indoor venues. While we have made enormous progress against Covid, with our omicron wave now behind us, these protective measures are being lifted at a time when we are still seeing 800-900 cases per day.  We have more work to do to beat back this pandemic. We need to increase youth vaccination (still less than 50% for ages 5-11 in NYC). We need to push hard to increase the booster rate (still less than 50% for adults here). We need to make testing as easy and ubiquitous as possible. With smart public health strategies, we can bring about the comeback we all want for Manhattan and New York City.  Watch BP Levine call for the seizure of luxury real estate assets in Manhattan owned by Putin-connected oligarchs HERE. Meanwhile our hearts are feeling the pain of the horrific war being waged on Ukraine by Vladimir Putin. We must do everything possible to support New York City’s large Ukrainian community. We also need to do our part to pressure the Putin regime to end this immoral war. That’s why I have called for the seizure of luxury real estate assets in Manhattan owned by Putin-connected oligarchs. We need to send a message that our city will hold accountable those who have aided and abetted Putin’s reprehensible actions. We continue to keep our focus right here in Manhattan. Below you’ll find information on our new Manhattan Small Business Booster Loan Program, an extended deadline to apply to your Community Boards, and much more.  Stay safe,

Attorney General James Calls on National Weather Service to Increase Language Accessibility for Severe Weather Warnings

 

Citing Deadly Aftermath of Hurricane Ida, AG James Pushes for Expansion of Language Accessibility in Emergency Alert Systems

 New York Attorney General Letitia James sent a letter to U.S. Secretary of Commerce Gina Raimondo and Acting Director of the National Weather Service Mary C. Erickson, calling for expanded language accessibility for severe weather alerts. Currently, warnings from the National Weather Service (NWS), which are issued in advance of a severe weather event, are not accessible in any language except for English and Spanish. In advance of Hurricane Ida, which devastated New York in September 2021, NWS alerts were sent out to New Yorkers in only English and Spanish to warn them of the impending storm. The storm caused 18 deaths in New York, and the majority of those individuals were of Asian descent and did not speak or had limited proficiency in English or Spanish.

“Language should never be a barrier to critical information that could save lives,” said Attorney General James. “The National Weather Service must work with other agencies to ensure that all immigrant communities can be effectively warned of future weather-related crises and given the equal chance to survive. It is our responsibility to keep our people safe, and to do so, we must expand language accessibility in our safety protocols.”

In September 2021, Hurricane Ida ravaged the Northeast and tore across New York City. At least 91 people died across nine states, including at least 18 drowning deaths in New York from flash flooding. The NWS sent out a series of Wireless Emergency Alerts (WEAs) to all WEA-enabled phones in New York City, warning of a “catastrophic” flash flood emergency. These alerts were issued only in English and Spanish, which are not the primary languages for many of New York’s immigrant communities.

There are approximately 700 different languages and dialects spoken in New York City.  Nearly all the victims who lost their lives to the destruction from Hurricane Ida in New York City were immigrants from Trinidad, Nepal, and China, with primary languages that were neither English nor Spanish. Given the number of immigrants who speak languages other than English and Spanish, Attorney General James urges the NWS to send alerts in at least the languages most commonly spoken by New York City residents with limited English proficiency: Chinese (both traditional and simplified), Russian, French Creole, Bengali, and Korean, in addition to Spanish.

The Commerce Department has issued guidance on executive orders aimed at ensuring that federally assisted programs are accessible to all people, including those with limited English proficiency. In 2014, following the tragic loss of life from extreme weather events in Spanish-speaking communities due to a lack of Spanish safety alerts, the NWS recommended that it should establish a more effective procedure for non-English speaking alert services to warn of severe weather events. Attorney General James is calling on the NWS and the Department of Commerce to swiftly develop the capacity to provide hazardous weather warnings to all Americans, regardless of the language they speak.

New York City emergency management agency maintains an opt-in alerting system, known as NotifyNYC, and these alerts are available in numerous languages. However, city residents must proactively register their cell phone numbers and/or e-mail addresses in order to receive such alerts. There is no indication that most residents in immigrant communities are signed up to receive any such alerts.

NYC Comptroller Brad Lander Unveils Federal Stimulus Fund Tracker To Bring Transparency and Accountability to City Spending of COVID-19 Relief Funds

 

Data portal provides previously unpublished detail on the spending to date. Lander calls for additional transparency and tracking of outcomes to better assess the impacts of relief aid.

