News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
October 20, 2016

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STATEMENT FROM A.G. SCHNEIDERMAN

NEW YORK - Attorney General Eric T. Schneiderman released the following statement:

Ms. Danner's death is a tragedy that never should have happened. From the moment my office received the news, our Special Investigations and Prosecutions Unit commenced a rigorous review of the evidence. I believe there is no question this case must be investigated. However, the legally empowered prosecutor must take the lead. After reviewing the available facts and evidence, our Special Investigations and Prosecutions Unit has determined that this incident falls beyond my office’s jurisdiction under the Governor’s Executive Order No. 147, which grants my office jurisdiction only under limited circumstances.

It is vital to note that this jurisdictional determination has no legal impact whatsoever on the ultimate question of whether or not a crime was committed, or whether the officer involved should be prosecuted.  That determination rests with the Bronx District Attorney’s office, which we expect will conduct a full and fair investigation.

We will continue to monitor the situation.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
October 20, 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 JAIL SENTENCE OF LONG ISLAND DOCTOR FOR SELLING PRESCRIPTIONS FOR OXYCODONE

Defendant Sold Prescriptions for Addictive Painkillers Without Performing Required Medical Examinations Of Patients

Schneiderman: Doctor’s Action An Unconscionable Violation Of Professional Duties

NEW YORK – Attorney General Eric T. Schneiderman today announced the sentence of Long Island internist Dr. Anand Persaud for illegally selling prescriptions for the narcotic medication oxycodone.  Persaud’s sentence of six months incarceration to be followed by five years of probation occurred today following Persaud’s May 2015 guilty plea to Criminal Sale of Prescriptions for a Controlled Substance and Criminal Tax Fraud in the 4^th degree.   Persaud was arrested in July of 2013 by the New York State Attorney General’s Medicaid Fraud Control Unit (MFCU) as the result of a long- term investigation into his medical practice.  

“It’s unconscionable that a doctor, a trusted licensed professional, would violate his professional duties and abuse his license to traffic in prescriptions for narcotics,” said Attorney General Schneiderman. “As this investigation and prosecution shows, my office will hold accountable those who have contributed to the growth of the prescription drug abuse epidemic in New York State.”

MFCU’s investigation disclosed that Persaud maintained a two-tiered practice. He had “medical” patients, those with regular medical issues, who were charged $110 for an office visit, and a bogus “pain management” practice, where patients with substance abuse problems were charged $250 or more for a prescription for a controlled substance.   Such patients needed counseling and treatment for their addictions, but instead were enabled by such practices. 

In pleading guilty on May 1, 2015, Persaud admitted that on January 15, 2103, he knowingly and unlawfully sold a prescription for Oxycodone to a patient for $250 in cash.  He acknowledged that the patient, who presented as being insured by Medicaid, had no complaints other than supposedly suffering from opiate withdrawal.  In writing her a prescription for oxycodone, Persaud admitted that he neither ordered, nor conducted any tests, did not take a medical history or conduct a physical exam, and did not request any supporting documentation of any type from the patient; only the $250 in cash. New York doctors may not prescribe narcotics to persons with addiction problems except in the course of a bona fide substance abuse treatment program.

On two other occasions, Persaud admitted, he wrote additional prescriptions for Oxycodone for the same patient in exchange for cash and admitted that between January 1st, 2011 and July 30th, 2013, he wrote prescriptions for Oxycodone to more than ten other patients, all under similar circumstances. For each, the prescription was medically unnecessary, Persaud admitted, and in each instance he failed to conduct a physical examination, order testing or secure supportive documentation or a medical history but did accept either $250 or $300 in cash from each patient in exchange for the prescription.

In committing all of the above, Persaud acknowledged he acted outside the good faith practice of his profession.  As a result, on August 24, 2016, Persaud lost his license to practice medicine by the New York State Office of Professional Medical Conduct. 

At the time of his guilty plea, Persaud also acknowledged filing a false New York State tax return on April 10, 2012.   Persaud admitted he underreported his income on his 2011 New York State personal income tax return by approximately $67,000; an amount that included cash income he and his wife had derived from selling prescriptions for narcotics.  On May 1, 2015, Persaud’s wife, Bibi Shazeeda Persaud, similarly pled guilty to filing a false tax return and on June 19, 2015, was sentenced to five year term of probation. 

Sentence today was imposed by Hon. Francis Ricigliano, Acting Supreme Court Justice, Nassau County.

Attorney General Schneiderman thanks the Rockville Centre Police Department, and in particular, Commissioner Charles Gennario, Lieutenant James Vafeades and Detective Frank Marino, for their assistance during this investigation.

The investigation was conducted by Investigators Steven Broomer and Thomas Dowd with the assistance of Deputy Chief Investigator Kenneth Morgan and NYC Regional Chief Auditor Thomasina Smith.

The criminal case is being prosecuted by Special Assistant Attorney General Crystal Barrow of the Attorney General’s Medicaid Fraud Control Unit with the assistance of NYC Regional Director Christopher M. Shaw.  Thomas O’Hanlon is MFCU’s Downstate Chief of Criminal Investigations. MFCU is led by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
October 21, 2016

New York City Press Office / 212-416-8060
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Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN ANNOUNCES NATIONAL SETTLEMENT WITH CIGNA TO DISCONTINUE PRE-AUTHORIZATION FOR OPIOID ADDICTION TREATMENT DRUGS 

Settlement With Major Global Health Insurer Will Remove Barriers To Life-Saving Treatment For Opioid Use Disorder

Other Health Insurers Are Encouraged To Follow Cigna’s Policy Change 

NEW YORK – Attorney General Eric T. Schneiderman today announced that Cigna, a major global health insurer, will end its policy of requiring prior authorization for medication-assisted treatment (“MAT”) for opioid use disorder. Cigna’s change comes just months after Attorney General Schneiderman requested that the company provide information about its MAT policies to address concerns about barriers to treatment for opioid use disorder.  Preauthorization requirements can lead to delays – sometimes significant -- in patients obtaining treatment for addiction.

MAT, when prescribed and monitored properly, has proved effective in helping patients recover from opioid use disorder, and is both safe and cost-effective to reduce the risk of overdose. This policy change will apply not only to most members in New York, but nationally as well. 

Cigna required providers to submit a prior approval form for MAT requests, which required the providers -- who had already received specific training regarding MAT in order to prescribe these drugs -- to answer numerous questions about the patient’s current treatment and medication history. Authorization in some instances took several days.

“Removing barriers to proven effective life-saving treatment is an important component to address New York’s and the nation’s opioid addiction crisis. Getting people into treatment faster, and when the window of opportunity is open, is vital to stemming the opioid addiction crisis. I applaud Cigna for taking this action,” said Attorney General Schneiderman. “Other health insurers should take notice of Cigna’s actions to remove access barriers to treat opioid dependency and I encourage those insurers to follow suit.”

“Pre-authorization requirements for addiction medications are harmful and discriminatory,” said Sally Friedman, Legal Director of the Legal Action Center. “The Legal Action Center welcomes Cigna’s discontinuation of this practice for buprenorphine. This change, together with Cigna’s existing policy of not requiring pre-authorization for methadone, naltrexone, and other addiction medication, will save lives.  Attorney General Schneiderman deserves praise for his aggressive enforcement of laws promoting access to treatment for substance use disorders.  All insurers should remove barriers to coverage for FDA-approved medications to treat addiction."

