News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
September 6, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-776-2427
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

STATEMENT FROM NY A.G. COMMUNICATIONS DIRECTOR ERIC SOUFER

NEW YORK – The Director of Communications and Senior Counsel for Policy, Eric Soufer, issued the following statement:

“We do not take advice on who to investigate from Donald Trump, who has already been sued by this office for his long-running and wide-ranging scam known as Trump University that defrauded thousands of ordinary Americans just so Mr. Trump could make another quick buck. The Clinton Foundation’s disclosures regarding funding from foreign governments are in compliance with New York law. As the story correctly noted, our office will issue additional guidance for all non-profits regarding disclosures of domestic and foreign government funding in the future.”

 News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
September 7, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-776-2427
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

STATEMENT FROM A.G. SCHNEIDERMAN ON CLOSURE OF ITT TECHNICAL INSTITUTE 

NEW YORK—Attorney General Eric T. Schneiderman issued the following statement on the announcement that ITT Technical Institute, a for-profit college operated by ITT Educational Services, Inc. (“ITT”), with campuses in Albany, Syracuse, and Buffalo, will be closing its doors:

“Many hardworking New York students have enrolled at ITT campuses across the state and invested significant time and resources into their education. That is why my office wants to ensure all students affected by ITT’s closure clearly understand their options moving forward. I encourage those with student loans to consult tips from my office and from the Department of Education in order to advance and restart their education as quickly and inexpensively as possible.”

ITT’s announcement follows a decision of the United States Department of Education to suspend federal aid to new students enrolling at ITT on the ground that ITT failed to meet its accreditor’s standards.

How to Apply for Debt Relief

Certain ITT students are eligible for a full discharge (erasure) of their federal student loans due to ITT’s closure.  This type of loan discharge is called a “Closed School Discharge.” Students eligible for a Closed School Discharge include students who were enrolled when the school closed or on an approved leave of absence when the school closed; or who withdrew from the school in the 120 days prior to the school’s closure. 

For instructions on how to apply for a “Closed School Discharge,” students should click here.  Students will not be eligible for a Closed School Discharge if they choose to transfer credits and complete their program of study or a comparable program at another school. 

Students who are not eligible for a “Closed School Discharge” may be eligible for debt relief if their school committed fraud or otherwise violated state law.  This type of loan discharge is called a “Borrower Defense to Repayment.”  To obtain a “Borrower Defense to Repayment” discharge, students must submit a claim to the Department of Education that describes the school’s misconduct.  The Department of Education is currently developing a new process for submitting such a claim.  Borrowers may wish to wait for information about this new process to be made available before applying.  If students choose to submit claims before the new process is available, claims may be submitted via e-mail to FSAOperations@ed.gov or by mail to: Department of Education, PO Box 194407, San Francisco, CA 94119.  For instructions on what information to include with a “Borrower Defense to Repayment” claim, visit here.

 News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
September 7, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-776-2427
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN ANNOUNCES ARREST OF FORMER LONG ISLAND GROUP HOME WORKER FOR ALLEGED ABUSE OF DISABLED RESIDENT

Schneiderman: Acts Of Abuse By Health Care Workers On The Disabled And Other Vulnerable Members Of Our Society Will Not Be Tolerated

HAUPPAUGE –Attorney General Eric T. Schneiderman today announced the arrest and arraignment of Andrew Hatcher, 26, of Brooklyn, a former direct support assistant at the state-run group home Centereach Intermediate Care Facility in Centereach, for allegedly tying up an intellectually and physically disabled resident so that she was unable to get out of bed. Hatcher allegedly wrapped a bed sheet around the frail resident’s waist and then tied and knotted the sheet to one leg of her pajama pants, which had been removed from her leg. Hatcher allegedly further endangered the resident by not checking on her during the entirety of the night shift when he was the only one responsible for her care and she was supposed to be checked on every fifteen minutes. 

“Acts of abuse by health care workers on the disabled and other vulnerable members of our society will not be tolerated,” said Attorney General Schneiderman. “We remain committed to ensuring that all New Yorkers receive the quality care they deserve from medical professionals in our state.” 

The felony complaint filed in Suffolk County District Court, charged Hatcher with Endangering the Welfare of an Incompetent or Physically Disabled Person in the First Degree, a class "E" felony, and noted that the U.S. Food and Drug Administration (FDA) issued a warning to the medical community that reports of deaths and injuries related to the use of physical patient restraint devices, including body holders, had increased. 

The defendant was arraigned today before the Honorable Pierce F. Cohalan in Suffolk County District Court and released on his own recognizance.

If convicted, Hatcher faces up to 1 1/3 to 4 years in state prison.

Attorney General Schneiderman would like to thank the Office for People with Developmental Disabilities (OPWDD) for their assistance in conducting the investigation.  

The investigation was conducted by Medicaid Fraud Control Unit (MFCU) Special Investigator Stephen Clarke and Supervising Special Investigator Greg Muroff with assistance from Deputy Chief of Downstate Investigations Kenneth Morgan.

The case is being prosecuted by Special Assistant Attorney General Megan Gallagher with the assistance of Regional Director Jane Zwirn-Turkin.  Thomas O’Hanlon is MFCU’s Chief of Criminal Investigations – Downstate. MFCU is led by Director Amy Held and Assistant Deputy Attorney General Paul Mahoney. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

The charges are merely accusations and all defendants are presumed innocent unless and until proven guilty in court.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
September 8, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-776-2427
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN ISSUES LEGAL OPINION CLARIFYING THAT NEW YORK STATE’S CRIMINAL LAW DOES NOT INTERFERE WITH REPRODUCTIVE HEALTH RIGHTS ENSURED BY ROE V. WADE AND LATER CASES 

NEW YORK – Attorney General Eric T. Schneiderman released a formal legal opinion today clarifying that the reproductive health protections afforded to all women pursuant to Roe v. Wade and later Supreme Court decisions are not, and cannot be, diminished in any way by New York’s Penal Law, which was enacted before the landmark Supreme Court decision. The legal opinion was sent to the Office of the New York State Comptroller, which requested the formal opinion in aid of its auditing authority over state payments to health care providers.

“No state law can restrict a woman’s constitutional right to make her own reproductive health choices,” Attorney General Eric Schneiderman said. “This opinion makes crystal clear that all women have a constitutional right to an abortion, irrespective of inconsistent state law. New York’s criminal law cannot penalize reproductive health decisions protected by the U.S. Constitution. Today’s opinion eliminates any ambiguity about the consistency of our state’s law with these federal constitutional rights and, as a result, removes an obstacle some New York women may encounter when trying to make their own reproductive health choices. The opinion also gives reproductive health care providers assurance that they may provide constitutionally protected reproductive health care services to women without fear of being complicit in a criminal act.”

As the A.G.’s opinion reads, in part:

…The New York State Penal Law [Penal Law Section 125.05(3)] states that an abortion is a crime unless it is a “justifiable abortional act,” and provides that in order to be justifiable, an abortional act must be performed either “(a) under a reasonable belief that such is necessary to preserve [the pregnant woman’s] life, or, (b) within twenty-four weeks from the commencement of her pregnancy.”

But the United States Supreme Court has made clear that an abortion is constitutionally protected if it is necessary in appropriate medical judgment to preserve the pregnant woman’s life or her health (Roe v. Wade; Casey v. Planned Parenthood). Therefore, an additional exception for preserving health must be read into subsection (a) of the statute for it to pass constitutional muster.

Likewise, the Court has also made it clear that the right to choose abortion is constitutionally protected from undue burdens until viability, and that the determination of viability must be made by the attending physician.  (Casey, Danforth).  Therefore, an exception must be read into subsection (b) of the statute for  the situation of a fetus that is nonviable after 24 weeks from the commencement of pregnancy. 

The full opinion can be read here.

