NEW YORK – Attorney General Eric T. Schneiderman today issued an alert to consumers following a reported massive online security breach in which hackers stole over 1 billion unique user names and passwords and half a billion e-mail addresses. Attorney General Schneiderman offered tips to consumers for safeguarding sensitive personal information online.

“As more of our personal data is being exchanged and stored online, the risks posed to consumers by major security breaches has become all the more critical,” said Attorney General Schneiderman.“As law enforcement pursues those who are responsible for these breaches, it is important that consumers remain vigilant. Taking a few key precautions can help keep you a step ahead of cybercriminals.”

This latest breach, perhaps the largest ever of its kind, targeted websites of both large and small companies as well as individuals. It is believed that individuals suspected of being responsible for such breaches sell stolen data to third parties on the black market and use the information to send spam advertisements to consumers. 

If you believe that you are a victim of this or any other security breach, Attorney General Schneiderman offers the following tips:

• Create an identity theft fraud report. To do this, file a complaint with the Federal Trade Commission and print your Identity Theft Affidavit. You can call the FTC at 1-877-438-4338 or click here. 
   
• Use that affidavit to file a police report and create your Identity Theft Report.  
   
• An Identity Theft Report will help you deal with credit reporting companies, debt collectors and any fraudulent accounts that the identity thief opened in your name. 
   
• Put a freeze on your credit report by notifying each of the credit reporting agencies (Equifax, TransUnion or Experian). This will block someone from obtaining credit using your name or personal information. You won’t be able to apply for any new credit cards or loans while the freeze is in effect, but you can continue to use your existing cards. To freeze your credit file, you must notify each of the three major credit bureaus. You can remove the freeze temporarily or permanently by contacting each of the three agencies. There is no fee if you have been the victim of identity theft. The freeze can be removed only by you.  
   
• Get a copy of your credit report from each of the three agencies. You are entitled to free reports once you post a fraud alert (see below) or put a freeze on your account. Read the reports carefully to see whether other fraudulent transactions or accounts are listed, and then take steps to correct those errors. 
   
• Check your credit card account frequently to look for any irregular activity.
   
• Change any user names and passwords. For user names and passwords, change them immediately on the relevant account and monitor the account for unusual activity. If you use the same user name or password on other accounts, change those as well.  

If you might be a victim:

• Report to any of the three credit reporting agencies (Equifax, Transunion or Experian) that you may have been a victim of identity theft. Make sure the credit reporting agency has your current contact information so it can get in contact with you.  
   
• Ask the credit reporting agencies to put a fraud alert on your credit file. This will still allow you to use your credit card. If you put a fraud alert on your file, you may ask for a free credit report from each of the credit reporting agencies. Contacting any one of the three credit reporting agencies listed above is enough to file a credit alert with all of them. A credit alert must be renewed every 90 days. 
   
• You also have a right to put a credit freeze on your file. You may be charged a fee of up to $5 if you have not been a victim of identity theft. 
   
• You should also check your credit activity regularly with each credit issuer. You don’t need to wait for your monthly statement, though you should check that as well. Many banks provide online information to account holders about recent activity.

The contact information for the credit reporting agencies:

Equifax
1-800-525-6285 

Experian
1-888-397-3742 

TransUnion
1-800-680-7289

The Attorney General’s Office also suggests that consumers guard against future threats in the following ways:

• Create strong passwords for online accounts and update them frequently. Use different passwords for different accounts, especially for websites where you have disseminated sensitive information, such as credit card or Social Security numbers. 
   
• Carefully monitor credit card and debit card statements each month. If you find any abnormal transactions, contact your bank or credit card agency immediately. 
   
• Do not write down or store passwords electronically.If you do, be extremely careful of where you store passwords. Be aware that any passwords stored electronically (such as in a word processing document or cell phone’s notepad) can be easily stolen and provide fraudsters with one-stop shopping for all your sensitive information. If you hand-write passwords, do not store them in plain sight. 
   
• Do not post any sensitive information on social media.Information such as birthdays, addresses, and phone numbers can be used by fraudsters to authenticate account information. Practice data minimization techniques. Don’t overshare.
   
• Always be aware of the current threat landscape. Stay up to date on media reports of data security breaches and consumer advisories.  

Last month, Attorney General Eric Schneiderman’s office issued a report titled “Information Exposed: Historical Examination of Data Breaches in New York State” that can be viewed here.

MINEOLA – Attorney General Eric T. Schneiderman today announced the first round of awards to law enforcement agencies in the New York City metropolitan area through the Attorney General’s inVEST Partnership, a statewide program that helps law enforcement agencies purchase bulletproof vests for sworn officers. The funding awarded today includes $671,359.00 for 2,402 vests for the New York Police Department (NYPD), $498,729.00 for 1,397 vests for the Nassau County Police Department, $138,210.00 for 425 vests for the Suffolk County Police Department and financial assistance for 19 additional area police departments. In total, the Attorney General announced $1,481,785.90 in grants today to support the purchase of 4,728 bulletproof vests. On Monday Attorney General Schneiderman announced an initial round of funding to 60 law enforcement agencies in Western New York, the Capital Region and the North Country.

“When our brave law enforcement officers go to work to keep our communities safe, we owe it to them to do everything we can to keep them safe,” said Attorney General Schneiderman. “The inVEST Partnership grants we are announcing today will arm thousands of brave officers across New York City and Long Island with life-saving vests they might not otherwise have, adding a critical layer of safety to one of the most dangerous jobs in the world.”

In 1998, the federal government passed the Bulletproof Vest Partnership (BVP) Grant Act, which established a competitive grant program to provide up to 50 percent matching funds for state, county and local law enforcement organizations to purchase bulletproof vests. Unfortunately, because of partisan gridlock in Washington, BVP grants to departments in New York State have dropped precipitously in recent years.  In fact, since peaking in 2010, grants awarded to law enforcement agencies in New York State decreased by 81 percent, or approximately $3.27 million. In June, Attorney General Schneiderman announced the inVEST Partnership to replace funds cut from the BVP program.

The danger that law enforcement officers face on a daily basis cannot be overstated: Since 1984, 71 officers in New York State have been shot and killed in the line of duty and 29 different law-enforcement agencies have experienced gunfire fatalities. The National Institute of Justice (NIJ) estimates that bulletproof vests have saved more than 3,000 police officers’ lives nationwide during the same time period. 

On July 28th, New York Police Department Detective Mario Muniz was shot multiple times, including once in the chest, while attempting to execute an arrest warrant on a suspected sex offender. The round that struck his chest was stopped by his bulletproof vest, likely saving his life, according to NYPD Commissioner William Bratton.

"It's very simple: bulletproof vests save lives. We saw it again last month when Det. Mario Muniz survived a gunshot wound because of his bulletproof vest," said NYPD Commissioner William J. Bratton. "Attorney General Schneiderman's inVEST Partnership is a creative, life-saving way to use money seized from drug dealers to help us protect the officers that protect New York City."

Acting Nassau County Police Commissioner Thomas C. Krumptersaid, “I thank Attorney General Schneiderman for starting the inVEST program and for selecting the Nassau County Police Department to participate. A bulletproof vest is one of the most important pieces of equipment that a police officer can have. Vests save lives, and the funding from this program is critical to ensure that our officers are outfitted in the newest, safest, and most state-of-the-art technology available.”

Suffolk County Police Commissioner Edward Webbersaid, “The Suffolk County Police Department would like to thank Attorney General Eric Schneiderman for his efforts in securing the necessary money to outfit officers across the state with bulletproof vests. The bullet-resistant body armor is an essential tool in protecting our officers and this funding will go a long way in keeping our officers safe.”

New York City PBA President Patrick J. Lynchsaid, “A bullet-resistant vest stands second only in importance to strategic, tactical training that professional police officers receive.  Thanks to Attorney General Schneiderman’s inVEST partnership program, 2,400 of our members of the NYPD will be supplied to help keep our members safe on the streets.  There is a shelf life to the effectiveness of bullet-resistant vests, and this generous donation will help keep some of our members in the latest, most effective vests available.”

“MTA Police officers need to be prepared for any type of hazard on the job, and equipping them with state-of-the-art bulletproof vests is a commitment to keep them safe,” said MTA Police Chief Michael Coan.“By providing 50 new vests to our officers, this program will make every effort to ensure their safety while they try to ensure the safety of others.”

Jim Carver, President of the Nassau Police Benevolent Association, said, “The Nassau PBA thanks AG Schneiderman for providing funds to purchase these life-saving bullet proof vests. This year has seen a 71% increase over last year in police officer fatalities due to firearms nationwide. The funding provided by the AG for new upgraded vests will provide my members the much-needed protection against the ever-present dangers that our police officers encounter while risking their lives each day protecting the residents of Nassau County.”

Noel DiGeralomo, President of the Suffolk County PBA, said, “I thank Attorney General Eric Schneiderman for his effort to protect our officers with his bulletproof vest program. The safety of our officers in Suffolk County is paramount, and we applaud any and all assistance to ensure this.”

Michael J. Palladino, President of the Detectives' Endowment Association and the New York State Association of PBA's,said, “Last week we learned once again the significance of a bullet-resistant vest. Our detective was shot at point-blank range in the chest, and his vest defeated the round and saved his life.  The Attorney General is focused on providing every officer in the State the same protection.”

The Attorney General’s office committed $3.5 million from criminal and civil forfeiture funds to create the inVEST Partnership. The office began accepting applications for the inVEST Partnership on June 9th. The awards announced today represent the second round of funding. Subsequent rounds will be announced in the coming weeks. For those departments that receive awards, matching funds will cover up to 50 percent of the total costs of vests, vest carriers, attachments, inserts, fitting, shipping and applicable taxes. Funding is available to equip newly hired officers or to replace expiring vests for veteran officers. Vests must conform with the performance standards delineated by NIJ in its most recent testing report. 

The inVEST Partnership will provide matching funds for between 6,000 and 10,000 vests. Although the initial priority application deadline for the inVEST Partnership has passed, law enforcement agencies still in need of funding for protective vests are encouraged to apply. Late applicants will be reviewed based on funding availability, on a first-come, first-served basis. In order to apply, an agency must be a member of or join the United States Department of Justice Asset Forfeiture and Money Laundering Equitable Sharing Program. Approved departments will be required to submit receipts for reimbursement by the end of this year.

The awards announced Monday can be found here.

NEW YORK -- Attorney General Eric T. Schneiderman today announced that he, along with 40 other state Attorneys General and the District of Columbia, reached a $35 million settlement with Pfizer arising from alleged improper marketing and promotion of the immunosuppressive drug Rapamune.  New York’s share of the settlement is over $1.7 million.  Pfizer, as parent of Wyeth Pharmaceuticals Inc., agrees to be bound by the judgment and to resolve allegations that Wyeth unlawfully promoted Rapamune. Attorney General Schneiderman’s office served on the Executive Committee of this multi-state investigation.  

