consumer protection report - april 2015
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NATIONAL STATE ATTORNEYS GENERAL PROGRAM: CONSUMER PROTECTION REPORT
APRIL 2015
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CONSUMER PROTECTION REPORT: April 1-30, 2015
This newsletter is a monthly circulation that describes consumer protection activity announced by state attorneys general. This information was gathered solely from attorney general press releases. It makes no effort to prioritize or
analyze the impact of any of these cases and initiatives.
The following press releases are organized by state and multistate activity. In addition, certain Medicaid fraud cases that touch on consumer protection and advocacy initiatives have been included.
If an office would like their activity to be included in subsequent newsletters, please notify [email protected].
To sign up for the monthly consumer protection report, please click on the
link below and enter your contact information. Newsletter sign up: http://stateag.us4.list-
manage.com/subscribe?u=9c3bb47bb6aba00473adb0c58&id=fdba3bae7b
The National State Attorneys General Program at Columbia Law School is a legal research, education, and policy center that examines the implications of the jurisprudence of state attorneys general. Working closely with attorneys general, academics, and other members of the legal community, the program is active in the development and dissemination of legal information used by state prosecutors in carrying out their civil and criminal responsibilities. For more information about the National State Attorneys General Program
and resources, please visit our website www.stateag.org.
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TABLE OF CONTENTS
CONSUMER PROTECTION CASES, SETTLEMENTS AND ADVOCACY
STATEMENTS ......................................................................................... 5
ARIZONA ........................................................................................................................ 5
COLORADO .................................................................................................................... 5
DISTRICT OF COLUMBIA ............................................................................................... 7
HAWAII .......................................................................................................................... 8
IDAHO ........................................................................................................................... 8
ILLINOIS ........................................................................................................................ 9
IOWA ........................................................................................................................... 10
MARYLAND .................................................................................................................. 12
MASSACHUSETTS ........................................................................................................ 13
MISSISSIPPI ................................................................................................................. 15
MISSOURI .................................................................................................................... 15
NEVADA ....................................................................................................................... 19
NEW HAMPSHIRE ........................................................................................................ 19
NEW JERSEY ............................................................................................................... 22
NEW YORK ................................................................................................................... 23
NORTH CAROLINA ....................................................................................................... 29
OHIO ............................................................................................................................ 29
TENNESSEE ................................................................................................................. 32
TEXAS ......................................................................................................................... 32
WASHINGTON .............................................................................................................. 33
WEST VIRGINIA ........................................................................................................... 34
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MEDICAID FRAUD CASES AND SETTLEMENTS ..................................... 35
ALABAMA..................................................................................................................... 35
CONNECTICUT ............................................................................................................. 35
GEORGIA ..................................................................................................................... 36
LOUISIANA ................................................................................................................... 37
MASSACHUSETTS ........................................................................................................ 38
MISSOURI .................................................................................................................... 40
NEW HAMPSHIRE ........................................................................................................ 41
NEW YORK ................................................................................................................... 41
OKLAHOMA ................................................................................................................. 42
PENNSYLVANIA ............................................................................................................ 43
RHODE ISLAND ............................................................................................................ 43
TEXAS ......................................................................................................................... 44
VERMONT .................................................................................................................... 44
CONSUMER ADVOCACY ........................................................................ 45
CALIFORNIA ................................................................................................................ 45
DELAWARE .................................................................................................................. 45
DISTRICT OF COLUMBIA ............................................................................................. 45
ILLINOIS ...................................................................................................................... 46
INDIANA ....................................................................................................................... 47
LOUISIANA ................................................................................................................... 48
MARYLAND .................................................................................................................. 49
MASSACHUSETTS ........................................................................................................ 50
NEW JERSEY ............................................................................................................... 51
NEW YORK ................................................................................................................... 51
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OHIO ............................................................................................................................ 53
PENNSYLVANIA ............................................................................................................ 54
RHODE ISLAND ............................................................................................................ 54
SOUTH DAKOTA .......................................................................................................... 55
WASHINGTON .............................................................................................................. 56
WEST VIRGINIA ........................................................................................................... 57
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CONSUMER PROTECTION CASES, SETTLEMENTS AND
ADVOCACY STATEMENTS
ARIZONA
April 22, 2015
Attorney General Mark Brnovich Stops Fraudulent Appliance Sales
Attorney General Mark Brnovich announced a settlement today in a fraud
lawsuit against My Sister's Appliance LLC (MSA), Payless Appliance (Payless)
and managers Pedram and Pooneh Azizi. The defendants sell used household
appliances in Phoenix and Mesa, Arizona. On April 14, 2015, the court
approved a stipulated consent judgment that restricts the companies and
managers from violating the Arizona Consumer Fraud Act (ACFA).
The state’s complaint alleged that the managers violated the ACFA by issuing
deceptive advertisements; failing to disclose defects; delivering different and
inferior appliances than those ordered; delivering defective appliances;
refusing to allow returns and exchanges of defective appliances; and selling
appliances that were improperly repaired.
https://www.azag.gov/press-release/attorney-general-brnovich-stops-
fraudulent-appliance-sales
COLORADO
April 29, 2015
Attorney General Coffman Announces Record $1 Million Penalty Against
Colorado Springs Retailer For Selling Spice
Colorado Attorney General Cynthia H. Coffman announced today that the
State has secured a record $1 million civil penalty against Popo Wee Mart,
LLC, a former Colorado Springs convenience store, and its owner, Jin Ju Kim,
for selling illegal synthetic cannabinoids, commonly known as Spice, at the
store. The Attorney General's Consumer Protection Section sued Popo Wee
Market and Jin Ju Kim in May 2014 for continuing to sell Spice products at
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COLORADO CONT’D
the store despite an earlier seizure of all its illegal products by law
enforcement agents.
http://www.coloradoattorneygeneral.gov/press/news/2015/04/29/colorado_
attorney_general_coffman_announces_record_1_million_penalty_against_c
April 27, 2015
Attorney General Coffman Provides Over $7.7 Million In Restitution To
Homeowners Overcharged By Foreclosure Law Firm Aronowitz &
Mecklenburg, LLP
Colorado Attorney General Cynthia H. Coffman announced today that her
office has sent out more than 20,000 checks to homeowners who were
improperly charged false and inflated foreclosure costs by foreclosure law firm
Aronowitz & Mecklenburg, LLP. Attorney General Coffman contracted with a
third-party Administrator to send out the payments totaling over $7.7
million. Homeowners eligible for these payments cured, reinstated, or entered
a loan modification to stop a foreclosure initiated through Aronowitz &
Mecklenburg.
http://www.coloradoattorneygeneral.gov/press/news/2015/04/27/colorado_
attorney_general_coffman_provides_over_77_million_restitution_homeown
April 08, 2015
Attorney General Coffman Sues Air- Duct Cleaning Company
For the fourth time in two years, the Colorado Attorney General’s Office has
successfully sued an air-duct cleaning company for false advertising. A
consent judgment was obtained against 212 Home Inc., (d/b/a Denver Air
Duct), and company owner, Eliran Raviv. While consumers were enticed with
bargain $39 cleaning offers, they were ultimately charged much higher
amounts. The company misrepresented the qualifications of its staff and
misled homeowners into believing that their systems contained mold. Under
the consent judgment, Raviv and 212 Home Inc., are permanently barred from
the air duct cleaning business in Colorado and must pay $15,000 in
penalties.
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http://www.coloradoattorneygeneral.gov/press/news/2015/04/08/colorado_
attorney_general_warns_consumers_be_wary_air_duct_cleaning_offers
DISTRICT OF COLUMBIA
April 8, 2015
Attorney General Karl A. Racine Launches Effort to Combat Synthetic Drugs with Lawsuit against Store
OAG Files Case against Store on Georgia Avenue; Attorney General Racine Educates Residents
Attorney General Karl A. Racine today announced that the Office of the Attorney General (OAG) launched a concerted initiative to end the sales of
dangerous synthetic drugs in the District and filed an action against a Petworth convenience store for sales of synthetic cannabinoids.
http://oag.dc.gov/release/attorney-general-launches-effort-combat-synthetic-drugs-lawsuit-against-store
GEORGIA
April 9, 2015
Attorney General Sam Olens Announces Owner of Travel Agency Who
Scammed Customers Sent to Jail, Ordered to Pay $360K Fine
Oscar Lee Benton, the owner of Benton Travel Group, has been sentenced by
DeKalb Superior Court Judge Courtney Johnson to up to 10 days in jail and a
$360,000 fine after the Attorney General's office took him to court for
scamming customers and failing to refund the money he had been ordered to
pay back to customers. In addition, Judge Johnson established a payment
schedule for Benton to pay the remainder of the consumer restitution he is
responsible for in the amount of $4,335.
http://law.ga.gov/press-releases/2015-04-13/owner-travel-agency-who-
scammed-customers-sent-jail-ordered-pay-360k-fine
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HAWAII
April 27, 2015
Attorney General Doug Chin Announces State Receives $12 Million In
Settlement With Credit Card Companies
The state attorney general’s office today transferred $12.5 million into the
state’s general fund after successfully resolving lawsuits with several national
credit card providers for engaging in alleged unfair and deceptive business
practices involving Hawaii consumers.
In 2012 the state sued credit card providers Chase, Citi, Bank of America,
Discover, HSBC, Capital One, and Barclays to stop illegal practices involved in
the marketing of credit card.
http://ag.hawaii.gov/wp-content/uploads/2015/01/News-Release-2015-
13.pdf
IDAHO
April 29, 2015
Attorney General Lawrence Wasden Announces Judge Orders Jail Against
White Hat Group Owner For Violating Settlement With Attorney General
A judge has ordered a Boise man accused of providing unlawful legal services
to spend 21 days in jail for violating a settlement agreement with Idaho
Attorney General Lawrence Wasden.
Fourth District Judge Jason D. Scott on Wednesday found Mark Wicklund,
61, in contempt on seven counts, including providing legal services to at least
two clients when he was prohibited from doing so by a consent judgment
reached with Wasden in 2013.
http://www.ag.idaho.gov/media/newsReleases/2015/nr_04292015.html
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IDAHO CONT’D
April 4, 2015
Attorney General Lawrence Wasden’s Report on Idaho Aquarium Finds
Questionable Use of Charitable Funds, Poor Record Keeping
Attorney General Lawrence Wasden has concluded his investigation into Idaho Aquarium Inc. and issued a report showing a pattern of bad judgment
and questionable use of charitable resources by former executives and board of directors.