“For too long and at enormous personal cost, New York’s outdated abortion statute has caused confusion, keeping doctors from providing medically appropriate care and interfering with women’s reproductive health,” said Donna Lieberman, Executive Director, New York Civil Liberties Union. “We applaud Attorney General Schneiderman’s decision to clarify New York law.  His unequivocal findings mean that there should no longer be any doubt that Roe v Wade is the law in New York and that physicians can perform abortions whenever needed to protect a woman’s health orthe fetus is not viable. Now, the state legislature should correct our abortion law to comply with the constitution.”

“As one of New York City’s leading sexual and reproductive health care providers, we know first-hand how important it is to secure the legal clarity necessary to eliminate confusion surrounding abortion care in New York State,” said Joan Malin, President and CEO, Planned Parenthood of New York City. “Current New York law allows abortion care throughout a pregnancy when necessary to preserve a woman’s life, however, it prohibits abortion care later in pregnancy when a woman’s health is at risk. This confusion is harming New York women by restricting their access to health care. We applaud Attorney General Eric Schneiderman for clarifying the law and issuing a formal opinion that health care providers can rely on to provide the best care possible to their patients.”

“New York's abortion law, once ahead of its time, for too long has been woefully out of date, causing confusion for providers and leaving women without the full extent of their constitutionally protected right to access abortion,” said Andrea Miller, President of the National Institute for Reproductive Health. “We thank Attorney General Eric Schneiderman for issuing this opinion affirming the protections of Roe v. Wade and clarifying that providers in New York can provide abortion care according to their patients' needs and their best medical judgment. We look forward to the state legislature further updating New York's abortion law, so that New York women have access to the best care possible.”

“New York was wisely one of the early states to legalize access to abortion, recognizing it is a fundamental component of women’s health care,” said Kim Atkins, Board Chair of Family Planning Advocates of NYS. “We applaud Attorney General Eric Schneiderman for issuing this opinion, which is in accordance with our state’s legacy and existing federal protections and affirms women in New York have access to the health care they need, and have a constitutional right to obtain.”

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
September 8, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-776-2427
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

A.G. SCHNEIDMERAN ANNOUNCES ARREST OF ROCHESTER MAN WHO ALLEGEDLY DEFRAUDED MEDICAID BY FALSELY REPORTING AIDE SERVICES FOR RELATIVE

Charles Herring Allegedly Submitted Time Sheets To Medicaid For Girlfriend Who Did Not Provide Care To His Ill Relative

Schneiderman: My Office Will Continue Working To Root Out And Prosecute Medicaid Fraud

ROCHESTER – Attorney General Eric T. Schneiderman today announced his office has filed felony criminal charges against Charles Herring from Rochester, who allegedly submitted phony time sheets to Maxim Health Care, who, based on the false time sheets, unknowingly billed Medicaid for home health aide services that were not performed.

Charles Herring, age 39, of Rochester, allegedly submitted time sheets to the Maxim Health Care indicating an aide he hired, his girlfriend, provided home care services for his relative for approximately 502 hours between January 1, 2015 and December 16, 2015, when the girlfriend was working another job or when his relative was in an adult day care program for the same hours during this time period. Herring was the self-directed other for the aide care of his relative and as such was responsible for the administration of their care including the aide time sheets submitted to Maxim.    

“Taking advantage of a relative’s illness to line one’s own pockets is reprehensible, and a serious betrayal of the public trust,” said Attorney General Schneiderman. “We are working hard to protect the integrity of our health care system by aggressively pursuing those who steal from Medicaid and exploit those in their care.”

Based upon the false time sheets, Maxim allegedly billed the State Medicaid Program $9,036, while Herring and the aide received approximately $5,020 in pay for 502 hours that were allegedly not worked.    

Rochester City Court Judge Steven Miller arraigned Herring on one count each of Grand Larceny in the Fourth Degree, Falsifying Business Records in the First Degree and Offering a False Instrument for Filing in the First Degree, all class E felonies.  Herring faces a maximum penalty of two to four years in prison. Judge Miller adjourned the matter to Monday, September 12.

The Attorney General thanks Supervising Investigator Colleen Balkin of OMIG for her assistance in this matter.

The case was investigated by Special Investigator Arthur Vasile and Auditor/Investigator Stephen Sachman with assistance from MFCU Regional Chief Auditor Thomas Clarke and MFCU Deputy Chief Investigator William Falk. The case is being prosecuted by Special Assistant Attorney General Timothy McFarland.  Catherine Wagner is Director of the Rochester Regional MFCU Office and the Upstate Chief of Criminal Investigations. The Medicaid Fraud Control Unit is led by Director Amy Held and Assistant Deputy Attorney General Paul Mahoney. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

The charges are merely allegations and Herring is presumed innocent.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
September 11, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-776-2427
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Twitter: @AGSchneiderman

STATEMENT FROM A.G. SCHNEIDERMAN ON THE 15^TH ANNIVERSARY OF 9/11 ATTACKS 

NEW YORK – Attorney General Eric T. Schneiderman released the following statement today on the 15^th anniversary of the 9/11 terrorist attacks:

“Today I join all New Yorkers as we grieve the lives lost in the tragic attacks on September 11^th, 2001. So many in our state have been deeply impacted by these unspeakable acts and mourn the loss of their mothers, fathers, sons, daughters, sisters, brothers, friends, and neighbors. We honor the memory of our first responders for their courageous efforts. I extend my deepest sympathies to the families and loved ones for whom today is not only the anniversary of a national tragedy, but also the anniversary of a deeply personal loss. Our thoughts are with all of you today.”

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
September 12, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-776-2427
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN ANNOUNCES ELECTION DAY HOTLINE TO ENSURE ACCESS FOR VOTERS DURING THE SEPTEMBER PRIMARY

Attorney General’s Hotline Troubleshoots A Range Of Election Day Issues

NEW YORK – Attorney General Eric T. Schneiderman announced that his office has created a Hotline to help troubleshoot and resolve a range of issues and barriers encountered by voters at the polls for the primary on Tuesday, September 13.  The Attorney General urges voters experiencing problems or issues at the polls to call the office’s hotline at 800-771-7755 or email civil.rights@ag.NY.gov at any time on Tuesday between 6 a.m. and 9 p.m. The hotline will be staffed by attorneys and staff in the office's Civil Rights Bureau. 

“Ensuring that all eligible voters have the ability to cast an effective ballot on Election Day is the cornerstone of our democracy,” said Attorney General Schneiderman. “My office is here to work with the Board of Elections to resolve a wide range of issues that may come up at the ballot box, and I urge all New Yorkers to contact my office immediately if they encounter any possible improprieties.”

To determine whether you have a contested election in your election district, contact your county Board of Elections.

In New York City and the counties of Erie, Nassau, Suffolk, Westchester, Orange, Rockland and Putnam, polls open at 6 AM and close at 9 PM. In all other counties polls open at noon and close at 9 PM.

The Attorney General’s Office has operated the Hotline since November 2012.  During previous efforts the office fielded hundreds of complaints from voters across the state and worked with local election officials and others to promptly address issues encountered by voters at the polls. The Election Day hotline is part of Attorney General Schneiderman's ongoing statewide initiative to ensure that voters do not encounter language barriers on Election Day.

During the April 19th Presidential Primary, the Attorney General’s office received over 1,000 complaints about voter irregularities at the polls. In response, the office announced an investigation into alleged improprieties in primary voting by the New York City Board of Elections. That investigation is active and ongoing.

In addition, the Attorney General's Office will focus on barriers impacting voters with disabilities, voter intimidation reports, and other issues faced by minority voters. Registered voters have the right to accessible elections. This means that voters with disabilities or language access issues have the right to request assistance from any person of their choice.  In addition, all registered voters have the right to vote free from coercion or intimidation, whether by election officials or any other person.

The office will receive and respond to election-related complaints relating to any of the statutes that the office enforces.

The Attorney General’s Election Day Hotline is being led by Assistant Attorneys General Ajay Saini, Diane Lucas, and Sania Khan of the Civil Rights Bureau, led by Bureau Chief Lourdes Rosado. The Social Justice Division is led by Executive Deputy Attorney General Alvin Bragg.