“ASAM applauds Attorney General Schneiderman’s agreement with Cigna to discontinue the requirement of prior authorization requirements for coverage of buprenorphine containing medication. There is often a small window of opportunity for a person seeking help to engage in treatment. Waiting for days to obtain medication to treat this condition represents an unnecessary risk for a deadly outcome. Hopefully, other payers will follow Cigna’s lead in decreasing barriers to access to this lifesaving medication,” said Kelly Clark, President Elect, American Society of Addiction Medicine.

Unlike methadone treatment, which must be administered in a highly structured clinic, MAT medications, usually containing buprenorphine and naloxone, may be prescribed or dispensed in physicians’ offices to treat opioid dependency, provided the treating physician has obtained the appropriate certification and has been issued a special DEA license. In addition to the medication component, psychosocial therapy and management of medical issues are also recommended components of MAT to treat opioid dependency.

Buprenorphine is an opioid partial agonist, meaning that it has lesser euphoric effects than full opioid agonists such as heroin. At low doses, buprenorphine produces sufficient agonist effects to enable opioid-addicted individuals to discontinue the misuse of opioids without experiencing withdrawal symptoms. Buprenorphine carries a lower risk of abuse, addiction, and side effects when compared with full opioid agonists. Naloxone is an opioid antagonist that can be added to buprenorphine that will decrease the likelihood of diversion and misuse of the combination drug product. If the combination drug product is crushed and injected the naloxone and can bring on opioid withdrawal, which serves as a deterrent to diversion and misuse. According to the Centers for Disease Control (CDC), the number of drug overdoses related to opioid abuses have increased dramatically over the past decade, including over 2,000 drug overdose deaths in New York and over 10,000 overdose deaths nationally in 2014.

The CDC considers MAT a proven, effective treatment for individuals with an opioid use disorder. MAT has been shown to increase treatment retention and to reduce opioid use. One research study showed that for half the patients treated with buprenorphine/naloxone for addiction to opioid pain relievers, they were abstinent from the drugs 18 months after starting MAT, and after three and a half years 61% of the patients reported abstinence. MAT is supported/endorsed by the CDC, the Substance Abuse and Mental Health Services Administration (SAMHSA), the American Society of Addiction Medicine (ASAM), the New York State Office of Alcoholism and Substance Abuse Services (OASAS) and the New York City Department of Health and Mental Hygiene (NYCDOHMH) as a treatment for opioid addiction.

Addressing access barriers to MAT is just the latest step that Attorney General Eric T. Schneiderman has taken to address the opioid addiction crisis. In June of 2011, Attorney General Schneiderman introduced state legislation for I-STOP, an online Prescription Monitoring Program or a “PMP,” that enables doctors and pharmacists to report and track controlled narcotics in real time. I-STOP became effective in August of 2013, making New York State one of the first states to establish such a PMP, and has reduced “doctor-shopping” by 75%. The OAG has also aggressively enforced laws that require parity in health plan coverage of mental health and addiction treatment, reaching agreements with six companies, including Cigna, MVP Healthcare, EmblemHealth, Excellus, Beacon Health Options, and HealthNow. The Attorney General’s Office has prosecuted many health care providers who illegally prescribed and diverted opioids. The OAG’s Community Overdose Prevention (COP) Program, which equips New York law enforcement agencies with a life-saving heroin overdose antidote, has saved more than 100 lives. The OAG has also reached agreements with Purdue Pharma and Endo Pharmaceuticals Inc., to ensure that these opioid makers engage in responsible and legal marketing. 

Cigna’s policy change follows efforts by both New York state and the federal government to increase access to MAT for opioid dependency. New York State recently enacted legislation prohibiting insurers from requiring prior authorization for emergency supplies of MAT medications and also removed prior authorization for Medicaid members seeking MAT for opioid dependence, while the federal government increased the maximum number of patients that MAT certified physicians can treat at one time from 100 to 275. 

“In recent years, we have lost too many of our loved ones to addiction disorders. Many of these addictions started through self-medication of a mental health issue. This horrific epidemic has to end, and one way of doing so is to insure that people have full access to medication assisted treatment disorders. The Mental Health Association in New York State, Inc. (MHANYS) applauds Attorney General Eric Schneiderman for reaching an agreement with CIGNA in regard to the elimination of prior approval for these treatments,” said Glenn Liebman, Chief Executive Officer of the Mental Health Association of New York State.

“The Long Island Council on Alcoholism and Drug Dependence (LICADD) commends New York State Attorney General Eric Schneiderman for his continued leadership in confronting insurance companies in New York State to increase access and availability to evidence based treatments on demand for individuals, and their families, contending with opiate dependence,” said Steve Chassman, LCSW, CASAC, Executive Director of LICADD. “Medication- assisted treatment (MAT), in conjunction with intensive psycho-social treatment modalities, has been proven effective in providing individuals with a pharmaceutical safety net needed as they move along the continuum of change towards recovery from the debilitating illness of opiate dependence.”

“Medication-assisted treatment (MAT) for opioid use disorder gives individuals and families dealing with addiction options,” said Avi Israel, President and Founder of Save the Michaels of the World. “For example, the flexible nature of MAT may allow someone who is battling addiction to keep a job while receiving treatment. I thank Attorney General Eric Schneiderman for continuing to eliminate obstacles to treatment, and I join him in urging other insurers to follow Cigna’s lead.”

Consumers with questions or concerns about this settlement or other health care matters may call the Attorney General’s Health Care Bureau Helpline at 1-800-428-9071.

The investigation of this matter was conducted by Assistant Attorneys General Brant Campbell and Michael D. Reisman, of the Attorney General’s Health Care Bureau, which is led by Bureau Chief Lisa Landau. The Health Care Bureau is a part of the Social Justice Division, led by Executive Deputy Attorney General for Social Justice Alvin Bragg.

Read the agreement with Cigna.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
October 21, 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 

NEW YORK – Attorney General Eric T. Schneiderman issued the following statement regarding today’s Airbnb lawsuit:

The law signed today will provide vital protections for New York tenants and help prevent the continued proliferation of illegal, unregulated hotels, and we will defend it. Airbnb can’t have it both ways: it must either police illegal activity on its own site -- or government will act to protect New Yorkers, as the State just did.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
October 25, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-473-5525
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Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN ANNOUNCES FIRST-OF-ITS-KIND ANALYSIS ILLUSTRATING GUN TRAFFICKING INTO NY

New Research Shows That 74% Of All Guns Recovered By Law Enforcement Originated Out-of-State; Nearly Nine Out Of Ten (86%) Of Recovered Handguns -- The Weapon Of Choice For Violent Criminals -- Come From Out-Of-State

New Report, “Target on Trafficking,” And Interactive Tool Shows How New York’s Strong Gun Laws Are Undermined By Lax Laws In Iron Pipeline States

NEW YORK – Attorney General Eric T. Schneiderman today released a first-of-its-kind analysis of tens of thousands of “crime guns” recovered by law enforcement, illustrating gun trafficking trends that undermine New York’s strong laws.