 City Comptroller Brad Lander unveiled an interactive public dashboard tracking the spending from FY 2022 onward of nearly $11 billion in Federal pandemic relief funding for New York City. Through FY 2026, Federal pandemic aid is expected to total $26 billion. The tracker shows that through mid-February the City has spent $1.16 billion of $3.30 billion in planned State and Local Fiscal Recovery Fund (SLFRF) spending for FY 2022, and $1.7 billion of $3.0 billion in FY 2022 funds specifically awarded for education.

View the Federal Stimulus Fund Tracker here.

“This time-limited funding is a lifeline for New York City as we work to recover from a public health and economic crisis that has left too many of our neighbors struggling,” said Comptroller Brad Lander. “Spending this funding wisely is critical to securing a recovery that brings our city back to life, confronts the inequities that predated the pandemic, and prepares us better for future crises. Without clear goals, transparency and accountability, we run the risk of squandering this opportunity, getting too little for what we spend, and leaving our city with long-term spending obligations we can’t meet.”

Comptroller Lander has repeatedly called for clear goal-setting and tracking of Federal stimulus funding. The stimulus tracker released today is a big stride towards transparency regarding the amount and categories of spending, enabling the public to download planned and actual spending by agency, unit of appropriation, budget code and object code.

In setting up the tracker, the Comptroller’s Office identified significant limitations in the City’s ability to account for both the dollars spent and the outcomes achieved.

A complete and independent accounting of FY 2021 spending was hampered by budget codes that commingled funding sources, spending reallocations, and the addition of new budget codes. The NYC Office of Management and Budget reported $1.26 billion of SLFRF spending in FY 2021, but only $520 million could be independently identified in the City’s Financial Management System (FMS). Another $318 million is unaccounted for and is expected to be reallocated in future fiscal years.  Due to the City’s inability to uniformly link grant funding sources to expenditures, there is no clear mechanism to monitor and control spending against grants by which the City can provide more accurate budget projections. The City’s Office of Management and Budget is well aware of these issues and the Comptroller’s office is committed to working with OMB to initiate a cost accounting feature in FMS, which is long overdue.

Lander also highlighted the lack of meaningful reporting on outcomes. Roughly half the total amount of Federal aid has been spent, yet few metrics are available to assess what New Yorkers are getting from this spending. The City released planned performance metrics for SLFRF funding in August, but has not published interim measures.

For school spending, the largest category of Federal funds, the City has not been clear about how it will track the impact of programs on students’ health and academic, social, and emotional recovery. The Department of Education (DOE) will receive a total of $7.7 billion in federal aid to be spent through FY 2025. Data available on the tracker show that the DOE has spent $725 million on maintaining safe and clean classrooms in the current school year, but has not provided data on the distribution of ventilation or measures of indoor air quality. More than $260 million has been spent on addressing “learning loss,” but no data is available to provide detail on what these funds bought or how the dollars have met the needs of students who have faced two traumatic years of pandemic loss and disruption in their personal and academic lives.

Lander continued, “The City has committed $121 million for rental assistance in FY 2022, how many households have received a voucher? $725 million was committed for school facilities, how much was spent on ventilation? The City set aside $261 million for ‘learning loss,’ how many reading coaches were hired? How many devices distributed? How many students with IEPs enrolled in after-school or Saturday classes?

“I urge the Administration to provide more detailed interim information on the outcomes of this spending so that we can ensure we’re getting the most out of every dollar to help our students, small businesses, and neighborhoods recover.”

In addition, the City is using time-limited Federal funds to pay for ongoing core instructional and support initiatives, and therefore may face risks continuing to fund these programs when stimulus funds expire. Chief among these is 3K expansion, which faces a risk of $376 million in FY 2026. The City would also need to provide additional funding of $111 million in FY 2025 and $235 million in FY 2026 as ongoing support of special education pre-kindergarten expansion, mental health services and community schools programs.

The COVID-19 Federal Stimulus Tracker, published on the Comptroller’s Checkbook NYC website, will allow detailed analysis of funds committed and spent to date. Spending data currently reflects spending plans as of the FY 2023 Preliminary Financial Plan released this February and will be regularly updated to mirror data recorded in the City’s Financial Management System (FMS).

