New York settles lawsuit with ex-aide who accused Andrew Cuomo of sexual harassment

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By ANTHONY IZAGUIRRE

The state of New York agreed Friday to pay $450,000 to settle a lawsuit from an ex-aide to former Gov. Andrew Cuomo who alleged Cuomo sexually harassed and groped her while he was in office.

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The former aide, Brittany Commisso, had sued Cuomo and the state, alleging sexual harassment from the then-governor and retaliation against her after reporting the incidents. The allegations were part of a barrage similar misconduct claims that forced Cuomo to resign as governor in 2021.

Commisso’s lawyers said the settlement “is a complete vindication of her claims” and that Commisso is “glad to be able to move forward with her life.”

The settlement came as Cuomo is in the midst of a so-far bruising political comeback with a run for mayor of New York City. Cuomo lost the Democratic primary last month to Zohran Mamdani by more than 12 percentage points and this week relaunched his campaign to run in the general election as an independent candidate, beginning a potentially uphill battle in a heavily Democratic city where support is coalescing behind Mamdani.

Cuomo, who has denied wrongdoing, has been dogged by the scandal during his campaign for mayor.

“The settlement is not a vindication, it is capitulation to avoid the truth,” Cuomo’s lawyers said Friday in a statement in which they called Commisso’s allegations “false.”

The attorneys, Rita Glavin and Theresa Trzaskoma, added that they “oppose the dismissal of Ms. Commisso’s lawsuit.”

“Until the truth is revealed, the lawsuit should not be dismissed,” they said in the statement.

Cuomo resigned as governor after a report from the state attorney general determined that he had sexually harassed at least 11 women, with some alleging unwanted kissing and touching, as well as remarks about their appearances and sex lives.

Commisso filed her lawsuit in late 2023, just before the expiration of the Adult Survivors Act, a special law that created a yearlong suspension of the usual time limit to sue over an alleged sexual assault.

She later filed a criminal complaint accusing Cuomo of groping her but a local district attorney declined to prosecute, citing lack of sufficient evidence.

The Associated Press doesn’t identify people who say they have been sexually assaulted unless they decide to tell their stories publicly, as Commisso has done.

Anthony Hogrebe, a spokesperson for current Gov. Kathy Hochul, said Friday that the state “is pleased to have settled this matter in a way that allows us to minimize further costs to taxpayers.”

EPA eliminates research and development office, begins layoffs

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By MATTHEW DALY

WASHINGTON (AP) — The Environmental Protection Agency said Friday it is eliminating its research and development arm and reducing agency staff by thousands of employees.

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The agency’s Office of Research and Development has long provided the scientific underpinnings for EPA’s mission to protect the environment and human health. The EPA said in May it would shift its scientific expertise and research efforts to program offices that focus on major issues like air and water.

The agency said Friday it is creating a new Office of Applied Science and Environmental Solutions that will allow it to focus on research and science “more than ever before.”

Once fully implemented, the changes will save the EPA nearly $750 million, officials said.

EPA Administrator Lee Zeldin said in a statement that the changes announced Friday would ensure the agency “is better equipped than ever to deliver on our core mission of protecting human health and the environment, while Powering the Great American Comeback.”

The EPA also said it is beginning the process to eliminate thousands of jobs, following a Supreme Court ruling last week that cleared the way for President Donald Trump’s plans to downsize the federal workforce, despite warnings that critical government services will be lost and hundreds of thousands of federal employees will be out of their jobs.

Total staffing at EPA will go down to 12,448, a reduction of more than 3,700 employees, or nearly 23%, from staffing levels in January when Trump took office, the agency said.

“This reduction in force will ensure we can better fulfill that mission while being responsible stewards of your hard-earned tax dollars,” Zeldin said, using a government term for mass firings.‘

‘Heart and brain of EPA’

Rep. Zoe Lofgren of California, the top Democrat on the House Science Committee, called the elimination of the research office “a travesty.”

“The Trump administration is firing hardworking scientists while employing political appointees whose job it is to lie incessantly to Congress and to the American people,” she said. “The obliteration of ORD will have generational impacts on Americans’ health and safety.”

The Office of Research and Development “is the heart and brain of the EPA,” said Justin Chen, president of American Federation of Government Employees Council 238, which represents thousands of EPA employees.

“Without it, we don’t have the means to assess impacts upon human health and the environment,” Chen said. “Its destruction will devastate public health in our country.”

The research office — EPA’s main science arm — currently has 1,540 positions, excluding special government employees and public health officers, according to agency documents reviewed by Democratic staff on the House science panel earlier this year. As many as 1,155 chemists, biologists, toxicologists and other scientists could be laid off, the documents indicated.

The research office has 10 facilities across the country, stretching from Florida and North Carolina to Oregon. An EPA spokeswoman said Friday that all laboratory functions currently conducted by the research office will continue.

In addition to the reduction in force, or RIF, the agency also is offering the third round of deferred resignations for eligible employees, including research office staff, spokeswoman Molly Vaseliou said. The application period is open until July 25.

‘Declaration of dissent’

The EPA’s announcement comes two weeks after the agency put on administrative leave 139 employees who signed a “declaration of dissent” with agency policies under the Trump administration. The agency accused the employees of “unlawfully undermining” Trump’s agenda.

