Report Documents $100 Million in Charter School Fraud in 14 States and D.C.
Education Week - May 7, 2014, by Katie Ash - An examination of charter schools in 15 charter markets across the...
The report appears to be one of the first shots fired from Integrity in Education, a newly formed nonprofit that aims to expose corporate interests in public education, and is headed up by Sabrina Stevens, a former teacher and American Federation of Teachers staffer. The organization is decidedly anti-charter, likening school choice to "a euphemism for school closures" on its website.
The report gathered court cases, media investigations, regulatory findings, audits, and other sources from Arizona, California, Colorado, the District of Columbia, Florida, Illinois, Louisiana, Minnesota, New Jersey, New York, Ohio, Pennsylvania., Texas, and Wisconsin to examine the trends in charter school fraud, waste, and mismanagement.
It found that there were six main categories of fraud, waste, and abuse:
Charter operators using public funds for their personal gain.School revenue being used to support other charter operators' businesses.
Charter school mismanagement that fails to create a safe environment for students, such as not providing background checks on staff or not properly supervising students.
Charters requesting public funds for services they do not provide.
Charters inflating their enrollment numbers to boost revenues.
Charter operators mismanaging funds and schools.
After examination, the report found that the most prevalent form of fraud in charters was the first category—charter operators' using public funds for personal use.
The report provided several recommendations to help prevent fraud, waste, and abuse from occurring. States should establish an adequately funded office solely dedicated to charter school oversight that has the authority to investigate fraud, waste, and misconduct, the report said. All charters should be independently audited each year, and the schools should be held to the same transparency requirements as regular public schools, the report recommended.
In addition, the charter school's application, contract, financial information, board members and affiliations, vendor contracts over $25,000, and board-meeting minutes should be made available publicly online, said the report. In addition, relatives of charter school operators should not be allowed to serve on the board, while parents, teachers, and students (in the case of high schools) should be provided representation there, the report recommended.
The report's appendix includes an extensive list of the different charter fraud, waste, and misconduct cases broken down by state with links to media reports about each one.
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Democrats to introduce bills to challenge arbitration system
Democrats to introduce bills to challenge arbitration system
By Nick Niedzwiadek ALBANY — Democratic lawmakers are expected to introduce a pair of bills to counter how corporations...
By Nick Niedzwiadek
ALBANY — Democratic lawmakers are expected to introduce a pair of bills to counter how corporations use binding arbitration to limit their financial exposure in legal disputes.
Consumer advocates say corporations are increasingly requiring potential employees and consumers to agree to binding arbitration in the event of a dispute as a precondition for employment or use of a product. They say that such proceedings lack transparency, put people on an uneven playing field against well-heeled corporations and can leave people with little other legal recourse.
Assemblywoman Latoya Joyner of the Bronx and Sen. Brad Hoylman of Manhattan are expected to introduce a bill that would amend state labor law to allow employees or organized labor organizations the power to bring legal proceedings against an employer for potential violations as a stand-in for the Department of Labor — independent of any private employment agreement. The state would recover a portion of the fines assessed as part of such proceedings.
Senator Jose Serrano of the Bronx and Assemblyman Brian Kavanagh of Manhattan would establish a similar process for private citizens to seek civil penalties on behalf of the state for violations of consumer protection statutes if the applicable public agency fails to pursue them due to a lack of resources.
“Too often large companies take advantage of consumers by forcing them into signing 'take-it-or-leave-it' contracts that include hidden clauses requiring forced arbitration that heavily favor businesses,” Serrano said in a statement. “My legislation will create a level playing field and give the power back to the consumers in New York State by allowing them an opportunity to fight back when they are victims of fraud."
Several of the legislators are expected to announce the legislation at a protest in Manhattan on Thursday along with New York City Comptroller Scott Stringer and Public Advocate Tish James, according to organizers. Joining them will be a number of progressive groups, including the Center for Popular Democracy, Citizen Action, Make the Road New York and New York Communities for Change. The event will coincide with the release of a report called: “Justice for Sale: How Corporations Use Forced Arbitration Agreements to Exploit Working Families.”
"Legal rights are worthless if there's no remedy when laws are broken,” Kate Hamaji, a research analyst at the Center for Popular Democracy who authored the report, said in a statement. “Forced arbitration essentially allows corporations to opt out of the justice system by creating a private parallel system that makes it prohibitively expensive to seek justice and creates incentives for arbitrators to rule in favor of companies."
The report can be found here.
The Minimum Wage Needs An Upgrade
The Minimum Wage Needs An Upgrade
Seventy-eight years ago today, the Fair Labor Standards Act made a groundbreaking promise to Americans: the promise of...
Seventy-eight years ago today, the Fair Labor Standards Act made a groundbreaking promise to Americans: the promise of a fair minimum wage for an honest day’s work.
That promise, however, has eroded badly over time. In recent decades, the federal benchmark has grown increasingly obsolete, guaranteeing a bare minimum that is nowhere near enough to keep up with the growing costs of rent, food, and other essentials.
As calls for higher wages grow louder nationwide, it is imperative that federal officials take action to raise the federal minimum wage and renew the promise to American workers made nearly a century ago.
If the federal rate had merely kept up with inflation since its peak in the late 1960s, it would be nearly $11, one-and-a-half times today’s rate of $7.25. That rate has stayed stagnant since Congress last raised it in 2009. It is a remarkable number of years to go without an increase in wages, and workers have suffered for it.