The ground-breaking analysis shows that 74 percent of all crime guns recovered by law enforcement originated out-of-state, and nearly nine out of ten (86 percent) of recovered handguns come from out-of-state.

The report released today, “Target on Trafficking: Analysis of New York Crime Guns,” and the new interactive tool examines the purchase history of the nearly 53,000 crime guns recovered by law enforcement in New York between 2010 and 2015. A crime gun is any gun connected to a crime that is recovered by law enforcement.

“The data makes one thing abundantly clear: New York’s strong gun laws are being undermined at every turn by lax laws in other states,” said Attorney General Schneiderman. “Even as we work to make our streets safer, the illegal guns most often used in violent crimes continue to pour into our state. In fact, three-out-of-four guns used in New York crimes come from out-of-state. When you look at the illegal crime gun problem, it’s the handgun that’s killing people every day – and 86% of recovered handguns come from out-of-state, underscoring the problem New York faces. It’s time for the federal government – and other states – to take common sense measures and ensure weak gun laws won’t continue to take the lives of New Yorkers.”

“There’s no question:  one of the biggest challenges this department faces are guns, and in particular handguns, that are trafficked into New York from out-of-state,” said NYPD Commissioner James O’Neill. “Attorney General Schneiderman’s report and gun tracing tool provide invaluable insight into where these guns come from and how law enforcement and lawmakers can act to protect New Yorkers.”

“I am grateful to the Attorney General for adding this report and supplying this webinar to our department,” said Suffolk County Police Commissioner Timothy D. Sini. “This department is committed to continue to lower crime in Suffolk County and take illegal guns off the streets.  This new, comprehensive database will help our department better track where these weapons are originating and how to combat the problem. Another innovative and valuable tool we will undoubtedly use. ”

Manhattan District Attorney Cyrus R. Vance, Jr., said, “These findings clearly show that crime guns from ‘Iron Pipeline’ states are flooding our streets and getting into the hands of criminals at an astonishing rate. I commend Attorney General Schneiderman for this important undertaking, which underscores the challenges local law enforcement faces in the fight against gun violence. I urge the passage of the Attorney General’s common-sense recommendations, and thank him for supporting the Gun Kingpin Bill I proposed earlier this year, which will help prosecutors put wholesale illegal firearms dealers out of business in New York State. Additionally, this report serves as a persuasive call for federal action – no matter how much we strengthen New York’s gun laws, we are fighting an uphill battle in the absence of national reform.”  

The Attorney General’s office is the first statewide law enforcement agency to obtain and analyze such comprehensive crime gun data provided by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

The analysis showed sweeping and important trends in gun recoveries, particularly in regards to how out-of-state guns are flooding into New York from the “Iron Pipeline” -- states with lax guns laws along the I-95 corridor, namely Pennsylvania, Virginia, North Carolina, South Carolina, Georgia, and Florida. These findings offer significant policy implications and context for state and national leaders striving to reduce gun trafficking and violence.

“Attorney General Schneiderman’s new report makes it clear that we urgently need to make gun trafficking a federal crime,” said U.S. Senator Kirsten Gillibrand (D-NY). “Gun trafficking is recognized all around, by both parties, as a major source of fuel for American gun violence, yet there is still no federal law that prevents someone from crossing state lines with a truckload of guns and selling them to criminals in a parking lot. As long as gun trafficking is not a federal crime, it will continue to be shamefully easy for criminals to get their hands on these weapons, and law enforcement won’t have the tools they need to prosecute traffickers and remove these illegal guns from the black market. My gun trafficking bill is one of the only gun bills that has bipartisan support – and this is despite the efforts of the gun industry and its powerful lobby to protect their own profits and stop us. The American people are demanding that Congress respond to the gun violence crisis, and my bipartisan gun trafficking bill is an important part of that response.”

“Each trace represents the life of a crime gun, and together these data tell a crucial story – both about how guns make their way to criminals, and about how law enforcement can crack down on gun trafficking,” said John Feinblatt, President, Everytown for Gun Safety. “Communities across the state are devastated by handguns that come up the Iron Pipeline from states with weak laws. The Attorney General’s report shows the power of bringing data together, and we hope that law enforcement elsewhere take note.” 

“This report provides an unprecedented look at the flow of illegal guns into New York and offers a stark illustration of the challenge faced by states like New York whose strong gun laws are undermined by a lax approach to this issue taken by other states,” said Chelsea Parsons, Vice President of Guns & Crime Policy, Center for American Progress. “This is the most comprehensive analysis of statewide crime gun trace data to date and provides invaluable information to law enforcement, policymakers, and community stakeholders seeking to prevent gun violence across the state. We are hopeful that other states will follow the example of this report and conduct a similar analysis to continue shining a light on the illegal trafficking networks currently operating in this country.”

“I applaud Attorney General Eric Schneiderman and his office for the tremendous, groundbreaking work that went into this report and the online tools that come with it,” said Assemblymember Brian Kavanagh, who chairs American State Legislators for Gun Violence Prevention, a 50-state coalition, and co-chairs its New York affiliate. “The gun industry and its allies often attempt to block research and data-gathering on gun violence, but analysis like this can both demonstrate the life-saving effectiveness of sensible gun laws, and also help us prevent gun crimes and solve them when they occur. I believe that New York's approach can serve as a model for federal and state action that should be emulated across the country.”

“This important new report gives our lawmakers even more evidence that when enacted, smart, responsible gun laws work: they reduce crime and protect communities. As Attorney General Schneiderman has shown with this report, the Washington gun lobby's oft-repeated canard that gun laws are ineffective is just that. This report also shows the need for our lawmakers in Washington to do more to combat the illegal gun trade, and the consequences of making it easy for criminals to traffic firearms from a state with weak gun laws into one with stronger laws. Gabby and I applaud Attorney General Schneiderman for his continued leadership on preventing gun violence,” said Navy combat veteran and retired NASA astronaut Captain Mark Kelly, the Co-Founder of Americans for Responsible Solutions. 

As part of today’s announcement, Attorney General Schneiderman also released the Tracing Analytics Platform,a powerful and publicly available online tool that empowers members of the public to dive into the data themselves, analyzing gun trends by region, year, gun type, time-to-crime, and other factors. The tool’s interactive features also enable New York law enforcement, lawmakers, and residents to explore the gun trafficking patterns occurring in their individual communities.

The findings in the new report include:

• 52,915 Total Gun Recoveries
• New York State law enforcement agencies recovered 52,915 firearms between 2010-2015. In the most recent year of data, 2015, New York recovered 7,827 guns.

• Only 6% Of Guns Were Recovered From a Possessor Who Was Also The Original Purchaser
• Only 3,208 guns were recovered from a possessor who was also the original purchaser of the gun. About half of these were low time-to-crime guns.

• 74% of All Recovered Guns Total (handguns, rifles, etc) Originated Out-of-State
• 34,344 of the 46,514 recovered guns with a known purchase state originated outside of New York — well above the national average. Over half of these guns originated in Iron Pipeline states.

• 86% of Recovered Handguns Came From Out-of-State
• Nearly 9 out of 10 recovered handguns, the weapon of choice for violent criminals, came from out-of-state.