“There has to be one set of rules for everyone, no matter how rich or powerful, and that includes big pharmaceutical companies that make unapproved and unsubstantiated claims about products in order to boost profits,” said Attorney General Schneiderman.“Patients and consumers need to have confidence in the truthfulness of claims made to them by medical providers without having to worry about drug companies manipulating the doctor-patient relationship. Their health and well-being depend on it.”

Rapamune is an immunosuppressive drug that prevents the body’s immune system from rejecting a transplanted kidney.  Its label, as approved by the Food and Drug Administration (FDA), authorizes its use only immediately after kidney transplants in limited combinations with other specified drugs. 

In the settlement, filed today in New York County Supreme Court, Attorney GeneralSchneiderman alleges that Wyeth engaged in off-label marketing, promoting the drug for uses that were not FDA-approved.  Wyeth improperly promoted Rapamune (1) for liver, heart and lung transplants when the drug was approved only for use after kidney transplants: (2) for conversion use (switching a patient from another drug to Rapamune), which was also unapproved; and (3) in unapproved drug combinations.  The complaint further alleges that Wyeth violated state consumer protection laws by misrepresenting Rapamune’s uses and benefits through an orchestrated campaign of promotional talks by Wyeth-retained doctors, misleading presentations of data, and funding of studies at hospitals and transplant centers designed to encourage off-label uses of Rapamune. 

The settlement prohibits Pfizer from:      

• Promoting any FDA-approved prescription drug or biological product manufactured, distributed, sold, marketed, or promoted by Pfizer in the United States (“Pfizer product”) for off-label uses;
• Making any claim comparing the safety or efficacy of a Pfizer product to another product when that claim is not supported by substantial evidence;
• Providing financial incentives for sales attributable to off-label uses of any Pfizer product;
• Making, or causing to be made, any written or oral claim that is false, misleading, or deceptive regarding any Pfizer product;
• Affirmatively seeking the inclusion of Rapamune in hospital protocols or standing orders for which Rapamune has not been approved by the FDA;
• Disseminating information describing any off-label or unapproved use of Rapamune unless such information and materials complies with applicable FDA regulations; 
• Seeking to influence the prescribing of Rapamune in hospitals or transplant centers in any manner (including through funding clinical trials) that does not comply with the Federal anti-kickback statute.

States participating in the settlement are Alabama, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, South Dakota, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin, as well as the District of Columbia.              

The case was handled by Assistant Attorney General Benjamin J. Lee, Deputy Bureau Chief Laura J. Levine, Bureau Chief Jane M. Azia, all of the Consumer Frauds Bureau, and Executive Deputy Attorney General of Economic Justice Karla G. Sanchez.

NEW YORK – Attorney General Eric T. Schneiderman today announced the arrest of Noucheline Jean, 42, of Brooklyn, for allegedly masquerading as a licensed practical nurse (LPN) at Park Nursing Home, located in Far Rockaway, Queens. From October 15, 2012, to April 29, 2014, the defendant was employed by Park Nursing Home as an LPN, having convinced her employers that she was properly licensed to do so. Because the defendant never obtained a license in New York State, she was unqualified to perform the duties of a nurse. She faces Grand Larceny charges -- and up to 15 years in prison -- for taking $90,000 in salary she was not qualified to earn.

“Families who place their loved ones in nursing facilities should not have to worry about whether their care is being provided by qualified professionals,” said Attorney General Schneiderman. “My office will vigorously prosecute anyone who unlawfully practices a medical profession without a license. We will protect the public, and we will continue to enforce the law.”

As an LPN, the defendant treated patients at Park Nursing Home, physically administering to them, and making entries on their charts—all actions that only a licensed nurse or other medical professional can perform. The defendant’s actions placed the residents of Park Nursing Home in potential danger because they received nursing care from an unqualified person. Believing that the defendant was a licensed practical nurse, Park Nursing Home paid the defendant over $90,000 over 18 months — money she had no right to receive.

Practical nurses must be licensed by the New York State Education Department. In order to qualify for a license as a practical nurse, they must meet various educational criteria and professional standards and pass an exam. The licensing requirement exists to protect patients against receiving substandard, and potentially dangerous, care from unqualified persons. Residents in nursing homes, including those at Park Nursing Home, are often elderly, suffer from many health problems and are among New York State’s most vulnerable populations.

The defendant was arraigned in New York City Criminal Court, Queens County, before Judge Suzanne Melendez, where she was charged with Grand Larceny in the Second Degree, Unauthorized Practice of a Profession, Endangering the Welfare of an Incompetent or Physically Disabled Person in the First Degree, and Wilful Violation of Health Laws in a felony complaint. Grand Larceny in the Second Degree is a class C felony, with a maximum exposure of 15 years in State prison. Both Unauthorized Practice of a Profession and Endangering the Welfare of an Incompetent or Physically Disabled Person in the First Degree are class E felonies, and Wilful Violation of Health Laws Prosecutors is an unclassified misdemeanor.

Attorney General Eric Schneiderman thanks the New York State Department of Health for referring the matter to his office.

The investigation was conducted by Special Investigator Stephanie Buono and Supervising Special Investigator Mitchell Scher, with the assistance of Deputy Chief Investigator Kenneth Morgan.

The case is being prosecuted by Special Assistant Attorney General Jeffrey Winkler of the Attorney General’s Medicaid Fraud Control Unit (MFCU) New York City Office with the assistance of Cassandra Bethel, Chief of the New York City Patient Abuse Protection Unit, and Regional Director Christopher M. Shaw. Thomas O’Hanlon is MFCU’s Chief of Criminal Investigations – Downstate. MFCU is led by Acting Special Deputy Attorney General Amy Held. The Criminal Division is led by Executive Deputy Attorney General Kelly Donovan.

The charges are accusations, and the defendant is presumed innocent until and unless proven guilty in a court of law.

NEW YORK—Attorney General Eric T. Schneiderman, together with the attorneys general of Illinois, Indiana, and Massachussetts, co-sponsored a letter submitted to the Food and Drug Administration today that was signed by 29 state attorneys general. The letter urges the FDA to strengthen its proposed regulation of electronic cigarettes – or e-cigarettes – with the goal of protecting young people from the harms of nicotine addiction. Among other recommendations, the attorneys general pressed the FDA to prohibit flavors in e-cigarettes, and to restrict advertising and marketing for e-cigarettes in the same manner as for cigarettes.

“E-cigarettes have all the addictive qualities of regular, combustible cigarettes, yet they are completely unregulated by the FDA,” said Attorney General Schneiderman.  “While we applaud the FDA’s proposal to start regulating these tobacco products, it falls far short of what is needed to protect our youth.  Each year, electronic cigarette companies spend millions of dollars advertising their product – often on prime-time television -- glamorizing smoking in the same way combustible cigarettes did before those commercials were banned. And each year, more and more youth try electronic cigarettes, exposing themselves to the proven dangers of nicotine.”  

E-cigarettes contain no tobacco but do contain nicotine generally derived from tobacco.  The nicotine is dissolved in a liquid that, when heated, forms a vapor that is inhaled, delivering nicotine to the lungs. While some claim that e-cigarettes may have the potential to help smokers quit using combustible cigarettes, the FDA has not approved them as smoking cessation devices.  Furthermore, the public health implications of these new products are still being researched and there remain concerns that they will be attractive to youth and cause teens to become addicted to nicotine and ultimately to start using cancer-causing combustible products that do contain tobacco. In 2013, e-cigarette advertisements on television reached over 14 million teens, and magazine advertisements reached 9.5 million teens.  In just one year, the five largest e-cigarette companies increased their marketing expenditures by 164%. 

E-cigarettes are a significant and growing part of the cigarette market.  Of greatest concern is research showing an “exponential” increase in e-cigarette use among young people. According to the latest Surgeon General’s report, nicotine exposure during adolescence adversely affects cognitive function and development, potentially resulting in lasting deficits. 

In April 2014, the FDA issued proposed regulations deeming e-cigarettes “tobacco products,” which puts them under the FDA’s regulatory jurisdiction under the Federal Food, Drug, and Cosmetic Act (FD&C Act), as amended by the Family Smoking Prevention and Tobacco Control Act (Tobacco Control Act). Though the FDA’s proposed regulations represent a step in the right direction, the attorneys general argue that they do not go nearly far enough to protect young people from the potential harms of e-cigarettes. Over 7,000 flavors are available for electronic cigarettes, and more are introduced each month.

Over 35 years ago, tobacco companies recognized that flavored cigarettes were for “young people” and “teenagers,” and, consequently, the FDA banned flavored cigarettes.  

“Today, we urge the FDA to do the right thing and protect our youth from yet another tobacco epidemic,” the letter continues. “We don’t need these e-cigarettes aimed at our youth.  What we need are strong FDA regulations that protect the public health and protect our youth from a lifetime of nicotine addiction.  The FDA should ban all flavored electronic cigarettes and should prohibit e-cigarette advertising on television, radio and youth-oriented magazines.” 

In their comments, the states urged the FDA to do more to protect children from the harmful consequences of nicotine. In particular, they called for the FDA to: 

• Prohibit flavors other than tobacco and menthol in e-cigarettes and other tobacco products; 
   
• Restrict the advertising, marketing, and promotion of e-cigarettes in the same ways it has restricted the advertising, marketing, and promotion of cigarettes and smokeless tobacco, as well as strengthening and updating those restrictions;
   
• Strengthen the health warnings for the deemed tobacco products; 
   
• Restrict the advertising, promotion, and sale of all tobacco products over the Internet; 
   
• Define e-cigarette components and parts and apply the proposed restrictions on age verification, vending machine sales, and health warnings regardless of whether such components and parts contain nicotine; 
   
• Include “premium” cigars in the deeming rule; and 
   
• Regulate pipe tobacco to prevent avoidance of regulations applicable to tobacco that is actually used as roll-your-own tobacco. 

The comments to the FDA can be viewed here.

NEW YORK – The Second Circuit Court of Appeals ruled Friday that Attorney General Schneiderman’s 2012 settlement with J. Ezra Merkin, who invested over $2 billion with Bernard M. Madoff on behalf of hundreds of investors, may proceed. The decision affirms a 2013 U.S. District Court ruling that denied an effort by Irving Picard, the Madoff trustee, to block the Attorney General’s Office from distributing the proceeds of the $410 million settlement directly to Madoff’s victims. Today’s ruling means that these victims should begin receiving the money in the coming months. 