Explore the Comptroller’s Federal Stimulus Tracker here: www.checkbooknyc.com/stimulus

Governor Hochul Warns New Yorkers About Rising Energy Costs and Directs Utilities to Work with Consumers

 

Electric & Gas Utilities Directed to Work with Consumers Facing High Energy Bills   

Enhanced Statewide Campaign to Connect Low-Income Consumers with Assistance Programs 

 Governor Kathy Hochul today announced that the state's utility regulator has now sent letters to all of New York's major electric and gas utilities requiring them to increase their outreach and education efforts with New Yorkers on the continuing surge in energy supply prices and the impact it will have on utility bills, in light of the national increases to utility bills we are seeing as a result of the rising cost of natural gases. In addition, Governor Hochul launched an enhanced statewide campaign to increase relief efforts for low-income customers to access millions of dollars in aid that are available.   

"The extreme utility bill increases all of us are seeing are having a serious impact on our household budgets, and in response we are taking action," Governor Hochul said. "I have directed the Department of Public Service to ensure all the major electric and gas utilities in the state work with customers, and in particular, our most vulnerable residents to protect them from volatile pricing and educate them about resources available to them."  

The cost of natural gas, which is used to heat homes and generate electricity, continues to rise sharply resulting in a significant increase — sometimes more than doubling — of the supply component of customer electric and/or natural gas bills as compared to prior months. These bill increases are being driven by a global increase in natural gas commodity prices due to higher domestic usage because of colder-than-normal weather, increased economic activity, and increased international demand for natural gas. 

On February 11, 2022, the Public Service Commission sent a letter to Con Edison, the state's largest utility, urging it to review its billing practices and better communicate with its customers. On February 25, Con Edison responded and said it will adjust its billing process to reduce the likelihood of significant customer bill volatility. Con Edison also said it would improve its communication with electric and gas customers. 

Today the PSC issued letters to all of the state's other major electric and gas utilities calling on them to take steps to communicate proactively, protect customers, and mitigate costs impacts wherever possible, including through a variety of buying methods and hedges, as well as promote consumer payment assistance plans and programs to reduce energy usage. Separately, Governor Hochul called on the state's heating oil and propane suppliers to also be proactive in terms of increasing consumer awareness of options to reduce home heating bills.   

Aggressively Reducing New York's Reliance on Fossil Fuels  

Recent increases in energy supply costs are a painful reminder that the State remains overly reliant on fossil fuels to meet our energy needs. This dependence on fossil fuel is contributing to climate change and air pollution, but, as this experience shows, it is also exposing consumers to global commodity price fluctuations. We must continue working together to advance the State's Climate Leadership and Community Protection Act to both reduce greenhouse gas emissions and reduce our reliance on fossil fuels that are subject to dramatic price swings experienced this winter. 

As New York moves toward a greener, cleaner economy, Governor Hochul is making significant investments to diversify electricity fuel sources through renewables to decrease the state's reliance on fossil fuels and stabilize energy costs. Recognizing the magnitude of the climate crisis, Governor Hochul announced an ambitious renewable energy and jobs agenda in her 2022 State of the State address and Executive Budget proposal. This agenda includes the next offshore wind development solicitation; a $500 million investment for offshore wind port infrastructure and supply chain; achieving 2 million climate-friendly, electrified or electrification-ready homes by 2030; phasing out New York's dirtiest, polluting power plants; animating the market for new clean energy technologies like green hydrogen; and ensure quality green job creation. 

Millions of Dollars in Heating Utility Assistance Available   

To address the increase in supply prices, Governor Hochul today launched an enhanced statewide effort led by the Department of Public Service (DPS) and Office of Temporary and Disability Assistance (OTDA) to raise awareness of the various assistance programs available to help struggling New Yorkers pay heating and utility expenses. These programs will help avoid potential service interruptions throughout the remainder of the winter season. These programs include:  