Wasden released the findings today of his investigation, which revealed problems ranging from poor and incomplete record keeping to deceptive
solicitations for charitable donations to excessive compensation paid to former executives.
http://www.ag.idaho.gov/media/newsReleases/2015/nr_04022015.html
ILLINOIS
April 13, 2015
Attorney General Lisa Madigan Charges Former Charity Head For
Stealing Funds Donated To Help Homeowners Avoid Foreclosure
Attorney General Lisa Madigan today announced charges against the former
executive director of a Chicago-based charity for stealing funds of a charitable
organization that was created to help low-income families avoid foreclosure.
Rudolph Harper, 63, of Chicago, was charged in Cook County Criminal Court
with one count of theft over $100,000 and one count of personal use of
charitable trust funds. Madigan alleges that as executive director of
Organization of New City, Harper used thousands of dollars of the charity’s
donations for personal gain. Organization of New City was created to help low-
income homeowners stay current on their mortgages to help avoid foreclosure.
http://www.illinoisattorneygeneral.gov/pressroom/2015_04/20150413b.html
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ILLINOIS CONT’D
April 10, 2015
FTC, Illinois Attorney General Halt Chicago Area Operation Charged With
Illegally Pressuring Consumers to Pay ‘Phantom’ Debts
The Federal Trade Commission and the Illinois Attorney General’s Office have obtained a court order temporarily halting a fake debt collection scam located
in Aurora, Illinois, a western suburb of Chicago. The defendants are charged with illegally using threats and intimidation tactics to coerce consumers to
pay payday loan debts they either did not owe, or did not owe to the defendants.
The FTC’s case against K.I.P., LLC, Charles Dickey, and Chantelle Dickey is the agency’s seventh ‘phantom’ debt collector matter.
http://www.illinoisattorneygeneral.gov/pressroom/2015_04/PLRG_Release_4
1015.pdf
IOWA
April 24, 2015
Attorney General Tom Miller Announces College Admissions Assistance
Company Required to Change its Marketing, Make Refunds, and Pay
$25,000
Texas-based company agrees to reforms following complaint that it misled Iowa
couple from Haiti into $2,000 contract
College Admission Assistance LLC, a Delaware company headquartered in
Arlington, Texas, has agreed to change how it markets its services to Iowa
households with college-bound students following a complaint that the
company misled and took advantage of an Iowa couple.
A Des Moines-area accountant filed a complaint with the Consumer
Protection Division on behalf of two clients, a couple born in Haiti and now
living in Iowa. The complaint detailed how College Admission Assistance drew
the couple into a contract requiring payment of nearly $2,000 for private
counseling and other services intended to prepare their teenage son for
college, help select a school, and arrange financial aid.
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IOWA CONT’D
According to the complaint, the couple had received an official-looking letter
from the “Director of Student Services” at College Admission Assistance
directing them to attend an upcoming meeting about their son’s college
prospects at a local venue. The mother attended with the student, and once
there a company representative allegedly pressured her to sign a contract for
college-admission-related services that the couple later determined they did
not need and could not afford.
https://www.iowaattorneygeneral.gov/newsroom/college-admissions-
assistance-company-required-to-change-its-marketing-make-refunds-and-
pay-2500/
April 13, 2015
Attorney General Tom Miller Announces UK-Based Psychic Scheme Pays
$7,000 for Refunds to Iowa Victims
More than 300 primarily elderly Iowans fell prey to personalized mailings from
supposed psychic “Mary Theresa” or "Lady of Hearts"
A United Kingdom company has paid $7,000 to the attorney general’s
consumer protection division for refunds to mostly elderly Iowans who
responded to personalized psychic solicitations.
The refunds will go to approximately 325 Iowa consumers who sent money at
the request of “Mary Theresa,” also known as the “Lady of Hearts,” in
response to mailings promising wealth and miracles.
Polk County District Court Judge Eliza Ovrom, through a consent judgment,
approved the payment by Nature Plus Limited, of Stratford upon Avon, and its
principal, Alida Maggiori, to resolve a consumer fraud lawsuit filed by
Attorney General Tom Miller.
The court order also requires the defendants to cease all mail solicitations
directed to Iowans and ensure that no one else uses the Iowa mailing list.
https://www.iowaattorneygeneral.gov/newsroom/uk-based-psychic-scheme-
pays-7000-for-refunds-to-iowa-victims/
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IOWA CONT’D
April 3, 2015
Attorney General Tom Miller Announces Florida Buying Club Company
Agrees to Refunds and Stop Marketing to Iowa Consumers
Miller alleges company illegally enrolled Iowans in multiple buying clubs when
they responded to a postcard offering a $100 gift card
A Florida buying club operation will pay the state nearly $45,000 for refunds
to more than 2,600 Iowa consumers it charged for memberships for which
they did not intentionally enroll, through an agreement with Attorney General
Tom Miller.
The agreement, called an Assurance of Voluntary Compliance, requires Global
Travel International Inc., of Maitland, to pay for refunds to Iowans charged for
“Valu-Pass”, “Journey Pass”, and “Go Shop and Save” memberships. The
memberships claim to provide savings on retail or travel-related purchases.
According to Miller, Global Travel has unlawfully enrolled Iowans in its
membership programs since 2008.
https://www.iowaattorneygeneral.gov/newsroom/florida-buying-club-
company-agrees-to-refunds-and-stop-marketing-to-iowa-consumers/
MARYLAND
April 29, 2015
Attorney General Frosh and CFPB File Charges Against Title Company
and Individuals Involved in Kickback Scheme with Loan Officers
Owings Mills business and its employees illegally swapped payments for
referrals
Attorney General Brian E. Frosh announced today that his Consumer
Protection Division and the Consumer Financial Protection Bureau (CFPB)
took action against a defunct Owings Mills title company -- Genuine Title, LLC
-- its principals, and several mortgage loan officers who referred clients to
Genuine Title, for engaging in a mortgage kickback scheme.
Genuine Title, its owner Jay Zukerberg and its Marketing Director Brandon
Glickstein, as well as three loan officers, agreed to settle the allegations and
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pay restitution or penalties. This follows enforcement actions taken in
January against Wells Fargo and JP Morgan Chase for employing loan officers
who accepted kickbacks from Genuine Title.
http://www.oag.state.md.us/Press/2015/042915.html
April 1, 2015
Attorney General Brain Frosh Secures Settlement with Plumbing
Company
Washington Co. business advertised $99 to unclog drains, but didn't tell
consumers they also had to pay pricey service plan, dispatch fee
The Maryland Office of the Attorney General's Consumer Protection Division
today announced a settlement agreement with Washington County-based
plumbing, heating and air-conditioning service provider Larry and Sons, Inc.,
which also does business as "Mr. Drain Cleaner," and its owners, Eric and
Michael Corbett (collectively referred to as "Larry and Sons"). The settlement
resolves allegations that Larry and Sons advertised that it would unclog any
drain for $99, but when consumers hired the company, they were charged
more -- sometimes hundreds of dollars more -- to obtain the service.
http://www.oag.state.md.us/Press/2015/040115.html
MASSACHUSETTS
April 22, 2015
Attorney General Healey Sues Treatment Center for Illegally Profiting off
of Patients Seeking Treatment for Opiate Addiction
Center for Psychiatric Medicine Unlawfully Charged Patients for Suboxone
Treatment Covered Under MassHealth
A North Andover treatment center has been sued for unlawfully profiting off of
patients seeking treatment for opiate addiction, charging hundreds of dollars
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per visit and allowing them to avoid counseling services, Attorney General
Maura Healey announced today.
The civil complaint, filed today in Essex Superior Court against the Center for
Psychiatric Medicine (CPM), alleges that since October 2010, the business
increased its profit by charging hundreds of its patients cash fees to receive
Suboxone treatment, a medication covered by MassHealth that is used to
treat narcotic opiate addiction under a physician’s supervision. Patients were
also allegedly told by CPM that they could avoid required weekly therapy
sessions and monthly physician visits by paying cash instead.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
04-22-center-for-psychiatric-medicine-complaint.html
April 16, 2015
Attorney General Healey Announces Insurance Agency Ordered to Pay
More Than $3.5 Million for Inflating Premiums with Undisclosed “Agency
Fees”
Scheme Orchestrated by Former Agent of Kilgore Insurance Agency
Overcharged Small Business Owners; Defendants Ordered to Pay Customer
Restitution
A former retail insurance agent with Peabody-based Kilgore Insurance Agency,
along with the agency’s owners, have been ordered to pay more than $3.5
million in restitution and interest for overcharging clients, mostly small
business owners, by padding insurance premiums with hidden “agency fees.”
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
04-16-kilgore-insurance-judgment.html
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MISSISSIPPI
April 21, 2015
Attorney General Jim Hood Files Suit Against State Farm for Alleged
Katrina Scheme involving “Homeowner Assistance Program”
Attorney General Jim Hood filed suit today against State Farm Fire and
Casualty Company in the Circuit Court of Hinds County. The lawsuit seeks to
recover damages for losses that the State of Mississippi suffered as a result of
an alleged scheme by State Farm to mischaracterize wind damage as flood
damage when adjusting the homeowner insurance claims of thousands of
Mississippians in the wake of Hurricane Katrina.
Mississippi established the Homeowner Assistance Program (“HAP”) after
Katrina to provide financial assistance to Mississippi homeowners whose
insurance did not fully cover the massive damage caused by the storm.
Attorney General Hood alleges in the lawsuit that State Farm systematically
mischaracterized Katrina wind damage (which its policies covered) as flood
damage (which its policies did not cover), improperly minimizing its own
financial burden and forcing that burden instead on to HAP. In doing so,
State Farm caused Mississippi to pay hundreds of millions of dollars that the
State otherwise could have allotted to other recovery efforts. Because
homeowners who received funds from HAP subrogated their equivalent
insurance claims to Mississippi, any funds recovered as a result of the lawsuit
will be returned to the State.
http://www.ago.state.ms.us/releases/attorney-general-jim-hood-files-suit-
against-state-farm-for-alleged-katrina-scheme-involving-homeowner-
assistance-program/
MISSOURI
Apr 24, 2015
Attorney General Chris Koster Obtains Restitution For Consumer
Victims Of Odometer Fraud
Attorney General Chris Koster today announced that Ashley Bolton was
ordered by the Greene County Circuit Court to pay $94,416.29 to 45
consumer victims of an odometer scam. An investigation by the Attorney
General's Office, the Missouri Department of Revenue and the Office of
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MISSOURI CONT’D
Odometer Fraud in the National Highway Transportation Safety
Administration found Bolton misrepresented the actual mileage of vehicles
offered for sale by his Excel Auto Group in 2011 and 2012.
https://ago.mo.gov/home/ag-koster-obtains-restitution-for-consumer-
victims-of-odometer-fraud
April 21, 2015
Attorney General Chris Koster reaches settlement for consumers who
purchased vehicles but never received title
Attorney General Chris Koster announced today that he has obtained a
settlement with Suntrup Ford – Westport and Suntrup Ford - Kirkwood to
provide titles for approximately 50 vehicles sold to consumers by Mylenbusch
Auto Sales of St. Charles. Under the settlement, Mylenbusch customers who
purchased cars consigned by the two Suntrup dealers prior to Mylenbusch’s
closure will receive title to their vehicle, a refund of any duplicate payments,
and may also be eligible for compensation for their costs incurred during the
time in which they were without valid title.
