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Category: Featured
FOR IMMEDIATE RELEASE—January 21, 2025
Contact: Jon Schneider, (631) 897-5439
j.schneider@mcbrideny.com
GARDEN CITY PARK WATER/FIRE DISTRICT FILES SUIT AGAINST FIRST NATIONAL BANK OF LONG ISLAND TO RECOVER $11M+ IN STOLEN FUNDS
Suit Details How Bank’s Negligence and Failure to Follow Established Procedures Allowed Cyber-Criminals to Steal $15M+ From District’s Accounts
Mineola, NY—Today the Garden City Park Water/Fire District (District) filed suit in New York State Supreme Court against First National Bank of Long Island for allowing the theft of more than $15 million in funds from the District’s accounts. After the District was able to recover some funds with the help of law enforcement, there is currently approximately $11 million outstanding which is being sought through this action.
This lawsuit follows the District’s extensive efforts to recover the stolen funds, including working with federal and local law enforcement. Unfortunately, these efforts have not resulted in the recovery of the full amount of the District’s stolen funds.
“As the complaint outlines, First National Bank of Long Island’s failures allowed cybercriminals to steal more than $15 million from the District,” the Garden City Park Water/Fire District Commissioners said in a statement. “As fiscally responsible stewards, we are undertaking this legal action because the District should not suffer for the Bank’s failures and incompetence. We will continue to do everything possible to fight for our residents and hold responsible parties accountable. Because we are now in a legal process, we will refer all future comments to counsel.”
“What happened to the District is every bank customer’s nightmare,” lead attorney for the District in the litigation, Jon Ward, Co-Managing Member, Sahn Ward Braff Coschignano, said. “The District relied on their bank to protect the security and integrity of its deposits, and First National Bank of Long Island failed. Now, we are asking the Court to hold First National Bank of Long Island accountable for its failure.”
As the filing outlines, cybercriminals, impersonating District personnel, contacted First National Bank of Long Island and convinced the Bank to make a number of unauthorized changes to the District’s account settings, including allowing online international and domestic wire transfers, services never previously requested or used by the District. They also convinced the Bank to provide them with confidential login information, or the means to create such information, that then enabled them to access the District’s bank accounts to initiate wire transfers.
The next business day, the cybercriminals logged in to District’s banks accounts and initiated and authorized 15 wire transfers, totaling more than $15 million, including over $12 million sent to banks in China, within a span of just four hours. Despite numerous irregularities and red flags, including exceedances of the Bank’s own limits on wire transfers by a customer, the Bank processed each of the unauthorized transfers.
Upon discovering the fraudulent activity, the District immediately contacted the Bank and federal and local law enforcement authorities. As a result, over $4.4 million of the stolen funds were recovered. The District continues to work with law enforcement to track the remaining funds. In addition, the District has moved its banking relationship to a different banking institution.
The lawsuit lists eight causes of actions against the Bank requesting approximately $11 million plus interest in addition to attorney’s fees and punitive damages through the lawsuit.
In a note being sent to District residents today, the District outlined several important points:
— This theft has not impacted the District’s operating funds or in any way impeded the District’s work and ability to serve the community.
— At no time was personal information of District residents compromised.
— At this time, the District does not anticipate increases in the District’s tax rate or taxes as a direct result of the fraud. The stolen funds were in an account for prospective capital projects.
— The District is also consulting with other Town, County and State agencies and representatives to keep them informed of the situation.
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The following letter has been mailed to all residents of the Garden City Park Water and Fire District.
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Please Click Here to view the 2023 Annual Water Quality Report
CLICK HERE to view the annual financial report.
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To further enhance our water conservation efforts, The Garden City Park Water District is proud to present a smart irrigation controller rebate program. This program offers qualified consumers who currently have a conventional sprinkler system controller a one time account credit of up to $150 towards the purchase of a new WaterSense labeled smart controller.
Please click here to learn more about this rebate program and apply.