In the absence of Congressional movement, states and cities have increasingly moved to give workers the raises they need. Yet entrenched forces at the federal level continue to stonewall, putting forth arguments that grow increasingly irrelevant by the day.
Many, for example, raise the specter of job losses. Yet cities that have raised their minimum wage in the past two years, from Los Angeles to Seattle to Chicago, simply have not seen the kinds of cataclysm that many warned about.
In fact, in Seattle, dozens of new restaurants have opened since higher wages kicked in – including many run by one of the fiercest critics of the increase. By the end of 2015, new permits for restaurants, coffee shops, and other food service establishments were on track to keep pace with or even surpass those issued in years past.
Another myth: higher wages would lead to higher prices - a bigger bill for a Big Mac, a pricier trip to Target. Yet here too, the apocalyptic predictions that precede wage increases fail to come true. In Seattle, the costs of groceries, gas, and retail have stayed stable over the past year - even though businesses warned they would need to hike prices if wages were to rise.
In recent weeks, some fast-food chains have made headlines by declaring they would replace employees with automated kiosks. Looking at the bigger picture, though, the overall risks of automation are low. Research just last year found that, while minimum wage increases can reduce some routinized jobs like cashiers, they also swell the number of more complex jobs like food preparation, resulting in an overall zero-sum change.
The fact is, raising the minimum wage gives local economies a boost by putting more money in the pockets of consumers. Higher wages also let businesses hold on to workers and improve customer satisfaction, all of which improve employers’ bottom line.
That’s why the majority of businesses actually support a higher minimum wage, despite the noise coming from groups like the Chamber of Commerce and the National Restaurant Association. A leaked memo earlier this year showed that 80 percent of business executives around the country support higher wages and paid sick days - and that they are coached to oppose those policies in public.
While powerful interests keep trying to muddle the debate, it’s clear that even a growing economy is simply not reaching millions of hardworking Americans. And it’s not just fast-food workers. A variety of workers receive less than $15: teachers, paramedics, home health-care workers, and many others. A recent study showed that even many manufacturing jobs – the foundation of the middle-class – pay less than $15, forcing the government to cover the gap with public assistance programs like food stamps and Medicaid.
As minimum wages affect more and more workers, it is no wonder that more Americans are starting to get on board. This year, dozens of cities and states – including some that lean deeply Republican – are considering increases. Colorado, Maine, Arizona and Washington State are all running ballot measures that would raise wages for close to two million workers in those states alone.
Rather than focusing on a fantasy Armageddon that never comes, lawmakers in Congress would do well to embrace the need for better pay. In the meantime, states and cities will continue the fight to fulfill the pledge that the FLSA made so many years ago.
By JoEllen Chernow
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Here’s Where You Can Donate To Those Affected By The Earthquakes In Mexico And Hurricanes In Puerto Rico
Here’s Where You Can Donate To Those Affected By The Earthquakes In Mexico And Hurricanes In Puerto Rico
After the recent earthquakes in Mexico and hurricanes in Puerto Rico, it can be heartbreaking to see, from afar, all...
After the recent earthquakes in Mexico and hurricanes in Puerto Rico, it can be heartbreaking to see, from afar, all the devastation people in affected areas are currently enduring. While we might be at a loss about how to help our family and friends in Latin America during these trying times, there are ways to help. Here’s a list of charities, fundraising campaigns and other organizations helping those affected in Mexico and Puerto Rico.
Read the full article here.
No indictment in Eric Garner police killing
Reports indicate that a grand jury has decided not to indict NYPD Officer Daniel Pantaleo in the death of Eric Garner,...
Reports indicate that a grand jury has decided not to indict NYPD Officer Daniel Pantaleo in the death of Eric Garner, an unarmed Black man. Garner died in July in Staten Island of neck compression, combined with asphyxia as a result of a chokehold applied while police officers were arresting him for the suspected sale of untaxed cigarettes. The incident was captured on cellphone video by Ramsey Orta who was a bystander. Garner had broken up a fight when officers attempted to arrest him. Pantaleo put Garner on the ground by the use of force, which included the use of a headlock resulting in Garner’s death. The city’s medical examiner later ruled the death a homicide. The NYPD is banned from using chokeholds, however, chokeholds are not illegal.
At a press conference Wednesday night, the Rev. Al Sharpton and Garner's family spoke about the grand jury's decision. Sharpton announced plans for a national march in Washington, D.C. on December 13 to urge the U.S. Department of Justice to investigate the string of recent police killings of unarmed Blacks.
"We are dealing with a national crisis," he said. "We are not advocating violence, we are asking that police violence stop. Now you have a man chocked to death on videotape and says 11 times 'I can't breathe.'" Garner's wife, Esaw, said she did not accept the apology give by Pantaleo on Wednesday after the grand jury didn't indict him. She said she plans to move forward to get justice for her late husband.
"I'm determined to get justice for my husband," she said. "He should be here celebrating Christmas and Thanksgiving and he can't. My husband's death will not be in vain. As long as I have breath in my body I will fight the fight."
Several Black and Latino congressional members, including Gregory Meeks and Yvette Clark, held a press conference in Washington, D.C. after the grand jury's decision was announced. The legislatures called for the Justice Department to step into the case. The U.S. Department of Justice is going to investigate Garner's death, according to reports. U.S. Attorney General Eric Holder announced that a federal civil rights investigation would be opened in the case.