• 57% of All Recovered Guns Were Out-of-State Handguns
• For all the guns recovered in New York State, over half belong to a single category: out-of-state handguns. Handguns are known as the weapon of choice among violent criminals.

• New York has a low per-capita rate of gun recovery
• With 39.5 recoveries per 100,000 people in 2015, New York had half the per-capita recoveries than the national per-capita average (84 per 100,000 people).

• But New York has a very high rate of out-of-state gun recoveries
• A strong majority of crime guns originated out-of-state in 2015 (75%), more than double the national average (29%) of out-of-state sources of crime guns.

• 1 in 5 Recovered Guns Were “Recently Trafficked”
• Of the 30,595 guns for which we have complete data, 6,162 exhibited indicia of recent trafficking into New York.

In addition to unprecedented data on trafficking patterns, the report also provides key policy recommendations to deal with the trafficking challenges faced by New York State, including:

• Congress should require universal background checks and close the “gun show loophole.”

• Congress should make gun trafficking a federal crime; there is currently no comprehensive law that criminalizes each stage of illegal gun trafficking.

• Congress should expand access to aggregate trace data so non-law enforcement actors can analyze crime gun data to make more informed decisions about gun laws and law enforcement strategies.

• States should require licenses to own handguns.

• New York should pass the Gun Kingpin Bill to punish traffickers so severely (up to 25 years to life in prison) that the business becomes too risky a proposition.

This report was prepared by Senior Advisor and Special Counsel Nicholas Suplina, Director of Research & Analytics Lacey Keller, and Data Scientist Meredith McCarron.

Special thanks to Deputy Attorney General Peri Kadanoff, Chief of the Organized Crime Task Force, the Executive Division’s Research and Analytics Department, and the OAG Web Team for their assistance preparing the report. Additional thanks to ATF’s New York Field Office and National Tracing Center for their assistance in obtaining the data used in this report. 

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
October 25, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-473-5525
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN PROPOSES NATION’S MOST COMPREHENSIVE BILL TO CURB WIDESPREAD MISUSE OF NON-COMPETE AGREEMENTS

Answering White House’s Call For States To Reform Laws On Non-Competes, A.G. To Introduce Bill That Bans The Harmful Pacts For Low-Wage Workers, Requires Higher Compensation For Workers Who Sign Agreements, And Establishes Right To Damages For Unlawful Non-Competes 

A.G.’s Proposal Builds On Groundbreaking Settlements With Jimmy John’s, Law360 To End Non-Compete Agreements

NEW YORK – Attorney General Eric T. Schneiderman announced Tuesday that he will introduce legislation in Albany next year to curb the rampant misuse of non-compete agreements, which depress wages and limit economic mobility by banning workers from employment at a competitor for a mandated period after leaving a job.

Attorney General Schneiderman’s announcement follows a Call to Action on Non-Compete Agreements issued Tuesday by the White House as part of the President’s initiative to increase economic competition. While growing numbers of states have moved to curtail the misuse of non-competes in recent years, A.G. Schneiderman’s bill marks the most comprehensive proposal yet to protect workers from these harmful constraints. The proposal includes a ban on all non-competes for low-wage workers; a requirement that employers offer extra compensation to employees who sign non-competes; and a first-of-its-kind provision granting employees the right to seek liquidated damages when subjected to unlawful non-competes.

“Workers should be able to get a new job and improve their lives without being afraid of being sued by their current or former employer,” said Attorney General Schneiderman. “My proposed bill will protect workers’ rights to seek new and better opportunities, particularly low-wage workers who have been locked into minimum wage jobs due to non-competes. It will also ensure that businesses can hire the best worker for the job.” 

A.G. Schneiderman’s proposal builds on a string of settlements earlier this year that banned non-competes at companies including the fast-food chain Jimmy John’s, the legal news site Law360, and the medical services company EMSI. Additional investigations by the A.G’s office are ongoing. 

A.G. Schneiderman’s proposed bill:

• Prohibits the use of non-competes for any employee below the salary threshold set by Labor Law Section 190(7), currently $900 per week;
• Prohibits non-compete agreements that are broader than needed to protect the employer’s trade secrets or confidential information;
• Requires non-compete agreements to be provided to employees before a job offer is extended;
• Requires employers to pay employees additional consideration (money) if they sign non-compete agreements;
• Limits the permissible time duration for non-compete agreements; and
• Creates a private right of action with remedies including liquidated damages for violations.

Non-compete agreements present particular challenges for low-wage and rank-and-file workers, who are increasingly subject to these restrictions. Such workers may be deterred by non-compete agreements from seeking new employment, but may never have the opportunity to meaningfully negotiate such agreements and may lack the means to challenge a non-compete agreement in court.

“Locking an employee into a low-wage or dead-end position through non-compete clauses goes against the principals of the labor movement, the free-market economy and good government policy,” said Senator Diane J. Savino. “As the Senate sponsor of the NY MOVE ACT (Mobility and Opportunity for Vulnerable Employees) which would set regulations on non-compete clauses for low-wage workers, I support the Attorney General’s efforts to protect workers from these career-killing agreements and look forward to working on this issue in the coming legislative session.”

"Attorney General Schneiderman’s leadership and insight is invaluable in being able to get this important reform done, which will make New York more competitive and stimulate the creation of greater economic growth for our citizens,” said Senator Andrew Lanza. “I am currently the author of a bill addressing this issue in the New York State Senate, and I look forward to continued work with the Attorney General in the next session.”

“Requiring low-wage workers to sign non-compete agreements as a condition of employment is a practice that must end immediately,” said Assemblyman Jeffrey Dinowitz, Chair of the Assembly Committee on Consumer Affairs and Protection. “Employers use practices like these to hinder workers’ ability to move up in the world by using their experience to find better paying jobs; this legislation will help remove barriers for those currently stuck in their low-wage jobs so they can work toward a better life for themselves and their families. I introduced legislation in 2015 to address this matter and I am very pleased that the Attorney General is now introducing legislation as well to deal with this very serious issue.”

"Since I first entered the Assembly in 2013, I have carried legislation that parallels forthcoming legislation to be introduced by Attorney General Schneiderman,” said Assemblymember Phillip G. Steck. “I look forward to the opportunity to work with our outstanding Attorney General in formulating correct legislation to prevent the abuse of non-compete agreements on unsuspecting job seekers. Under existing law, even when a non-compete is later determined to be illegal, there is nothing to deter an employer from using the threat of litigation based on that contract to intimidate an employee and prevent their future employment in their chosen field."

“No worker should have to be locked into a low-wage job, or fear getting sued by her employer for accepting a higher-paying job elsewhere,” said Deborah Axt, co-executive director of Make the Road New York. “We strongly support Attorney General Schneiderman’s proposal to curtail the abuse of non-compete agreements, which are keeping wages low at a time when workers are in urgent need of higher pay. With inequality still at record levels, reining in the growth of non-compete agreements is a common sense way to boost pay and promote greater bargaining power for workers across the state.”

“NELP commends AG Schneiderman for taking on this important issue,” said Christine Owens, executive director of the National Employment Law Project. “Job mobility is one of the best tools for workers to get higher wages and better benefits, and reckless use of non-compete agreements hampers our economy, and the upward mobility of workers who are forced into them as a condition of employment.”