Smart911 Notification System
In our efforts to provide more reliable communications with Residents and Businesses in the Garden City Park Water District, we have implemented Rave Mobile Safety as our Emergency Notification service provider.
Rave Mobile Safety in its simplest form is a system that makes phone calls to specific people or areas in the event of an emergency or for sharing important information.
If you are not receiving these calls, please fill out the form below to add or update your contact information. You may also remove yourself from our lists.
The Garden City Park Water District has implemented a hydrant flushing program and plans to flush hydrants throughout the district over the next few weeks during the hours of 10pm and 12am.
Under this flushing program, fire hydrants are opened in order to remove sediment that may have collected within our water mains to ensure that we provide the residents of our district with the highest quality water. This program also allows us to test that our fire hydrants function properly and provide sufficient fire protection.
Hydrant flushing in your area may be responsible for temporary lower water pressure, discolored water and/or water collecting in the street where maintenance is being performed. Rusty or discolored water is a normal result of the flushing process and is not harmful to your health. If you experience discolored water it should only last for the day on which work is conducted. We recommend running the cold water from a faucet at the closest point to where your water service enters your home, discolored/rusty water typically clears within an hour.
Please click here to view the 2022 Annual Water Quality Report
Construction at Plant 8 has been progressing nicely. The newly installed AOP (Advanced Oxidation Process) and GAC (Granular Activated Carbon) Vessels are the newest cutting edge technology used to remove 1,4 Dioxane and PFOA/S. We anticipate Plant 8 being operational for the 2023 pumping season!
(11/23/2022) (2/9/2023)
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Joseph Renta, Supervisor of Water Plant Operations GCPWD;
Brian Sibiga, PE, NYSAWWA Chair.
Joseph Renta, Supervisor of Water Plant Operations, Garden City Park Water District, took home the prestigious AWWA Operator’s Meritorious Service Award at the American Water Work Association’s Annual Conference – New York Section in Saratoga Springs this past April. The award is presented to only one operator, recognized at the section level for:
• Continuous compliance with all public health standards in treated drinking water
• Consistent outstanding contribution to plant maintenance
• Special efforts in the training of plant operators
• Demonstration of dedication to the public beyond operating responsibilities
Joseph began his career with GCPWD in 1988 as a water servicer, becoming plant operator in 2008 and moving his way up the ranks to supervisor by 2016.
Congratulations, Joe!
The New York State Department of Health (NYS DOH) recently adopted a drinking water regulation that requires all public water systems to provide treatment for PFOA, PFOS and 1,4-dioxane. Taking a proactive stance, Garden City Park Water District (GCPWD) began taking steps to evaluate advanced water treatment technologies to address emerging contaminants beginning in mid-2018, well before the new standards were put in place.
Advanced Oxidation Process (AOP) is the most technologically advanced treatment process and a proven solution that removes the compounds from drinking water. Construction of AOP reactors at Well 9 began in fall 2019, and at Well 6 in February 2020. Completion has made the wells compliant with New York State’s 1,4-dioxane regulations of a maximum contaminant level (MCL) of 1 part per billion; and for PFOA and PFOS at 10 parts per trillion.
All well sites throughout the District have Granular Activated Carbon (GAC), which removes certain chemicals, mostly organic, from water. Just 10 grams of granulated activated carbon (less than a third of an ounce), has a surface area equal to a standard NFL football field. That porosity is why GAC is ideal for eliminating emerging contaminants in water and that’s also why GCPWD has implemented this technology throughout the District.
“We have some of the most sophisticated water technology in the region,” said Commissioner Kenneth Borchers. “We brought our facilities up to the latest standards with the most advanced, state-of-the-art technology. By staying ahead of the curve, we were well prepared to meet the new standards before they were ever released.”
Please view and download our Update on Wellhead Treatment Progress, February 3, 2021 pdf.
The Garden City Park Water District currently meets all requirements and is no longer in need of a deferral.