Mayor Bill de Blasio, Public Advocate Leticia James and several city council members held a press conference in Staten Island on Wednesday to address the issue. De Blasio said that frustration over the grand jury's decision is understandable. "It's a very emotional day for our city. It's a very painful day for so many New Yorkers," he said. "We're grieving – again – over the loss of Eric Garner, who was a father, a husband, a good man – who should be with us."
The decision in the Garner killing by a grand jury comes just over a week after a grand jury in Ferguson, Mo. decided to not indict Officer Darren Wilson for the shooting death of Michael Brown. Peaceful demonstrations along with rioting followed the announcement of that decision. Police Commissioner Bill Bratton met with several elected officials in Staten Island before the decision was announced anticipating the reaction to the decision. Demonstrations were being announced via social media on Wednesday and took place Times Square, Grand Central and Union Square. A gathering was also planned for the nationally televised Rockefeller Center Christmas tree lighting set to take place in the evening.
Several groups including Communities United for Police Reform Justice Committee, Make the Road NY, VOCAL-NY, Center for Popular Democracy, Color of Change, Million Hoodies and Freedom Side announced they are organizing demonstration.
Source: Amsterdam News
Major donors consider funding Black Lives Matter
Some of the biggest donors on the left plan to meet behind closed doors next week in Washington with leaders of the...
Some of the biggest donors on the left plan to meet behind closed doors next week in Washington with leaders of the Black Lives Matter movement and their allies to discuss funding the burgeoning protest movement, POLITICO has learned.
The meetings are taking place at the annual winter gathering of the Democracy Alliance major liberal donor club, which runs from Tuesday evening through Saturday morning and is expected to draw Democratic financial heavyweights, including Tom Steyer and Paul Egerman.
The DA, as the club is known in Democratic circles, is recommending its donors step up check writing to a handful of endorsed groups that have supported the Black Lives Matter movement. And the club and some of its members also are considering ways to funnel support directly to scrappier local groups that have utilized confrontational tactics to inject their grievances into the political debate.
It’s a potential partnership that could elevate the Black Lives Matter movement and heighten its impact. But it’s also fraught with tension on both sides, sources tell POLITICO.
The various outfits that comprise the diffuse Black Lives Matter movement prize their independence. Some make a point of not asking for donations. They bristle at any suggestion that they’re susceptible to being co-opted by a deep-pocketed national group ― let alone one with such close ties to the Democratic Party establishment like the Democracy Alliance.
And some major liberal donors are leery about funding a movement known for aggressive tactics ― particularly one that has shown a willingness to train its fire on Democrats, including presidential candidates Hillary Clinton and Bernie Sanders.
“Major donors are usually not as radical or confrontational as activists most in touch with the pain of oppression,” said Steve Phillips, a Democracy Alliance member and significant contributor to Democratic candidates and causes. He donated to a St. Louis nonprofit group called the Organization for Black Struggle that helped organize 2014 Black Lives Matter-related protests in Ferguson, Missouri, over the police killing of a black teenager named Michael Brown. And Phillips and his wife, Democracy Alliance board member Susan Sandler, are in discussions about funding other groups involved in the movement.
The movement needs cash to build a self-sustaining infrastructure, Phillips said, arguing “the progressive donor world should be adding zeroes to their contributions that support this transformative movement.” But he also acknowledged there’s a risk for recipient groups. “Tactics such as shutting down freeways and disrupting rallies can alienate major donors, and if that's your primary source of support, then you're at risk of being blocked from doing what you need to do.”
The Democracy Alliance was created in 2005 by a handful of major donors, including billionaire financier George Soros and Taco Bell heir Rob McKay to build a permanent infrastructure to advance liberal ideas and causes. Donors are required to donate at least $200,000 a year to recommended groups, and their combined donations to those groups now total more than $500 million. Endorsed beneficiaries include the Center for American Progress think tank, the liberal attack dog Media Matters and the Democratic data firm Catalist, though members also give heavily to Democratic politicians and super PACs that are not part of the DA’s core portfolio. While the Democracy Alliance last year voted to endorse a handful of groups focused on engaging African-Americans in politics ― some of which have helped facilitate the Black Lives movement ― the invitation to movement leaders is a first for the DA, and seems likely to test some members’ comfort zones.
“Movements that are challenging the status quo and that do so to some extent by using direct action or disruptive tactics are meant to make people uncomfortable, so I’m sure we have partners who would be made uncomfortable by it or think that that’s not a good tactic,” said DA President Gara LaMarche. “But we have a wide range of human beings and different temperaments and approaches in the DA, so it’s quite possible that there are people who are a little concerned, as well as people who are curious or are supportive. This is a chance for them to meet some of the leaders of the Black Lives Matter movement, and understand the movement better, and then we’ll take stock of that and see where it might lead.”
According to a Democracy Alliance draft agenda obtained by POLITICO, movement leaders will be featured guests at a Tuesday dinner with major donors. The dinner, which technically precedes the official conference kickoff, will focus on “what kind of support and resources are needed from the allied funders during this critical moment of immediate struggle and long-term movement building.”