“This ruling is a victory for justice and accountability. Many New Yorkers entrusted their investments to Mr. Merkin, who then steered money to Madoff and received millions of dollars in management and incentive fees,” said Attorney General Schneiderman. “By paving the way for my office to disburse the proceeds of this $410 million settlement to the investors and charities harmed by Mr. Merkin’s actions, this ruling will help bring justice for these people and institutions that lost millions of dollars.”

In April 2009, the Office of Attorney General charged Merkin with violations of the Martin Act, General Business Law § 352; and Executive Law § 63(12) for concealing Madoff’s control of the Merkin Funds and for breaches of his fiduciary duty to manage the funds prudently. The lawsuit sought damages, disgorgement of all fees by Merkin, and injunctive relief. 

In June, 2012, A.G. Schneiderman announced a $410 million settlement with Merkin, who controlled three funds that invested over $2 billion with Bernard M. Madoff on behalf of hundreds of investors, including many New Yorkers and charitable organizations. The institutions had entrusted Merkin with their funds but, because Merkin secretly turned all of these funds over to Madoff, the investors – including the Ariel Fund Ltd., Gabriel Capital L.P., Ascot Fund Ltd. and Ascot Partners L.P. –  lost most of their money as a result of Madoff’s Ponzi scheme. Irving Picard, acting as Madoff trustee, attempted to prevent the AG’s office from returning the money to the victims. Picard contended that under Bankruptcy Laws, he had priority over Merkin’s assets and that the Attorney General should be enjoined from distributing them, pending resolution of Picard’s separate claims against Merkin. The court today rejected that argument.

Under the 2012 agreement secured by Attorney General Schneiderman, Merkin agreed to pay $405 million to compensate investors over a three-year period, and $5 million to the State of New York to cover fees and costs. It was the first settlement resulting from a government action against Merkin.

Depending on the size of their losses, eligible investors will be entitled to receive over 40 percent of their cash losses from the Settlement. Pursuant to a claims process, investors who were not aware of Merkin’s delegation to Madoff will receive a defined percentage of their losses, while those who were aware of Madoff’s role will be eligible to receive a smaller recovery. In addition, all investors may receive additional payments at a future date when the Madoff Estate is able to distribute moneys recovered by Irving Picard, the Securities Investor Protection Corporation Trustee for the liquidation of Madoff’s Estate, who is not involved in Attorney General Schneiderman’s settlement.

This case was handled by Senior Trial Counsel David N. Ellenhorn and Karla G. Sanchez, Executive Deputy Attorney General for Economic Justice. The appeal was handled by former employees Richard Dearing and Brian Sutherland.

NEW YORK – Attorney General Eric T. Schneiderman today announced an agreement with Barneys New York that will help ensure that customers, regardless of their race or ethnicity, have equal access to its stores throughout New York. This agreement follows a nine-month-long investigation by the Attorney General’s Office, which was launched after two African-American customers alleged they were falsely accused of credit card fraud while shopping at Barneys’ flagship store.

“Profiling and racial discrimination remain a problem in our state, but not one we are willing to accept. This agreement will continue our work to ensure there’s one set of rules for everyone in public accommodations, including customers in New York’s retail establishments,” Attorney General Schneiderman said. “This agreement will correct a number of wrongs, both by fixing past policies and by monitoring the actions of Barneys and its employees to make sure that past mistakes are not repeated.”

The Attorney General’s Civil Rights Bureau reviewed several complaints from customers and former Barneys employees. The complaints alleged that:

• Door guards identified minority customers exclusively as warranting surveillance;
• In-store detectives followed minority customers, even when the customers had been identified by sales associates as clients and frequent patrons of the store; 
• In-store detectives disproportionately asked sales associates to reprint receipts after minority customers made purchases in order to confirm the purchases were legitimate; 
• In-store detectives disproportionately called sales associates who handled and completed minority customers’ transactions in order to investigate the customers’ credit card use; and 
• Some sales associates avoided serving minority customers so they would not be contacted by loss-prevention employees seeking to investigate the use of credit cards by minority customers. 

Additionally, the Attorney General found that Barneys maintained inadequate records of stops made by their loss-prevention employees, but despite these lapses, existing records showed a disproportionate number of African-American and Latino customers being detained for alleged shoplifting or credit card fraud.

After its investigation, the Attorney General’s Civil Rights Bureau concluded that Barneys did not have comprehensive written policies regarding racial profiling; use of objective, race-neutral criteria for investigating potential shoplifting and/or credit card fraud; use of excessive force and handcuffs, or treatment of detainees. The Bureau also concluded that Barneys lacked consistent recordkeeping policies with respect to stops and detentions made by its loss-prevention employees or by local law enforcement. 

Under the terms of the agreement, Barneys will:

• Retain an independent anti-profiling consultant with expertise in the prevention of racial profiling in loss prevention and asset protection; 
• Establish new recordkeeping requirements on investigations, detentions and false stops conducted by loss-prevention employees;
• Limit access to its closed-circuit TV areas by local law enforcement officers and maintain records of visits by local law enforcement officers;
• Adopt new loss-prevention detention policies and a new anti-profiling policy;
• Develop and conduct anti-profiling training for loss-prevention and sales employees;
• Investigate customer complaints of profiling; and 
• Pay $525,000 in costs, fees, and penalties.

"As the Public Advocate, an attorney, and former Assistant Attorney General, I appreciate the serious need to protect workers and consumers from abuse and bias. I commend Attorney General Schneiderman and his staff for their diligent work in reaching this settlement.  We must continue to be vigilant and make sure that no business, no matter how large or small, discriminates against customers," said New York City Public Advocate Letitia James. 

Assemblyman Karim Camara said, "Every citizen is entitled to equal protection under the law, plain and simple. This basic fact cannot be forgotten, especially in New York, which so many people from different backgrounds call home. This agreement is an effort to correct past injustices, and I believe it will do just that. Eric Schneiderman and the Office of the Attorney General should be commended for their fine work."

Sherrilyn Ifill, President and Director-Counsel of the NAACP Legal Defense and Educational Fund, Inc.,said, “One of the most significant problems we face today concerns racial profiling of African-Americans and Latinos. The Civil Rights Act of 1964 stands as one of our most important tools for confronting those problems that persist in the public accommodations context. I thank the Attorney General's Civil Rights Bureau for working to ensure that the doors of our public establishments are equally open to all, regardless of race.”

This matter is being handled by Assistant Attorney General Dariely Rodriguez and Volunteer Assistant Attorney General Matthew Lemle Amsterdam of the Attorney General’s Civil Rights Bureau, which is led by Bureau Chief Kristen Clarke. The Executive Deputy Attorney General for Social Justice is Alvin Bragg.

The Attorney General's Office is committed to protecting all New Yorkers from unlawful discrimination. To file a civil rights complaint, contact the Attorney General’s Office at (212) 416-8250, civil.rights@ag.ny.gov or visit www.ag.ny.gov.

NEW YORK – Attorney General Eric T. Schneiderman and Taxi and Limousine Commission (TLC) Commissioner Meera Joshi today announced that Yellow Cab SLS Jet Management Corp. (SLS Jet) has agreed to pay $1,387,500 in restitution to drivers who were illegally charged by the company, as well as $125,000 in penalties. Under a separate agreement with the TLC, SLS Jet will also pay $125,000 plus $25,000 toward cost of monitoring compliance, for a total of $1.6 million in restitution and fines. SLS Jet, located at 22-05 43rd Avenue in Long Island City is one of the fifteen largest medallion leasing agents in New York City, managing approximately 275 medallions.

Today’s announcement marks the second settlement resulting from a joint enforcement initiative of the Attorney General and the TLC to protect the rights of New York City's taxi drivers under the TLC’s “lease cap rules,” which limit the amount of money drivers may be charged for leasing taxicabs and medallions.

“Every worker in New York deserves an honest day's pay for an honest day's work, and taxicab drivers are no exception," said Attorney General Schneiderman. “With most cabbies already struggling to make ends meet, our agreement will put money back in their pockets and prevent this company from cheating drivers out of their hard-earned wages. Working with Commissioner Joshi and the TLC, we will continue to vigorously enforce lease cap rules and ensure that all taxi companies follow the law and respect drivers’ rights." 

“Taxi drivers are among the hardest working New Yorkers,” said TLC Commissioner and Chair Meera Joshi, “and the resolution of this case, including the recouping of over $1.39 million in restitution for victimized drivers and their families, sends a powerful message to anyone considering this kind of abuse that it will not be tolerated.  The Attorney General’s Office and the TLC are fully and jointly-committed to putting an end to this, and other forms of fraud and abuse where monies rightly belonging to drivers are illegally withheld, and drivers can feel confident that we will investigate every credible allegation we see.”

With the cost of a medallion averaging more than a million dollars, most taxicab drivers do not own the medallions associated with the taxis that they drive. Instead, drivers lease medallions, and often vehicles as well, from owners and leasing agents. New York taxicab drivers are generally not employees and are therefore usually not covered by minimum wage, overtime, or many other labor laws. 

The TLC lease cap rules, among the few workplace protections for drivers, limit the dollar amount drivers may be charged for leasing medallions and taxicabs, in order to ensure a baseline level of take-home earnings for drivers.  The rules also strictly limit add-on charges that can be imposed upon drivers and limit the purposes for which charges may be assessed. Overcharges by owners or agents chisel away at drivers’ limited income.

“The drivers who came forward are the heroes who forced cap enforcement practices in the industry,” said Bhairavi Desai, Executive Director of the New York Taxi Workers Alliance.  “They took on retaliation and harassment in the name of justice and today they have triumphed.  Given a driver who overcharges by $10 loses their license and faces prosecution for multiple offenses, the SLS Jet owners should be relieved for not facing criminal charges.  We thank the leadership of AG Schneiderman and the Labor Bureau and TLC Chair Joshi and her prosecutors for staying the course and sending the message that drivers’ economic rights will be protected.” 

"I commend Attorney General Schneiderman for his commitment to protecting New York City's workforce," said Vincent Alvarez, President of the New York City Central Labor Council, AFL-CIO. "The working men and women of the taxi industry are an important to our city's transportation infrastructure, and like all workers, they deserve to be treated with dignity and respect. This settlement will help to ensure that taxi workers are protected from unscrupulous employers, seeking to steal workers' hard-earned wages. The New York City Central Labor Council will continue to work with our elected officials to ensure that all workers are have the protections needed to keep the wages they earn, so that working families can continue to grow and thrive in our city.

The Attorney General’s investigation of SLS Jet revealed that the company violated the TLC’s lease cap rules in charging fees to drivers that SLS Jet described as “late fees.” Late fees were commonly understood by drivers and other companies in the industry as fees to be assessed for the late return of a taxi after a driver’s shift ended. In contrast, SLS Jet assessed late fees based on late pre-payment of the lease fee, but the company did not adequately inform drivers about the basis for such charges.  