The impact of COVID-19 has created a seismic impact on each of our lives. While it is impossible to predict what the world will look like as we continue to fight through this pandemic, we at the Garden City Park Water District continue to provide the essential service of delivering an uninterrupted water supply to our customers throughout the District, and our water continues to be in compliance with all federal, New York State and Nassau County regulations.
“While our offices remain closed to the general public to protect the health and safety of our staff and customers, we continue to work and adhere to the conditions and mandates of the state of emergency,” stated Water Commissioner Peter Chimenti. The District has taken numerous precautionary measures to protect the health of all personnel, including the enforcement of social distancing and the use of masks and gloves. Chimenti added, “Our offices are cleaned and disinfected daily, as well the District fleet of vehicles.”
It’s important to inform you that our water supply remains unaffected by the COVID-19 coronavirus outbreak. The Centers for Disease Control (CDC) and the World Health Organization have confirmed that the COVID-19 virus is not waterborne and that the standard disinfection done by water suppliers as regular practices are an effective method for inactivating the COVID-19 virus.
Increased Revenue Will Fund Various Infrastructure Upgrades to Improve Water Quality and Distribution System Resiliency
The Garden City Park Water District would like to notify its customers that a rate adjustment will be implemented beginning the 4th billing quarter of 2019. The additional revenue will help the District pay for past, current and future infrastructure projects needed to ensure the health and safety of the water supply. The rate adjustment also means the District will remain within the two percent tax cap.
The District works continuously to provide residents of our community with the highest quality water at the lowest possible cost. The costs of running a water district continue to climb as we are met with increased operational challenges and more stringent testing parameters. We are always working to maximize efficiencies, identifying areas for cost savings while maintaining our unwavering commitment to the health and safety of our water supply and distribution system.
A thorough review of the present water rate structure and property taxes with respect to the fiscal needs of the District was conducted to determine the amount of revenue needed to make ends meet. In order to remain within the two percent tax cap and maintain a high level of service and reliability in regards to the critical drinking water infrastructure, an increase to water rates was necessary. Below, you will find a three year step program:
Year 1
Residential: 2019
- Minimum quarterly bill (up to 10 thousand gallons): New rate $14
- $1.90 per thousand gallons after initial 10 thousand gallons
Commercial: 2019
- Minimum quarterly bill (up to 20 thousand gallons): New rate $50
- $2.50 per thousand gallons after initial 20 thousand gallons
Year 2
Residential: 2020
- Minimum quarterly bill (up to 10 thousand gallons): New rate $16
- $2.20 per thousand gallons after initial 10 thousand gallons
Commercial: 2020
- Minimum quarterly bill (up to 20 thousand gallons): New rate $55
- $2.75 per thousand gallons after initial 20 thousand gallons
Year 3
Residential: 2021
- Minimum quarterly bill (up to 10 thousand gallons): New rate $18
- $2.50 per thousand gallons after initial 10 thousand gallons
Commercial: 2021
- Minimum quarterly bill (up to 10 thousand gallons): New rate $60
- $3.00 per thousand gallons after initial 20 thousand gallons
The new rate structure will take effect on the 4th quarter bill received by all customers. The following schedule shows when your increase will take effect:
- Accounts beginning with 01, 02, 03 and 04 will see increase on October, 2019 bill
- Accounts beginning with 05, 06, 07 and 08 will see increase on November, 2019 bill
- Accounts beginning with 09, 10, 11 and 12 will see increase on December, 2019 bill
We are always striving to cut costs where appropriate and maximize economies of scale, but the rising costs for infrastructure and operations are simply outpacing our ability to reduce spending. Maintaining old and building new infrastructure on top of the costs of each year is not cheap. However, we are thankful our residents understand these increasing challenges and continue to support our effort to supply the Garden City Park Water District community with a safe and reliable water system.
Sincerely,
Garden City Park Water/Fire District