The groups that will be represented include the Black Youth Project 100, The Center for Popular Democracy and the Black Civic Engagement Fund, according to the organizer, a DA member named Leah Hunt-Hendrix. An heir to a Texas oil fortune, Hunt-Hendrix helps lead a coalition of mostly young donors called Solidaire that focuses on movement building. It’s donated more than $200,000 to the Black Lives Matter movement since Brown’s killing. According to its entry on a philanthropy website, more than $61,000 went directly to organizers and organizations on the ground in Ferguson and Baltimore, where the death of Freddie Gray in police custody in April sparked a more recent wave of Black Lives-related protests. An additional $115,000 went to groups that have sprung up to support the movement.
She said her goal at the Democracy Alliance is to persuade donors to “use some of the money that’s going into the presidential races for grass-roots organizing and movement building.” And she brushed aside concerns that the movement could hurt Democratic chances in 2016. “Black Lives Matter has been pushing Bernie, and Bernie has been pushing Hillary. Politics is a field where you almost have to push your allies hardest and hold them accountable,” she said. “That’s exactly the point of democracy,” she said.
That view dovetails with the one that LaMarche has tried to instill in the Democracy Alliance, which had faced internal criticism in 2012 for growing too close to the Democratic Party.
In fact, one group set to participate in Hunt-Hendrix’s dinner ― Black Civic Engagement Fund ― is a Democracy Alliance offshoot. And, according to the DA agenda, two other groups recommended for club funding ― ColorOfChange.org and the Advancement Project ― are set to participate in a Friday panel “on how to connect the Movement for Black Lives with current and needed infrastructure for Black organizing and political power.”
ColorOfChange.org has helped Black Lives Matter protesters organize online, said its Executive Director Rashad Robinson. He dismissed concerns that the movement is compromised in any way by accepting support from major institutional funders. “Throughout our history in this country, there have been allies who have been willing to stand up and support uprisings, and lend their resources to ensure that people have a greater voice in their democracy,” Robinson said.
Nick Rathod, the leader of a DA-endorsed group called the State Innovation Exchange that pushes liberal policies in the states, said his group is looking for opportunities to help the movement, as well. “We can play an important role in facilitating dialogue between elected officials and movement leaders in cities and states,” he said. But Rathod cautioned that it would be a mistake for major liberal donors to only give through established national groups to support the movement. “I think for many of the donors, it might feel safer to invest in groups like ours and others to support the work, but frankly, many of those groups are not led by African-Americans and are removed from what’s happening on the ground. The heart and soul of the movement is at the grass roots, it’s where the organizing has occurred, it’s where decisions should be made and it’s where investments should be placed to grow the movement from the bottom up, rather than the top down.”
Source: Politico
New York City allocates $500K to fight feds on deportation
US News - July 17, 2013, by Steven Nelson - Immigration advocates are thrilled that New York City is footing the bill...
US News - July 17, 2013, by Steven Nelson - Immigration advocates are thrilled that New York City is footing the bill for a pilot program to provide free legal representation to people fighting deportation.
The City Council allocated $500,000 in June for the pilot program, with Speaker Christine Quinn – a candidate for mayor – taking the lead in shepherding the funds into the fiscal year 2014 budget, advocates say.
"There really was no controversy because the statistics bore out the injustice," Angela Fernandez of the Northern Manhattan Coalition for Immigrant Rights told U.S. News.
Non-citizens living in the U.S. without legal permission aren't guaranteed a free lawyer in non-criminal deportation cases.
Immigration law is "as complex as tax law," Fernandez said. She pointed to a research conducted by federal judge Robert Katzmann that found defendants without attorneys prevail less than 10 percent of the time in immigration cases.
"If they have access to a high-quality deportation defense attorney, their chances of prevailing is 67 percent," she said.
The Vera Institute of Justice, a legal advocacy group, will administer the program and approve grants to experienced non-profits whose attorneys specialize in immigration defense.
Fernandez said is costs up to $4,000 to defend a person during the course of immigration proceedings.
"The stakes are pretty high," said Brittny Saunders of the Center for Popular Democracy. "Folks who are detained, in many cases on minor infractions of immigration law, have no right to counsel ... so they're going up against federally trained attorneys."
Fernandez and Saunders agreed that the pilot program - officially called the New York Immigrant Family Unity Project – is the first publicly funded endeavor to defend immigrants against deportation, and they hope it will become permanent.
Quinn's office confirmed to U.S. News that the program was funded in the city's recently approved budget.
The immigration advocates, attorneys and Quinn are scheduled to discuss the program during a Friday event at Yeshiva University's Cardozo School of Law.
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Lael Brainard, a Fed governor in the political glare
Lael Brainard, a Fed governor in the political glare
In the middle of meetings of the world’s central banking elite in Wyoming’s Jackson Lake Lodge in August 2015, Lael...
In the middle of meetings of the world’s central banking elite in Wyoming’s Jackson Lake Lodge in August 2015, Lael Brainard sat down with activists who were denouncing calls for tighter monetary policy amid America’s sluggish wage growth.
As the Federal Reserve Board member listened intently over the course of about an hour, protesters from New York ranging from fast-food employees to a worker on film sets talked about the difficulties of making ends meet on rock-bottom wages in a high-cost metropolis, recalls Shawn Sebastian, field director of the Fed Up coalition that arranged the meeting.