• The Home Energy Assistance Program (HEAP), which can provide up to $751 to eligible homeowners and renters depending on income, household size and how they heat their home. A family of four may have a maximum gross monthly income of $5,249, or an annual gross income of $62,983, and still qualify for benefits. So far, 1.5 million regular HEAP benefits have been received by eligible households, totaling $216 million. 
• New York State is also providing $250 million in additional federal funding to help low-income households pay heating utility arrears up to $10,000 per household. So far, almost 115,000 Regular Arrears Supplement benefits have been issued, and $183 million in arrears have been paid off for eligible households. 
• $90 million in federal funding through Emergency HEAP was made available to help low- and middle-income New Yorkers avoid having their home heating disconnected or exhausting their heating source amid fuel price increases. Currently, $58 million in funding remains available to help low- and middle-income New Yorkers avoid having their home heating disconnected or exhausting their heating source amid fuel price increases this winter. 
• An increase the budget for the statewide Energy Affordability Policy program by the PSC in 2021 from $237.6 million to $366.7 million and expanded eligibility, resulting in about 95,000 more low-income customers that will be able to receive benefits. Since September 2021, approximately $183 million in bill discounts were issued by utilities to eligible customers. 
• Bill Payment Options: Residential consumers can inquire with their utility provider about billing options that allow for deferred payments or 'budget billing' to even out utility bills that are higher in one season and lower in another. This can help structure payments to make it easier to navigate costs. 
• For low-income households facing no-heat situations, OTDA is also accepting applications for its heating equipment repair or replacement benefit. Eligible homeowners can now apply for up to $3,000 for repair or $6,500 for replacement of a furnace, boiler or other direct heating equipment necessary to keep the household's primary heating source working. Additionally, eligible households can receive energy efficiency services, which includes the cleaning of primary heating equipment to allow for its safe and efficient operation. Interested households can apply with their local HEAP contact. 

  In addition to bill payment assistance, customers are also urged to enroll in energy efficiency programs to help reduce energy consumption, lower bills overtime, and improve the health, comfort, and safety of their home. Residents can learn more about available programs and resources at www.energyadvisor.ny.gov or https://hcr.ny.gov/weatherization. 

PSC Chair Rory M. Christian said, "While the PSC and the utilities cannot control supply prices, utilities can strengthen their communications to consumers to ensure they are offering all possible consumer protections and make them aware of every available assistance program." 

OTDA Acting Commissioner Daniel W. Tietz said, "The spike in energy prices has affected everyone but has been particularly difficult for low-income households, working families and older New Yorkers. The Home Energy Assistance Program can provide vital relief to eligible households that are facing a greater share of their family budgets going to their heating bills during these cold winter months." 

 Increased Consumer Education and Awareness

The PSC and DPS will continue to proactively warn customers of projected increases in supply prices, potential impacts to customers' utility bills, and the assistance programs that are available. These efforts, in coordination with the state's electric and gas utilities, will include press releases, newsletters, utility call center representative training, YouTube videos, and social media posts. 

Additionally, DPS and utilities will continue to remind customers about the consumer protections that are in place including under the New York State Home Energy Fair Practices Act, which has comprehensive protections for residential customers regarding their utility services. These rights include the option to pay bills in installments, a cap on late fees, sufficient notice prior to shut-off of services, and protections for those on a fixed income or with medical conditions. Learn about these from DPS at AskPSC. 

OTDA continues to work with its local government partners, utilities and heating fuel providers to ensure potentially eligible households are aware of assistance available to help New Yorkers cope with high heating costs.   

The PSC is committed to making sure customers are aware of these programs to receive the assistance and information they need to effectively manage their energy bills. For more information on winter preparedness efforts and these assistance programs, please go to www.dps.ny.gov/winter. To enroll in the Energy Affordability Policy utility bill discount program, customers should contact their individual utility: 

Con Edison Customers: Con Ed 

Orange & Rockland Customers: O&R

National Grid Customers: National Grid 

National Fuel Gas Customers: NFG

NYSEG Customers: NYSEG 

Rochester Gas & Electric Customers: RGE

PSEG-LI Customers: PSEG

Central Hudson Customers: CH 

For more information on OTDA's available assistance programs, please visit: https://otda.ny.gov/programs/heap/ 

Consumer Alert: Division of Consumer Protection Urges New Yorkers to be Aware of Brushing Scams

 

Beware of Receiving Packages you Did Not Order   

No, These Deliveries Are Not Free Gifts, But a Way to Use Your Identity for Financial Gain

Protect Your Personal Information as Some Online Sellers Are Pitching Products to Get False Reviews

 The New York State Division of Consumer Protection (DCP) today warned about a scam that is becoming popular all over the country in which consumers receive a package they didn’t order in the mail. This practice, also known as a brushing scam, targets a recipient and turns them into a “verified buyer” upon delivery for the purpose of writing fake positive online reviews of merchandise in the recipient’s name. These fake reviews fraudulently boost or inflate the products’ ratings and sales numbers, which scammers hope results in an increase of actual sales, and they also compromise your personal information with this illicit practice.