News from Attorney General Eric T. Schneiderman

FOR PLANNING PURPOSES
September 12, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-776-2427
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

TOMORROW: A.G. SCHNEIDERMAN TO ANNOUNCE RESULTS OF “OPERATION CHILD TRACKER” INVESTIGATION

NEW YORK – Attorney General Eric T. Schneiderman will announce the results of an ongoing investigation into illegal online tracking of children at dozens of the nation’s most recognizable kids’ websites, TOMORROW, September 13, AT 11:30 AM.

WHERE:
120 Broadway, 25^th floor
New York, NY 10271

WHEN:
Tuesday, September 13, AT 11:30 AM

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
September 13, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-776-2427
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN REMINDS VOTERS OF ELECTION DAY HOTLINE TO ENSURE ACCESS FOR VOTERS DURING THE SEPTEMBER PRIMARY

Attorney General’s Hotline Troubleshoots A Range Of Election Day Issues

NEW YORK – Attorney General Eric T. Schneiderman reminded voters that his office has created a Hotline to help troubleshoot and resolve a range of issues and barriers encountered by voters at the polls for the primary today, September 13.  The Attorney General urges voters experiencing problems or issues at the polls to call the office’s hotline at 800-771-7755 or email civil.rights@ag.NY.gov at any time today between 6 a.m. and 9 p.m. The hotline will be staffed by attorneys and staff in the office's Civil Rights Bureau. 

“Ensuring that all eligible voters have the ability to cast an effective ballot on Election Day is the cornerstone of our democracy,” said Attorney General Schneiderman. “My office is here to work with the Board of Elections to resolve a wide range of issues that may come up at the ballot box, and I urge all New Yorkers to contact my office immediately if they encounter any possible improprieties.”

To determine whether you have a contested election in your election district, contact your county Board of Elections.

In New York City and the counties of Erie, Nassau, Suffolk, Westchester, Orange, Rockland and Putnam, polls open at 6 AM and close at 9 PM. In all other counties polls open at noon and close at 9 PM.

The Attorney General’s Office has operated the Hotline since November 2012.  During previous efforts the office fielded hundreds of complaints from voters across the state and worked with local election officials and others to promptly address issues encountered by voters at the polls. The Election Day hotline is part of Attorney General Schneiderman's ongoing statewide initiative to ensure that voters do not encounter language barriers on Election Day.

During the April 19th Presidential Primary, the Attorney General’s office received over 1,000 complaints about voter irregularities at the polls. In response, the office announced an investigation into alleged improprieties in primary voting by the New York City Board of Elections. That investigation is active and ongoing.

In addition, the Attorney General's Office will focus on barriers impacting voters with disabilities, voter intimidation reports, and other issues faced by minority voters. Registered voters have the right to accessible elections. This means that voters with disabilities or language access issues have the right to request assistance from any person of their choice.  In addition, all registered voters have the right to vote free from coercion or intimidation, whether by election officials or any other person.

The office will receive and respond to election-related complaints relating to any of the statutes that the office enforces.

The Attorney General’s Election Day Hotline is being led by Assistant Attorneys General Ajay Saini, Diane Lucas, and Sania Khan of the Civil Rights Bureau, led by Bureau Chief Lourdes Rosado. The Social Justice Division is led by Executive Deputy Attorney General Alvin Bragg.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
September 13, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-776-2427
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN ANNOUNCES RESULTS OF “OPERATION CHILD TRACKER,” ENDING ILLEGAL ONLINE TRACKING OF CHILDREN AT SOME OF NATION’S MOST POPULAR KIDS’ WEBSITES

Viacom, Mattel, Hasbro, And JumpStart Violated Children’s Online Privacy Protection Act By Allowing Illegal Third-Party Tracking Technology At Websites For Barbie, Nick Jr., My Little Pony, American Girl, Hot Wheels, And Dozens Of Others 

Companies Agree To Pay Penalties Totaling $835,000, Adopt Comprehensive Reforms To Protect Children From Improper Tracking

NEW YORK - Attorney General Eric T. Schneiderman today announced that his office has reached settlements with Viacom, Inc., Mattel, Inc., Hasbro Inc., and JumpStart Games, Inc., resolving investigations into the companies’ violations of the Children’s Online Privacy Protection Act (COPPA).   

“Operation Child Tracker,” a two-year, first-of-its-kind investigation by the Attorney General’s office, discovered that websites operated by these companies were home to tracking technology that illegally enabled third-party vendors, such as marketers or advertising companies, to track children’s online activity in violation of COPPA.

The companies – whose online properties include some of the most popular children’s websites, including websites associated with Nick Jr. and Nickelodeon (Viacom); Barbie, Hot Wheels, and American Girl (Mattel); Neopets (JumpStart); and My Little Pony, Littlest Pet Shop, and Nerf (Hasbro) – agreed to pay a combined $835,000 in penalties and implement significant reforms.

“Federal law demands that children are off-limits to the prying eyes of advertisers,” said Attorney General Schneiderman. “Operation Child Tracker revealed that some of our nation’s biggest companies failed to protect kids’ privacy and shield them from illegal online tracking. My office remains committed to protecting children online and will continue our investigation to hold accountable those who violate the law by tracking children.”

“In enacting COPPA, Congress wisely provided for law enforcement by both the FTC and state attorneys general, so that there are multiple cops on the beat protecting children’s privacy,” said Jessica Rich, Director of the Federal Trade Commission’s Bureau of Consumer Protection. “We applaud these important actions by the New York Attorney General’s office, and appreciate their coordination with the Commission.  These settlements send a strong message to companies about the importance of complying with the COPPA Rule.”

“These important settlement agreements are the latest illustration of just how important it is for businesses, parents, and policymakers to be more vigilant about protecting the online privacy of kids and to build in privacy by design,” said Ariel Fox Johnson, Senior Policy Counsel at Common Sense Media, a recognized leader in educating families about online privacy and security. “We applaud Attorney General Schneiderman and the companies for working together to ensure these web sites no longer enable the tracking or commercial profiling of kids and hope that the settlements will bring greater awareness about steps we should all take to make sure that the online world of children is educational, fun, and also safe.”

COPPA prohibits the unauthorized collection of children’s personal information on websites directed to children under the age of 13, including the collection of information used to track a child’s movements across the web. Each of the settling companies allowed third party tracking technologies on their websites in violation of COPPA.

Each of the settling parties has agreed to comprehensive reforms to protect children from improper tracking in the future. These include regular electronic scans to monitor for third party tracking technologies, adopting procedures for vetting third parties’ data collection practices to ensure that they comply with COPPA, and providing notice to third parties when they are operating through a website covered by COPPA.  Three of the companies -- Viacom, Mattel, and JumpStart -- will also provide regular reports to the office regarding the results of their scans and pay penalties totaling $835,000. Viacom will pay $500,000; Mattel will pay $250,000; JumpStart will pay $85,000. Hasbro participated in an FTC-approved “safe harbor” program and will not pay a penalty.

Each of the settling companies cooperated in “Operation Child Tracker” and took remedial measures after being contacted by the Attorney General. 

How Targeted Advertising and Tracking Works

Most online shoppers have encountered advertisements for a product that seems to follow them from website to website. These advertisements are known as online behavioral advertisements or OBA, a form of targeted advertising that selects an advertisement to serve to an individual based on previously collected information about that individual, such as the individual’s Internet browsing history, demographic information, or personal interests. 

One of the most common tracking technologies used for OBA is the web browser cookie, a small text file sent by a website to a user’s computer and stored by the user’s web browser.  Every time the user connects to the website’s server, all of the cookies stored by that website on the user’s computer are retrieved and their values are transmitted to the server. Where a third party is integrated into many websites, cookies can be used to track a user’s browsing history across those websites; each time a user visits a website that incorporates the third party, the user’s browser will transmit information from the user’s cookie to the third party, thereby notifying the third party of the user’s visit to the website. 