Ms Brainard’s decision to drop by carried a message. A fairly new member of the Board of Governors who had said relatively little about monetary policy, Ms Brainard was about to set out her stall as a vocal advocate of low interest rates at the Fed — based in part on the absence of wage growth.
Her steadfast calls for continued economic stimulus have burnished her credentials among pro-worker groups including Fed Up, which met a broader range of Fed officials at this year’s Jackson Hole gathering. They come amid speculation that she could be in line for a cabinet role if the Democrats hold the White House in November.
“When it comes to monetary policy, Lael Brainard is one of the strongest and loudest voices advocating for policies that working families across the US need,” says Mr Sebastian.
In Washington, Ms Brainard is being spoken of as one of the candidates for Treasury secretary in a Hillary Clinton administration — a move that would make her the first woman to head the department. At the same time she has become the target of Republican attacks because of her public support for the Clinton campaign and fury within the party over easy-money policies.
Early this year Ms Brainard donated $2,700 to the Clinton campaign, a decision described by former officials as a blunder for a sitting Fed governor during an election year — even if it is permissible under Fed rules. It increased the Fed’s political vulnerability at a time when it is a prime target for vituperative assaults on its independence by Donald Trump, the Republican presidential candidate.
The donation was the subject of sharp exchanges in Congress last month as Fed chair Janet Yellen was forced to reject claims by Republican representative Scott Garrett that the central bank is excessively cosy with the Democrats.
There are people who blather on and she is not one of them
Jared Bernstein, a former economic adviser to Joe Biden
Ted Truman, a former Fed official who is a non-resident senior fellow at the Peterson Institute for International Economics, says Ms Brainard’s donation was a personal mistake that “didn’t help the Fed at all”. He also argues that the issue pales in comparison with politically charged episodes in the past, such as the Nixon years when the Fed was leaned on heavily to keep rates low.
Ms Brainard’s forceful drive for easy monetary policy began two months after the 2015 Jackson Hole meetings, when she delivered a blunt speech that left some with the impression that she was at loggerheads with Ms Yellen. Ms Brainard warned against prematurely lifting rates amid slack in the labour market and subdued inflation — even as the chair was steering markets to expect a move by the end of the year.
Ms Brainard did not go on to formally dissent when Ms Yellen presided over a rate increase that December. Since then the two policymakers have appeared more closely aligned, with both recently arguing that the US recovery has further room to run before the central bank needs to increase rates again.
Ms Brainard has urged caution in part because of the risk that overseas shocks ricochet back to the US via highly integrated financial markets. This global focus builds on her work as the US’s top financial diplomat under former Treasury secretary Tim Geithner between 2010 and 2013, where in the gruelling post of undersecretary for international affairs she was a key US figure in discussions over the euro area debt crisis, as well as the broader global fallout from the financial crash.
Fed should not rush to raise rates, says Brainard
Already low expectations of a September increase fall further after policymaker’s cautious comments
One official who spoke with her regularly was George Papaconstantinou, Greece’s finance minister from 2009 to 2011. He recalls hearing from Ms Brainard two or three times a week during the febrile days of early 2010, as Europe dragged its feet over how to handle the Greek crisis and the US pushed for action. The calls were partly “therapy” for him and partly information-gathering by Ms Brainard so she had “a better sense of how close we were to the edge”. He says: “She clearly knew her stuff.”
Ms Brainard, who declined to comment for this article, developed her interest for global affairs in part on the back of her upbringing as a diplomat’s daughter, spending some of her childhood behind the iron curtain in Poland and East Germany. A former MIT economics professor, she has three children and is married to Kurt Campbell, a former top state department official.
A reserved individual, Ms Brainard left the Treasury with a mixed reputation among officials, some of whom found her unsupportive and distant. Others, including Jared Bernstein, a former economic adviser to vice-president Joe Biden, praise her straight-talking manner and clarity of thought. “There are people who blather on and she is not one of them,” he says.
When Washington observers size up potential Treasury secretaries, Ms Brainard’s name comes up alongside Gary Gensler, the former head of the Commodity Futures Trading Commission, and Sheryl Sandberg, chief operating officer of Facebook.
What gives Ms Brainard’s claim potency is not only her international and domestic economic experience, but also the helpful absence of a stint on Wall Street in her curriculum vitae. For many Democrats, her very public campaign for low rates has only strengthened her qualifications for the post.
By Lael Brainard
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COMPTROLLER STRINGER DEBARS CONTRACTOR THAT CHEATED IMMIGRANT WORKERS OUT OF $1.7 MILLION IN PREVAILING WAGES AND BENEFITS
COMPTROLLER STRINGER DEBARS CONTRACTOR THAT CHEATED IMMIGRANT WORKERS OUT OF $1.7 MILLION IN PREVAILING WAGES AND BENEFITS
(New York, NY) – New York City Comptroller Scott M. Stringer today assessed $3.2 million in fines against K.S....
(New York, NY) – New York City Comptroller Scott M. Stringer today assessed $3.2 million in fines against K.S. Contracting Corporation and its owner, Paresh Shah, for cheating dozens of workers out of the prevailing wages and benefits they were owed under the New York State Labor Law. In addition to being assessed $3.2 million in unpaid wages, interest, and civil penalties, K.S Contracting and Mr. Shah will be barred from working on New York City and State contracts for five years.