Many drivers reported that SLS Jet prohibited them from pre-paying for shifts, thereby forcing them to incur SLS Jet's late fees. In addition, when certain drivers asked SLS Jet about late fees incurred, SLS Jet replied that the fees were charged because drivers leased hybrid taxicabs, a fee not permitted under TLC rules.

A review of documents by the Attorney General’s Office also revealed that SLS regularly caused numerous taxi drivers to incur late fees when it cashed out drivers’ credit card accounts – from which lease fees were deducted – before the deduction of the lease fee, thus leaving insufficient funds in credit card accounts to pre-pay lease fees. Finally, documents showed a significant spike in the incidence of late fees being assessed in January 2011, indicating a concerted effort by the company to recover more late fees beginning at that time. The charge of so-called “late fees” under such circumstances violated the TLC rules. 

In addition to the more than $1.6 million owed under the Attorney General’s and TLC’s agreements, SLS Jet must also take steps to ensure future compliance with the law. Specifically, SLS Jet must train managers and other employees, post a notice about lease cap rules, and appoint a compliance officer with responsibility for ensuring the company’s compliance with the agreement and with TLC Rules governing lease caps. SLS Jet will also make quarterly reports to the Attorney General’s Office. Should the company fail to comply with the law going forward, it will be required to retain an independent monitor to monitor and report on the company’s compliance. In addition, SLS Jet will have to notify the TLC when it imposes any type of new fee upon drivers. 

In September 2013, the Attorney General and TLC entered into an ongoing collaboration to enforce lease cap rules. Today’s announcement follows the Attorney General’s December 2013 settlement with Evgeny “Gene” Freidman and four taxicab companies for overcharging drivers in violation of TLC lease cap rules. In resolution of that earlier investigation, Freidman and the companies paid almost $750,000 to the Atto! rney General’s office for restitution to drivers and $500,000 to the TLC for penalties. 

The case was handled by TLC Prosecuting Attorneys David Ross and Jason Gonzalez, who were deputized as Special Assistant Attorneys General; Assistant Attorney General Elizabeth Wagoner; Special Counsel Patricia Kakalec; and Labor Bureau Chief Terri Gerstein. The Executive Deputy Attorney General for Social Justice is Alvin Bragg.

ROCHESTER – Attorney General Eric T. Schneiderman today announced the arrest of Adrian King, a certified nursing assistant (CNA), for hitting a 90-year-old female patient suffering from dementia. King is charged with one count of Endangering the Welfare of a Vulnerable Elderly Person or an Incompetent or Physically Disabled Person in the Second Degree, Wilful Violation of Health Laws, and Harassment in the Second Degree.

According to the misdemeanor complaint, on or about May 16, 2014, defendant Adrian King, while working as a CNA at Wesley Gardens nursing home, a residential health care facility located in the City of Rochester, is alleged to have slapped a 90-year old resident who suffers from dementia in the face. According to an individual who witnessed the incident, the slap was loud and left a red mark on the resident’s forehead.  The resident was startled and upset and immediately said she would report King.

“When a family entrusts a loved one to the care of a nursing home, they expect courtesy, kindness, and professionalism—none of which the resident received in this case, as we allege,” said Attorney General Schneiderman.  “Today’s charges reflect my office’s dedication to protecting our most vulnerable, including the elderly and the disabled, by ensuring that those entrusted to provide care to them will be held accountable when they violate that trust.”

King was arraigned before The Honorable Caroline Morrison in Rochester City Court and pled guilty to the charge of Harassment in the Second Degree. The guilty plea was taken in satisfaction of the charges faced. Sentencing has been scheduled for January 12, 2015.

The Rochester Regional Office of the New York State Attorney General’s Medicaid Fraud Control Unit (MFCU) began investigating this case when it received a referral from the Department of Health alleging that King had struck an elderly and disabled resident for whom she was assigned to provide care.  

The case was investigated by Investigator Jason Rice, with assistance from MFCU Deputy Chief Investigator William Falk. The case is being prosecuted by Special Assistant Attorney General and Chief of Criminal Investigations Catherine Wagner. The Medicaid Fraud Control Unit is led by Bureau Chief Amy Held. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

NEW YORK -- Attorney General Eric T. Schneiderman today announced that four employees of the Northern Manor Adult Day Health Care Program (Northern Manor ADHC), a health care facility in Brooklyn providing services to the elderly, have been arrested after a long-term investigation. As a condition of the settlement, Attorney General Schneiderman required that the facility be shut down. Furthermore, Northern Manor Multicare Center, Inc., the nursing home that operates the Brooklyn program, has agreed to pay a $6.5 million civil settlement in connection with this case.

The arrests and the civil settlement came after an investigation conducted by the Attorney General’s Medicaid Fraud Control Unit (MFCU) into the adequacy of adult day health care (ADHC) services provided at the Brooklyn facility. 

“Today’s charges detail yet another example of egregious, despicable abuse of public resources for personal gain, sending the message that criminal behavior will be met with the full force of the law,” said Attorney General Schneiderman. “Employees of this program will never again be able to steal from taxpayers and deprive vulnerable New Yorkers of the care they deserve.”

The investigation, which included several undercover visits by a healthy and vibrant senior working on behalf of the Attorney General’s Office, revealed that Northern Manor ADHC in Brooklyn was not providing services as represented in its claims for payment to Medicaid.  The covert portion of the investigation captured on video two medical employees at Northern Manor ADHC, one of whom was a registered nurse, falsifying the healthy senior citizen’s medical admissions forms to ensure he qualified for services that, in actuality, he was too healthy to receive. Further investigation uncovered that, in violation of state law, Northern Manor ADHC hired unqualified individuals to provide social work services, perform initial psycho-social assessments and diagnose the emotional and mental needs of registrants.  State law requires a qualified social worker to perform these services.  

In a separate civil settlement, Nanuet-based Northern Manor Multicare Center, Inc. the operator of the Brooklyn facility , admitted that it operated the medical-model ADHC program in Brooklyn, without a qualified social worker on staff from July 1, 2010 through on or about June 30, 2011, and that on 63 days during that time period Northern Manor Muliticare’s ADHC Program in Brooklyn admitted more registrants than it was certified to take by the New York State Department of Health.  Northern Manor Multicare Center, Inc. agreed to pay to the state $6,500,000 to resolve the Attorney General’s civil claims.  As part of the settlement, Northern Manor Multicare Center, Inc. agreed to close Northern Manor ADHC in Brooklyn and assist its patients in registering for placement in another state-approved ADHC program.

As an authorized ADHC facility, Northern Manor ADHC, located at One Prospect Park West in Brooklyn, is required by New York State to provide medical and psychosocial care to seniors who are unable to care for themselves independently during the day.  Such programs serve as an alternative to nursing home care for individuals needing both medical treatment and socialization during the day.  In return for providing seniors with five hours of supervision, medical care, and the opportunity to socialize outside their homes, nursing homes operating ADHC programs receive from Medicaid approximately 65% of the rate paid to nursing homes that provide room and board and skilled nursing facility services to full-time residents.

An Albany County grand jury returned an indictment against Gelena Deverman, 35, of  Cliffside Park, New Jersey, program director of Northern Manor ADHC, charging her with one count of Grand Larceny in the First Degree for causing Medicaid to pay Northern Manor ADHC over $1 million based on false claims.  Grand Larceny in the First Degree is a class “B” felony, with a maximum sentence of 25 years in state prison. 

Deverman was arraigned in Albany County Court by Judge Andrew G. Ceresia and pled not guilty.  She was released on her own recognizance.

Also arrested, in Kings County, were Larisa Rumynik, 48, of Brooklyn, a registered nurse, for Falsifying Business Records in the First Degree, an “E” felony; Liliya Kostyuk, 58, of Brooklyn, for Unauthorized Practice of a Profession, an “E” felony, and Valentina Shapran, 51, of Brooklyn, for Falsifying Business Records in the First Degree and Unauthorized Practice of a Profession. Rumynik, Kostyuk, and Shapran are expected to be arraigned in New York City Criminal Court, Kings County this afternoon. Each of them faces a maximum of four years in state prison.

The charges against the defendants are accusations, and they are presumed innocent until and unless proven guilty in a court of law. 

The investigation was led by Supervising Investigators Michael Casado and Natalie Shifrin, with the assistance of Deputy Chief Investigator Kenneth Morgan.  The audit was conducted by Special Auditor Investigators Ryan Rafferty and Yuriy Cheban, Associate Special Auditor Investigator David Verhey, and Principal Auditor Investigator Paul Erhardt, with the assistance of New York City Regional Chief Auditor Investigator Thomasina Smith.

The cases are being prosecuted by Twan V. Bounds, Deputy Regional Director of the MFCU New York City Office, and Special Assistant Attorney General Paul A. Clyne of the MFCU Albany Regional Office.  Special Assistant Attorney General Jill D. Brenner handled the civil settlement. Thomas O’Hanlon is MFCU’s Chief of Criminal Investigations – Downstate. MFCU is led by Acting Special Deputy Attorney General Amy Held.  The Criminal Division is led by Executive Deputy Attorney General Kelly Donovan. The charges are merely accusations and the defendants are presumed innocent unless and until proven guilty in court.

NEW YORK – Attorney General Eric T. Schneiderman announced today that his office has secured settlement agreements with three real estate brokerage firms in New York City and two landlords in Buffalo ensuring that tenants are not denied their right to use government assistance. Both Buffalo and New York City regulations prohibit discrimination in housing on the basis of lawful source of income, a category that includes government vouchers as well any legitimate occupation. Attorney General Schneiderman’s office is committed to upholding these regulations to ensure that all New Yorkers have equal access to housing. 

“Discrimination comes in many forms, but denying a home to someone because they receive government assistance is one of the most insidious, having a disproportionate effect on black and Hispanic individuals. No one should be turned away from an apartment based on a lawful income source, and we will continue to fight to ensure that everyone is treated equally under the law, regardless of race, ethnicity, or income,” Attorney General Schneiderman said. “Today’s settlements will ensure that many more aspiring homeowners – from Buffalo to New York City – will have a fair shot at a home and that their rights will be protected.”

Buffalo’s ordinance went into effect in 2006.  New York City’s regulation went into effect in 2008, following efforts by Mayor Bill DeBlasio and Public Advocate Letitia James when they were members of the New York City Council.  

New York City Public Advocate Letitia Jamessaid, “All renters deserve equal access to housing opportunities in our city regardless of their source of income. While on the City Council, I helped secure passage of the Source of Income Discrimination Law, and I look forward to working with Attorney General Eric Schneiderman to eliminate this kind of discrimination.”