The Children’s Online Privacy Protection Act (COPPA)

In 1998, Congress enacted COPPA to protect the safety and privacy of young children online.  COPPA prohibits operators of certain websites from collecting, using, or disclosing personal information (e.g., first and last name, e-mail address) of children under the age of 13 without first obtaining a parent’s consent. The operators of websites directed to children under the age of 13 (a “child-directed website”) and the operators of websites that have actual knowledge that they are collecting personal information from a child under the age of 13 (collectively, “covered operators”) are subject to COPPA.

In July 2013, revised FTC regulations associated with COPPA took effect, expanding the definition of “personal information” to include persistent identifiers that can be used to recognize a user over time and across websites, such as the ID found in a web browser cookie or an Internet Protocol (“IP”) address. The revision effectively prohibits covered operators from using cookies, IP addresses, and other persistent identifiers to track users across websites for most advertising purposes, amassing profiles on individual users, and serving online behavioral advertisements on COPPA-covered websites.  Covered operators can, however, use persistent identifiers to support the internal operations of a website. 

Websites are strictly liable for the collection, use, and disclosure of personal information by independent third parties that are allowed to operate through their websites.   The FTC found that strict liability was necessary in light of the “complex infrastructure of entities” often found operating on websites that have the opportunity to collect personal information from children.  The FTC concluded that the operator of the website should be accountable because it “is in the best position to know which plug-ins it integrates into its site, and is also in the best position to give notice and obtain consent from parents.” Indeed, absent the strict liability standard, “there would be no incentive for child-directed content providers to police their sites or services, and personal information would be collected from young children, thereby undermining congressional intent.” 

Operation Child Tracker

Operation Child Tracker is a first of its kind investigation into illegal online tracking of young children in violation of COPPA.  The investigation examined the most popular children’s websites for unauthorized tracking. The office found that four website operators, Viacom, Mattel, JumpStart, and Hasbro, had allowed third party tracking on their websites prohibited by COPPA. The office’s findings regarding each of the individual website operators are summarized below.

Viacom

Viacom operates the Nick Jr. website, at www.nickjr.com, and the Nickelodeon website, at www.nick.com. The Nick Jr. website features content associated with animated children’s shows from Viacom’s Nick Jr. television network, including “Dora the Explorer,” “Bubble Guppies,” and “Blues Clues,” which have historically been directed to children 2-5 years old and their parents.  The Nickelodeon website features content associated with animated and live-action shows from Viacom’s Nickelodeon television network, including “SpongeBob SquarePants,” “Teenage Mutant Ninja Turtles,” and “Alvinnn!!!! and the Chipmunks,” which have historically been directed to children 6-11 years old. Millions of people visit the Nick Jr. and Nickelodeon websites each month.

The office of the Attorney General found a variety of improper third party tracking on the Nick Jr. and Nickelodeon websites.  These included the following:

• Many advertisers and agencies that placed advertisements on Nick Jr. and Nickelodeon websites introduced tracking technologies of third parties that routinely engage in the type of tracking, profiling, and targeted advertising prohibited by COPPA. Viacom considered several approaches to mitigate the risk of COPPA violations from these third parties, including removing adult advertising (which was more likely to employ third party tracking technologies) from a child-directed section of the Nick Jr. website and monitoring advertisements for unexpected tracking technology using scanning software on a case-by-case basis. However, Viacom did not timely take either approach and did not implement sufficient safeguards for its users.

• Some visitors to the homepage of the Nick Jr. website were served behavioral advertising and tracked through a third party advertising platform Viacom used to serve advertisements. Although Viacom considered the homepage of the Nick Jr. website to be parent-directed, and thus not covered by COPPA, the homepage had content that appealed to children. Under COPPA, website operators must treat mixed audience pages as child-directed. Viacom also inadvertently introduced the third party advertising platform onto another child-directed section of the Nick Jr. website for a six-week period.

Mattel

Mattel, a designer and manufacturer of toys, operated websites associated with many of its toy brands, which include Barbie, Hot Wheels, Matchbox, American Girl, Max Steel, Monster High, Polly Pocket, and Thomas & Friends. In all, 26 of Mattel’s websites feature content for young children, including online games, animated cartoons, and downloadable content such as posters, computer desktop wallpaper, and pages for young children to color. Millions of people visit Mattel’s websites each month. 

The office of the Attorney General found that a variety of improper third party tracking technologies were present on Mattel’s child-directed websites and sections of websites. These included the following:

• Mattel deployed a tracking technology supplied by a third party data broker across its Barbie, Hot Wheels, Fisher-Price, Monster High, Ever After High, and Thomas & Friends websites.  Mattel used the tracking technology for measuring website metrics, such as the number of visitors to each site, a practice permitted under COPPA. However, the tracking technology supplied by the data broker introduced many other third party tracking technologies in a process known as “piggy backing.” Many of these third parties engage in the type of tracking, profiling, and targeted advertising prohibited by COPPA. 

• A tracking technology that Mattel deployed on the e-commerce portion of the American Girl website, which is not directed to children or covered by COPPA, was inadvertently introduced onto certain child-directed webpages of the American Girl website. 

• Mattel uploaded videos to Google’s YouTube.com, a video hosting platform, and then embedded some of these videos onto the child-directed portion of several Mattel websites, including the Barbie website. When the embedded videos were played by children, it enabled Google tracking technologies, which were used to serve behavioral advertisements.

JumpStart

JumpStart, a developer of educational and entertainment software and websites for children, operates the Neopets website, which it acquired in April 2014. The website enables users to create and care for cartoon virtual pets. Pet owners play simple animated games to earn points, which can be redeemed for virtual food, clothing, and gear for their pets. 

Visitors to the Neopets website can navigate the site and play games with or without an account. Users that choose to register an account must provide a date of birth during the account registration process. As of the end of 2014, there were several million registered accounts that belonged to users under the age of 13. 

The office of the Attorney General found that several improper third party tracking technologies were present on the Neopets website, both for logged-in users under the age of 13 and users who were not logged-in. These included the following:

• JumpStart failed to configure the advertising platform used to serve ads on the Neopets website in a manner that would comply with COPPA. As a result, users under the age of 13 were served behavioral advertising and tracked through the advertising platform. 

• JumpStart integrated a Facebook plug-in into the Neopets website. Facebook plug-ins are integrated into many websites and allow Facebook to track users across the Internet. Facebook uses the tracking information for serving behavioral advertising, among other things, unless the website operator notifies Facebook with a COPPA flag that the website falls is subject to COPPA. JumpStart did not notify Facebook that the Neopets website was directed to children.

Hasbro

Hasbro, a producer of toys and games, operated websites associated with many of its popular toy brands, which include My Little Pony, Littlest Pet Shop, Nerf, and Transformers. Many of these websites featured content for young children, including online games, animated cartoons, and downloadable content such as posters and pages for young children to color. Hundreds of thousands of people visit Hasbro’s websites each month.

The office of the Attorney General found that several improper third party tracking technologies were present on Hasbro’s child-directed websites and sections of websites. These included the following:

• Hasbro engaged in an advertising campaign that tracked visitors to the Nerf section of Hasbro’s website in order to serve Hasbro advertisements to those same users as they visited other websites at a later time, a type of online behavioral advertising prohibited by COPPA known as “remarketing.” 

• Hasbro integrated a third-party plug-in into many of its websites, that allowed users to be tracked across websites and introduced other third parties that engaged in the type of tracking, profiling, and targeted advertising prohibited under COPPA.

It is important to note that Hasbro participated in a safe harbor program. A website operator that complies with the rules of an FTC-approved safe harbor program is deemed in compliance with COPPA.  However, safe harbor programs rely on full disclosure of the operator’s practices and Hasbro failed to disclose the existence of the remarketing campaign through the Nerf website. 

Settlement Agreements Require Comprehensive Reforms

Viacom, Mattel, JumpStart, and Hasbro have each entered into settlement agreements with the office of the Attorney General requiring them to adopt comprehensive reforms.  These include the following:

• Conducting regular electronic scans to monitor for unexpected third party tracking technologies that may appear on their children’s websites.  Three of the companies, Viacom, Mattel, and JumpStart will provide regular reports to the office regarding the results of the scans.