K.S. Contracting was named as one of the worst wage theft violators in New York in a report by the Center for Popular Democracy in 2015.
“With President Trump taking clear aim at immigrants across the country, we need to stand up and protect the foreign-born New Yorkers who keep our City running. Every New Yorker has rights, and my office won’t back down in defending them,” New York City Comptroller Scott M. Stringer said. “Contractors might think they can take advantage of immigrants, but today we’re sending a strong message: my office will fight for every worker in New York City. This is about basic fairness and accountability.”
K.S. Contracting was awarded more than $21 million in contracts by the City Departments of Design and Construction, Parks and Recreation, and Sanitation between 2007 and 2010. Projects included the Morrisania Health Center in the Bronx, the 122 Community Center in Manhattan, the Barbara S. Kleinman Men’s Residence in Brooklyn, the North Infirmary Command Building on Rikers Island, Bronx River Park, the District 15 Sanitation Garage in Brooklyn, and various City sidewalks in Queens.
The Comptroller’s Office began investigating the company after an employee filed a complaint with the office in May 2010. The multi-year investigation used subpoenas, video evidence, union records, and City agency data to uncover a kickback scheme that preyed on immigrant workers.
After a four-day administrative trial in May 2016, the Comptroller found that K.S. Contracting routinely issued paychecks to just half of its workforce and then required those employees to cash the checks and surrender the money to company supervisors. Those supervisors would then redistribute the cash to all of the employees on a jobsite, paying them at rates significantly below prevailing wages. K.S. Contracting, however, falsely reported to City agencies that all employees on the jobsite who received checks were paid the prevailing wage.
Between August 2008 and November 2011, the company cheated at least 36 workers out of $1.7 million in wages and benefits on seven New York City public works projects. K.S. Contracting reported that it paid its workers combined wage and benefit rates starting at $50 per hour but actually paid daily cash salaries starting at $90 per day. The majority of the workers impacted were immigrants of Latino, South Asian, or West Indian descent.
The New York City Comptroller’s office enforces state and local laws which require private contractors working on New York City public works projects or those with service contracts with City agencies to pay no less than the prevailing wage or living wage rate to their employees.
When workers are underpaid, the New York City Comptroller’s office works to recoup the amount of the underpayment plus interest.
Since taking office in 2014, Comptroller Scott M. Stringer’s Bureau of Labor Law has assessed over $20 million and barred 40 contractors from state and City contracts due to prevailing wage violations, both record amounts. The assessed violation number includes underpayment of wages and benefits with interest payable to workers, and civil penalties payable to the City treasury.
“We applaud the Comptroller for standing up for the rights of immigrant workers and debarring bad actors like K.S. Contracting – a company identified by the Center for Popular Democracy as one of the worst violators of wage theft laws in New York. The Comptroller’s aggressive enforcement of prevailing wage law is a perfect example of what is needed to effectively combat wage theft throughout the city and state,” said Kate Hamaji, Center for Popular Democracy.
“We commend Comptroller Stringer for defending the rights of immigrant workers and ensure that they receive the wages and benefits that they deserve,” said Steven Choi, executive director of the New York Immigration Coalition. “In a time when immigrant communities are worried for their future in this country, it is essential that we have strong city advocates who will ensure that their rights are protected.”
“At a time when exploitative employers are feeling increasingly emboldened by Trump’s hateful rhetoric, it is imperative that our City’s leaders are taking a strong stance in defense of immigrant workers. Wage theft is a persistent and pervasive problem in New York, with employers like Paresh Shah cheating their immigrant workers out of millions of dollars in lawful wages and benefits each year. We commend the Comptroller for fighting to recuperate wages for the workers at KS Contracting and for showing employers like Paresh Shah that their behavior will not be tolerated by the City of New York,” said Deborah Axt, Executive Director, Make the Road New York.
“I want to thank New York City Comptroller Scott Stringer for taking the lead in fighting wage theft. Unfortunately wage theft is a crime that is running rampart throughout the construction industry. Hard working men and women, who expect nothing more than a fair day’s pay for a fair’s day’s work are constantly seeing their hard earned wages stolen by dishonest, criminal employers. By debarring KS Contracting for five years, Comptroller Stringer and his office have sent a message loud and clear – stealing workers’ wages will not be tolerated in New York.” said Robert Bonanza, Business Manager, Mason Tenders District Council of Greater New York, LiUNA!.
“I would like to thank Comptroller Stringer and his team in the Bureau of Labor Law for bringing justice to the workers at K.S. Contracting. Unfortunately the Comptroller’s task is made more difficult by the fact that many City agencies do not put top priority on monitoring projects for labor violations. Too many employers in New York City exploit minority and immigrant workers. And it’s no secret that many immigrant workers are fearful of retaliation for standing up for their rights, especially in an environment where they are afraid of being deported. This undercuts labor standards for all workers, and safe, educated workers are our City’s most valuable resource. We need more responsible and proactive leaders like Comptroller Stringer to protect that resource,” said Lowell Barton, Vice President/Organizing Director, Laborers Local 1010, LiUNA!.
“In a city where diversity is our greatest strength, we will not let anyone target our immigrant workers for abuse. Undermining labor standards for immigrants it’s an attack on all workers. I commend Comptroller Stringer for standing up for immigrant workers and against wage theft at a time when our immigrant communities are under attack,” said Renata Pumarol, Communications Director, New York Communities for Change.