On March 26, Koster sued Suntrup Ford – Westport and Suntrup Ford –
Kirkwood and their owner Thomas Suntrup, along with Mylenbusch Auto
Sales of St. Charles, and its owner Erik Mylenbusch, in St. Charles County
Circuit Court for failing to deliver motor vehicle titles to consumers
throughout the St. Louis metropolitan area.
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
reaches-settlement-for-consumers-who-purchased-vehicles-but-never-
received-title
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MISSOURI CONT’D
April 14, 2015
Attorney General Chris Koster Cracks Down On Two Kansas City-Area
Scam Contractors
Attorney General Chris Koster announced today the filing of civil lawsuits in
Jackson County Circuit Court against William Lahn and Tim Garbleman, two
contractors in the Kansas City area, alleging both took upfront payments for
construction and concrete jobs without completing the work as promised.
According to Koster’s lawsuit, William Lahn of Eskridge, Kansas, doing
business as William Lahn Concrete and Foundation Repair, accepted more
than $12,000 in upfront payments from six Missouri consumers for concrete
and foundation repair work that was never completed. In one case, Lahn
accepted a 50 percent upfront payment, promising to return in one week to
perform the job. When Lahn failed to show for the job, the consumer called
Lahn, who rescheduled for ten days later. When Lahn again failed to show on
the rescheduled date, the consumer’s telephone calls went unreturned.
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
cracks-down-on-two-kansas-city-area-scam-contractors
April 8, 2015
Attorney General Koster Sues St. Louis-Area Scam Contractor Attorney General Chris Koster announced today that his office sued A+
Builders Solutions, LLC of St. Charles, and owner Jeremy Devinney, alleging that the company violated Missouri law by accepting up-front payments for
home construction jobs and then failing to perform the promised work. The St. Charles County Circuit Court has ordered A+ Builders and its owner to temporarily cease soliciting, advertising, performing, or accepting payment for
home repair or remodeling in the state of Missouri.
According to Koster’s lawsuit, A+ Builders accepted at least $74,513 in upfront payments from at least eight Missouri consumers for home repair or
remodeling work that the company never completed. In some cases, A+ Builders subcontracted work to other contractors and then failed to pay them. At least six of A+ Builders’ Missouri customers are still waiting for their repair
or remodeling jobs to be completed. They attempted to contact A+ Builders and Devinney to demand completion of the work or a refund but were met
with false promises or unreturned calls.
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MISSOURI CONT’D
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
sues-st.-louis-area-scam-contractor
Apr 7, 2015
Attorney General Chris Koster shuts down California home security system telemarketer for violating Missouri's No Call law
Attorney General Chris Koster announced today that he has obtained a
judgment permanently prohibiting California-based First Pacific Marketing, LLC, and its owner, Lindsay W. Johnson, from placing any further telemarketing calls to any Missouri consumers, for violating the Missouri No
Call law.
In addition to the prohibition against further calls to any Missourians, First Pacific and Johnson are ordered to pay $17,000 in civil penalties and an
additional $2,000 to reimburse the state for the cost of the investigation and prosecution of the case.
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-shuts-down-california-home-security-system-telemarketer-for-violating-
missouri%27s-no-call-law
April 1, 2015
Attorney General Chris Koster sues Oregon businesses for deceptive magazine and newspaper renewal solicitations to Missouri consumers
Attorney General Chris Koster announced today a lawsuit filed in Jackson
County Circuit Court against Laura Lovrien of Oregon, and her companies, Liberty Publishers Services and Orbital Publishing Group for using deceptive
solicitations that encouraged Missouri consumers to renew subscriptions to magazines and newspapers at higher cost than they would have paid by renewing directly through the publisher.
Lovrien’s companies, doing business as numerous entities, including
Publishers Billing Association, Associated Publishers Network, and Allied Publishers Service, mailed solicitations designed to look like invoices directly
from the magazine or newspaper publisher. The solicitations purported to offer the lowest available rate available to renew. However, according to Koster, the rates offered were often significantly higher than the renewal rates
offered by the periodical publishers. The lawsuit also asserts that by using the phrase “renewal,” the direct-mail advertisements falsely led some consumers to believe their subscriptions were close to expiration.
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https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-sues-oregon-businesses-for-deceptive-magazine-and-newspaper-renewal-
solicitations-to-missouri-consumers
NEVADA
April 29, 2015
Attorney General Laxalt Prosecutes Pahrump Man for Mortgage Lending
Fraud
Nevada Attorney General Adam Paul Laxalt announced that Stephen Choate,
62, of Pahrump, was sentenced last week on a charge of a pattern of mortgage
lending fraud. Choate ran a scam to defraud clients of $11,500 in fees under
the guise that he would obtain loan modifications for them. He cheated
homeowners between November 2010 and February 2012.
http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Prosecutes_Pahru
mp_Man_for_Mortgage_Lending_Fraud/
NEW HAMPSHIRE
April 20, 2015
Attorney General Joseph A. Foster Settles Claims Against Charles
Balanoff, d/b/a ElderCare Advantage, Alleging the Company Overcharged
Veterans for Services Related to Applications for Federal Aid and
Attendance Benefits
Attorney General Joseph A. Foster announces that the State has entered into
an Assurance of Discontinuance with Charles Balanoff, d/b/a ElderCare
Advantage, of Groveland, Massachusetts, to resolve allegations that ElderCare
Advantage overcharged clients who came to them for assistance in applying
for federal Aid and Attendance benefits through the Veterans' Administration
(VA).
http://doj.nh.gov/media-center/press-releases/2015/20150420-eldercare-
settlement.htm
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NEW HAMPSHIRE CONT’D
April 20, 2015
Attorney General Joseph A. Foster Announces Preliminary Injunction
Ordered Against Veterans Museum of New Hampshire and Henry T.
Pratte
Attorney General Joseph A. Foster announces that the Charitable Trusts Unit
has today obtained a preliminary injunction against a registered New
Hampshire charitable organization, Veteran Museum of New Hampshire, and
its president, Henry T. Pratte. The injunction prohibits the Museum
organization and Mr. Pratte from soliciting donations or accepting military
artifacts, pending a final hearing in the case. This injunction comes after
several years of efforts to bring the organization into compliance with the law.
The complaint against Veterans Museum of New Hampshire and Mr. Pratte
was filed on March 27, 2015. It alleges that the defendants committed
numerous violations of statutes concerning the solicitation of donations and
the composition of the board of directors. In this case, it is alleged that the
defendants maintained a website, veteransmuseumofnh.com, that sought
donations to build a museum across from the New Hampshire Veterans
Cemetery, on land they did not own, for an organization that had not obtained
tax exempt status. The complaint also claims that Mr. Pratte filed a false
report with the Charitable Trusts Unit claiming that the organization fielded a
full board of directors.
http://doj.nh.gov/media-center/press-releases/2015/20150420-veteran-
museum.htm
April 9, 2015
Attorney General Joseph A. Foster Announces Epic Oriental Rugs Of
Hampton Agrees To Stop Advertising Its Going Out Of Business Sale In
Violation Of The Consumer Protection Act
Attorney General Joseph A. Foster announces that the State has entered into
an Assurance of Discontinuance with Menashe Cohen, d/b/a Epic Oriental
Rugs, of Hampton, New Hampshire to resolve allegations that Mr. Cohen
violated the State's Consumer Protection Act by advertising and conducting a
going out of business sale for longer than 60 days.
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NEW HAMPSHIRE CONT’D
Mr. Cohen began advertising a going out of business sale at Epic Oriental
Rugs during the fall of 2014. Mr. Cohen advertised this sale through store
banners, direct mailers, newspaper ads, and TV commercials. Mr. Cohen's
going out of business sale advertisements were published until April 2015.
http://doj.nh.gov/media-center/press-releases/2015/20150409-epic-
oriental-rugs.htm
April 6, 2015
Attorney General Joseph A. Foster announces Local Contractor Admits
Violation of the Consumer Protection Act by Falsely Claiming He Was
Licensed and Insured
Attorney General Joseph A. Foster announces that the State has entered into
an Assurance of Discontinuance with Scott Attridge, d/b/a Christian
Construction and Tile, of Bedford, New Hampshire to resolve allegations that
Mr. Attridge violated the State's Consumer Protection Act by falsely claiming
to consumers that he was licensed and insured.
This past winter, Mr. Attridge had provided roof snow shoveling services to
homeowners in Bedford. The allegations arose from a complaint that Mr.
Attridge had given consumers a business card that claimed he was licensed
as a home contractor and was also insured, when, in fact he was neither.
New Hampshire does not license home contractors and Mr. Attridge had no
active insurance policy for the work he did for consumers.
http://doj.nh.gov/media-center/press-releases/2015/20150406-contractor-
admits.htm
22
NEW JERSEY
April 27, 2015
Acting Attorney General John J. Hoffman Announces Prosecution of
Alleged Sale of Aviation Fuel to Unsuspecting Motorists Leads to
$137,000 in Settlements Obtained by New Jersey Division of Consumer
Affairs
Gas Station Owner, Fuel Distributor, Fuel Transporter Settle State Allegations
Acting Attorney General John J. Hoffman today announced that the New
Jersey Division of Consumer Affairs and its Office of Weights and Measures
have obtained settlements totaling $137,000 from three companies - a gas
station owner, fuel distributor, and fuel transporter – implicated in the 2012
sale of aviation fuel (“avgas”) to unsuspecting motorists at six Central New
Jersey gas stations.