"The non-compete legislation proposed by Attorney General Schneiderman is an important step towards ensuring that New York labor markets are competitive and its economy is vibrant,” said Evan Starr, Assistant Professor of Management & Organization at the Robert H. Smith School of Business at the University of Maryland. “With a strong ban on non-competes for low-wage workers and a first-of-its-kind damages provision, this legislation fundamentally recognizes that non-competes are strong impediments to a worker's upward mobility and that such restraints should only be allowed in narrow circumstances.”

A March 2016 report published by the U.S. Treasury Department found that non-compete agreements cause various harms to “worker welfare, job mobility, business dynamics, and economic growth more generally.” A May 2016 report published by the White House concluded that non-compete agreements also depress wages and inhibit innovation. Some states have taken action to combat such agreements: California and Oregon have laws prohibiting non-compete agreements altogether or sharply limiting their use, and Massachusetts and other states have similar bills pending. Federal lawmakers are also concerned about the severe and unfair restrictions such agreements place on the lowest-paid workers. 

Employees who believe they are subject to an unlawful non-compete agreement are encouraged to contact the New York Attorney General’s office at 212-416-8700 or noncompete@ag.NY.gov with questions or concerns.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
October 25, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-473-5525
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A.G. SCHNEIDERMAN ANNOUNCES $12 MILLION SETTLEMENT WITH DRAFTKINGS AND FANDUEL

Each Company Agrees To Pay $6 Million For Repeated False Advertising Violations In New York; Year-Long Investigation Found That Both Companies Had Consistently Misled Consumers In Advertisements

Companies Agree To Sweeping Marketing Reforms, Including Enhanced Disclosure To Users About Terms and Conditions Of Marketing Promotions, Expected Winnings, And Rates Of Success

Schneiderman: Today’s Settlement Makes It Clear That No Company Has A Right To Deceive New Yorkers For Its Own Profit

NEW YORK—Attorney General Eric T. Schneiderman announced that his office has reached separate $6 million settlements – for a total of $12 million in penalties and costs - with DraftKings and FanDuel, resolving lawsuits alleging false and deceptive advertising practices by the companies. The settlement agreements impose the highest New York penalty awards for deceptive advertising in recent memory. The agreements also require sweeping reforms to the companies’ marketing, including clear disclosure of terms and conditions for marketing promotions, expected winnings, and expected performance in the online contests, as well as resources for players at risk for compulsive gaming disorders, including addiction. Furthermore, the companies will be required to maintain a webpage that provides information about the rate of success of users in its contests, including the percentage of winnings captured by the top 1%, 5% and 10% of players.

Attorney General Schneiderman said, “Today’s settlements make it clear that no company has a right to deceive New Yorkers for its own profit. DraftKings and FanDuel will now be required to operate with greater transparency and disclosure and to permanently end the misrepresentations they made to millions of consumers. These agreements will help ensure that both companies operate, honestly and lawfully in the future.”  

The Attorney General’s investigation found, among other violations, that the companies:

• Misled casual and novice players about the substantial advantages of high-volume and professional players, which included using automated computer “scripts” and sophisticated statistical and game theory strategies;
• Gave false and misleading statistics in marketing and advertising about the likelihood that players will win cash prizes and earn a positive return on their entry fees (in fact, most players lost money over time);
• Deceptively promised to match a player’s initial deposit in marketing promotions, while providing a much less generous rebate on entry fees; and
• Marketed its contests as harmless fun, while failing to disclose the danger to populations at risk for compulsive gaming and addiction or provide responsible safeguards.

The agreements cover penalties for the deceptive advertising. The Attorney General’s Office reviewed and considered the financial condition of the companies in determining the amount and schedule for the settlement payments.

The settlement with FanDuel is available here and the settlement with DraftKings is available here. 

On March 21, 2016, the OAG reached a partial settlement with DraftKings and FanDuel, which required the companies to stop accepting entry fees in New York until the games became expressly legalized in New York State. The settlement allowed the OAG to continue to pursue claims of false and deceptive advertising against DraftKings and FanDuel.

On June 18, 2016, the State Legislature passed a bill legalizing and regulating Daily Fantasy Sports contests, which was signed into law on August 3, 2016.  Today’s settlement agreement resolves all outstanding claims against DraftKings and FanDuel by the OAG.

The case was handled by Assistant Attorneys General Aaron Chase, Jordan Salberg, Dhawal Sharma, Richard Shore, Justin Wagner, Volunteer Assistant Attorney General Ross Bratin, Vanessa Ip, Director of Special Projects, Senior Advisor and Special Counsel Simon Brandler, Chief of the Bureau of Internet and Technology Kathleen McGee, Executive Deputy Attorney General for Economic Justice Manisha Sheth, and Chief of Staff Brian Mahanna.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
October 26, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-473-5525
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Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN AND NYSP SUPERINTENDENT BEACH ANNOUNCE THE TAKEDOWN OF SIX MAJOR NARCOTICS TRAFFICKING KINGPINS AND THEIR ASSOCIATES IN “OPERATION JAILHOUSE ROCK”

Ringleader Orchestrated His Cocaine Trafficking From Federal Prison Using A Smuggled Cellphone

20 Kilos Of Cocaine & Heroin Seized Including Kilos Sent Through The U.S. Mail

14 People Indicted In Cocaine & Heroin Trafficking Ring That Spanned New York, Massachusetts, North Carolina, Florida And Puerto Rico

Schneiderman: We Will Not Tolerate Drug Kingpins Trafficking Narcotics Into New York

NEW YORK – Attorney General Eric T. Schneiderman and New York State Police (NYSP) Superintendent George Beach announced today the indictment of 14 people for their roles in an alleged narcotics trafficking kingpin that spanned New York, Massachusetts, North Carolina, Florida, and Puerto Rico.

The yearlong investigation, dubbed “Operation Jailhouse Rock,” seized more than 20 kilos of cocaine and heroin, including kilos that were sent through U.S. mail, by four distinct large-scale trafficking operations connected by New York-based distributors. The total street value of the narcotics seized in the bust is approximately $1.53 million.

One of the ringleaders directed traffic via a contraband cellphone while serving out a ten-year remainder of a federal drug trafficking sentence in Florida. 

“This bust should send a clear message to dealers and traffickers that we will not tolerate drug kingpins brazenly trafficking narcotics into our state,” said Attorney General Schneiderman. “My office will use every tool at our disposal to root out criminal drug operations and get dangerous narcotics off our streets. I want to thank the New York State Police for all of their help in bringing these defendants to justice.”

State Police Superintendent George P. Beach II said, “I want to thank the Attorney General’s Office and our federal and local partners for their collaboration on this case. Because of this extensive cooperation between law enforcement agencies, we have disrupted a major drug trafficking operation and put 14 individuals behind bars. This case sends a strong message that we will not tolerate those who bring these dangerous drugs into our communities. “

The indictment, unsealed today in Bronx County Supreme Court Part 60, before Justice Steven Barrett, detailed a sophisticated distribution ring that moved cocaine from Puerto Rico to New York and other states, which was ultimately distributed across the eastern seaboard. Kilograms of cocaine were also sent through the mail hidden in boxing equipment and statues of Santa Maria destined for “catcher” or recipient locations in Brooklyn, Queens and the Bronx. The heroin was transported and recovered in multiple states hidden in concealed compartments, also called “traps.”