“We at the Alliance of South Asian American Labor (ASAAL) are extremely conscious of the rights of every human being who lives in this great nation no matter what their immigration status. Many hard working individuals are taken advantage of by unscrupulous employers. We greatly applaud Comptroller Scott Stringer’s aggressive approach to combat wage theft violations and in this way protect the rights of all workers. I applaud his historic record of debarring 40 contractors since taking office and assessing over $20 million in prevailing wage violations, including today’s order against K.S. Contracting,” said Maf Misbah Uddin, ASAAL National President.
By TIP NEWS
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Overnight Finance: Obama huddles with Yellen; Puerto Rico bill markup Wednesday
Overnight Finance: Obama huddles with Yellen; Puerto Rico bill markup Wednesday
TRADING NOTES: President Obama met with Federal Reserve Board Chairwoman Janet Yellen, but interest rates were...
TRADING NOTES: President Obama met with Federal Reserve Board Chairwoman Janet Yellen, but interest rates were apparently not on the agenda.
Obama did not plan to discuss interest rates with Yellen, according to White House press secretary Josh Earnest. He argued such a conversation could undercut the chair's independence in setting monetary policy.
"I would not anticipate that, even in the confidential setting, that the president would have a conversation with the chair of the Fed that would undermine her ability to make these kinds of critical monetary policy decisions independently," Earnest told reporters ahead of the meeting.
The closed-door discussion is instead an opportunity to "trade notes" on broader economic trends in the U.S. and abroad, as well as on a new set of regulations on Wall Street financial firms.
Obama and Yellen talked about the growth outlook, "the state of the labor market, inequality and potential risks to the economy," the White House said after the meeting. The Hill's Jordan Fabian has more: http://bit.ly/25VuzIZ.
HOUSE TO MARKUP PUERTO RICO DEBT BILL: The House Natural Resources Committee will begin on Wednesday to mark up legislation aimed at saving Puerto Rico from a massive debt crisis.
Lawmakers have been working to make significant changes to the measure, which is expected to unveiled as early as Monday night, since the panel released a discussion draft on March 29.
The Puerto Rico measure, which put the island's finances under federal oversight and authorize a restructuring of some of its debt, will need to strike a balance and attract bipartisan support and the backing of the White House to move forward.
LEW MAKES CASE FOR GLOBAL ECONOMIC LEADERSHIP: Treasury Secretary Jack Lew on Monday made the case for the United States to continue its global economic leadership as the administration faces criticism from Donald Trump and other presidential candidates.
"We know that the global landscape of the next century will be very different than that of the post-war era," Lew said in a speech at the Council on Foreign Relations. "And if we want it to work for the American people, we need to embrace new players on the global economic stage and make sure they meet the standards of the system we created, and that we have a strong say in any new standards."
"The worst possible outcome would be to step away from our leadership role and let others fill in behind us," he added. The Hill's Naomi Jagoda fills us in: http://bit.ly/1qjTIwe.
GOLDMAN SACHS SETTLES MORTGAGE PROBE FOR $5 BILLION: Goldman Sachs will pay more than $5 billion to settle charges that it engaged in "serious misconduct" when selling risky mortgages leading up to the 2008 financial collapse.
The $5.06 billion civil settlement also saw the Wall Street giant admit it failed to properly inform investors of the risks in the subprime mortgage securities the bank was selling.
"This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail," acting associate attorney general Stuart Delery said in a statement.
One of the government charges, which Goldman has now acknowledged, was that the bank kept internal concerns about the strength of the mortgage market hidden from potential investors. Here's more from The Hill's Peter Schroeder: http://bit.ly/1qjTJQQ.
SANDERS SAYS GOLDMAN'S BUSINESS 'RIGGED': Bernie Sanders charged Monday that the settlement proves Goldman Sachs's business is "based on fraud."
The Justice Department announced Monday that the Wall Street giant would pay over $5 billion to settle charges it sold risky mortgage investments in the lead up to the financial crisis, and didn't tell investors enough about it.
Sanders, who has built his presidential campaign in large part on big bank bashing, said the settlement proves his point.
"What they have just acknowledged to the whole world is that their system ... is based on fraud," he told supporters in New York.
Sanders also complained that the civil settlement did not include any criminal charges, proving the "corruption of our criminal justice system." http://bit.ly/1TNk2Lm
HAPPY MONDAY and welcome to Overnight Finance, where we're wondering why Herbert Hoover gets to join the racing presidents. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.
Tonight's highlights include securities fraud charges for Texas's attorney general, a trillion-dollar national pension gap and a Tax Day delay.
See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://www.thehill.com/signup/48.
ON TAP TOMORROW:
Senate Finance Committee: Hearing on examining cybersecurity and protecting taxpayer information, 10 a.m
Senate Appropriations Subcommittee on Financial Services: Hearings to examine proposed budget estimates and justification for fiscal year 2017 for the Securities and Exchange Commission and Commodity Futures Trading Commission., 10:30 a.m.
House Rules Committee: Business Meeting: H.R. 2666: No Rate Regulation of Broadband Internet Access Act; H.R. 3340: Financial Stability Oversight Council Reform Act; H.R. 3791: To raise the consolidated assets threshold under the small bank holding company policy statement and for other purposes.
Puerto Rico Oversight, Management, and Economic Stability Act expected to be released.