• Adopting procedures for vetting third parties before they are introduced onto their children’s websites to determine whether and how the third parties collect, use, and disclose, and allow others to collect, use, and disclose, personal information from users.

• Providing notice to third parties that collect, use, or disclose personal information of users with information sufficient to enable the third parties to identify the websites or sections of websites that are child directed pursuant to COPPA.

• Updating website privacy policies with either (a) information sufficient to enable parents and others to identify the websites and portions of websites that are directed to children under COPPA or (b) a means of contacting the company so that parents and others may request such information. 

Lessons from Operation Child Tracker

The investigation revealed that website operators have not done enough to ensure that their children’s websites are free of improper third party tracking technologies. For example:

• Website operators are not sufficiently vetting advertisers, advertising networks and other third parties that they allow on their websites to determine whether third parties collect personal information from users or allow others to do so.

• Website operators are not monitoring their websites for unexpected third party tracking technologies that are inadvertently introduced or piggy-back off of other third parties.  

• Website operators are having difficulty keeping up with rapidly changing ad technology to ensure COPPA compliance.

This case was handled by Bureau of Internet and Technology Assistant Attorney General Jordan Adler, Deputy Bureau Chief Clark Russell, Bureau Chief Kathleen McGee, and Director of Special Projects Vanessa Ip. The Bureau of Internet and Technology is overseen by Executive Deputy Attorney General for Economic Justice Manisha M. Sheth.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
September 13, 2016

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A.G. Schneiderman, Director Of NYS Archives Ruller And State Education Commissioner Elia Announce Attica Prison Uprising Website On 45th Anniversary

Site Will Showcase Documents Surrounding The Uprising And Aftermath, Which Left 43 Dead And Nearly 90 Wounded 

Schneiderman: This Website Enables Us to Pay Homage To Those Affected And Enlighten Future Generations On The Events Of The Uprising

ATTICA – Attorney General Eric T. Schneiderman, Thomas J. Ruller, Director of the New York State Archives and State Education Commissioner MaryEllen Elia today announced the creation of a new public website hosting a digital collection of documents relating to investigations and litigation arising from the 1971 Attica prison uprising and its aftermath. These records have previously been stored at the Office of the New York State Attorney General.

September 9^th through the 13^th marks the 45^th anniversary of the Attica uprising. The event began when inmates took several guards hostage and took control of parts of the prison. One correction officer was killed. Prisoner demands included permitting prisoners additional religious freedoms, access to uncensored newspapers and magazines, the end of administrative resentencing of prisoners, a modernized inmate educational system, better food, basic medical care, less cell time, less crowding of cells and more recreation time.

“The creation of this website enables us to shed light on the Attica uprising, one of the darkest chapters of our state’s history,” said Attorney General Schneiderman. “This easily accessible database allows us to pay homage to the lives lost and those forever changed as a result of the uprising. By putting critical documents at the fingertips of those interested in finding out more, this website will allow future generations of New Yorkers to learn from these events and the role they played in the history of our state’s corrections system.”

“We are pleased to work with the Attorney General, through the State Archives, to develop this online resource,” said State Education Commissioner MaryEllen Elia. “We hope the public, teachers, and students use the website to access these critical documents and learn more about the Attica uprising.”

“The State Archives is proud to work with the Attorney General's Office on this website,” said State Archivist Thomas Ruller. “This searchable database offers a digital collection of Attica documents that is easily and freely accessible to all.” 

After a four-day siege, the prison was retaken by state police and prison officers on September 13 at the order of Governor Nelson Rockefeller. At the time of the retaking, 1,281 convicts occupied an exercise field called D Yard, where they held 39 prison guards and employees hostage. The raid recaptured the facility, but 10 hostages and 29 inmates were killed by the officers’ gunfire. 89 others were seriously injured. 

The first installment of documents to be made available on the website are from the Al Jundi v. Rockefeller lawsuit, on behalf of himself and others similarly situated, including defendants Russell Oswald, John Monahan, Vincent Mancusi and Karl Pfeil. The Al Jundi case involved inmates and families of inmates killed in the prison retaking who sued the State of New York for civil rights violations by law enforcement officers during and after the retaking of Attica. The federal law suit alleged that prisoners were beaten and tortured during the retaking. After over 25 years in the courts, in 2000, the State of New York agreed to pay $8 million ($12 million minus legal fees) to settle the case.

The settlement of the case was presided over by federal district court Judge Michael A.Telesca in Rochester, New York. The defendants in Al Jundi included Governor Nelson Rockefeller and after his death, the Rockefeller estate (which was later dismissed from the case), Vincent Mancusi, the former superintendent of Attica, Karl Pfeil, the former deputy warden, the estate of Russell G. Oswald, who was Commissioner of the Department of Correctional Services, and the estate of John Monahan, who was commander of the state police in Batavia.

At the time Al Jundi settled, the settlement was the biggest ever in a prisoners right case. The settlement came 25 years after the class-action civil suit was filed on behalf of 1,281 inmates who were at Attica at the time of the 1971 uprising, seige and retaking, which left 43 people dead and more than 80 wounded.  

Additional records will be added to the web state as they are collected, reviewed, scanned and indexed.

The Attorney General’s staff that helped develop the website were Chief of Law Library Services Patricia L. Partello; Associate Law Librarian Patrick Weklar; IT Specialists Dan Walsh, Cory Nugent and Matt Toomey, Director of Administrative Services Jennifer Gonroff and Deputy Counsel John Amodeo, led by Marty Mack.

The Attorney General also thanks the New York State Archives for their partnership and valuable assistance in helping develop the website.

 News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
September 14, 2016

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A.G. SCHNEIDERMAN AND TAX COMMISSIONER BOONE ANNOUNCE CONVICTION OF QUEENS COUNTY BODY SHOP OWNER

Defendant Aniello Strocchia, Owner Of BM Auto Collision, Inc., Pleads Guilty To Insurance Fraud And Tax Fraud; Must Pay $500,000 Restitution

Schneiderman: Those Who Attempt To Skirt The Law To Line Their Own Pockets Will Be Caught And Will Face Serious Consequences

NEW YORK—Attorney General Eric T. Schneiderman and Department of Taxation and Finance Commissioner Boone announced today the guilty plea of Aniello Strocchia, 43, owner of BM Auto Collision, Inc., headquartered in Maspeth, New York.  Strocchia pleaded guilty today in Queens County Supreme Court to defrauding insurance companies and failing to pay sales tax to the state.  As part of his plea, Strocchia agreed to pay $500,000 in restitution to auto insurance companies and the Department of Taxation and Finance.

“Defrauding our insurance and tax programs ends up hurting hardworking New Yorkers who play by the rules and pay their fair share. As my office has shown, those who attempt to skirt the law in order to line their own pockets will be caught and will face serious consequences,” said Attorney General Schneiderman. 

“Intentionally pocketing sales tax money for personal gain is not only stealing from New York State, it’s a violation of customer trust,” said Commissioner Boone. “Today’s penalty should serve as a stern reminder to all sales tax vendors that failing to remit the proper amount of money to the state can have serious consequences. Our department will continue to work tirelessly with prosecutors at all levels, including Attorney General Schneiderman and his team, to make sure criminals who defraud government pay a stiff penalty.”

Today's conviction is the result of a long-term investigation conducted by the Auto Insurance Fraud Unit (AIFU) of the Attorney General’s Criminal Enforcement and Financial Crimes Bureau, together with the Criminal Investigations Division of the New York State Department of Taxation and Finance (CID).   

AIFU’s investigation revealed that Strocchia and his auto body shop, BM Auto Collision, Inc. (“BM Auto”), defrauded insurance companies by adding damage to mostly high end vehicles and then billing the insurance companies for unnecessary, partly performed, or wholly unperformed work.  