"Housing remains one of the most important issues for New Yorkers struggling to make ends meet, and no one should be turned away from a potential home simply because they are receiving government assistance," said Council Speaker Melissa Mark-Viverito. "I thank Attorney General Schneiderman for fighting on behalf of a vulnerable population who may otherwise face unjust housing discrimination in New York City and all across the state."

City of Buffalo Council President Darius G. Pridgensaid, “Source of income discrimination has a disparate impact on the most vulnerable members of our community. I thank the Attorney General for working to eradicate this discrimination to ensure that all residents in Buffalo enjoy equal access to housing opportunities.” 

Council Member Jumaane D. Williams (D-Brooklyn), Deputy Leader, Chair of the City Council’s Housing and Buildings Committee,said, “Too often, source-of-income has proven to be a pretext for race discrimination, and I have been a vocal advocate to end this disparity. We cannot turn a blind eye to the barriers that people face when seeking affordable housing in our City.  I want to applaud Attorney General Schneiderman for his leadership in fighting on behalf of some of our city’s most vulnerable communities while using New York City’s Source of Income Discrimination Law to ensure equal access to rental opportunities.”

Last year, after receiving complaints from the public of systemic discrimination against voucher holders, Attorney General Schneiderman’s Civil Rights Bureau launched an investigation to determine whether landlords and real estate brokers across New York were complying with regulations prohibiting discrimination based on source of income. The investigation, which is ongoing, has so far resulted in these five settlements.The New York City-based brokerage firms that have settled with the Attorney General’s Civil Rights Bureau are Absolute Properties, Destination Real Estate and Brownstone Real Estate. Brokers at each of these firms regularly told prospective renters that landlords would not accept the subsidies as payment for rent. 

The Buffalo landlords are Patrick Guidice, who owns and manages five apartments, and Francis Pleto, who owns and manages eight apartments.

Source-of-income discrimination often dovetails with other forms of housing discrimination. Studies have shown that discrimination against Section 8 – the federal voucher program that provides rental housing subsidies to private landlords on behalf of millions of low-income households across the country – voucher holders increases if the recipient is African-American or Latino. Women are particularly affected, and, as of last year, female-headed households accounted for 76% of all government vouchers issued in New York. Examples of lawful source of income include Section 8 Rental Assistance, Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI) or earnings from seasonal employment.

The investigation found that in at least one undercover test, Mr. Guidice informed an undercover investigator seeking to rent an apartment that he would not accept government subsidies.  Several Craigslist advertisements Mr. Guidice posted in April 2012 stated: “Sorry do not except (sic) government assisted rental,” or “Sorry but at this time government assisted rental organizations are not excepted (sic).” From May 2012 through May 2013, Mr. Guidice posted at least 11 advertisements on Craigslist that said, “Private pay only;” “Private Pay only, no Government Assistance;” or “Private Personal Pay Only, Do Not Except (sic) Public Funds for Rent.”  The Attorney General’s investigation found that Mr. Guidice had not rented to any individuals using government subsidies in the last three years.

The second Buffalo-area settlement is with Francis Pleto. The Attorney General’s investigation found that Mr. Pleto informed an undercover tester that he would not accept Section 8 vouchers as payment for rent at any of his units. Advertisements posted online by Mr. Pleto asserted that he did not accept government subsidies. Specifically, at least one Craigslist advertisement, posted in August 2013, stated, “Don’t except (sic) Belmont,” referring to Section 8 vouchers issued by Belmont Housing Resources for WNY. Attorney General Schneiderman’s investigation found that Mr. Pleto had not rented to any individuals using government subsidies over the last three years.

Fred Freiberg, Executive Director of the Fair Housing Justice Center in New York City, said, “Unfortunately, discrimination in housing based on source of income happens all too often in our City.  Not only is it unlawful, but it harms some of the most vulnerable populations that are at risk of homelessness and in need of affordable rental housing.  We commend the Attorney General’s Civil Rights Bureau for taking action to seek compliance with the law and ensure that housing opportunities are available on an equal basis to renters with public subsidies.”

Scott W. Gehl, Executive Director of Housing Opportunities Made Equal, said, “People receiving government assistance have as much right to rent a home or apartment as any other equally qualified tenant.  Unlawful source of income discrimination deprives law-abiding citizens the right to find a decent home.  HOME appreciates that the Attorney General has taken vigorous action to combat the most frequently reported type of housing bias in Western New York.”

In New York City, undercover investigators from the Attorney General’s office also sought to determine whether government-issued vouchers were being accepted. Absolute Properties is a real estate brokerage firm in Manhattan that lists numerous properties for rent in the city. In one test, an employee of Absolute Properties informed an undercover investigator that “they don’t do Section 8.” Documents reviewed by the Attorney General’s Office revealed that Absolute Properties had, on multiple occasions, informed prospective tenants that government subsidies were not accepted at their listed properties. 

Brownstone Real Estate is a brokerage with three locations in Brooklyn. The investigation revealed that real estate agents at Brownstone told potential renters that vouchers were not accepted at their listed properties.  In addition, documents revealed that real estate agents at Brownstone failed to respond to multiple inquiries by prospective tenants who inquired about using government vouchers to rent their listed apartments.

Destination Real Estate is a brokerage firm in Brooklyn. It is owned and operated by Lawrence Roberts, Sr. The investigation revealed that Destination Real advertised an apartment as “Income Only,” and an employee of Destination Real Estate subsequently confirmed that this meant earned income and excluded government assistance.

Absolute Properties operates out of 1677 Amsterdam Ave. in Manhattan. Brownstone Real Estate’s three Brooklyn locations are at 268 Court Street; 372 7th Avenue; and 179 Atlantic Ave. Destination Real Estate is located at 540 Court St, in Brooklyn. 

Pursuant to the settlements and the requirements of local law, these brokerage firms and landlords will:

• modify their policies to ensure that all rental applicants are provided equal access to housing opportunities;
• conduct training for employees around these new anti-discrimination policies;
• preserve records of any complaints related to source-of-income discrimination;
• inform landlords that refuse to accept government vouchers of their obligations under the law;
• provide periodic reports to the Attorney General’s Office to ensure compliance with the law; and
• pay monetary penalties ranging from $5,000 for the individual landlords to $6,000 for the smallest brokerage firm, Destination Real Estate; $15,000 for Absolute Properties; and $18,000 Brownstone Real Estate, the largest of the three firm.  

This matter is being handled by Assistant Attorney General Sandra Pullman of the Civil Rights Bureau, which is led by Bureau Chief Kristen Clarke. Executive Deputy Attorney General for Social is Justice Alvin Bragg.

The Civil Rights Bureau of the Attorney General’s Office is committed to promoting fair housing policies and combating discrimination faced by all New Yorkers. To file a civil rights complaint, contact the Attorney General’s Office at (212) 416-8250, civil.rights@ag.ny.gov or visit www.ag.ny.gov.   

Further information on fair housing laws can be found here.

POUGHKEEPSIE – Attorney General Eric T. Schneiderman today announced awards to law enforcement agencies in the Hudson Valley and Westchester through the Attorney General’s inVEST Partnership, a statewide program that helps law enforcement agencies purchase bulletproof vests for sworn officers. The funding awarded today includes $80,000 to support the purchase of 200 vests for the Rockland County Sheriff’s Office, $33,300 to purchase 74 vests for the Kingston Police Department, $34,592 to purchase 84 vests for the Yonkers Police Department, receiving, $30,720 to purchase 80 vests for the City of White Plains Department of Public Safety, and $5,000 to purchase 10 vests for the City of Poughkeepsie. In total, the Attorney General announced $382,192.58 in grants today to support the purchase of 971 bulletproof vests. This is the third round of awards. Previously, Attorney General Schneiderman announced more than $2 million to support the purchase of more than 6,000 bulletproof vests for law enforcement agencies in Western New York, the Capital Region, the North Country, New York City, and Long Island.

“When our brave law enforcement officers go to work to keep our communities safe, we owe it to them to do everything we can to keep them safe,” said Attorney General Schneiderman. “The inVEST Partnership grants we are announcing today will arm hundreds of brave officers throughout the Hudson Valley and Westchester with life-saving vests they might not otherwise have, adding a critical layer of safety to one of the most dangerous jobs in the world.”

In 1998, the federal government passed the Bulletproof Vest Partnership (BVP) Grant Act, which established a competitive grant program to provide up to 50 percent matching funds for state, county and local law enforcement organizations to purchase bulletproof vests. Unfortunately, because of partisan gridlock in Washington, BVP grants to departments in New York State have dropped precipitously in recent years.  In fact, since peaking in 2010, grants awarded to law enforcement agencies in New York State decreased by 81 percent, or approximately $3.27 million. In June, Attorney General Schneiderman announced the inVEST Partnership to replace funds cut from the BVP program.

The danger that law enforcement officers face on a daily basis cannot be overstated: Since 1984, 71 officers in New York State have been shot and killed in the line of duty, including four in the Hudson Valley, and 29 different law-enforcement agencies have experienced gunfire fatalities. The National Institute of Justice (NIJ) estimates that bulletproof vests have saved more than 3,000 police officers’ lives nationwide during the same time period. 

On July 28th, New York Police Department Detective Mario Muniz was shot multiple times, including once in the chest, while attempting to execute an arrest warrant on a suspected sex offender. The round that struck his chest was stopped by his bulletproof vest, likely saving his life, according to NYPD Commissioner William Bratton.

State Senator Terry Gipsonsaid, “I thank Attorney General Schneiderman for his shared commitment to keeping our officers safe. We must do everything we can as a state to ensure that our police departments have the equipment they need in order to most effectively and safely combat crime in our community. These inVEST Partnership grants will help equip our bravest with state-of-the-art life-saving vests, and I'm proud to support this important and needed program.”

Assemblyman Frank Skartadossaid, “We have examples right in my district where police vests have saved the lives of officers in the line of duty. The high cost of vests can become an issue to a municipality as they must be replaced periodically before they lose effectiveness. The funding opportunity being offered by Attorney General Eric Schneiderman will go a long way to ensure that our police officers are protected while they protect us.”

City of Poughkeepsie Police Chief Ronald Knappsaid, “On behalf of the City of Poughkeepsie community I would like to thank Attorney General Schneiderman for his efforts in the grant award. Already this year we have seized 30 handguns, many of them from officer initiated actions. The large volume of guns that are available on the street puts our officers and our residents at risk. This grant will ensure that we are able to properly equip our officers with the life-saving vests as they perform their duties. It is important that the department replace aging or worn out vests, and this award will allow us to move forward with the purchases regardless of our own budget concerns or shortfalls.”