Avgas contains tetraethyl lead, a toxic substance that can damage cars’
catalytic converters and oxygen sensors. Avgas is appropriate for certain
aircraft, but not for cars and other motor vehicles. The affected consumers
thought they were filling their cars with ordinary, unleaded gasoline.
http://nj.gov/oag/newsreleases15/pr20150427b.html
April 1, 2015
Acting Attorney General John J. Hoffman Announces The New Jersey Bureau of Securities has ordered two shore-area residents to pay $1
million in civil penalties after a Bureau investigation revealed that they operated a Ponzi scheme and had defrauded investors.
Bureau Chief Laura H. Posner ordered Charles J. Boyer III, of Jackson, and James A. Wilson, of Spring Lake, to pay this civil penalty after finding that the two men committed multiple violations of the state’s Uniform Securities Law, while raising at least $342,000 from ten investors. The two men, who were not
registered with the Bureau and therefore not legally allowed to sell investments in New Jersey, transferred approximately $177,000 of investor
funds into either Boyer’s personal bank account or accounts over which Boyer III and Wilson had control, for their own use, rather than investing the funds as represented to investors.
http://nj.gov/oag/newsreleases15/pr20150401a.html
23
NEW YORK
April 29, 2015
A.G. Schneiderman Announces $1.025 Million Settlement with Trustees
of Nonprofit That Squandered Assets Intended For Underprivileged
Children
At The Hands Of Two Trustees And Lax Board, Perley Fund Lost Millions To
Risky Investments, Unreasonable Pay And The Purchase Of Southampton
House
Attorney General Eric T. Schneiderman announced today that his office has
reached a $1.025 million settlement with the trustees and former trustees of
the Victor E. Perley Fund (the Perley Fund), a private foundation established
by Victor E. Perley in 1959 for the benefit of underprivileged children. An
investigation by the Attorney General’s Office found that, beginning in 2009,
the Perley Fund’s board allowed the foundation’s new leader, Richard A.
Basini, to shift the nonprofit’s focus to fund his own interests and those of a
fellow trustee, James J. Cahill, resulting in the Perley Fund’s purchase of a
million-dollar Southampton home that Basini used as his private residence,
and, ultimately, the waste of the nonprofit’s entire investment portfolio. Under
today’s settlement, the Perley Fund’s board will also be completely
reconstituted, with the approval of the Attorney General’s Office.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-1025-
million-settlement-trustees-nonprofit-squandered-assets
April 28, 2015
A.G. Schneiderman Announces Additional Prison Time for Lawyer Who
Continued to Steal From Clients After Being Indicted for $2 Million Theft
Timothy Griffin, Charged With Stealing Over $2 Million From Staten Island
Cemetery To Hide Theft Of Client Money, Continued To Steal From Legal Clients
While Out On Bail
Griffin Sentenced to Up To 13 Years In Prison and Will Pay $2.5 Million in
Judgments And Restitution
Attorney General Eric T. Schneiderman today announced the sentencing of
Bronxville real estate attorney Timothy Griffin, former acting president of
24
NEW YORK CONT’D
United Hebrew Cemetery, on the charge of Grand Larceny in the First Degree.
In February 2015, Griffin pleaded guilty in Richmond County Supreme Court
to stealing over $2 million from the not-for-profit, in exchange for a promised
sentence of 3 to 9 years in prison. However, an ongoing investigation by the
Attorney General’s Office revealed that, after his arrest, Griffin continued to
steal client monies, diverting over $175,000 from a client escrow account. In
light of his continuing crimes, Griffin was sentenced today to 4 1/3 to 13
years in prison.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-additional-
prison-time-lawyer-who-continued-steal-clients
April 23, 2015
A.G. Schneiderman Announces Guilty Pleas Of Bronx Home Health Care
Agency Owners And Consultant Who Failed To Pay Workers
Defendants Repeatedly Failed To Pay Employees For Work During A Four-Year
Period
Defendants Agree To Pay Over $80,000 In Restitution For Back Wages Owed To
Former Employees
Attorney General Eric T. Schneiderman today announced guilty pleas by
Maria Etim and Charles Mayers, the owners of Bronx-based home health care
agency Concept Home Care Inc., which did business as Golden Apple Home
Care. Last month a consultant for the agency, Wayne Patterson, plead guilty
and was sentenced. Etim, Mayers and Patterson admitted to failing to pay 63
former home health aides employed by the company for all of the hours they
worked tending to the daily needs of people with disabilities, impairments and
other medical needs. As part of the plea, Golden Apple Home Care, Etim and
Mayers agreed to pay more than $80,000 in restitution to their former
employees.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-guilty-
pleas-bronx-home-health-care-agency-owners-and
25
NEW YORK CONT’D
April 20, 2015
A.G. Schneiderman Files Contempt Order Against Legal Document
Business Owner For Failing To Refund Defrauded Consumers
Derek Distenfield, Owner of Legal Docs By Me, Violated Court Order to Pay
Restitution
Attorney General Eric T. Schneiderman today announced that, after reviewing
evidence submitted by his office, Supreme Court Justice James P. McClusky
has issued an order to show cause to the business formerly known as Legal
Docs by Me and its owner, Derek Distenfield, as to why they should not be
held in contempt of court for violating two court orders which partly required
Legal Docs by Me to pay restitution to consumers. In a case brought last
summer, Attorney General Schneiderman accused the business—now
operating as NextGenJustice—of engaging in the unauthorized practice of law
and deceiving consumers by regularly misrepresenting its pricing, its
expertise in the preparation of legal documents, and the nature of the services
it provided.
http://www.ag.ny.gov/press-release/ag-schneiderman-files-contempt-order-
against-legal-document-business-owner-failing
April 16, 2015
A.G. Schneiderman Announces Cease And Desist Letter Sent To Property
Management Company For Allegedly Charging Service Members Illegal
Fees
Operating Near Fort Drum, Company Accused Of Charging Fees In Violation
Of Servicemember Civil Relief Act
Attorney General Eric T. Schneiderman today announced that his office has
issued a cease and desist letter to LeRay 300, LLC, a Virginia-based company
owned by Jeffrey S. Lewis, also of Virginia. The business operates as a rental
property company near Fort Drum under the name of Woodcliff Community.
The letter orders Woodcliff Community to immediately cease charging service
members illegal fees in violation of the Servicemember Civil Relief Act and
collecting undisclosed, non-refundable "reservation deposits" in violation of
New York State law, among other allegations. The rental property, located in
26
NEW YORK CONT’D
Calcium, New York, is approximately one mile from the main gate at Fort
Drum and advertises itself as the "finest neighborhood serving the Fort Drum
community."
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-cease-and-
desist-letter-sent-property-management-company
April 15, 2015
A.G. Schneiderman Obtains Settlement With Fourth Debt Buyer Vacating
$1.7m In Improperly Obtained Debt-Collection Actions
Asta Funding, Inc. to Vacate Over 300 Judgments Totaling Over $1.7 Million;
Reform Practices; Pay $100,000 in Penalties and Costs
Attorney General Eric T. Schneiderman today announced that his office has
obtained a settlement from debt buyer Asta Funding, Inc. (“Asta”) for bringing
improper debt collection actions against hundreds of New York consumers.
For years, Asta sued New York consumers and obtained uncontested default
judgments against consumers who failed to respond to the lawsuits, even
though the underlying claims were untimely under New York law. Under the
settlement, Asta will move to vacate more than 300 improperly obtained
judgments totaling more than $1.7 million. Asta will also reform its debt
collection practices and pay civil penalties and costs in the amount of
$100,000.
http://www.ag.ny.gov/press-release/ag-schneiderman-obtains-settlement-
fourth-debt-buyer-vacating-17m-improperly-obtained
April 14, 2015
A.G. Schneiderman Announces Settlements With Five Domino’s Pizza
Franchisees For Violating Workers’ Basic Rights In Stores Statewide
Domino’s Franchisees Must Pay $970,000 In Restitution To Workers At
Dozens of Stores In Western New York, Central New York, Hudson Valley, New
York City And On Long Island
27
The A.G. Has Secured Agreements With A Substantial Portion Of New York’s
Domino’s Franchise Locations; Franchisees Have Agreed to Pay Nearly $1.5
Million In Restitution In Total To Workers Statewide
Attorney General Eric T. Schneiderman today announced settlements totaling
$970,000 with four current Domino’s Pizza franchisees, who together own 29
stores across New York State, as well as with one former franchisee who
owned 6 stores. With stores located in Cortland, Dutchess, Erie, Genesee,
Monroe, Nassau, New York, Onondaga, Ontario, Orange, Rockland, Suffolk,
and Westchester counties, the franchisees admitted to a number of labor
violations, including minimum wage, overtime or other basic labor law
protections. In light of today’s agreements – which follow similar settlements
last year with the owners of 26 other Domino’s stores statewide – Attorney
General Schneiderman also called on the Domino’s Pizza corporation and
Chief Executive Officer Patrick Doyle to exercise increased oversight of
Domino’s franchisees’ pay practices.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
settlements-five-domino%E2%80%99s-pizza-franchisees-violating
April 9, 2015
A.G. Schneiderman Announces Lawsuit Against Board Of Directors
Alleging Mismanagement Of Two Brooklyn-Based Nonprofits Serving
Vulnerable Families
Lawsuit Accuses Board Members Of Trying To Illegally Sell Two Brooklyn
Townhouses Operated By The Nonprofits As Housing For Single Mothers And
Their Children
Board Members Also Allegedly Pilfered Thousands Of Dollars From Charitable
Bank Account, Took Out $600,000 In High-Fee Loans, Forged Signatures And
Failed To Pay Employees
Attorney General Eric T. Schneiderman today announced a lawsuit against
the board of directors of two Brooklyn-based nonprofits, Brooklyn Child &
Family Services, Inc. and Project Teen Aid Housing Development Fund Corp.,
for alleged gross negligence and failed management of the organizations – and
of two converted townhouses in the Bedford-Stuyvesant section of Brooklyn.
The Rose F. Kennedy Family Center, located at 178 Halsey Street, and the
Rosa Parks Apartments, located at 243 Hancock Street, have been owned by
28
NEW YORK CONT’D
the jointly operated nonprofits since the 1990s. The charitable organizations
were intended to provide housing and support services for pregnant women,
young mothers and their children. As set forth in the lawsuit, an investigation
by the Attorney General’s Charities Bureau found that several board members
listed the townhouses for sale without necessary approval. Supreme Court
Justice Genine D. Edwards granted the Attorney General’s Office a temporary
restraining order earlier this week that freezes the organization’s assets.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-lawsuit-
against-board-directors-alleging-mismanagement-two
April 8, 2015
A.G. Schneiderman And DOI Commissioner Peters Announce Arrest Of
Five Public Works Contractors Charged With Underpayment Of Nearly $1
Million In Wages To Workers
Subcontractors Working On City School And Affordable Housing Projects
Allegedly Underpaid Workers During A Two-Year Period
As part of an ongoing focus on widespread allegations of wage theft at public
works projects in New York City, Attorney General Eric T. Schneiderman and
New York City Department of Investigation Commissioner Mark G. Peters
today announced the arrests of five subcontractors on charges they underpaid
wages and benefits to workers at three publicly-funded New York City
construction projects.