In addition to the insurance fraud investigation, AIFU conducted a parallel investigation with CID into tax evasion by Strocchia and BM Auto. This investigation uncovered that Strocchia had underreported company revenue by over $480,000 over a two-year period in an effort to avoid paying sales tax.

Today, Strocchia entered a guilty plea in Queens County Supreme Court to one count of Insurance Fraud in the Third Degree, a class D felony, and one count of Criminal Tax Fraud in the Fifth Degree, a class A misdemeanor.  Strocchia admitted that between September 2012 and December 2014, he and his employees systematically added damage to vehicles brought to BM Auto for repair, and then submitted fraudulently inflated vehicle repair estimates to insurance carriers. Strocchia further admitted that between March 2011 and February 2013, he failed to remit sales tax due by BM Auto to the Department of Tax and Finance. 

As part of his plea, Strocchia agreed to pay $500,000 as restitution to auto insurance companies and to New York State. Strocchia is scheduled to be sentenced to 5 years’ probation on December 6. 

The Attorney General thanked the National Insurance Crime Bureau and GEICO for their valuable assistance in this investigation. 

This case is being prosecuted by Assistant Attorney General Timothy McNutt of the Criminal Enforcement and Financial Crimes Bureau, with the assistance of Supervising Legal Analyst Paul Strocko. The Auto Insurance Fraud Unit is led by Chief Joseph D’Arrigo. The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Gary T. Fishman and Deputy Bureau Chief Stephanie Swenton.  The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

The Attorney General's investigation was conducted by Investigators Olga Lokshin, Elsa Rojas and Adrian Klapper, under the direction of Investigators Edward Keegan and Natalie Shifrin and Deputy Chief Leonard D'Alessandro of the Auto Insurance Fraud Unit. The Investigations Bureau is led by Chief Dominick Zarrella. Forensic accounting was performed by Dmitry Temis and Alex Ozechowski of the Auto Insurance Fraud Unit. 

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
September 15, 2016

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A.G. SCHNEIDERMAN OBTAINS JUDGMENT BANNING SALE OF DESIGNER DRUGS AT LONG ISLAND HEADSHOP 

Long Island Company Ordered To Stop Selling Misbranded Designer Drugs, Pay $52,000 Fine

Schneiderman: This Court Ruling Is Another Victory For Our Innovative Efforts To Remove These Drugs From Stores Across The State

HAUPPAUGE — Attorney General Eric T. Schneiderman today announced that his office secured a court judgment that orders misbranded designer drugs be removed from the store shelves of “East Coast Psychedelics,” with locations in Nassau and Suffolk Counties. The drugs, including the dangerous botanical drug “Kratom,” have psychoactive effects similar to those of more commonly known street drugs, but are typically packaged with innocuous labels and graphics to give the misleading impression that they are harmless. In addition to the removal of these harmful products, the corporation must also pay a total of $52,000 in penalties and costs.

As part of Attorney General Schneiderman’s undercover investigation, agents went into "East Coast Psychedelics," located at 6124 Jericho Turnpike in Commack, and 486 Merrick Road in Oceanside, and purchased the designer drug Kratom in capsule and tea powder forms. Kratom is an extremely potent plant with opiate-like effects, and is banned in its own country of origin. The U.S. Food and Drug Administration has warned of serious side effects such as decreased breathing, aggression, sleeplessness, hallucinations, delusions, tremors, nausea, vomiting, and severe withdrawal symptoms. Kratom is not an FDA approved dietary ingredient.  The DEA has listed Kratom as a “drug of concern” and recently announced a 2-year ban on the substance or psychoactive chemicals therein for any purpose and adding it as a Schedule I substance, joining the ranks of drugs like heroin and LSD.

“This court ruling is another victory for our innovative efforts to remove these drugs from stores across the state,” said Attorney General Schneiderman. “My office has now been successful in shutting down dozens of head shops which illegally and deceptively market these drugs, which can carry serious side effects. We will continue to aggressively take action in order to protect our communities against this scourge plaguing communities in New York.”

The investigation found that the drugs such as “Mr. Nice Guy,” “Mary Jane’s Potpourri” and the Kratom products were misbranded, for example, without disclosure of ingredients, manufacturer information, dietary information, and/or other warnings, making it impossible for customers to make an informed decision as to the intended use of the products, and the safety and health-related risks associated with them.  The investigation also found that employees selling these products repeatedly encouraged consumers to ingest or smoke these misbranded products, and even encouraged and promoted the use of these drugs that were specifically labeled “not for human consumption” for ingestion and/or inhalation by consumers.  It is illegal and wildly unsafe to sell unapproved drugs for consumption.

The Order and Judgment, which permanently bans the sale of any misbranded products, including but not limited to Kratom, and canisters of nitrous oxide, was signed by the Honorable Paul J. Baisley, Jr., Supreme Court, Suffolk County.

The Attorney General filed a lawsuit against East Coast Psychedelics of Commack and Oceanside in July 2012 and received a temporary restraining order that same day, effectively removing the misbranded products from East Coast Psychedelics’ shelves. On November 12, 2013, Judge Baisley issued a Decision and Order determining that East Coast Psychedelics violated state law prohibiting deceptive business practices and engaged in fraud and illegality.   The order signed by Judge Baisley bans the retailer from selling misbranded products, including the harmful substance Kratom, and awards the State a $50,000 penalty and $2,000 in costs.

Although Federal and State authorities have attempted to outlaw certain chemicals and their analogs and to remove these items from commerce, their efforts continue to fall short as the chemists and producers providing the products for head shops simply alter formulas and stay ahead of the legislation. This case is part of an ongoing effort by the office to curtail the sale of “designer drugs” sold under a thin veil of false legitimacy by calling them “herbal bud,” potpourri, incense, dietary supplements, “legal highs”, or other deceptive monikers. In reality, they are unapproved drugs being sold for drug effect. The initiative, which began in 2012, successfully removed street drug alternatives and designer drugs from the shelves of numerous head shops across New York. The Attorney General’s office has filed dozens of lawsuits against head shops that sold designer drugs, which resulted in judges across the state issuing permanent injunctions barring 23 stores from selling these products. The rulings came after the office showed the products were illegal because their contents were not properly labeled, thus violating state and federal laws.

The investigation was conducted by investigators Chad Shelmidine and Ryan Fannon under the supervision of Senior Investigator Christopher Holland, directed by Assistant Chief Antoine Karam.

This case was handled by Assistant Attorney General Rachael C. Anello of the Attorney General’s Suffolk Regional Office, under the supervision of Assistant Attorneys General In-Charge Kimberly A. Kinirons and Deanna Nelson. The Executive Deputy Attorney General for Regional Affairs is Martin J. Mack.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
September 15, 2016

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A.G. SCHNEIDERMAN ANNOUNCES BEAU BUFFIER AS NEW CHIEF OF ANTITRUST BUREAU

NEW YORK – Attorney General Eric T. Schneiderman today announced the appointment of Beau W. Buffier as the new Chief of the Attorney General’s Antitrust Bureau, a part of the Division of Economic Justice.

“I am pleased to welcome Beau Buffier to our office, where he will spearhead some of our office’s most innovative and critical work,” Attorney General Schneiderman said. “Beau brings a breadth of experience in antitrust matters, and will be a true asset to both our ongoing and future antitrust work.”  

Beau Buffier said, “I am privileged to be joining an agency with such a long and proud history of antitrust enforcement. Under Attorney General Schneiderman’s leadership, New York has won ground-breaking cases that have promoted competition and protected consumers not only in New York but nationwide.  I am excited to become part of such a dynamic office and I look forward to working with the talented team at the Antitrust Bureau to ensure that all New York consumers and businesses receive the benefits of competitive markets.”