Village of Fishkill Police Commissioner Glenn Scofield, Jr.said, “I wish to thank the Attorney General and the inVEST Partnership for providing funding to off-set the cost of vital officer safety equipment such as body armor. Small law enforcement agencies such as ours often depend on funding such as this to enable us to obtain essential equipment for the safety and well-being of our officers.”

Rhinebeck Police Officer in Charge, Sergeant Pete Dunnsaid, “We would like to thank the Attorney General's office for awarding the Rhinebeck Police Department the funds necessary to purchase 12 bulletproof vests. Programs, like InVest, make all the difference to small agencies with limited resources.”

Town of Poughkeepsie Police Chief Thomas Mauro said, “Bulletproof vests have saved many officers’ lives throughout the years. The importance of replacing the officers’ body armor, which updates the protective material and ensures a proper fit, cannot be overstated. These vests can reduce the risk of injury and death to our officers that protect and serve the public daily. The Town of Poughkeepsie Police Department would like to thank New York State Attorney General Eric T. Schneiderman for the funding to purchase these vests and help keep our officers safe.”

The Attorney General’s office committed $3.5 million from criminal and civil forfeiture funds to create the inVEST Partnership. The office began accepting applications for the inVEST Partnership on June 9th. The awards announced today represent the third round of funding. Subsequent rounds will be announced in the coming weeks. For those departments that receive awards, matching funds will cover up to 50 percent of the total costs of vests, vest carriers, attachments, inserts, fitting, shipping and applicable taxes. Funding is available to equip newly hired officers or to replace expiring vests for veteran officers. Vests must conform with the performance standards delineated by NIJ in its most recent testing report. 

The inVEST Partnership will provide matching funds for between 6,000 and 10,000 vests. Although the initial priority application deadline for the inVEST Partnership has passed, law enforcement agencies still in need of funding for protective vests are encouraged to apply. Late applicants will be reviewed based on funding availability, on a first-come, first-serve basis. In order to apply, an agency must be a member of or join the United States Department of Justice Asset Forfeiture and Money Laundering Equitable Sharing Program. Approved departments will be required to submit receipts for reimbursement by the end of this year. 

The following law enforcement agencies received awards today:

The first round awards for Western New York, the Capital Region and the North Country can be found here. The second round awards for New York City and Long Island can be found here.

NEW YORK – Attorney General Eric T. Schneiderman and leading media company IAC today announced a groundbreaking agreement aimed at curbing cyberbullying and harassment to protect members of Ask.fm, a mobile-optimized social networking website just acquired by IAC operating business Ask.com, which has exploded in popularity among teenagers.  

Under the terms of the agreement, Ask.fm will revamp its safety policies and procedures, including creating a new online Safety Center, hiring a trust and safety officer to act as a primary safety contact, and establishing a Safety Advisory Board to oversee all safety issues. Ask.fm will also review user complaints within 24 hours and remove users that have been the subject of multiple complaints. An independent safety and security examiner will be appointed to examine the changes and report on compliance to the Attorney General’s Office for three years. 

“Today’s agreement shows once again that regulators can work with technology companies both to encourage innovation and protect consumers, including our youngest digital citizens,” saidAttorney General Schneiderman. “I applaud IAC’s leadership in working with our office to design a program that protects Ask.fm users from cyberbullying and other harmful content. We would hope that this collaboration serves as a useful model for other companies in the digital space.” 

“Our acquisition of Ask.fm was predicated on the belief that with the right mix of technology, talent and investment, we could make this site a materially safer place,” said Doug Leeds, CEO of Ask.com, the IAC subsidiary now responsible for Ask.fm. “In A.G. Schneiderman, we found a like-minded partner with a similar vision, and together we’re focused on instilling the right policies and procedures to ensure a safer and more enjoyable experience for millions of users." 

Launched in 2010, Ask.fm has over 180 million monthly active users around the world, 42% of whom are under age 18. The website has become popular because its engaging question-and-answer format allows users to express their identity through the lens of what others want to know about them. Users can anonymously ask questions of other registered users, obscuring their own identity in hopes of getting the most honest answer with the least judgment. While most teenage users trade harmless chatter, some have used the website to anonymously harass and insult classmates and neighbors. 

As part of today’s safety agreement, Ask.fm will: 

• Maintain a user-initiated reporting mechanism on the site for reporting concerns about (i) misuse of the site, (ii) harassment, (iii) use under the age of 13, and (iv) inappropriate content;
   
• Remove users who have been the subject of three (3) complaints and take reasonable steps to block those users from creating new accounts under different names. Such steps may include using persistent cookies to identify banned users and blocking users with certain banned email addresses from re-registering;
   
• Work with an accredited 501(c)(3) suicide prevention organization to address suicide prevention issues, train Ask.fm’s moderation and risk management staff, and provide guidance to resources for Ask.fm users;
   
• Register with the National Center for Missing and Exploited Children and comply with all reporting requirements of sexual exploitation images;
   
• Maintain user abilities to (i) review a question before it is posted on that user’s pages, (ii) remove a posted question at any time from that user’s pages, (iii) block another user from submitting questions, and (iv) require that all questions submitted from another user identify the questioner’s user name;
   
• Create a global law enforcement liaison position stationed in the U.S. to respond to law enforcement investigations of crimes against children;
   
• Promptly delete existing accounts and block future accounts associated with users who have self-identified as being under the age of 13; and
   
• Adopt a tool for third parties or parents to report that a child had created an account or posted to Ask.fm, and to request deletion of the account. 

Ask.fm will also hire an independent safety and security examiner to report for three years on continuing safety issues arising from the site, Ask.fm's compliance with the agreement, the volume and nature of any user complaints, the employees and third-party professionals who advise Ask.fm on safety and compliance issues, and confirmation of compliance with the Children’s Online Privacy and Protection Act, 5 U.S.C. §§ 6501–6505. 

“I applaud IAC and the Attorney General Schneiderman for working together to adopt immediate and meaningful procedures to protect young people online,” said Parry Aftab, Executive Director of WiredSafety.org. “The policies and procedures established by this agreement provide a new model for protecting children in anonymous online forums and helps address cyberbullying.” 

“We are committed to implementing enhanced safety solutions at Ask.fm that range from technology to policy to process,” said Catherine Teitelbaum, Ask.fm’s new chief trust and safety officer and an online safety expert, who brings more than 17 years of experience in governance alliance and process improvement to her role at Ask.fm. "Online safety is an industrywide challenge, and we believe that companies, non-profits, and government can all work together to create safer digital experiences for all.” 

Under IAC’s leadership, Ask.fm has entered into a similar agreement with the Maryland Attorney General’s Office. 

Attorney General Schneiderman also recommends that parents remain aware of their children’s activity online – and especially on social networking sites – to ensure their safety as well as the safety of other users. Parents can follow these tips: 

• Check your child’s browser history. Although most major social networking websites require that users be 13, research indicates that children often become members by misrepresenting their age. If you see a social networking site listed among the visited sites on your computer, assume your child has an account. 
   
• Review your child’s privacy settings, and show him or her how to activate the highest level of security.Most sites have customizable privacy settings that allow users to control what content is revealed and to whom. Take the time to learn how these privacy settings work on the sites your child plans to use. 
   
• Educate yourself about the sites.Make sure both you and your child understand the site’s privacy policy and code of conduct. Find out if the site monitors content that users post, and learn how to report abuse. Consider joining the social network and connecting with your child’s profile as a way to monitor activity.
   
• Set strict rules for what is and is not appropriate for your child to post online.These rules should include whether your child can use social media and websites, how they can be used to communicate and play, with whom your child can interact (e.g., real-life friends only), and for how much of the day. 
   
• Instruct your child to think before posting. Your child should not put something up on a social networking site unless he or she is comfortable with everyone in the world seeing it. It’s better to assume that everything posted can be viewed by everyone. Know that even if your child deletes content later, someone may have printed, downloaded, or shared it online with a broader – or unintended – audience. 
   
• Be smart about the details your child reveals.Never post location or personal information.  Explain to your child that even photographs can reveal a lot of personal information -- for example if they include clearly identifiable details such as street signs, license plates, personalized accessories, or school or team names on clothing. 
   
• Remind your child that anything created or communicated can be re-distributed and used to hurt your child or someone else. Photos and text can be cut, altered, or taken out of context and used to embarrass or manipulate children, or to damage their reputations or future prospects. This includes unkind or angry messages, compromising photos or videos, and posts about sex, weapons, drugs, and alcohol. Make sure your child is mindful of what he or she posts, since oversharing online can lead to consequences in the real world. 
   
• Be aware of “anonymous” apps and social websites.Some services, like Ask.fm, allow users to post anonymously, which can lead to a proliferation of inappropriate and harmful content. Most sites provide a variety of settings or mitigation techniques, such as blocking rude posts or posters, or requiring the user to accept the anonymous post. Take full advantage of these settings and report abuse immediately. 
   
• Teach your child about cyberbullying.It's important to encourage young users to communicate with others online in the same way they would face to face: behaving civilly and respectfully, and sharing positive information about themselves on social media. 
   
• Talk to your child about the persistence of online content.Your child’s social media presence is just the beginning of his or her digital footprint and should be managed carefully. Content posted today can affect his or her reputation long term and potentially cause later impact when he or she is applying for college and employment. 

This agreement was negotiated by Internet Deputy Bureau Chief Clark Russell. The Internet Bureau Chief is Kathleen McGee and the Executive Deputy Attorney General of Economic Justice is Karla G. Sanchez.

BINGHAMTON – Attorney General Eric T. Schneiderman today announced the arrest and four-count indictment of attorney John D. Cadore on charges of Larceny and Scheme to Defraud. Cadore is accused of overbilling the New York State Supreme Court’s Attorneys for Children program and the Broome County Assigned Counsel program by nearly $11,000. Cadore, who was one of the highest billers to the Attorneys for Children program in the Third Judicial Department, submitted invoices totaling $747,139 for the two programs between January 1, 2009, and September 30, 2011. An audit conducted by the Office of Court Administration (OCA) Inspector General revealed approximately 36 days on which Cadore billed more than 24 hours in a single day between the two programs. 

“Individuals who steal hard-earned taxpayer dollars undermine trust in government and must be held accountable,” said Attorney General Schneiderman. “No one is above the law, no matter how powerful or well connected, which is why my office has prosecuted more than 50 people in public corruption cases. When an individual illegally obtains funds for  personal enrichment, it deprives people in need and all taxpayers of precious public resources.” 