The arrests stem from an investigation into underpayment and kickback
schemes that allegedly took place at P.S. 7X, an elementary school in the
Bronx, the New York City Department of Housing Preservation and
Development’s (HPD) Sugar Hill Houses in Harlem, and the New York City
Housing Authority’s (NYCHA) Pomonok Houses project in Fresh Meadows,
Queens, between January 2012 and November 2014. The Manhattan case
includes a top count felony of Falsifying Business Records in the First Degree
against Sergio Raymundo and his New Paltz-based construction company for
allegedly cheating eight workers at the Sugar Hill housing project out of
approximately $800,000 in wages during a 17-month period.
http://www.ag.ny.gov/press-release/ag-schneiderman-and-doi-
commissioner-peters-announce-arrest-five-public-works
29
NORTH CAROLINA
April 7, 2015
Attorney General Roy Cooper Announces Chapel Hill Landlord Ordered
To Pay $122,000 in Refunds, Penalties
Landlord James Ware Kelley illegally kept student renters’ security deposits
A landlord who failed to return security deposits is now under court order to
pay $122,000 in refunds to renters, penalties and fees and is barred from
taking security deposits, Attorney General Roy Cooper said today.
“Security deposits protect landlords from tenants but they should give them
back if the tenants haven’t done anything wrong,” Cooper said. “The court
agreed with us that these students deserve refunds and we’ll work to help
them collect their money.”
Orange County Resident Superior Court Judge R. Allen Baddour, Jr.
yesterday entered a judgment and permanent injunction against Ware
Investments, LCC and its managing officer, James Ware Kelley, of Chapel Hill,
banning them from collecting security deposits and ordering them to pay
$14,935 in refunds to renters, $96,000 in civil penalties, and $12,000 in
court costs.
http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-
Advisories/Press-Releases/Chapel-Hill-landlord-ordered-to-pay-$122,000-in-
re.aspx
OHIO
April 24, 2015
Attorney General DeWine Seeks Consumer Restitution from Travel Club
Companies
Ohio Attorney General Mike DeWine today announced a lawsuit against a
group of interrelated companies accused of violating Ohio’s consumer
protection laws by failing to honor consumers’ rights to cancel travel club
memberships sold at hotel sales presentations in Toledo, Cleveland, and
Columbus.
In the lawsuit, the Attorney General seeks an end to unfair and deceptive
practices by the companies, restitution for consumers, and civil penalties.
30
The lawsuit names the following companies as defendants:
A2Z Vacations LLC (a Wyoming corporation also known as Member
Choice)
Great Quest Travel Inc., doing business as One and Only Travel (an
Alabama corporation)
World Wide Travel Resources Inc. (a Louisiana corporation)
Travel Supplier of America Inc. (a Delaware corporation)
Universal Concepts Inc. (a Delaware corporation)
http://www.ohioattorneygeneral.gov/Media/News-Releases/April-
2015/Attorney-General-DeWine-Seeks-Consumer-Restitution
April 17, 2015
Attorney General DeWine Announces Lawsuit Against Dealership for
Failing to Deliver Titles to Consumers
Ohio Attorney General Mike DeWine today announced a lawsuit against a
Milford used car dealership accused of failing to deliver motor vehicle titles to
consumers as required by law.
The lawsuit accuses Ohio Valley Motorcars LLC and its owner and
salesperson, Jason Taylor of Cincinnati, of violating Ohio’s Consumer Sales
Practices Act and Certificate of Motor Vehicle Title Act.
http://www.ohioattorneygeneral.gov/Media/News-Releases/April-
2015/Attorney-General-DeWine-Announces-Lawsuit-Against
31
OHIO CONT’D
April 10, 2015
Attorney General Mike DeWine Announces Lawsuit Against Another
Dealership Accused of Failing to Deliver Titles
Ohio Attorney General Mike DeWine today announced a lawsuit against a
used car dealership accused of failing to deliver motor vehicle titles as
required by law.
The lawsuit accuses Hometown Car Sales and its owner, Brian L. Vanvlerah of
Sandusky, of violating Ohio’s Certificate of Motor Vehicle Title Act.
Hometown Car Sales last operated at 2434 W. Monroe St. in Sandusky. It is
currently closed.
In the last two years, approximately 10 consumers filed complaints against
Hometown Car Sales. Nearly all the complaints involved title issues.
http://www.ohioattorneygeneral.gov/Media/News-Releases/April-
2015/Dealership-Accused-of-Failing-to-Deliver-Titles
April 6, 2015
Attorney General DeWine Seeks Reimbursement from Auto Dealer
Accused of Failing to Deliver Titles
Ohio Attorney General Mike DeWine today announced a lawsuit against a
Columbus used car dealership accused of failing to deliver motor vehicle titles
as required by law.
The lawsuit accuses TCB Automotive Group LLC and its owner Andrew
Karabinos of violating Ohio’s Consumer Sales Practices Act and Certificate of
Motor Vehicle Title Act.
It also seeks reimbursement to the Title Defect Rescission Fund, a state
program that helps car buyers who fail to receive valid titles to vehicles they
purchase from a dealership.
http://www.ohioattorneygeneral.gov/Media/News-Releases/April-
2015/Attorney-General-DeWine-Seeks-Reimbursement-from-A
32
TENNESSEE
April 20, 2015
Attorney General Herbert H. Slatery III Reaches Settlement with Middle
Tennessee Auto Dealer
Company allegedly used deceptive business practices to target military
families
Middle Tennessee auto dealer, Wholesale Inc., has agreed to immediately
change its advertising practices and pay the State of Tennessee $50,000,
Attorney General Herbert H. Slatery III announced today.
A Davidson County Court approved the settlement between Wholesale, Inc.,
the Tennessee Attorney General's Office, and the Tennessee Division of
Consumer Affairs. The agreement centers around two advertising mailers sent
to would be customers. One of the mailers specifically targeted service
members living near Fort Campbell.
After reviewing a service member's complaint filed at Fort Campbell, the State
alleged that the defendant made numerous false representations in violation
of the Tennessee Consumer Protection Act. According to the State, a fictitious
lender called "CreditAble Auto Funding" claimed to be "by military, for
military" and was offering a limited amount of loans to military personnel.
http://www.tn.gov/attorneygeneral/press/2015/pr15-05.html
TEXAS
April 20, 2015
Attorney General Ken Paxton Charges Houston-based “Diploma Mill”
with Fraud
The Texas Attorney General’s Office today filed a lawsuit against a Houston-
based learning center for unlawfully marketing and selling fraudulent high
school diplomas and transcripts. The state is seeking a temporary restraining
order and a hearing in a Harris County district court will be held on
Wednesday, April 22.
Court documents filed by the State explain that since at least 1994, Parkview
Home School has provided fake high school diplomas and transcripts to Texas
33
consumers for a fee and employs no teachers, requiring little or no
coursework or educational requirements on their students. Defendants claim
to have provided services to 42,000 “students” and has obtained
approximately $1.4 million from Texas consumers.
https://www.texasattorneygeneral.gov/oagnews/release.php?id=5042
WASHINGTON
April 7, 2015
Attorney General Bob Ferguson Sues Firm over Illegal Student Loan
Practices
Scores of Washington consumers affected by fees of $132,000
Attorney General Bob Ferguson today announced action against a student
loan debt adjusting firm that exploited borrowers for financial gain.
Ferguson filed a lawsuit Monday charging StudentLoanProcessing.US (SLP)
and its president James Krause with violating Washington’s Debt Adjusting
Act and Consumer Protection Act, including charging illegal fees for debt
adjusting and failing to inform customers of important rights as is legally
required. The same services SLP offers are available — for free — through the
U.S. Dept. of Education (DOE).
“My office will aggressively crack down on those who prey on student loan
borrowers — many of whom are already overburdened — for profit,” Ferguson
said. “This firm charged exorbitant and illegal fees for services that student
loan borrowers can obtain for free.”
Many student loan debt adjustment firms have sprung up as a result of the
$1.2 trillion debt burden carried by nearly 40 million American borrowers.
Most offer to help students fill out and submit paperwork to DOE to
consolidate their federal student loans.
http://www.atg.wa.gov/news/news-releases/ag-sues-firm-over-illegal-
student-loan-practices
34
WEST VIRGINIA
April 2, 2015
Attorney General Patrick Morrisey Announces $393,000 Judgment Against
Synthetic Drug Manufacturer
Attorney General Patrick Morrisey announced that a permanent injunction
was entered against the owner of a Georgia-based business that sold illegal
synthetic drugs in West Virginia.
The Circuit Court of Putnam County fined Drew Green, the owner of the now-
defunct Nutragenomics Manufacturing LLC, $375,000 in civil penalties for
violating the West Virginia Consumer Credit and Protection Act by misleading
customers and mislabeling the chemicals his company sold over the phone
and online. Additionally, the court ordered Green to pay $18,357.54 in
restitution.
http://www.ago.wv.gov/pressroom/2015/Pages/Attorney-General-Patrick-
Morrisey-Announces-$393,000-Judgment-Against-Synthetic-Drug-
Manufacturer.aspx
35
MEDICAID FRAUD CASES AND SETTLEMENTS
ALABAMA
April 21, 2015
Attorney General Luther Strange Announces Medicaid Fraud Indictment
of Non-Profit Executive Director
Attorney General Luther Strange announced the arrest of Lula Jones Bridges,
58, of Notasulga. Bridges is charged with nine counts of filing false claims
with the Alabama Medicaid Agency, which is Medicaid fraud, and one count of
first-degree theft of property.
The Attorney General’s Medicaid Fraud Control Unit presented evidence to the
April 2015 term of the Montgomery grand jury resulting in an indictment*
charging Bridges with filing numerous false claims to the Alabama Medicaid
Agency totaling over $550,000.00, as well as first-degree theft of property.
http://www.ago.state.al.us/News-625
CONNECTICUT
April 15, 2015
Attorney General George Jepsen Announces State Reaches Settlement
with Second Defendant In Alleged Fraudulent Medicaid Billing Lawsuit
The state has reached a settlement with a Stamford dentist and 13 of his
practices and management companies resolving fraud allegations and civil
claims stemming from an illegal Medicaid billing scheme, Attorney General
George Jepsen said today.