Beau W. Buffier is currently a partner in the New York office and co-head of Shearman & Sterling’s Global Antitrust Group. Over the past 15 years, Mr. Buffier has developed deep expertise across a diverse array of antitrust matters including global price-fixing investigations and follow-on litigation, monopolization and abuse of dominance cases, merger investigations and challenges, competitor collaborations, antitrust compliance and intellectual property-related matters. He regularly speaks and publishes on significant antitrust matters and was recognized by the New York Law Journal as a “Rising Star” in the top 40 attorneys under 40 in 2013 and by Law360 as one of 2015’s top competition attorneys under 40. Mr. Buffier received his LL.B. from the University of Sydney and LL.M. from New York University School of Law. Beau’s first day at the Attorney General’s office will be October 10.

The Antitrust Bureau is responsible for enforcing New York State laws prohibiting anticompetitive business practices, and representing the interests of New York and New York consumers in national antitrust matters. Beau Buffier will lead a team dedicated to ensuring that New York consumers and local businesses receive the benefits of full and fair competition. The Division of Economic Justice is led by Executive Deputy Attorney General Manisha M. Sheth.

News from Attorney General Eric T. Schneiderman

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September 15, 2016

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A.G. SCHNEIDERMAN ANNOUNCES $24K SETTLEMENT WITH OPTICIAN WHO BILLED MEDICAID FOR EYEWEAR IN VIOLATION OF MEDICAID BILLING RULES  

Optician To Pay $24K In Restitution, Damages For Billing Medicaid For Eyeglasses That Should Have Been Paid by Medicare; Also Billed Medicaid For Glasses Never Dispensed 

Schneiderman: My Office Will Root Out Fraud And Abuse So Medicaid Can Continue Providing Critical Health Care Services

BUFFALO – Attorney General Eric T. Schneiderman today announced that his office has entered into a settlement agreement with John Renna, d/b/a Renna Optical, to resolve allegations that he caused Medicaid to pay for eyewear in violation of Medicaid billing rules.  

The Attorney General’s investigation determined that from January 1, 2010, through November 30, 2013, Renna Optical caused Medicaid to pay for eyeglasses that should have been paid for by the Medicare program. During the same period, Renna also caused Medicaid to pay a portion of the cost of some eyeglasses that were never actually dispensed to Medicaid recipients.

“Medicaid should not pay for services when other available sources of payment are available or when the services billed are not actually rendered,” said Attorney General Schneiderman. “We will keep working to root out Medicaid fraud and abuse, and recover the funds lost, so that Medicaid can continue providing critical health services to those most in need.”

As a result of the settlement, Renna will pay New York State $24,000 in restitution and damages pursuant to the New York False Claims Act.

The case was investigated by Special Investigator Scott Barnes, with assistance from Medicaid Fraud Control Unit (MFCU) Supervising Investigator James Zablonski and MFCU Deputy Chief Investigator William Falk, and Senior Auditor-Investigator Mary Henry, with assistance from Regional chief Auditor Frank Zeffiro and Chief Auditor Michael LaCasse.  The case was handled by Special Assistant Attorney General Laurie Frank of the MFCU Buffalo Regional Office.  Gary A. Baldauf is the Regional Director of the MFCU Buffalo Regional Office. The Medicaid Fraud Control Unit is led by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

News from Attorney General Eric T. Schneiderman

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September 15, 2016

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FORMER WAYNE COUNTY NURSING HOME CNA SENTENCED TO JAIL FOR SEXUALLY ABUSING ONE VICTIM; EXPOSING SELF TO 84 YEAR-OLD RESIDENT 

Louis Magrino Sentenced To Jail, Probation; Must Register As Sex Offender For Exposing Himself To Elderly Resident; Putting Another Elderly Resident In Restroom While He Sexually Abused Her Adult Daughter 

Schneiderman: We Will Fight To Ensure That Nursing Home Staff Who Abuse Or Assault Residents Or Visitors Will Be Prosecuted To The Fullest Extent Of The Law 

WAYNE COUNTY – Louis Magrino, of Wayne County, was sentenced today in front of the Honorable John B. Nesbitt in Wayne County Court to four months of jail on weekends and 10 years of probation on his prior plea to 11 counts, including Sexual Abuse in the 1^st Degree and Endangering the Welfare of an 84 year-old female nursing home resident. Magrino is required by law to be registered as a sex offender based on this conviction. 

Magrino is convicted of committing numerous criminal offenses while working at the home in April of 2016, including sexually abusing a woman visiting her 99 year old mother at the nursing home. Magrino also victimized the 99 year old resident by placing her in the bathroom facing the wall while he sexually abused her daughter by forcibly touching her breasts. In a separate incident, Magrino also exposed his genitals to an 84 year-old female resident while making lewd comments.

“Residents of nursing homes and their loved ones visiting them are entitled to courteous and respectful treatment, and the right to a dignified existence in the place they call home,” Attorney General Schneiderman said. “The actions taken by the defendant were truly reprehensible, and a grotesque abuse of power. My office will keep working to ensure that nursing home staff who violate the rights of those in their care and their families are held accountable.”

The case was investigated jointly with the Wayne County Sheriff’s Department and the Medicaid Fraud Control Unit (MFCU) of the Attorney General’s Office. MFCU Investigator Debra Clementi, MFCU Investigator Dave Giudici, Wayne County Sgt. Matt Hilkert, and Wayne County Sgt. Tammy Ryndock investigated the case, with assistance from MFCU Deputy Chief Investigator William Falk. The case is being prosecuted by Special Assistant Attorney General Catherine Wagner of the MFCU Rochester Office. Catherine Wagner is also the Regional Director and the Upstate Chief of Criminal Investigations for MFCU. The Medicaid Fraud Control Unit is led by Director Amy Held and Assistant Deputy Attorney General Paul Mahoney. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

News from Attorney General Eric T. Schneiderman

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September 15, 2016

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A.G. SCHNEIDERMAN ANNOUNCES ARRESTS OF 4 AIDES WHO ALLEGEDLY TOOK PHOTOS AND VIDEOS OF NURSING HOME RESIDENTS

  Four Aides Are Charged With Violating The Law By Recording Degrading Images Of Residents of Nursing Homes In Oswego County 

Schneiderman: We Will Hold Accountable Caregivers Who Exploit Residents’ Privacy For Entertainment

OSWEGO – Attorney General Eric T. Schneiderman today announced that, in two distinct cases, four former nursing home aides who were paid to provide care to elderly residents and residents with substantial disabilities, were arrested and arraigned on September 13 before Oswego City Court Judge James Metcalf. All four defendants were charged with felonies and misdemeanors relating to allegedly taking still and video digital images of residents in undignified poses at two nursing homes in Oswego. 

“Nursing home residents and their families deserve the peace of mind of knowing that their loved ones will be protected and respected by their caregivers. To record images of residents for one’s own amusement is a blatant violation of trust and privacy in the very place these residents call home,” said Attorney General Schneiderman.“We will keep working to prosecute the abuse and neglect of nursing home residents, and punish those responsible to the fullest extent of the law.”  

Mathew Reynolds and Angel Rood were charged with counts of Endangering the Welfare of an Incompetent or Physically Disabled Person in the First Degree, a Class E felony, as well as two counts of Willful Violation of the Public Health Law, an unclassified misdemeanor.  While they were employed as aides at Pontiac Nursing Home in Oswego, Reynolds and Rood allegedly used an iPhone to take demeaning photographs of a resident in undignified positions.  Several of the pictures allegedly depict the defendants lying in bed with a resident and touching the resident in a taunting and abusive manner. 

Austin Powell and Brittany Bolster were charged with counts of Endangering the Welfare of an Incompetent or Physically Disabled Person in the First Degree, a Class E felony, and two counts of Willful Violation of the Public Health Law, an unclassified misdemeanor.  Both were working as aides at St. Lukes Health Services in Oswego, New York, when they allegedly filmed a video of themselves verbally and physically tormenting a resident.  A video taken by defendant Powell allegedly shows him, together with co-defendant Bolster, repeatedly touching a resident’s nose and taunting her, causing her to become severely agitated and upset at a time when the defendants were required to provide care to her.  In addition to the emotional trauma the resident allegedly suffered as a result of the defendants’ conduct, in the resident’s efforts to force the defendants to stop the abuse, the resident repeatedly lashed out in a violent manner, which was likely to cause her physical harm.  