Cadore was arraigned before the Honorable Martin Smith today in Broome County Court. The four-count indictment charges Cadore with two counts of Grand Larceny in the Third Degree, one count of Grand Larceny in the Fourth Degree, and one count of Scheme to Defraud in the First Degree. The defendant faces a maximum sentence of 2 1/3 to 7 years in prison.  

In addition to overbilling hours, Cadore double-billed travel expenses to court on approximately 187 occasions, court papers allege. OCA rules require an attorney who appears in court on more than one case at a time to bill for travel on one case or divide the time between two or more cases.  

The Attorney General thanks Auditor Aric Andrejko, Senior Auditor George Danyluk, and Inspector General Sherrill Spatz of the Office of Court Administration Inspector General’s Office for their invaluable cooperation and assistance in this investigation.

Assistant Attorney General Bridget Holohan Scally and Assistant Attorney General Colleen Glavin, both of the Public Integrity Bureau, are prosecuting the case. The Public Integrity Bureau is led by Bureau Chief Daniel Cort and Deputy Bureau Chief Stacy Aronowitz. The Public Integrity Bureau is part of the Criminal Justice Division led by Executive Deputy Attorney General for Criminal Justice Kelly Donovan. The prosecutors were assisted by Investigations Bureau Investigator David Buske, with support from Deputy Bureau Chief Antoine Karam and Bureau Chief Dominick Zarrella of the Investigations Bureau.

The charges are accusations and the defendant is presumed innocent unless and until proven guilty in court.

COMMACK – Attorney General Eric T. Schneiderman today announced that his office reached a settlement with Forster & Garbus, one of the largest debt collection firms in New York State, to ensure that it does not file actions against New Yorkers to collect on payday loans. A payday loan is a type of short-term borrowing – sometimes due in two weeks, which accounts for the name – in which the consumer borrows a small amount at interest rates that can range from 100 percent to 650 percent or more.  Payday loans are illegal because the interest rates far exceed the maximum of 16 percent allowed under New York law for most lenders not licensed by the State. This settlement is part of an ongoing crackdown by Attorney General Schneiderman on payday loans.

“Payday loans take money away from hardworking New Yorkers who are forced to pay illegal and outrageous interest rates,” Attorney General Schneiderman said. “Debt collection firms must make certain that the underlying loan is not a payday loan before filing a lawsuit, and they will be held responsible if they fail to do so. Ignorance is no excuse.”

The Attorney General’s investigation showed that a company called NCEP, LLC placed consumer debts with Forster & Garbus, located in Commack, for collection. These included payday loans, and on five occasions it attempted to collect on payday loans from New Yorkers. Forster & Garbus represented to the Office of the Attorney General (OAG) that it was had not been aware that the loans were payday loans, and after notification from the OAG, Forster & Garbus stopped its collection efforts. 

Under the agreement, Forster & Garbus may not file an action against a New Yorker  over a consumer credit transaction unless it first obtains a copy of the loan document and determines in writing that it is not a payday loan.  When it receives a written complaint from a consumer that an existing judgment or settlement may have involved a payday loan, Forster & Garbus is required to obtain a copy of the loan document and, if the loan was a payday loan, vacate the judgment and pay restitution to the consumer for any amounts paid on the judgment. Forster & Garbus was also required to pay $10,000 in costs and penalties.  

Attorney General Schneiderman has been tough on payday loans, sending a clear message that these predatory transactions will not be tolerated. Since January 1, 2011, as a result of his no-nonsense approach:

• Five debt collection firms that collected on payday loans were required to pay a total of $279,605.98 in restitution and $29,605.98 in penalties; 
   
• A debt-buying company was required to reverse 8,550 negative  reports it had made to credit reporting bureaus on New Yorkers and was prohibited from collecting on $3.2 million in payday loans taken out by New Yorkers; 
   
• 12 companies agreed to refuse requests to repossess the vehicles of New Yorkers when the underlying loan is a payday loan; and
   
• Three companies and their owners were stopped from collecting interest on outstanding payday loans and required to provide refunds to New York borrowers who had paid back more than the principal of their loan plus the legal interest rate of 16%, and to pay $1.5 million in penalties.

This case was handled by Assistant Attorney General James Morrissey and Karen Davis, Senior Consumer Fraud Representative in the Buffalo Regional Office, which is led by Michael Russo, Assistant Attorney General in Charge. The Buffalo Regional Office is a part of the Division of Regional Offices, led by Marty Mack, Executive Deputy Attorney General for Regional Offices.

KINGSTON – Attorney General Eric T. Schneiderman announced today that his office has reached a settlement with Kingston auto dealer Prestige Automobiles, Inc., doing business as Prestige Toyota, which was adding an improper $650 “processing fee” to the purchase price of leased vehicles bought by customers at the end of their leases.  No additional services were provided for payment of this fee, which was not properly disclosed.

“The law is clear: auto dealers must treat consumers fairly and honestly, and not cheat them by charging bogus fees,” Attorney General Schneiderman said.  “This is one more step in our work to stop deceptive marketing practices in New York State and ensure that victims can recover their hard-earned dollars. There must be one set of rules for all New Yorkers, and that includes auto dealers.”

Pursuant to the settlement, Prestige Toyota will pay $17,250.47 in restitution to 27 customers who were charged the bogus processing fee. The dealership, located at 753 East Chester Street Bypass, will also reform its practices and pay $10,000 in penalties to New York State.

In 2012 and 2013, Prestige Toyota entered into leases with customers that set a price for purchase of the vehicle at the end of the lease. However, when the leases expired, Prestige Toyota added $650 to the purchase price  without disclosing it had done so. In addition, the fee was added to the price tag despite the fact that nothing had happened during the course of the lease to increase the cost to the dealership. When one customer caught the dealer doing this, he was told the $650 was a “processing fee.”  After the consumer was given only a partial refund, he complained to Attorney General Schneiderman’s Poughkeepsie Regional Office, which investigated the matter.

The Attorney General’s investigation found 27 consumers who are entitled to refunds – most of them for $650 – with 9% interest starting from the date of purchase. If more consumers come forward to the Attorney General’s office with proof they also were charged the illegal fee, they will be entitled to restitution. Consumers have until December 6 to contact the Attorney General’s office.

The case was handled by Assistant Attorney General Nick Garin with the assistance of Senior Consumer Frauds Representative Stephanie Brideau and Senior Investigator Mark Hoops. Vincent Bradley is the Assistant Attorney General-in-Charge of the Attorney General’s Poughkeepsie Regional Office, and Marty Mack is Executive Deputy Attorney General for the Attorney General’s 13 Regional Offices.

NEW YORK – Attorney General Eric T. Schneiderman today announced that 46 thrift shops across New York have been sent cease and desist letters ordering them to stop selling children’s clothing with drawstrings. The letters were sent after a survey by the Attorney General’s 13 Regional Offices found that despite state and federal prohibitions against the sale of children’s drawstring clothing, many thrift shops continue to offer these dangerous items for sale.

“The sale of children’s clothing with drawstrings has been illegal in New York for more than a decade – and that includes the sale of these items by thrift stores,” Attorney General Schneiderman said. “No child should be put at risk simply because of the clothing that he or she is wearing. With these warning letters, we are sending a clear signal that thrift shops, like all retailers, must comply with the law – that they cannot sell clothing that puts children at risk of injury, strangulation and death. Beyond that, my office also hopes to also raise parents’ awareness of the serious dangers posed by children’s drawstring clothing.”

As part of the Attorney General's effort to curb the resale of banned consumer products at hundreds of thrift stores across New York State, inspectors from the office visited 51 thrift shops in regions across the state in late July. Of these, 46 shops -- including 13 operated by The Salvation Army and 10 operated by Goodwill Industries -- were found to be selling one or more items of illegal children’s drawstring clothing. The items included shirts, sweatshirts, pants, shorts and skirts, all of which had drawstrings that exceeded the permitted length. In response to the cease and desist letters, sent earlier this month, the thrift stores have acted quickly to remove the offending products from their shelves.

Drawstrings on children’s garments at the neck and waist are considered a safety hazard. The drawstrings can catch on cribs, playground equipment and vehicle doors-- including school bus doors-- and have caused injuries and death by strangulation. From January 1985 through April 2011, the U.S. Consumer Product Safety Commission received reports of 26 deaths and 58 non-fatal incidents involving drawstrings on children’s clothing. New York has banned the sale of children’s drawstring clothing since 2003, and federal rules also ban their sale. 

The thrift shops that received letters were ordered to immediately stop selling illegal drawstring clothing, and to immediately remove all offending items from their shops. The Attorney General’s office will continue to monitor thrift shops, and take enforcement action as appropriate, to ensure compliance going forward. 

Under New York law, it is illegal to sell any item of children’s clothing, up to and including size 12, with a drawstring at the neck. Drawstrings are permissible at the top of a bottom garment (i.e., at the waist of sweatpants), or at the bottom of an upper garment (i.e., at the waist of a jacket) in children’s clothing sized from 2T to 16, if the following conditions are met:

• The drawstring is attached to the garment at its midpoint, so it cannot be fully pulled to one side, thus making it a hazard.
• The ends of the drawstring measure no more than three inches from the point where the drawstring exits the garment to the tip of the drawstring, measured while the garment is expanded to its fullest width.
• No toggles, knots, or attachments can be placed at the ends of the drawstrings other than a standard metal or plastic sheath covering on the end to prevent fraying.

The following is a list of the thrift shops in New York that were found to be selling children’s clothing with hazardous, illegal drawstrings:

Broome County:
Ladies of Charity Nearly New Shop, Binghamton
Salvation Army Thrift Store, Binghamton
The Urban Star, Johnson City

Clinton County: 
St. Vincent de Paul Thrift Store, Peru
Our Lady of Victory Thrift Shop, Plattsburgh
Salvation Army, Plattsburgh

Dutchess County: 
Goodwill Industries, Wappingers Falls

Erie County:
A King’s Ransom Thrift Shop, Blasdell
Once Upon A Child, Blasdell
Savers Thrift Store, Hamburg
Finders Keepers, Williamsville
Goodwill Store, Williamsville

Jefferson County: 
The Thrift Shop, Inc., Fort Drum
Classy Kids, Watertown
Impossible Dream Thrift Store, Watertown

Long Island: 
Salvation Army, Babylon 
Glory Beez, Baldwin
Goodwill Industries, Bellmore
Salvation Army, Hempstead
Savers, Holbrook
Marshmellow Kids Fashion, Mineola

Monroe County: 
ABVI-Clinton Goodwill, Rochester
Matthew’s Closet, Rochester
Salvation Army, Rochester (East Ridge Road)
Salvation Army, Rochester (Elmridge Center Drive)
Volunteers of America, Rochester

New York City: 
Goodwill Industries, Bronx
Salvation Army, Bronx
Thrift Land USA, Inc., Bronx
Yankee Wiping Cloth Corp., Bronx
Goodwill Industries, Brooklyn (Livingston Street)
Goodwill Retail Store, Brooklyn (Fulton Street)
Goodwill Industries, Manhattan (Fifth Avenue)
Salvation Army, Manhattan (West 96th St.)
Salvation Army, Queens (Steinway Street)

Niagara County: 
Kids Corner Clothing, Niagara Falls
Salvation Army Family Thrift Store, Niagara Falls

Onondaga County:
Liverpool Thrifty Shopper, Liverpool
East Syracuse Thrifty Shopper, East Syracuse
Goodwill of the Finger Lakes, Syracuse
Salvation Army, Syracuse

Orange County: 
Goodwill Industries, Vails Gate

Ulster County: 
Salvation Army, New Paltz

Westchester County: 
Elmsford Goodwill Store, Elmsford
Salvation Army Thrift Store, Mount Vernon
Thrift Store of White Plains, White Plains

The initiative is being coordinated by Assistant Attorney General-in-Charge Gary Brown of the Westchester Regional Office. The Executive Deputy Attorney General for Regional Affairs is Marty Mack. 