Mehran Zamani and his companies were among 28 individuals, dental
practices and corporations named in a civil lawsuit filed by the state in May
2012 that alleged participation in an elaborate and illegal scheme that
resulted in the submission of fraudulent Medicaid claims over two years in
violation of the Connecticut False Claims Act and the Connecticut Unfair
Trade Practices Act.
http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=564102
36
GEORGIA
April 23, 2015
Attorney General Sam Olens Announces Grady Health System to Pay
Over $2.9 Million to Resolve Improper Medicaid Billing Allegations
Attorney General Sam Olens announced on April 23, 2015, that the state of
Georgia has reached a civil settlement agreement with Grady Health System
(Grady). Grady has agreed to pay $2,950,000 to settle claims that it
inaccurately coded claims for neo-natal intensive care unit (NICU) patients,
resulting in alleged damages to the Georgia Medicaid program.
http://law.ga.gov/press-releases/2015-04-23/grady-health-system-pay-over-
29-million-resolve-improper-medicaid-billing
April 16, 2015
Attorney General Olens Announces $790K Settlement with Doraville Eye
Doctor for Improper Medicaid Billing Allegations
On April 16, 2015, Attorney General Sam Olens announced that Georgia has
reached an agreement with Doraville doctor Zheng Xiang Wang and the Wang
Eye Clinic, P.C., to settle allegations that Dr. Wang billed Georgia Medicaid for
medically unnecessary ophthalmology procedures. In settlement of the
allegations, Dr. Wang paid $790,000 to the Department of Community Health
(DCH), which administers Georgia’s Medicaid program.
http://law.ga.gov/press-releases/2015-04-16/attorney-general-olens-
announces-790k-settlement-doraville-eye-doctor
37
LOUISIANA
April 30, 2015
Attorney General Buddy Caldwell Announces Four Arrested on Medicaid
Fraud Charges
Medicaid billed for services while beneficiaries were on Caribbean cruise
Attorney General Buddy Caldwell announced that four individuals were
arrested after an investigation conducted by agents with his Medicaid Fraud
Control Unit revealed the state’s Medicaid Program was billed for in-home
personal care services while the Medicaid recipients purported to be receiving
care were actually on a Caribbean cruise.
https://www.ag.state.la.us/Article.aspx?articleID=1000&catID=5
April 2, 2015
Attorney General Buddy Caldwell Announces Houma Personal Care
Business Owner Charged with Defrauding Medicaid Program
The owner of a Houma personal care business has been arrested after
Medicaid fraud agents uncovered she engaged in numerous schemes aimed at
defrauding the state’s Medicaid program, Attorney General Buddy Caldwell
announced.
Larekia Brown, 31, of 208 Oak Point Drive in LaPlace, was arrested
Wednesday and charged with one count each of Medicaid Fraud, Filing and
Maintaining False Public Records, and Unauthorized Participation in Medical
Assistance Programs.
https://www.ag.state.la.us/Article.aspx?articleID=985&catID=5
38
MASSACHUSETTS
April 28, 2015
Attorney General Maura Healey Announces Former Charlestown
Nonprofit to Pay More Than $94,000 for Billing MassHealth for Services
Allegedly Not Provided
Life Focus Center Submitted False Claims by Billing for Hours of Day
Habilitation Services Not Rendered to an Individual with Developmental
Disabilities
A former Charlestown nonprofit that provided day habilitation services to
individuals with developmental disabilities has agreed to pay more than
$94,000 to settle claims of billing the state’s Medicaid program (MassHealth)
for services not provided, Attorney General Maura Healey announced today.
According to the settlement, Life Focus Center of Charlestown, Inc. allegedly
violated the Massachusetts False Claims Act by billing more hours of service
than were actually provided to a MassHealth member from 2008 through
2011, resulting in overpayments.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
04-28-life-focus-center.html
April 13, 2015
Attorney General Maura Healey Announces Hallmark Health to Pay
MassHealth $1.75 Million Over Claims of Improper Billing for Hospital
Stays
AG’s Office Alleges Hallmark Submitted Improper Claims for Reimbursement
of Inpatient Admissions in Violation of MassHealth Regulations
Hallmark Health Systems has agreed to pay $1.75 million to settle allegations
that it improperly billed the Massachusetts Medicaid Program (MassHealth)
for certain inpatient admissions at its hospitals, resulting in overpayments by
MassHealth, Attorney General Maura Healey announced today.
The settlement alleges that from March 2008 to December 2013, Hallmark
used a specific default code that classified MassHealth patients as having
received short-stay inpatient services, when an observation or outpatient level
39
of care would have been more appropriate. This protocol resulted in higher
payments to Hallmark hospitals from MassHealth.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
04-13-hallmark-health-systems.html
April 07, 2015
Attorney General Maura Healey Announces Brookline Doctor Pleads
Guilty, Sentenced to Jail and Ordered to Pay $9.3 Million for Running
Medicaid Kickback and False Billing Scheme
Dr. Kishore to Surrender Medical License, Sentenced to House of Correction
A Brookline doctor has pleaded guilty, was sentenced to jail, and has been
ordered to pay $9.3 million in restitution for running an intricate Medicaid
fraud scheme involving millions of dollars in taxpayer funds, Attorney General
Maura Healey announced today.
Dr. Punyamurtula Kishore, 64, along with his company Preventive Medicine
Associates, Inc. (PMA), pleaded guilty on Monday in Suffolk Superior Court.
PMA pleaded guilty to charges of Medicaid Kickbacks (8 counts), Medicaid
False Claims (19 counts) and Larceny over $250 (11 counts). Dr. Kishore
pleaded guilty to one count of Larceny over $250.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
04-07-kishore-plea.html
40
MISSOURI
April 24, 2015
Attorney General Chris Koster Announces Judgment Against New Madrid
County Medicaid Provider for Submitting False Claims
Attorney General Chris Koster announced today his office has obtained a civil
judgment against Tina Hartlein, owner and operator of Caring Hands In Home
Care, in Mathews, MO, for her company’s submission of false claims to
Missouri’s Medicaid program. As part of the judgment, Hartlein has agreed to
pay $115,298, which will be returned to Medicaid, along with $5,000 to cover
investigative costs.
Koster’s office conducted an investigation into Caring Hands after receiving
complaints about several of the company’s attendants. The investigation
found that Caring Hands hired an attendant to provide in-home personal care
services to her parents, which is prohibited by Missouri Medicaid regulations.
The investigation also discovered that Caring Hands later replaced the
attendant with her husband and that former Caring Hands employees
instructed him to complete timesheets with inaccurate information.
https://ago.mo.gov/home/ag-koster-announces-judgment-against-new-
madrid-county-medicaid-provider
April 14, 2015
Attorney General Chris Koster Announces Guilty Plea In Madison County
Medicaid Fraud Case
Attorney General Chris Koster said today that Michael A. Emert of Madison
County has pleaded guilty to one count of Medicaid fraud. Emert was ordered
to serve 120 days of shock detention in the Madison County Jail and has paid
restitution of $19,860.
Emert, a licensed professional counselor, was a former Executive Director and
therapist with Faith Foundation Children’s Home in Fredericktown. An
investigation by the Missouri Attorney General’s Medicaid Fraud Control Unit
found that Emert failed to provide group-therapy sessions for which he
submitted Medicaid claims, including services provided on a date he was not
present at the facility.
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https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
announces-guilty-plea-in-madison-county-medicaid-fraud-case
NEW HAMPSHIRE
April 16, 2015
Attorney General Joseph A. Foster Announces Settlement Reached With
Jeffrey Gould D/B/A North Country Medi-Van Over False Claims
Allegations
Attorney General Joseph A. Foster announces that the Medicaid Fraud
Control Unit (MFCU) of the Department of Justice has reached a settlement
with Jeffrey Gould d/b/a North Country Medi-Van to resolve allegations that
Mr. Gould submitted claims to the Medicaid program for wheelchair van
services between 2009 and 2013 without maintaining adequate records to
support the claims. As part of the settlement in this matter, Mr. Gould will
pay a total of $75,885 in restitution and investigative costs. Mr. Gould d/b/a
North Country Medi-Van no longer provides Medicaid services.
http://doj.nh.gov/media-center/press-releases/2015/20150416-gould-
settlement.htm
NEW YORK
April 1, 2015
A.G. Schneiderman Announces Agreement With Fishkill Nonprofit
Serving New Yorkers With Disabilities To Repay Medicaid $363,000 For
Using Unqualified Staff
Keli House Community Services Employed Individuals That Lacked
Experience And Education Required By New York State
Attorney General Eric T. Schneiderman today announced an agreement with
Keli House Community Services, Inc., a Fishkill-based nonprofit serving New
Yorkers with disabilities and their families, that used unqualified individuals
to provide services to Medicaid recipients who participated in the Home and
Community Based Services Program offered by the New York State Office of
Persons with Developmental Disabilities (OPWDD). The settlement calls for
Keli House to reimburse Medicaid $363,643.
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http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
agreement-fishkill-nonprofit-serving-new-yorkers
OKLAHOMA
April 21, 2015
Attorney General Pruitt Announces Sentences in Two Separate Medicaid
Fraud Cases, Both Were Accused of Submitting False Calims
Attorney General Scott Pruitt announced the sentences of Bethany Sue Stout,
of Alva, and Shenice Lavon Huff, of Midwest City, both of which pleaded guilty
to Medicaid fraud.
Bethany Sue Stout, 34, billed for counseling services that never occurred and
improperly used clients’ identities to gain payments from the Oklahoma
Health Care Authority.
Shenice Lavon Huff, 35, worked as a behavioral health rehabilitation
speciailist when she billed Medicaid for services she did not provide to
SoonerCare recipients.
http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258
&article_id=15745
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PENNSYLVANIA
April 20, 2015
Attorney General Kathleen G. Kane Announces 2 women charged with
submitting false claims to Medicaid
Attorney General Kathleen G. Kane today announced criminal charges have
been filed against two women accused of committing Medicaid fraud.