“Online shopping and frequent deliveries offer scammers the opportunity to use your personal information for unscrupulous purposes,” said Acting Secretary of State Robert J. Rodriguez. “Receiving packages you did not order at your front steps does not mean it is your lucky day, but most likely, it is coming from someone using your personal information for their financial gain. Don’t fall for the brushing scams that are using you as a bait to boost their online ratings with fake information.”

How the Scam Works

A person receives a package(s) containing items which were not ordered or requested by the recipient. While the package may be addressed to the recipient, there is no return address, or the return address could be that of a retailer. The sender of the item is usually an international, third-party seller who has found the recipient’s address online.

Successful delivery of the item then turns the recipient into a verified buyer on online marketplaces. The scammer uses the verified buyer’s information to then post a false positive review of a product online and boost the 5-star ratings of the product, encouraging legitimate shoppers that the product advertised has received more positive ratings than it has. Since the merchandise actually received is another product that is cheaper to ship, the scammers perceive this as a profitable pay-off.

As internet shopping has become very popular in recent years, most e-commerce sites rate sellers by multiple criteria and display these seller ratings to customers. It is also a known fact that a good rating can boost sales, and sellers know how important a good review can push ratings for their products. Oftentimes, the number of items sold is usually an important factor in that rating. To give some credibility to reviews, often these brushing scams are aimed to justify a fake review online.

To avoid being victims of brushing scams, the Division of Consumer Protection offers the following tips:

1. You don’t have to pay for it. Federal law may allow recipients to keep items they received but did not order. Recipients are under no obligation to pay for unsolicited merchandise and can consider it a gift. If you don’t want the item, you can donate it or simply dispose of it and do not have to return it.
2. Report it. If the item received is organic (seeds, plants or food), report it to the USDA. Unsolicited seeds or plants should not be planted as they may be invasive plants, noxious weeds or carry diseases that could cause damage to economically important crops. Seeds may be sent to the address below for destruction. Please ensure the seed package is sealed tightly and mail the seeds, the original packaging, your contact information, and any additional details, to:

Office of the State Plant Health Director of New York

c/o Christopher Zaloga

500 New Karner Road

Albany, New York 12205

If the item is an unknown liquid or substance, contact the local authorities.

3. Notify the retailer. If the package received is from a third-party retailer like Amazon, Walmart, eBay, or WISH report it to them and ask them to remove any reviews under your name.
4. Monitor your accounts. Your personal information may have been compromised. Often scammers obtain personal information through nefarious means and with ill-intentions and use it for several scams and other illicit activities in the future. Examine your online shopping accounts and credit card bills for signs of unusual activity and check your credit report. Consumers can currently obtain free credit reports weekly through April 20, 2022. Request yours at annualcreditreport.com.
5. Change your password. If you have an account with the retailer identified on the package, change your account password with the retailer.

The New York State Division of Consumer Protection serves to educate, assist, and empower the State’s consumers. For more consumer protection information, call the DCP Helpline at 800-697-1220, Monday through Friday, 8:30am-4:30pm or visit the DCP website at www.dos.ny.gov/consumerprotection. The Division can also be reached via Twitter at @NYSConsumer or Facebook at www.facebook.com/nysconsumer.

Devon Archer Sentenced To A Year And A Day In Prison For The Fraudulent Issuance And Sale Of More Than $60 Million Of Tribal Bonds

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that DEVON ARCHER was sentenced today by the Honorable Ronnie Abrams to a year and a day in prison for defrauding a Native American tribal entity and various investment advisory clients of tens of millions of dollars in connection with the issuance of bonds by the tribal entity and the subsequent sale of those bonds through fraudulent and deceptive means.   