In a letter made public June 30, the employees wrote that the EPA is no longer living up to its mission to protect human health and the environment. The letter represented rare public criticism from agency employees who knew they could face retaliation for speaking out.

The owner of the Tennessee factory where workers drowned after Hurricane Helene won’t face charges

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By TRAVIS LOLLER and JONATHAN MATTISE

NASHVILLE, Tenn. (AP) — The owner of a factory where six workers died last year in flooding from Hurricane Helene won’t face charges after a Tennessee Bureau of Investigation found no criminal wrongdoing. First Judicial District Attorney General Steven Finney announced the decision to close the case on Friday, saying no further action will be taken.

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The investigation found no evidence that Impact Plastics employees were told they could not leave the factory or that they would be fired if they left, according to a news release from the district attorney. It also found employees had a little more than an hour during which they could have evacuated from the Erwin, Tennessee, industrial park. The conclusion mirrors that of a similar investigation by the Tennessee Occupational Safety and Health Administration that found in April that workers had time to evacuate the premises, albeit by makeshift routes.

A statement from Impact Plastics attorney Stephen Ross Johnson on Friday said company president and founder Gerald O’Connor welcomes the results of the TBI investigation.

“The true and accurate facts are now known,” the statement reads.

Five employees and one contractor who cleaned the offices once a week were killed on Sept. 27 after they were washed away by floodwaters. They were among 12 people who stuck close to the Impact Plastics building, waiting for the water to recede, after realizing the exit road was already submerged. When the water kept rising, they climbed onto the bed of a semitrailer loaded with giant spools of plastic piping that was parked outside the factory. When floodwaters eventually overwhelmed the truck, six people were able to use the piping for flotation and were later rescued. The other six drowned.

FILE – The area around Impact Plastics Inc. is damaged from flooding during Hurricane Helene in Erwin, Tenn., Oct. 4, 2024. (AP Photo/Jeff Roberson, File)

The TOSHA report notes that several Impact Plastics employees did escape the flood. Some were able to drive or walk over an embankment to a nearby highway after workers at a neighboring business dismantled a fence there. Others escaped by driving over a makeshift path onto nearby railroad tracks that an employee at a neighboring business created with a tractor. Still others were able to escape by walking to the railroad tracks, according to that report.

Although the criminal case is being closed, the company still faces a wrongful death lawsuit from the family of Johnny Peterson, and other civil suits are planned.

Attorney Luke Widener, who represents the families of several flood victims, said in a statement that they “categorically disagree that Impact Plastics employees were given any meaningful opportunity to escape. …Indeed, if Impact Plastics’ account were true, Bertha Mendoza, Sibrina Barnett, and the others who perished would still be with us.”

Fashion startup founder charged with $300 million fraud

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By LARRY NEUMEISTER

NEW YORK (AP) — A former chief executive of two clothing technology companies who was once portrayed as an on-the-rise fashion entrepreneur has surrendered to face charges in an indictment unsealed Friday alleging that she cheated investors of over $300 million over the last six years.

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Christine Hunsicker, 48, of Lafayette, New Jersey, was charged with six counts, including fraud, aggravated identity theft and false statement charges in the indictment in Manhattan federal court.

U.S. Attorney Jay Clayton said in a release that Hunsicker forged documents, fabricated audits and made material misrepresentations about her company’s financial condition to defraud investors in CaaStle Inc. and P180.

The indictment said she portrayed CaaStle as a high-growth, private company with substantial cash on hand when she knew it faced significant financial distress.

In a statement, defense lawyers Michael Levy and Anna Skotko said prosecutors “have chosen to present to the public an incomplete and very distorted picture in today’s indictment,” despite Hunsicker’s efforts to be “fully cooperative and transparent” with prosecutors and the Securities and Exchange Commission.

“There is much more to this story, and we look forward to telling it,” they said.

According to the indictment, Hunsicker continued her fraudulent scheme even after the CaaStle board of directors removed her and prohibited her from soliciting investments or taking other actions on the company’s behalf.

She “persisted in her scheme” even after law enforcement agents confronted her over the fraud, the indictment said.

Before the fraud allegations emerged, Hunsicker seemed to be a rising star in the fashion world after she was named to Crain’s New York Business “40 under 40” lists, was selected as one of Inc.’s “Most Impressive Women Entrepreneurs” and was recognized by the National Retail Federation as someone shaping the future of retail, the indictment noted.

At a time when the business was in financial distress with limited cash available and significant expenses, CaaStle was valued by Hunsicker at $1.4 billion, the indictment said.

Hunsicker was lying to investors in February 2019 and continued to do so through this March, prosecutors alleged.

They said she fed investors falsely inflated income statements, fake audited financial statements, fictitious bank account records and sham corporate records.

She allegedly told one investor in August 2023 that CaaStle reported an operating profit of nearly $24 million in the second quarter of 2023 when its operating profit that quarter was actually less than $30,000.

The indictment alleged that she carried out the majority of the fraud by bilking CaaStle investors of $275 million before forming P180 last year to infuse CaaStle with cash before its investors could discover her fraud.

Through misrepresentations and omissions, she cheated P180 investors out of about $30 million, the indictment said.

It said CaaStle filed for Chapter 7 bankruptcy last month, leaving hundreds of investors holding now-worthless CaaStle shares.