A link to the U.S. Consumer Product Safety Commission Final Rule report can be found here.

NEW YORK – Attorney General Eric T. Schneiderman and New York State Commissioner of Taxation and Finance Thomas H. Mattox today announced the  unsealing of an indictment of a large-scale cigar distributor, Aamir Sulaiman, of Delta Distribution Services Corp. Sulaiman, a licensed tobacco distributor, and his Brooklyn-based corporation were charged with felony Criminal Tax Fraud, Offering a False Instrument for Filing, and Falsifying Business Records after an investigation showed that Aamir, who owns and operates Delta, imported millions of cigars from Pennsylvania-based wholesalers and resold them in New York without paying New York taxes on the products. Sulaiman was arraigned in Brooklyn Supreme Court in front of Judge Chun. If convicted, the 45-year-old faces up to 25 years in prison. 

The investigation, conducted by the Attorney General’s Organized Crime Task Force and the Department of Taxation and Finance, revealed that between March and November 2013, Aamir allegedly failed to pay at least $6.1 million in state tobacco taxes. A review of seized records revealed that Sulaiman and Delta Distribution Services Corp. owed over $6 million in tobacco taxes to New York State and remitted only $100,000. 

“On behalf of responsible businesses, taxpayers, and local governments, we must take aggressive action against tax cheats — especially those who have stolen millions of dollars from the people of New York State,” said Attorney General Schneiderman. “Operations like these undermine law-abiding mom-and-pop shops and other businesses in New York by putting them at a competitive disadvantage, not to mention damaging our public health efforts to discourage smoking. I thank the Department of Taxation and Finance for partnering with us on this important case.”

“In his effort to steal from the State, it appears the defendant filed multiple false tobacco tax returns, and also falsified his business documents,” said New York State Commissioner of Taxation and Finance Thomas H. Mattox. “This is a serious crime, and I thank Attorney General Schneiderman for moving ahead with prosecution.”    

Between March and November 2013, licensed tobacco distributors were required by law to remit a 75% tax on the wholesale price of all cigars sold, shipped, imported, manufactured, or delivered in New York. That payment must be made to the state Tax Department by the 20th of every month, along with a completed NYS tax form called the MT-203. Aamir’s MT-203’s for the nine-month span falsely reported and remitted $100,188 in tobacco taxes, as opposed to the $6.9 million that he owed. 

On March 12, 2014, Aamir, of Staten Island, and his corporation were arraigned on a felony complaint in Brooklyn Criminal Court, and Aamir was held on $100,000 bail. Today, Aamir and his corporation were arraigned on the 28-count indictment, and Aamir’s bail was continued.  

The charges against the defendants are accusations, and the defendants are presumed innocent until and unless proven guilty in a court of law.

The investigation was directed by the Attorney General’s Organized Crime Task Force Senior Investigators Mark MacConnell and John Flood. OCTF’s Supervising Investigator is Cheryl Munoz, and Christopher Vasta is the bureau’s Deputy Chief. The chief is Dominick Zarrella. The investigation by the NYS Department of Taxation and Finance was directed by Senior Tax Investigator Kevin Barbitsch with the assistance of Forensic Tax Auditor Robert Bergeson and Investigator Brian Norris.

The case is being prosecuted by Assistant Deputy Attorney General Brandi Kligman of the Attorney General’s Organized Crime Task Force, which is led by Deputy Attorney General Peri Alyse Kadanoff. OCTF is part of the Attorney General’s Criminal Justice Bureau, headed by Executive Deputy Attorney General Kelly Donovan.

ROCHESTER – Attorney General Eric T. Schneiderman today announced that his office has filed felony charges against Alicia Santiago, a home health care aide from Rochester, who allegedly submitted phony time sheets to Innovative Care, LLC, which, relying on Santiago’s false time sheets, billed Medicaid for work Santiago had not performed. The defendant was arrested last night and arraigned in the Town of Gates Justice Court before the Honorable Peter P. Pupatelli. 

“There has to be one set of rules for everyone, and that is why our office aggressively prosecutes cases of Medicaid fraud that deprive honest New Yorkers of the rightful care they deserve and squander taxpayer dollars,” said Attorney General Schneiderman. “We want to send a clear message that Medicaid fraud will not be tolerated and that unscrupulous caregivers will be held accountable.”

The felony complaint accuses Alicia Santiago, 54, of 50 Worcester Street, Rochester, of submitting time sheets to Innovative Care LLC indicating she provided home care services to a family member for approximately 186 hours on night shifts from November 2012 to April 2013, when she was actually working as a certified nurse aide at the Brighton Manor Nursing Home during those hours. Based upon these time sheets, Innovative Care billed the Medicaid Program $3,958.23, and Santiago received approximately $1,800 in pay for the hours of alleged falsely reported services.  

Judge Pupatelli arraigned Santiago on one count each of Grand Larceny in the Third Degree, a class “D” felony, and Grand Larceny in the Fourth Degree, a class “E” felony. Santiago faces a maximum penalty of 2 1/3 to 7 years in prison.  Judge Pupatelli adjourned the matter until September 10, 2014. 

Special Assistant Attorney General Timothy McFarland of the Medicaid Fraud Control Unit’s Rochester Regional Office is prosecuting this case. The investigation was handled by Special Investigator Jason Rice, along with Special Auditor/Investigator Jennifer Harrison.  The Medicaid Fraud Control Unit is led by Acting Director Amy Held. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

The charges against the defendant are merely accusations, and the defendant is presumed innocent until and unless proven guilty.  

BROOKLYN - Attorney General Eric T. Schneiderman and U.S. Attorney Loretta Lynch today announced that they have entered into settlement agreements with a New Rochelle nursing home resolving allegations that the facility and its owner submitted tens of thousands of inflated claims to the New York State Medicaid Program. The claims sought reimbursement for services provided, but at artificially high rates. Under the agreements, Ralex Services, Inc., doing business as Glen Island Center for Nursing and Rehabilitation, and its owner, Leah Friedman, will return $2.2 million to Medicaid, a program jointly funded by the state and federal governments. New York will receive $1,320,000 of the total restitution funds.

“Safeguarding public health care dollars is of critical concern, and my office will investigate—and prosecute—all allegations of impropriety by health care providers who obtain Medicaid funds to which they have no right,” Attorney General Schneiderman said. “We must care for our most vulnerable New Yorkers and at the same time protect our taxpayer dollars. Today we are saying: There is one set of rules for all nursing home providers-- and my office is here to make sure those rules are followed.” 

According to allegations made by the state and federal governments, the 182-bed Glen Island facility, located at 490 Pelham Road in New Rochelle, submitted more than 62,000 false claims to New York’s Department of Health from April 2002 to November 2006. The false claims used Medicaid reimbursement rates based, in part, on up-coded Patient Review Instruments (PRIs), which falsely represented the degree of care required by many Glen Island residents during the mandatory quarterly assessment periods covered by these submissions. The defendants exaggerated residents’ diagnoses, conditions and required treatments in the reports. They routinely stated that residents were receiving treatments, including for oxygen and suctioning, when such treatments were neither required nor given. 

In furtherance of this scheme, and in response to the Attorney General’s request for records, the defendants attempted to cover up their fraudulent submissions and false claims by making false entries and forgeries into Glen Island residents’ medical records. These falsified records were later turned over to the New York State Attorney General’s Medicaid Fraud Control Unit. Two former Glen Island nurses, who participated in “tampering parties” at which records were falsified, were also convicted by the Attorney General’s Office. For example, one false score sheet designated a resident as needing daily oropharyngeal suctioning, a treatment which clears secretions from airways of patients, when in fact the resident did not need or receive the treatment. By routinely inflating patient scores, Glen Island received higher Medicaid reimbursement rates.

Today’s settlement follows the 2011 conviction of former Glen Island Administrator Eufemia Fe Salomon-Flores, who pleaded guilty to felony grand larceny and admitted that she had submitted information to DOH that falsified the type of care residents received. She served a 1- to 3-year state prison sentence, lost her Nursing Home Administrator license and has been excluded from participating in the state’s Medicaid program. 

Marlon Legaspi pleaded guilty in December 2011 to a misdemeanor count of attempted tampering with physical evidence. Maria Eufemia Salomon-Rosanes, a niece of Fe Salomon-Flores, pleaded guilty to the same misdemeanor charge in March 2012. Both defendants were excluded from the Medicaid program. 

The agreements – one with the State and one with federal authorities – followed a joint investigation by the Attorney General’s Medicaid Fraud Control Unit and the United States Attorney’s Office for the Eastern District of New York. The investigation came after allegations were lodged by whistleblower Carolyn Hinestroza, a former assistant director of nursing at the facility, alleging violations of the New York False Claims Act. Following the investigation, the offices intervened in the whistleblower case against Glen Island, Friedman and Will-Maur, LLC, the real estate holding company that owns the Glen Island land and premises. Friedman, her husband, Burton Flax, and their two children are the members of Will-Maur.

Attorney General Schneiderman thanks United States Attorney Loretta E. Lynch, Eastern District of New York, and her staff for their cooperation in this case.  The federal case was handled by Assistant United States Attorney Erin Argo. 

The state case was handled by Special Assistant Attorney General Jill D. Brenner and Principal Special Auditor Investigator Ann Winslow and Senior Special Investigator Carlos Miranda. The underlying criminal prosecution of Eufemia Fe Flores-Salomon was handled by Special Assistant Attorney General Susan Bloom of MFCU’s Pearl River Office. The Medicaid Fraud Control Unit is led by Acting Director Amy Held. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.