The investigation utilized confidential informants, wiretaps, physical and video surveillance and strategic interceptions of narcotics carried out prior to their ultimately delivery destination. In the wiretaps, the defendants can allegedly be heard discussing methods of transportation, packaging, and tracking numbers and recipient names and addresses for the shipments sent through the mail.  Intercepted conversations also included conversations between the distributors and their “testers” who would discuss how well the cocaine “cooked” into crack cocaine and what their assessment was of the quality of the heroin once it was ingested. 

Those charged as major traffickers include:

• Angel Melendez Orsini (36), Miami Federal Prison
• Francisco Vega Vasquez (51), Caguas, PR
• Francisco Vega Cancel (26) Cidra, PR
• Juan Rodirguez (50) Bronx, NY
• Edwin Vega (40) Bronx, NY
• Jan Santiago Garcia (38) San Juan, PR

Others indicted include:

• Mayolo Toxqui (36) Bronx, NY
• William Estrada (37) Bronx, NY
• Juan Javier Rivera (38) Winter Haven, Fl
• Wilber Marquez Torres (31) Richmond Hill, NY
• Ramon Amaro (46) Bronx, NY
• Jamille Nelly Nieves (42) Carolina, PR
• George Suggs (54) Bronx, NY
• Victor Holloway (53) Kinston, NC

Those charged as major traffickers could face up to life in prison if convicted. All others could face up to 20 years in prison if convicted.

The investigation was conducted by OCTF Investigator Brian Fleming together with Supervising Investigator Paul Grzegorski and The New York State Police Special Investigations Unit, members of Troop K and C-NET. OCTF investigators are supervised by Deputy Chief Christopher Vasta. The Attorney General’s Investigations Bureau is led by Chief Investigator Dominick Zarrella. 

Several additional agencies assisted in the investigation, including the Drug Enforcement Agency, United States Postal Inspectors, Army Air National Guard, Virginia State Troopers, Deputy Warden Stevie Knight of the Federal Correctional Institution Miami, Orange County (Florida) Sheriff’s Office, United States Marshal Service, Bronx County District Attorney Darcel Clark, the New York City Police Department, and the Pennsylvania Attorney General’s office.

The case is being prosecuted by OCTF Assistant Deputy Attorney General Howard Feldberg. Deputy Attorney General Peri Alyse Kadanoff runs the Organized Crime Task Force.

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

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
October 26, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-473-5525
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Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN ANNOUNCES SENTENCING OF LONG ISLAND PHARMACIST OF UP TO 24 YEARS IN PRISON FOR SELLING BLACK-MARKET HIV MEDICATIONS

Judge Sentences Pharmacist Ira Gross To 8 To 24 Years In State Prison And Orders Him To Repay Medicaid $25 Million In Restitution

Schneiderman: My Office Will Continue To Protect Taxpayers And Consumers From Fraudulent Schemes That Threaten Public Safety

RIVERHEAD—Attorney General Eric T. Schneiderman announced today that pharmacist Ira Gross, 63, of Babylon, was sentenced to 8 to 24 years in state prison for his role in selling over $274 million dollars of diverted, medically worthless HIV medication. Gross was also ordered to pay back the amount he pocketed as a result of the scheme, which totaled $25.2 million. The evidence at trial revealed that from 2008 to 2012, Gross and others sold the diverted medications, mostly expensive HIV antiretroviral medications purchased off the street, to MOMS Pharmacy in Melville.  MOMS Pharmacy then dispensed the diverted medications to thousands of its unsuspecting patients, many of whom were Medicaid recipients, throughout New York and other states, including Massachusetts, Florida, and California.  Ultimately, the New York Medicaid program paid $154,000,000 for those tainted medications distributed to New York Medicaid patients. On August 8, 2016, after a four week trial in Suffolk County Court before the Honorable Richard Ambro, a jury found Gross guilty of Grand Larceny in the First Degree, a class B felony, and other related charges. 

“The defendant not only cheated the state Medicaid program, but also preyed on some of New York’s most vulnerable so that he could line his own pockets with millions," said Attorney General Schneiderman. “My office will continue to protect taxpayers and consumers from fraudulent schemes that threaten public safety.”

After a long-term investigation, which included the use of court-ordered eavesdropping, in February 2012, the Attorney General’s Medicaid Fraud Control Unit (“MFCU”) stopped in progress a delivery of $1.2 million in diverted medication and executed a search warrant at MOMS Pharmacy’s headquarters in Melville.  In April 2012, MFCU arrested Gross, three others and ten companies, including Gross’s company Chapparral Services, Ltd., after the defendants were indicted by a Suffolk County grand jury.  The Attorney General also froze millions of dollars from the defendants in a parallel asset forfeiture action.

Dispensing diverted medications endangers the lives of patients by exposing them to drugs of unknown origin and potency and, in some cases, drugs which were mislabeled or potentially expired.  In these types of black-market schemes, medications are illegally obtained from a variety of sources, such as drugs bought from patients who sell their medication regimens on the street for pennies of their actual fair-market value.  The bottles containing diverted medication are then cleaned, often with toxic cleansers, such as lighter fluid or oil-based cleansers such as “Goo Gone,” or the diverted medications themselves are rebottled and relabeled using fake labels and serial numbers and stored in unsanitary or uncontrolled conditions before they are illegally sold back into the regulated prescription medication distribution system.

The repackaged, diverted medications often have broken seals, or contain different medications than what is indicated on the labels. As a result, patients who ingest black market medications may be exposed to potentially adverse drug interactions or serious health consequences.  In contrast, patients who take their prescribed medications, after the medications have moved exclusively through the regulated prescription medication distribution system, are protected from these avoidable risks.

These black market schemes not only impact those who ultimately ingest the diverted medications; they create and finance a street market that, for a few dollars, induces sick patients to sell and forego their life-saving medications.

The Suffolk County jury found Gross guilty of one count of Grand Larceny in the First Degree, a class B felony, three counts of Money Laundering in the First Degree, a class B felony, one count of Criminal Diversion of Prescription Medications and Prescriptions in the First Degree, a class C felony, and other related charges. Chaparral Services, Ltd., the shell corporation Gross used to conceal and distribute his criminal proceeds, was also found guilty of three counts of Money Laundering in the First Degree and other related charges.

Gross, who obtained his license to practice pharmacy in 1979 organized the scheme and coordinated the sale of the diverted street medication to MOMS Pharmacy.   Evidence at trial showed that Gross paid Glenn Schabel, the supervising pharmacist and compliance officer for MOMS Pharmacy, over $5 million to buy medication that he knew or should have known were diverted. Schabel, 55, of Melville, was also arrested and pleaded guilty in September 2016 to Criminal Diversion of Prescription Medications and Prescriptions in the First Degree and Commercial Bribe Receiving in the First Degree.  Schabel was sentenced to two to six years in state prison and has paid $5,456,276.62 in restitution.  He was also required to surrender his license to practice pharmacy.