"Getting Her Money's Worth: What Will It Take to Achieve Equal Pay?" discussion featuring Sens. Kirsten Gillibrand (D-NY) and Heidi Heitkamp (D-ND), 11:45 am.
BERNIE FANS LEFT'S FLAMES AGAINST FED: Liberal activists are putting a target on the Federal Reserve for the 2016 elections, much to the delight of the Bernie Sanders campaign.
Denouncing an agenda that they say tilts toward Wall Street, members of the "Fed Up" coalition on Monday unveiled a set of reforms that would alter how the central bank does business.
"No longer are we focused only on fixing the Fed's monetary policy and internal governance positions," said Ady Barkan, the group's campaign director. "We are now beginning an effort to reform the Federal Reserve itself. Peter Schroeder breaks down the fight: http://bit.ly/23yMSBH.
YOU HAVE THREE MORE DAYS TO PROCRASTINATE: For most people, tax returns are due one week from today.
This year's due date for filing federal individual income tax returns is April 18, not April 15. This is because the District of Columbia is observing Emancipation Day on April 15, which falls on a Friday, according to the Internal Revenue Service (IRS).
People living in Massachusetts and Maine have until April 19 to file their tax returns because those states observe Patriots' Day on April 18.
Those who are serving in combat zones or contingency operations or become hospitalized due to injuries from their service can have additional time to pay their taxes. Those affected by federally declared disasters might also have more time, the IRS said: http://bit.ly/1Q3tzHk.
AG GROUPS PUSH FOR PACIFIC TRADE DEAL: The nation's farmers and ranchers are putting their weight behind efforts urging Congress to pass a sweeping Asia-Pacific deal this year.
In a letter to congressional leaders on Monday, 225 food and agricultural groups called on lawmakers to move forward on the 12-nation Trans-Pacific Partnership before President Obama leaves office.
"The TPP presents a valuable opportunity for U.S. agriculture; one that we cannot afford to miss," the groups wrote. The Hill's Vicki Needham explains why: http://bit.ly/1S5QCFD.
SEC CHARGES TEXAS ATTORNEY GENERAL: The Securities and Exchange Commission on Monday charged Texas's top law enforcement official with civil securities fraud for allegedly deceiving investors in a computer company.
Texas Attorney General Ken Paxton (R) received 100,000 shares of Servergy, a Nevada-based technology company, to pitch investors on a server it was selling between 2011 and 2013, according to the SEC complaint. Servergy officials allegedly marketed the server with incorrect information, and Paxton allegedly did not disclose to investors that he would be paid a commission: http://bit.ly/1RPHyG0.
US PUBLIC PENSIONS FACE $3 TRILLION HOLE: The nation's public pension system is facing a $3.4 trillion funding hole that may force cities and states to either cut spending or raise taxes to cover future shortfalls.
The deficit in pension funds is three times more than official figures and is growing, and without an overhaul could weigh on state and local budgets and lead to Detroit-like bankruptcies, according to research reported by the Financial Times.
Joshua Rauh, a senior fellow at the Hoover Institution who put together the report, told the FT that "the pension problems are threatening to consume state and local budgets in the absence of some major changes."
"It is quite likely that over a 5- to 10-year horizon we are going to see more bankruptcies of cities where the unfunded pension liabilities will play a large role." Here's more from Vicki Needham: http://bit.ly/1Su85op.
CONSERVATIVES FIGHT ENERGY TAX BREAKS IN FAA BILL: Conservative groups that oppose a proposal to include energy tax breaks in the long-term reauthorization of the Federal Aviation Administration are vowing to take their fight to the House if the Senate moves ahead.
Americans for Prosperity and Freedom Partners said Monday that if the Senate ends up attaching energy tax provisions to the FAA bill, the organizations will ratchet up pressure on lawmakers across the Capitol to oppose the language or pass a clean-extension of FAA.
"If the Senate isn't going to do anything to stop this, we're going to put pressure on the House," Andy Koenig, senior policy advisor at Freedom Partners, said on a press call. "The House is under no obligation to take up a bunch of energy subsidies if they don't want to." The Hill's Melanie Zanona walks us through the battle: http://bit.ly/1RPHrKH.
DEMS CALL FOR GREATER NONBANK MORTGAGE OVERSIGHT: Two Democratic lawmakers are calling on the nation's top consumer protection agency to ramp up its oversight of nonbank mortgage servicers.
Sen. Elizabeth Warren (Mass.) and Rep. Elijah Cummings (Md.) asked the Consumer Financial Protection Bureau (CFPB) on Monday to identify all of and collect more data on the growing number of financial institutions other than banks that service mortgages.
Warren and Cummings pointed to recommendations from a non-partisan government watchdog report published Monday. Warren, a long-time financial industry watchdog, and Cummings, the top Democrat on the House Oversight Committee, requested the Government Accountability Office (GAO) study. I'll fill you in on the rest here: http://bit.ly/1Sc3ldc.
Did you know 67% of all job growth comes from small businesses? Read More
NIGHTCAP: Five Starbucks locations in DC will start serving alcohol and "small plates," which is millennial for paying more money for less food: https://www.washingtonian.com/2016/04/08/5-dc-starbucks-will-sell-beer-wine-small-plates-next-week/.
By Sylvan Lane
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1 month ago
1 month ago