Both facilities have strict policies forbidding the use of cell phones by staffers and the creation of either still or video images of nursing home residents. 

The defendants were released on their own recognizance and the cases are next on for appearances on October 19.

Since early 2013 across the State, the Attorney General has prosecuted three cases that have addressed abuse and neglect of vulnerable residents of nursing homes by facility employees who, with callousness and insensitivity, violated the law by using various means to record digital images and videos in humiliating poses or conditions, some of which also involved the use of social media such as Facebook and SnapChat to post such images.

The charges against the defendants are accusations only, and the defendants are presumed innocent unless and until proven guilty in a court of law.  References to other cases are for reference and information only.

This case was investigated by Investigator Keith Hall of the Syracuse Regional Office of the Attorney General Medicaid Fraud Control Unit.  The matter is being prosecuted by Special Assistant Attorney General Paul Berry. The Regional Director is Ralph D. Tortora, III.  Catherine Wagner is the Upstate Chief of Criminal Investigations.  The Medicaid Fraud Control Unit is led by Director Amy Held and Assistant Deputy Attorney General Paul Mahoney.  The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
September 16, 2016

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A.G. SCHNEIDERMAN ANNOUNCES CHARGES AGAINST 3 INDIVIDUALS FOR ALLEGEDLY FILING FALSE TIMESHEETS FOR SERVICES NOT PROVIDED TO MEDICAID RECIPIENT IN MEDICAID FRAUD SCHEME 

Two Aides and Person In Charge of Medicaid Recipient’s Care Are Charged In Scheme That Allegedly Billed Medicaid $6K For Services That Were Never Provided To Medicaid Recipient 

Schneiderman: I Will Prosecute Those Who Exploit The Vulnerable And The Medicaid Program For Personal Financial Gain

ROCHESTER - Attorney General Eric T. Schneiderman today announced the arrests and arraignments of three individuals who allegedly participated in a scheme to submit false timesheets for care not provided to a Medicaid recipient. An investigation, conducted by the New York State Attorney General’s Medicaid Fraud Control Unit (MFCU), revealed that Sarah Merlau allegedly hired her daughter, Rachael Merlau, and a family friend, Toya Torrance, to provide services to Sarah Merlau's other daughter, who is a Medicaid recipient who receives twenty six hours of services per week. Sarah Merlau allegedly signed off on false timesheets submitted by Rachael Merlau and Toya Torrance, for care that was not provided, which cost the Medicaid program over six thousand dollars. 

“Defrauding the Medicaid system at the expense of the Medicaid Program and of one’s own family member, who depends on the Medicaid program, is truly reprehensible,” Attorney General Schneiderman said. “My office will always prosecute those who exploit the vulnerable and the Medicaid program for greed and personal financial gain.”

The complaints, filed in Rochester City Court, charge Sarah Merlau and Rachael Merlau with the E felony of Falsifying Business Records in the First Degree. Rachael Merlau was also charged with the D felony of Grand Larceny in the Third Degree and another E felony of Offering a False Instrument for Filing in the First Degree. Toya Torrance was charged with two E felonies of Grand Larceny in the Fourth Degree and Offering a False Instrument for Filing in the First Degree. Rachael Merlau faces up to seven years in prison and Sarah Merlau and Toya Torrance face up to four years in prison. 

The charges are merely accusations and the defendants are presumed innocent.

The case was investigated by Investigator Debra Clementi and Principal Auditor/Investigator Grace Quinn, with assistance from MFCU Rochester Regional Chief Investigator William Falk and Rochester Regional Chief Auditor Thomas Clarke. 

The case is being prosecuted by Special Assistant Attorney General Margaret A. Jones in the MFCU Rochester Office. Catherine Wagner is the Regional Director and the Upstate Chief of Criminal Investigations for MFCU. The Medicaid Fraud Control Unit is led by Director Amy Held and Assistant Deputy Attorney General Paul Mahoney. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
September 20, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-776-2427
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A.G. SCHNEIDERMAN ANNOUNCES SENTENCING OF PHARMACIST IN CONNECTION WITH $150 MILLION MEDICAID FRAUD SCAM

Long Island Pharmacist Sentenced To 2-6 Years In Prison

Schneiderman: Today’s Sentencing Shows That If You Put The Well-Being Of New Yorkers At Risk, You Will Be Prosecuted To The Full Extent Of The Law

NEW YORK—Attorney General Eric T. Schneiderman today announced the sentencing of licensed pharmacist Glenn Schabel, 55, of Melville, and his company, Glenn Schabel, Inc. in connection with a nation-wide scheme to sell diverted HIV medication to unsuspecting New Yorkers.  Schabel was sentenced to 2-6 years in prison, and forfeited $5,456,267 to the New York State Medicaid Program. This sentencing is part of the Attorney General’s Medicaid Fraud Control Unit’s (“MFCU”) “Operation Black-Market Meds” investigation.

“This scheme not only defrauded Medicaid, but created a serious public health threat to many New Yorkers. We won’t allow vulnerable individuals to be taken advantage of by criminals looking to make a quick buck,” said Attorney General Schneiderman. “Today’s sentencing shows that if you put the well-being of New Yorkers at risk, you will be prosecuted to the full extent of the law.”

In April 2012, MFCU investigators arrested Schabel and three other individuals and charged ten companies, for using a network of bogus prescription medication wholesalers in Alabama, Mississippi, North Carolina, and California to launder money and to sell over $274 million in diverted prescription medications. It was charged that the medications were obtained from illegal or unknown sources, to Allion Healthcare, Inc., the parent company of MOMS Pharmacy, a corporate pharmacy formerly headquartered in Melville, New York. The diverted prescription medications were obtained by Schabel’s co-defendants using various illegal means and included pills that had been previously dispensed to other individuals and that were then re-sold into the black market. Under Schabel’s supervision, those diverted medications were purchased by MOMS Pharmacy and dispensed to its patients, many of whom were Medicaid recipients.  The New York State Medicaid program ultimately reimbursed MOMS Pharmacy in excess of $150,000,000 for the diverted medications dispensed to those MOMS Pharmacy patients that were covered by Medicaid.  Diverted medication poses a serious health risk to the public due to its unknown origin and quality. In some cases, diverted prescription medication is counterfeit, expired, not properly stored, or is mislabeled.

Ira Gross, the ringleader of the scheme, was previously convicted by a jury trial on August 9^th. He is still awaiting sentencing. Two other defendants have also previously pleaded guilty.

The Attorney General thanks the New York State Office of the Medicaid Inspector General (“OMIG”), the Alabama Medicaid Fraud Control Unit, the United States Department of Health and Human Services, Office of Inspector General (“HHS OIG”), the Federal Bureau of Investigation (“FBI”), the United States Drug Enforcement Administration (“DEA”), the United States Food and Drug Administration-Office of Criminal Investigations (“FDA-OCI”), the Florida Department of Law Enforcement, and the United States Attorney’s Office for the Southern District of New York.  All provided valuable information and assistance during the investigation.

The criminal case was prosecuted by MFCU Special Assistant Attorney General Imran Ahmed and former Special Assistant Attorney General Adam Shalet, with the assistance of NYC Regional Director Christopher M. Shaw and Peri Kadanoff, the Deputy Attorney General of the Attorney General’s Organized Crime Task Force. The forfeiture action was handled by Special Assistant Attorneys General Andrew Gropper and Diana Elkind. The investigation was conducted by MFCU Supervising Investigator Victor Maldonado, Senior Special Investigator Denitor Guerra, Investigator Lawrence Riccio, Associate Special Auditor Investigators Cristina Marin and Jonathan Romano with assistance of Deputy Chief Investigator Kenneth Morgan and Regional Chief Auditor Thomasina Smith. Thom O’Hanlon is the MFCU Chief of Criminal Investigations – Downstate. The Medicaid Fraud Control Unit is led by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.