Stephen Manuel Costa, 32, a Florida resident, was also arrested and has pled guilty with technical assistance from Gross, Costa incorporated four separate companies as “wholesale” distributors in Alabama, Mississippi, North Carolina, and California, to disguise the sale of the diverted medications to MOMS. Costa procured millions of dollars of black-market HIV medications and sold them to MOMS Pharmacy through those four shell companies—SMC Distributors, Fidelity Wholesale, Optimus Wholesale, and Nuline Pharmaceuticals, each of which have already pleaded guilty.

A fourth defendant, Harry Abolafia, 69, a resident of Texas, also pled guilty and was sentenced to jail. At Gross’s direction, Abolafia created false invoices for Costa’s companies to make the transactions to MOMS Pharmacy to appear to be legitimate.

Gross, his spouse Lois Gross of Babylon, and their adult children Dakota Gross and Chelsea Gross, remain as civil defendants in the Attorney General’s forfeiture action, seeking return of the proceeds and substituted proceeds of the criminal scheme that are held in their names. That action continues.

The Attorney General thanks the New York State Office of the Medicaid Inspector General (“OMIG”), particularly its staff of pharmacists and other specialists, for the valuable role they played during the course of the investigation.  The Attorney General additionally thanks the United States Department of Health and Human Services, Office of the Inspector General, the Office of the Special Narcotics Prosecutor for the City of New York, the United States Food and Drug Administration, Office of Criminal Investigations, and the Federal Bureau of Investigation, as well as the Florida Department of Law Enforcement and Assistant United States Attorneys from the United States Attorney’s Offices for the Southern District of New York and the Southern District of Florida.  All, individually and collectively, provided valuable information and assistance during the investigation.

The investigation was conducted by Supervising Investigator Victor Maldonado, Senior Investigator Lawrence Riccio, Special Investigator Denitor Guerra, Principal Special Auditor Investigator Cristina Marin and NYC Deputy Chief Auditor Jonathan Romano. Wiretap operations were supported by the Attorney General’s Organized Crime Task Force, which is led by Deputy Attorney General Peri Kadanoff.

The trial was conducted by MFCU Special Assistant Attorney General Imran Ahmed and former Special Assistant Attorney General Adam Shlahet, with assistance from MFCU’s Chief of Criminal Investigations-Downstate Thomas O’Hanlon.  Principal Auditor Investigator Patricia Iemma provided in-court trial support.  The forfeiture action is being handled by Special Assistant Attorneys General Andrew Gropper and Diana Elkind. Christopher M. Shaw is the Regional Director for MFCU’s New York City Region.  The Deputy Chief Investigator for MFCU is Kenneth Morgan, and the New York City Regional Chief Auditor is Thomasina Smith. The Medicaid Fraud Control Unit is led by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
October 26, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-473-5525
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

NEW YORK SUPREME COURT ORDERS EXXONMOBIL TO COMPLY WITH A.G. SCHNEIDERMAN’S SUBPOENA

NEW YORK – In an important decision concerning Attorney General Eric T. Schneiderman’s investigation of Exxon Mobil for potential state law violations, including under the Martin Act, today the Hon. Barry R. Ostrager ordered Exxon Mobil (“Exxon”) and its outside auditor, PricewaterhouseCoopers LLP (“PwC”), to comply with a subpoena issued by the Attorney General’s office in August 2016. The subpoena seeks documents related to PWC’s work for Exxon.

On October 14^th 2016, the Attorney General moved to compel production by PwC after Exxon asserted that it would not permit PwC to provide certain documents to the Attorney General’s Office. Exxon based its refusal to comply on a Texas statute that Exxon asserted creates an “accountant-client privilege.”

After noting that “[a]ll parties agree that this Court is the proper forum” to hear challenges to the AG’s subpoena, the New York Court ruled that Exxon’s interpretation of the Texas statute is “flawed,” and stated that the Texas statute in no way precludes PwC from producing the documents requested by the Attorney General’s office. The Court also stated that New York law, rather than Texas law, governed the dispute. The Court ordered PWC and Exxon to comply with the subpoena expeditiously.  

“We are pleased with the Court’s order and look forward to moving full-steam ahead with our fraud investigation of Exxon,” said Attorney General Eric T. Schneiderman. “Exxon had no legal basis to interfere with PwC’s production, and I hope that today’s order serves as a wake up call to Exxon that the best thing they can do is cooperate with, rather than resist, our investigation.”

The Court’s Order is available here.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
October 27, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-473-5525
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN AND WESTERN NEW YORK LAW ENFORCEMENT LEADERS STAND TOGETHER IN FIGHT AGAINST ILLEGAL GUNS 

First-Of-Its-Kind Analysis Released This Week Shows That In Buffalo 59% Of Recovered Guns Originated Out-Of-State And 78% Of All Handguns Came From Out-Of-State 

New Report, “Target on Trafficking,” And Interactive Tool Show How New York’s Strong Gun Laws Are Undermined By Lax Laws In Iron Pipeline States 

Just 6% Of Possessors Were Also The Original Purchaser Of Recovered Guns In Buffalo 

BUFFALO – Attorney General Eric T. Schneiderman stood today with Western New York law enforcement leaders in the state’s fight against illegal guns to highlight the release of a first-of-its-kind analysis of tens of thousands of “crime guns” recovered by law enforcement, illustrating gun trafficking trends that undermine New York’s strong laws.

The ground-breaking analysis shows that 74 percent of all crime guns recovered by law enforcement originated out-of-state, and nearly nine out of ten (86 percent) of recovered handguns come from out-of-state. In Buffalo in particular, 59 percent of recovered guns originated out-of-state (with the largest number of out-of-state guns originating from Ohio); 78 percent of all recovered handguns in Buffalo came from out-of-state.

The report released this week, “Target on Trafficking: Analysis of New York Crime Guns,” and the new interactive tool examine the purchase history of the nearly 53,000 crime guns recovered by law enforcement in New York between 2010 and 2015. A crime gun is any gun connected to a crime that is recovered by law enforcement.

“The gun violence epidemic has touched the lives of far too many Buffalo families,” said Attorney General Schneiderman. “I am proud to stand shoulder-to-shoulder with law enforcement and other local leaders to put a spotlight on illegal guns pouring into Buffalo from out of state. With this new gun trafficking data we have released, police and community leaders have a powerful new tool in our fight to rid our state of illegal guns.”

“The Niagara Falls Police Department is committed to getting illegal guns off our streets,” said Superintendent Bryan DalPorto. “We appreciate the Attorney General’s willingness to dive into the data, and report on gun trafficking trends. In order to eliminate gun violence, law enforcement needs to continue to work together.”

“Reducing gun violence remains a top priority for the Buffalo Police Department,” said Police Commissioner Daniel Derenda. “Attorney General Eric Schneiderman’s report and Tracing Analytics Platform will assist in our effort, and we thank him for his support.”

The Attorney General’s office is the first statewide law enforcement agency to obtain and analyze such comprehensive crime gun data provided by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

The analysis showed sweeping and important trends in gun recoveries, particularly with regard to how out-of-state guns are flooding into New York from the “Iron Pipeline” -- states with lax guns laws along the I-95 corridor, namely Pennsylvania, Virginia, North Carolina, South Carolina, Georgia, and Florida – as well as from Ohio. These findings offer significant policy implications and context for state and national leaders striving to reduce gun trafficking and violence.