As established by the evidence at trial:

From March 2014 through April 2016, ARCHER, Bevan Cooney, John Galanis, Jason Galanis, Gary Hirst, Michelle Morton, Hugh Dunkerley, and others engaged in a fraudulent scheme that involved (a) causing the Wakpamni Lake Community Corporation (“WLCC”), a Native American tribal entity, to issue a series of bonds (the “Tribal Bonds”) through lies and misrepresentations; (b) deceptively causing clients of asset management firms controlled by Hirst, Morton, and others to purchase the Tribal Bonds, which the clients were then unable to redeem or sell because the bonds were illiquid and lacked a ready secondary market; and (c) misappropriating the proceeds resulting from those bond sales.

The WLCC was convinced to issue the Tribal Bonds through false and fraudulent representations by John Galanis.  Simultaneously, Jason Galanis, with the backing of ARCHER and others, worked to acquire Hughes Capital Management (“Hughes”), a registered investment adviser.  Morton and Hirst were installed as Hughes’ Chief Executive Officer and Chief Investment Officer, respectively.  Within weeks of taking control of Hughes, Morton and Hirst placed the entire $28 million first series of Tribal Bonds with Hughes clients but failed to disclose material facts about the Tribal Bonds, including the fact that the Tribal Bonds fell outside of the investment parameters set forth in the investment advisory contracts of certain Hughes clients.  In addition, Hughes’ clients were not told about substantial conflicts of interest with respect to the issuance and placement of the Tribal Bonds before the Tribal Bonds were purchased on these clients’ behalf. 

The defendants and their co-conspirators then misappropriated the proceeds of first Tribal Bond issuance.  Specifically, although the Tribal Bonds were supposed to be invested in an annuity, Dunkerley, at the direction of Jason Galanis, transferred significant amounts of the bond proceeds to support the defendants’ business and personal interests.  John Galanis, for example, secretly received $2.35 million in proceeds of the first bond issuance, which he spent on a variety of personal expenses and luxury items, including cars, jewelry, and hotel expenses.  Similarly, Jason Galanis used a portion of the proceeds of the first Tribal Bond issuance to finance the purchase of a $10 million luxury apartment in Tribeca, which, with ARCHER’s consent, he purchased in ARCHER’s name.

In addition, after John Galanis induced the WLCC to issue a second round of Tribal Bonds, ARCHER and others used $20 million of bond proceeds from the first issuance to buy the entirety of the second issuance.  As a result of the use of recycled proceeds to purchase additional issuances of Tribal Bonds, the face amount of Tribal Bonds outstanding increased and the amount of interest payable by the WLCC increased, but the actual bond proceeds available for investment on behalf of the WLCC did not increase.  In order to deposit the bonds at a bank, ARCHER misrepresented the source of the money used to purchase the bonds, falsely claiming that he had obtained it through real estate sales. The bonds purchased by ARCHER and others were then used to meet net capital requirements at two broker dealers in which ARCHER and others had interests.  In addition, millions of dollars in bond proceeds from the first and second issuances were used finance the acquisition of companies which the defendants and their co-conspirators acquired as part of a strategy to build a financial services conglomerate, which ARCHER expected to control.

In the spring of 2015, John Galanis induced the WLCC to issue an additional $16 million worth of Tribal Bonds.  Simultaneously, Jason Galanis, and others purchased a second investment adviser, Atlantic Asset Management (“Atlantic”), and installed Morton as the Chief Executive Officer.  Within days of obtaining control of Atlantic, Morton placed the entirety of the $16 million Tribal Bond issuance with an Atlantic client, without the client’s consent and without disclosing the fact that the Tribal Bonds were outside the client’s investment parameters and that numerous conflicts of interest existed.  The proceeds of the $16 million issuance were again not invested in an annuity as promised, but instead were diverted to, among other things, finance the defendants’ acquisition of another company in furtherance of their plan to build a financial services conglomerate, and make payments to one of the broker dealers in which ARCHER and others had interests.

In addition to the prison term, ARCHER, 47, was sentenced to a year of supervised release.  ARCHER was also ordered to forfeit $15,700,513 and to make restitution in the amount of $43,427,436.