The charges were the result of separate investigations by the Office of Attorney
General’s Medicaid Fraud Control Section. Those charged are:
Kelly Ann Howley, 32, 45 Locust Lane, Levittown, Bucks County
Nadia Shree Demota, 33, 4509 N. 12th St., Philadelphia
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pres
s_Release/?pid=1693
RHODE ISLAND
Attorney General Peter F. Kilmartin Announces Owner Of St. Jude Home
Care Charged With Medicaid Fraud
Attorney General Peter F. Kilmartin announced that Priscilla Pascale (age 54),
of Barrington, was charged with five counts of Medicaid fraud and five counts
of conspiracy to commit Medicaid fraud. Ms. Pascale is the owner and
operator of St. Jude Home Care, located at 445 Reservoir Avenue, Cranston.
In addition, Orfa Lemaire (age 37), of East Greenwich, the director of clinical
services, was charged with five counts of conspiracy to commit Medicaid
fraud.
Pascale was arraigned today in Providence County Superior Court. She was
released on $10,000 personal recognizance. A pre trial conference is
scheduled for June 29, 2015. Orfa is scheduled to be arraigned in Providence
County Superior Court on April 28, 2015.
It is alleged that between 2010 and 2013, St. Jude placed unlicensed certified
nursing assistants (CNAs) in patients' homes and fraudulently billed Medicaid
for CNA services in the amount of approximately $785,000.
http://www.ri.gov/press/view/24636
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TEXAS
April 7, 2015
Attorney General Paxton Recovers $25 Million From Glenmark Generics
Inc. USA For Fraudulently Reporting Inflated Drug Prices To The
Medicaid Program.
Texas Attorney General Ken Paxton has resolved an enforcement action
against New Jersey-based pharmaceutical product manufacturer Glenmark
Generics Inc. USA. The agreement resolves the State’s investigation under the
Texas Medicaid Fraud Prevention Act (“TMFPA”) against Glenmark for
fraudulently reporting inflated drug prices to the Medicaid program.
Under the settlement agreement, Glenmark must pay the State of Texas a
total of $11.25 million for the State’s general revenue fund. Because the
Medicaid program is jointly funded by the State and U.S. taxpayers, the
federal government is entitled to a percentage of the settlement proceeds. The
federal government’s share is also $11.25 million. Additionally, the Texas
Attorney General’s Office will receive $2.5 million in attorneys’ fees and costs.
https://www.texasattorneygeneral.gov/oagnews/release.php?id=5012
VERMONT
April 24, 2015
Attorney General Sorrell Distributes Settlement Funds to Former
Medicaid Beneficiary Customers of McGregor’s Medicine-On-Time
Pharmacy
The Office of the Attorney General is distributing over $118,000 in settlement
funds to more than 1300 Vermonters who were Medicaid beneficiary
customers of McGregor’s Medicine-on-Time pharmacy in Winooski, Vermont,
from 2004 through 2012. The average distribution is $85.00.
http://ago.vermont.gov/focus/news/attorney-general-distributes-settlement-
funds-to-former-medicaid-beneficiary-customers-of-mcgregors-medicine-on-
time-pharmacy.php
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CONSUMER ADVOCACY
CALIFORNIA
April 13, 2015
Attorney General Kamala D. Harris Issues Consumer Advisory: Be Careful
of Immigration Scams During Tax Season
Attorney General Kamala D. Harris urges you to be careful if a tax preparer
offers to help you prepare and file your immigration forms or asks you to pay
fines directly to them. Individuals and businesses that prepare tax returns
may not be authorized to assist you with immigration services.
https://oag.ca.gov/news/press-releases/consumer-advisory-be-careful-
immigration-scams-during-tax-season
DELAWARE
April 17, 2015
Attorney General Denn, Lawmakers, to Introduce Legislation Aimed to
Protect Online Privacy
Legislators and Attorney General Matt Denn announced legislation Friday
designed to protect privacy pertaining to the internet and social media. The
package of four bills provides a wide range of protections for people with
regard to their identities and online activities.
http://news.delaware.gov/2015/04/17/22446/
DISTRICT OF COLUMBIA
April 15, 2015
Attorney General Racine Alerts District Consumers to Scam Debt-
Collection E-Mails
E-Mails Claim to Come from Government Agencies
Attorney General Karl A. Racine today alerted District residents to e-mails
some residents have received from a scam artist claiming to be collecting
debts for Cash Advance, Inc. or one of its affiliates. Some of these fraudulent
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e-mail messages are designed to appear as if they came from Attorney General
Racine.
http://oag.dc.gov/release/attorney-general-racine-alerts-district-consumers-
scam-debt-collection-e-mails
April 9, 2015
Attorney General Racine Launches Initiative to Educate Consumers with
Visits to Senior Homes in Ward 3 and Ward 6
OAG Releases Brochure to Help Consumers Protect Themselves from Common
Scams
Attorney General Karl A. Racine has launched an outreach initiative to
educate the District’s consumers on ways to protect themselves, their credit
and their identities against common forms of fraud. He kicked off the initiative
with two visits this week to apartment complexes for seniors – the Sunrise at
Connecticut Avenue in Ward 3 and Sibley Plaza in Ward 6.
http://oag.dc.gov/release/attorney-general-racine-launches-initiative-
educate-consumers-visits-senior-homes-ward-3-and
ILLINOIS
April 30, 2015
Attorney General Lisa Madigan, Il Poison Center Issue Alert To
Dangerous Form Of Synthetic Drugs
Attorney General, Illinois Poison Center Warn Illinoisans to Spike in ER visits &
Death Due to Synthetic Drugs
Attorney General Lisa Madigan and the Illinois Poison Center issued an alert
today to reports of new, deadly forms of synthetic drugs turning up across the
country leading to increased reports of illness, emergency room visits and
deaths tied to the drug’s usage.
Madigan and Illinois Poison Center Medical Director Dr. Michael Wahl issued
the joint alert following media reports across the country that show many
states have seen an increased number of hospital visits and in some cases
deaths linked to “Spice,” or “K2,” which are street names for the varying types
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of synthetic marijuana which contain chemical compounds designed to mimic
the effects of THC.
http://www.illinoisattorneygeneral.gov/pressroom/2015_04/20150430.html
April 13, 2015
Madigan Warns Homeowners To Be On Alert For Home Repair Scams
Attorney General Files Lawsuits Against Scam Artists in Chicago & Downstate
Following Last Week’s Tornadoes in Northern, Central Illinois
Following last week’s tornadoes, Attorney General Lisa Madigan today warned
northern and central Illinois residents to be on alert for home repair con
artists looking to exploit homeowners and local businesses needing repairs
due to storm-related damage. In conjunction with her alert, the Attorney
General filed four lawsuits against fraudulent home repair and supply
businesses that previously cheated homeowners in suburban Chicago and
central Illinois out of more than $220,000.
http://www.illinoisattorneygeneral.gov/pressroom/2015_04/20150413.html
INDIANA
April 23, 2015
Attorney General Greg Zoeller Warns Duke Energy Customers Target of
Bill Paying Scam
Duke Energy customers are the current target of a bill paying scam in which
criminals pose as Duke Energy representatives in attempt to dupe unsuspecting customers into making payments. The scam has surfaced in
several different counties across the state.
Here’s how the scam works:
A Duke Energy customer receives an unsolicited phone call from someone claiming to be with the utility provider. The call may even look like its coming from Duke offices because criminals are able to spoof Caller ID. The caller will
inform the customer that he or she is late on bill payments and that his or her service will be shut off if an immediate payment is not received. The caller
might instruct the customer to purchase a pre-paid debit card and recite the card’s number over the phone. The card’s balance can then be instantly drained by the criminal, leaving the customer out his or her money.
48
http://www.in.gov/activecalendar/EventList.aspx?fromdate=4/1/2015&todat
e=5/31/2015&display=Month&type=public&eventidn=219027&view=EventDe
tails&information_id=213740
April 20, 2015
Attorney General Zoeller: Money Smart Week is another reminder to take
ownership of personal credit and prevent ID Theft
Attorney General Greg Zoeller says Money Smart Week, which runs April 18-
25, is another reminder to Indiana residents to protect themselves from
identity theft and other financial crimes.
Money Smart Week is a national public awareness campaign designed to help
consumers better manage their personal finances, as well as take ownership
of their credit and information in order to guard against fraud.
http://www.in.gov/activecalendar/EventList.aspx?fromdate=4/1/2015&todat
e=5/31/2015&display=Month&type=public&eventidn=218597&view=EventDe
tails&information_id=213632
April 16, 2015
Indiana, Missouri AGs host national No Call Law Enforcement Summit
Indiana Attorney General Greg Zoeller joined Missouri Attorney General Chris
Koster in St. Louis today to open a two-day summit meeting for law enforcement officials and consumer protection investigators focused on the
problem of harassing telemarketing and telephone scams.
Bringing together consumer protection experts from across the country, the goal of the summit is to share best practices, information on new technologies, and innovative law enforcement techniques to reduce unwanted
calls.
http://www.in.gov/activecalendar/EventList.aspx?fromdate=4/1/2015&todate=5/31/2015&display=Month&type=public&eventidn=218014&view=EventDe
tails&information_id=213538
LOUISIANA
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April 24, 2015
Attorney General Caldwell Urges Consumers To Research Costs, Benefits Of Solar Panels
The arrival of warmer weather prompts many Louisiana consumers to look for ways to save money on their utility bills, and some homeowners may be
attracted by a promise of reduced energy costs from solar power systems. https://www.ag.state.la.us/Article.aspx?articleID=996&catID=5
MARYLAND
April 15, 2015
Attorney General Frosh Advises Marylanders to Remain On Guard Over
Tax Scams
Whether you filed your tax returns months ago or are waiting until the last
minute, Attorney General Brian E. Frosh cautions that scammers who claim
to be with the Internal Revenue Service and demand money or threaten arrest
may continue their attempts to defraud taxpayers.
http://www.oag.state.md.us/Press/2015/041515.html
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MASSACHUSETTS
April 24, 2015
Attorney General Healey Warns Residents of Scam Stealing Tax Refunds
Through Prepaid Cards
Fraudulent Accounts Have Been Created with Stolen Identities to Collect Tax
Refunds
Concerned for taxpayers whose personal information may have been stolen in
order to fraudulently file taxes, Attorney General Maura Healey today issued a
warning to Massachusetts residents about a scam that allows perpetrators to
steal tax refunds through the use of prepaid money cards.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
04-24-prepaid-tax-scam.html
April 07, 2015
Rep. Mariano, AG Healey File Bill to Protect Consumers From Higher
Healthcare Costs
Bill Strengthens Coordination between Health Policy Commission and AG’s
Office; Designates HPC Report as Evidence of Consumer Protection Violations
Attorney General Maura Healey and House Majority Leader Ron Mariano (D –
Quincy) announced today they are filing legislation that strengthens the
efforts of the Attorney General’s Office and the Health Policy Commission to
protect consumers from higher health care prices and other negative impacts
from changes in the healthcare marketplace.