Jason Galanis, who pled guilty to conspiracy to commit securities fraud, securities fraud, and investment adviser fraud, was sentenced to a term of 173 months in prison on August 11, 2017.  Gary Hirst, who pled guilty to securities fraud, conspiracy to commit securities fraud, investment adviser fraud, and conspiracy to commit investment adviser fraud, was sentenced to 84 months in prison on September 7, 2018.  John Galanis, who was convicted after trial of securities fraud and conspiracy to commit securities fraud, was sentenced to 120 months in prison on March 8, 2019. Bevan Cooney, who was convicted after trial of securities fraud and conspiracy to commit securities fraud, was sentenced to 30 months in prison on July 31, 2019. Michelle Morton, who pled guilty to conspiracy to commit securities fraud and investment adviser fraud, was sentenced to 15 months in prison on November 18, 2020.  Hugh Dunkerley, who pled guilty to conspiracy to commit securities fraud, two counts of securities fraud, bankruptcy fraud and falsification of records with the intent to obstruct a government investigation, is also awaiting sentencing. 

Mr. Williams praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission.

Attorney General James Takes Action to Protect Consumers from Unexpectedly High Energy Bills

 

Numerous Con Edison Customers Reported Sharp and Unexpected Increases on Their Utility Bills

AG James Requests Explanation from Con Edison Over High Energy Bills

 New York Attorney General Letitia James took action to protect consumers from unexpectedly high energy bills from Consolidated Edison Company of New York, Inc. (Con Edison). In a letter to Con Edison, Attorney General James requested an explanation for the unexpected spike in utility bills last month that affected thousands of New Yorkers primarily in New York City and Westchester County. Many New York City consumers filed complaints with the Office of the Attorney General (OAG) saying that their Con Edison bills for January 2022 were significantly higher than they were in the prior billing cycle, with some consumers reporting bills that were as much as three times greater even though their consumption remained the same.

“Hardworking New Yorkers shouldn’t have to make sacrifices to keep the lights on or to stay warm during the coldest months of the winter,” said Attorney General James. “My office is calling on Con Edison to explain the unexpected increases in last month’s bills that affected thousands of New Yorkers. We are also demanding that the company communicate rate increases early on so New Yorkers know what to expect when they open their energy bill. Utility companies have a responsibility to make sure consumers’ bills are fair and accurate, and my office is determined to hold them to that standard.”

Con Edison supplies energy for millions of New Yorkers. In some cases reported to OAG, the total amount due on some bills was two or even three times higher than in the previous billing cycle. One customer saw their bill jump from around $200 in December to more than $400 in January. Consumers have stated that the sudden change on their bills could not be explained by increased energy use alone. Consumers have also stated that they received no advance warning from Con Edison about the rate increase. For many consumers, this rate increase is so large that they may have difficulty meeting their monthly expenses. One consumer wrote, “We are a working family with an infant living in an affordable housing lottery unit, we are struggling to pay childcare, how are families expected to cope with price fluctuations like this?!?!”

Attorney General James has asked Con Edison to explain the sudden and unannounced increase in rates; to commit to providing consumers advance notice of such increases; and to remind consumers of affordability solutions available to them, including deferred payment agreements and/or bill assistance programs.

“Anyone who opened their sky-high utility bill last month knows that the current system is failing New Yorkers,” said New York City Public Advocate Jumaane D. Williams. “It’s completely unacceptable that New Yorkers are paying significantly more for power while Con Edison brings in surplus profits. Particularly as Con Edison continues to push for rate hikes, we must investigate how to protect New Yorkers from these unreasonable spikes, and l thank Attorney General James for working to get answers and accountability. As we look to the future, we must also transition away from fossil fuel dependence and toward renewable energy.”

“Every Bronxite and New Yorker has a right to affordable basic amenities and access to keeping their lights on no matter what their zip code is,” said Bronx Borough President Vanessa L. Gibson. “Con Edison’s sudden price increases are unacceptable and have caused an unexpected expense to thousands of our most vulnerable residents, leaving them wondering how they will be able to make ends meet. I join Attorney General James in demanding the transparency that we deserve. Con Edison must clearly and effectively communicate rate increases early on. Withholding information from New Yorkers is unacceptable.”

If you are having trouble paying your gas or electric bill, you can reach out to your utility provider to see what kind of assistance you might be eligible for. Con Edison customers can learn about their options on Con Edison’s website.

New Yorkers can also submit a complaint on the OAG's website or call (800) 771-7755 to have a complaint form sent via mail.