An Act Relative to Protecting Health Care Consumers strengthens the impact
of the Health Policy Commission’s (HPC) Cost and Market Impact Review by
designating the report as evidence that a proposed merger or acquisition is a
violation of the Massachusetts Consumer Protection Act.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
04-07-act-relative-to-protecting-health-care-consumers-.html
51
NEW JERSEY
April 6, 2015
Acting Attorney General John J. Hoffman Announces New Jersey
Division of Consumer Affairs Cites 31 Home Improvement Contractors
for $397,776 in Consumer Restitution and Civil Penalties in First
Quarter of 2015
The New Jersey Division of Consumer Affairs today announced that, during
the first quarter of 2015, it has issued Notices of Violation to 31 contractors,
seeking $397,776.60 in consumer restitution and civil penalties.
http://nj.gov/oag/newsreleases15/pr20150406a.html
NEW YORK
April 27, 2015
A.G. Schneiderman, Senate Coalition Co-Leader Klein, and
Assemblywoman Weinstein Introduce New Legislation to Combat Rise of
“Zombie Homes” Across New York City
Legacy Of Housing Crash Continues To Spread Across New York City, As
Number of Abandoned, Deteriorating, And Foreclosed “Zombie Homes” Spikes
By 38% In One Year According To RealtyTrac Data
Attorney General Eric T. Schneiderman, Senate Coalition Co-Leader Jeffrey D.
Klein, and Assemblywoman Helene Weinstein announced today the
introduction of a newly-expanded Abandoned Property Neighborhood Relief
Act, legislation aimed at stemming the rising tide of abandoned foreclosed
homes (“zombie homes”) across New York. The bill (A.6932/S.4781) requires
that banks and mortgage servicers maintain vacant and abandoned
residential properties throughout the foreclosure process, a responsibility that
banks often neglect. Banks that fail to maintain the properties will be forced
to pay stiff penalties that can then be used by localities to enhance their
enforcement efforts under the Act.
The bill, sponsored in the Assembly by Judiciary Committee Chair Helene
Weinstein (D-Brooklyn), comes amid new data showing a troubling increase in
the number of zombie properties across New York State. According to
52
RealtyTrac data analyzed by the Office of the Attorney General (OAG), zombie
property foreclosures increased by almost 50% from 2013 to 2014, bringing
the total number of zombie properties in NYS to 16,701. As a result, almost 1
in 5 residential foreclosures is now a zombie property. In New York City, the
problem continues to grow, with the number of zombie homes increasing by
38% between 2013 and 2014, bringing the total number to 3,525.
http://www.ag.ny.gov/press-release/ag-schneiderman-senate-coalition-co-
leader-klein-and-assemblywoman-weinstein-introduce
April 7, 2015
Majority Leader Morelle & Senator Gallivan To Sponsor A.G.
Schneiderman’s Payroll Card Act
Rochester Community And Labor Leader Announce Support For Legislation
To Regulate Payroll Cards; Protect Workers From Unfair Fees And Coercion
Attorney General Eric T. Schneiderman today announced that Assembly
Majority Leader Joseph Morelle and Senator Patrick Gallivan will sponsor the
Attorney General’s program bill regulating the use of payroll cards to increase
protections for workers, clarify ambiguities in the law, and ensure that payroll
cards offer a convenient and beneficial method for workers to access their
pay. Several Rochester area labor and community organizations also
announced their support for the bill, including the Rochester & Genesee
Valley Area Labor Federation, the Rochester Building & Construction Trades,
the Rochester Legal Aid Society, Metro Justice, the Worker Justice Center of
New York, and Empire Justice. The Attorney General’s Payroll Card Act
requires clear disclosure of payroll card fees, and restricts certain fees. The
legislation was first proposed last year, following recommendations made in a
report released by the Attorney General’s Labor Bureau.
http://www.ag.ny.gov/press-release/majority-leader-morelle-senator-
gallivan-sponsor-ag-schneiderman%E2%80%99s-payroll-card-act
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April 2, 2015
A.G. Schneiderman And Mayor De Blasio Announce Joint Task Force To
Combat Immigration Services Fraud
Coordinated Enforcement Effort Will Hold Fraudsters Accountable & Encourage
Victims To Come Forward
Part of Nationwide Effort To Support President Obama’s Immigration Reform by
Combatting Those That Take Advantage Of Vulnerable Immigrants
Attorney General Eric T. Schneiderman and Mayor Bill de Blasio today
announced the formation of a new joint task force to target those who prey on
immigrants, while encouraging victims of fraud to come forward without fear.
The task force, led by the Mayor’s Office of Immigrant Affairs and the NYC
Department of Consumer Affairs, together with the Office of Attorney General,
will dedicate enforcement resources and conduct a public awareness
campaign to stop predators from taking advantage of immigrant communities
in advance of the full implementation of President Obama’s executive actions
on immigration.
http://www.ag.ny.gov/press-release/ag-schneiderman-and-mayor-de-blasio-
announce-joint-task-force-combat-immigration
OHIO
April 3, 2015
Attorney General DeWine Warns Consumers to Watch for Ticket Scams
Ohio Attorney General Mike DeWine today warned consumers to watch for
scams as they search for tickets to upcoming events, including the Cincinnati
Reds and Cleveland Indians home openers.
“Some scam artists use popular events to rip off consumers,” Attorney
General DeWine said. “With Opening Day and other big-ticket events coming
up, we’re encouraging people to be careful, especially with individual sellers
they meet online. If someone says you have to pay using a prepaid card or
wire transfer, it’s likely a scam.”
In the past year, the Ohio Attorney General’s Office has received dozens of
complaints involving tickets. At least nine consumers have reported losing
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hundreds of dollars to online ticket scams involving sporting events or
concerts.
http://www.ohioattorneygeneral.gov/Media/News-Releases/April-
2015/Attorney-General-DeWine-Warns-Consumers-to-Watch-f
PENNSYLVANIA
April 22, 2015
Attorney General Kane Warns Consumers of Reoccurring Credit Card
Phone Scam
Attorney General Kathleen G. Kane today alerted Commonwealth residents of
a reoccurring telephone scam in which consumers have been told there is a
"freeze" or "hold" on their credit cards.
The Office of Attorney General's Bureau of Consumer Protection has recently
received reports from consumers indicating an uptick in these scam calls.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pres
s_Release/?pid=1701
RHODE ISLAND
April 17, 2015
Attorney General Peter F. Kilmartin Announces Rhode Island Senate
Passes "Patent Troll" Legislation
The Rhode Island State Senate passed legislation that prohibits so-called
"patent trolls" in Rhode Island. The legislation (S0596), filed on behalf of
Attorney General Peter F. Kilmartin by Senate Minority Leader Dennis Algiere
(R, District 38 – Westerly, Charlestown, South Kingstown), would prohibit a
person from making bad faith assertions of patent infringement against a
Rhode Island business or individual. The law would also allow a business or
individual to bring action in Rhode Island Superior Court against the patent
troll, where they may be awarded equitable relief, actual damages, costs,
attorney's fees and exemplary damages.
The law also gives the Office of Attorney General civil investigative powers,
including the ability to bring civil actions against patent trolls; if found to
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have made a bad faith assertion, the patent troll could face a maximum
penalty of $250,000.
http://www.ri.gov/press/view/24615
SOUTH DAKOTA
April 14, 2015
Attorney General Marty Jackley Announces Court Scams Continue to
Target South Dakota Citizens
Attorney General Marty Jackley announced today that South Dakota citizens
continue to be heavily targeted by two different types of telemarketing scams
that use the court system as a means to construe urgency to their claims.
Both scams include recorded phone messages that threaten the recipient with
law enforcement action if the phone call is not returned. Once the call is
returned the citizen is asked to provide personal identifying information
including social security numbers and then they are instructed to obtain a
Green Dot card to pay the penalty for being late.
http://atg.sd.gov/News/NewsReleases/NewsReleasesView/tabid/441/itemID
/3574/moduleID/597/Default.aspx
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WASHINGTON
April 28, 2015
Attorney General Bob Ferguson Announces Governor’s signature makes
AG’s “ticket bot” consumer-protection proposal law
Today, Governor Jay Inslee signed Attorney General Bob Ferguson’s proposal
to ban “ticket bot” software into law.
Ticket bots — short for robots — are computer programs deployed by scalpers
to buy large quantities of tickets online to popular concerts and sporting
events. Bots are often used to target the most desirable seats.
The legislation bans ticket bot use and makes it a violation of the state
Consumer Protection Act to sell software to circumvent, interfere with or
evade any security measure or access-control system on a ticket seller’s
website.
http://www.atg.wa.gov/news/news-releases/governor-s-signature-makes-ag-
s-ticket-bot-consumer-protection-proposal-law
April 25, 2015
Attorney General Bob Ferguson Announces Governor signs AG’s Patent
Troll Prevention Act into law
Today, Governor Jay Inslee signed Attorney General Bob Ferguson’s proposal
to protect small businesses from predatory and bad-faith patent infringement
claims into law.
Patent trolls obtain and misuse patents as a way to make money by asserting
patent rights and collecting infringement fees from other businesses. Their
aggressive and deceptive tactics have become a growing concern for the
Attorney General’s Office.
http://www.atg.wa.gov/news/news-releases/governor-signs-ag-s-patent-troll-
prevention-act-law
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WEST VIRGINIA
April 20, 2015
Attorney General Patrick Morrisey Announces Eastern Panhandle Office
to Host Free Credit Report Event April 21
Attorney General Patrick Morrisey today announced that the Consumer
Protection Division’s Eastern Panhandle Office will host a free credit report
event from 10 a.m. - 3 p.m. April 21 at the Office, 269 Aikens Center in
Martinsburg.
Consumers interested in participating will have to sign terms of use
acknowledging that they are only accessing their own credit reports and not
the credit reports of someone else. Employees of the Attorney General’s Office
will not have access to the reports or any personal, private information.
Additionally, office employees will not be able to discuss the consumers’
reports with them or provide advice about details contained within the
reports.
http://www.ago.wv.gov/pressroom/2015/Pages/Attorney-General%27s-
Eastern-Panhandle-Office-to-Host-Free-Credit-Report-Event-April-21.aspx