“Attorney General Schneiderman’s new report makes it clear that we urgently need to make gun trafficking a federal crime,” said U.S. Senator Kirsten Gillibrand (D-NY). “Gun trafficking is recognized all around, by both parties, as a major source of fuel for American gun violence, yet there is still no federal law that prevents someone from crossing state lines with a truckload of guns and selling them to criminals in a parking lot. As long as gun trafficking is not a federal crime, it will continue to be shamefully easy for criminals to get their hands on these weapons, and law enforcement won’t have the tools they need to prosecute traffickers and remove these illegal guns from the black market. My gun trafficking bill is one of the only gun bills that has bipartisan support – and this is despite the efforts of the gun industry and its powerful lobby to protect their own profits and stop us. The American people are demanding that Congress respond to the gun violence crisis, and my bipartisan gun trafficking bill is an important part of that response.”

“Each trace represents the life of a crime gun, and together these data tell a crucial story – both about how guns make their way to criminals, and about how law enforcement can crack down on gun trafficking,” said John Feinblatt, President, Everytown for Gun Safety. “Communities across the state are devastated by handguns that come up the Iron Pipeline from states with weak laws. The Attorney General’s report shows the power of bringing data together, and we hope that law enforcement elsewhere take note.” 

“This report provides an unprecedented look at the flow of illegal guns into New York and offers a stark illustration of the challenge faced by states like New York whose strong gun laws are undermined by a lax approach to this issue taken by other states,” said Chelsea Parsons, Vice President of Guns & Crime Policy, Center for American Progress. “This is the most comprehensive analysis of statewide crime gun trace data to date and provides invaluable information to law enforcement, policymakers, and community stakeholders seeking to prevent gun violence across the state. We are hopeful that other states will follow the example of this report and conduct a similar analysis to continue shining a light on the illegal trafficking networks currently operating in this country.”

“This important new report gives our lawmakers even more evidence that when enacted, smart, responsible gun laws work: they reduce crime and protect communities. As Attorney General Schneiderman has shown with this report, the Washington gun lobby's oft-repeated canard that gun laws are ineffective is just that. This report also shows the need for our lawmakers in Washington to do more to combat the illegal gun trade, and the consequences of making it easy for criminals to traffic firearms from a state with weak gun laws into one with stronger laws. Gabby and I applaud Attorney General Schneiderman for his continued leadership on preventing gun violence,” said Navy combat veteran and retired NASA astronaut Captain Mark Kelly, the Co-Founder of Americans for Responsible Solutions. 

As part of this week’s announcement, Attorney General Schneiderman also released the Tracing Analytics Platform, a powerful and publicly available online tool that empowers members of the public to dive into the data themselves, analyzing gun trends by region, year, gun type, time-to-crime, and other factors. The tool’s interactive features also enable New York law enforcement, lawmakers, and residents to explore the gun trafficking patterns occurring in their individual communities.

The findings in the new report include:

• 52,915 Total Gun Recoveries
• New York State law enforcement agencies recovered 52,915 firearms between 2010-2015. In the most recent year of data, 2015, New York recovered 7,827 guns.

• Only 6% Of Guns Were Recovered From a Possessor Who Was Also The Original Purchaser
• Only 3,208 guns were recovered from a possessor who was also the original purchaser of the gun. About half of these were low time-to-crime guns.

• 74% of All Recovered Guns Total (handguns, rifles, etc) Originated Out-of-State
• 34,344 of the 46,514 recovered guns with a known purchase state originated outside of New York — well above the national average. Over half of these guns originated in Iron Pipeline states.

• 86% of Recovered Handguns Came From Out-of-State
• Nearly 9 out of 10 recovered handguns, the weapon of choice for violent criminals, came from out-of-state.

• 57% of All Recovered Guns Were Out-of-State Handguns
• For all the guns recovered in New York State, over half belong to a single category: out-of-state handguns. Handguns are known as the weapon of choice among violent criminals.

• New York has a low per-capita rate of gun recovery
• With 39.5 recoveries per 100,000 people in 2015, New York had half the per-capita recoveries than the national per-capita average (84 per 100,000 people).

• But New York has a very high rate of out-of-state gun recoveries
• A strong majority of crime guns originated out-of-state in 2015 (75%), more than double the national average (29%) of out-of-state sources of crime guns.

• 1 in 5 Recovered Guns Were “Recently Trafficked”
• Of the 30,595 guns for which we have complete data, 6,162 exhibited indicia of recent trafficking into New York.

In Erie County, guns come in from Ohio much more readily than in other parts of the state.

• 4,509 Total Gun Recoveries

• 59% of Recovered Guns Were From Out-of-State

• 78% of Handguns Were From Out-of-State

• 94% of Guns That Were Likely-Trafficked to Buffalo Were Handguns

While Niagara County had far fewer gun recoveries overall, their obtainment of guns is very similar to Buffalo:

• 746 Total Gun Recoveries

• 54%, Or Over Half, of Guns Recovered Came From Out-of-State

• 78% of Handguns Were From Out-of-State

• Handguns made up more than 85 % of the likely trafficked guns in the county

As the second largest market for crime guns in New York State, Buffalo and neighboring Niagara Falls (Erie and Niagara Counties) together recovered 5,255 crime guns (10%) of total statewide recoveries. Buffalo also has the second highest number of low time-to-crime recoveries (605) and likely-trafficked guns (424).

Buffalo recovered 3,076 handguns, making it the third largest market for handguns in the State, with handguns making up 59% of recoveries in the market. Erie County showed a high per capita recovery rate of 82 guns per 100,000 residents, with Niagara lower at 58 per 100,000.

Five zip codes (14215, 14211, 14213, 14207, 14212) accounted for almost 50% of the region's recoveries, or 2,476 guns. These recoveries were located in or around the City of Buffalo and had a slightly higher average out-of-state percentage than the rest of the market.

In addition to unprecedented data on trafficking patterns, the Attorney General’s report also provides key policy recommendations to deal with the trafficking challenges faced by New York State, including:

• Congress should require universal background checks and close the “gun show loophole.”

• Congress should make gun trafficking a federal crime; there is currently no comprehensive law that criminalizes each stage of illegal gun trafficking.

• Congress should expand access to aggregate trace data so non-law enforcement actors can analyze crime gun data to make more informed decisions about gun laws and law enforcement strategies.

• States should require licenses to own handguns.

• New York should pass the Gun Kingpin Bill to punish traffickers so severely (up to 25 years to life in prison) that the business becomes too risky a proposition.

This report was prepared by Senior Advisor and Special Counsel Nicholas Suplina, Director of Research and Analytics Lacey Keller, and Data Scientist Meredith McCarron.

Special thanks to Deputy Attorney General Peri Kadanoff, Chief of the Organized Crime Task Force, the Executive Division’s Research and Analytics Department, and the OAG Web Team for their assistance preparing the report. Additional thanks to ATF’s New York Field Office and National Tracing Center for their assistance in obtaining the data used in this report. 

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
October 27, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-473-5525
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN AND ROCHESTER LEADERS STAND TOGETHER IN FIGHT AGAINST ILLEGAL GUNS 

First-Of-Its-Kind Analysis Released This Week Shows That In Rochester 44% Of Recovered Guns Originated Out-Of-State And 56% Of All Handguns Came From Out-Of-State

New Report, “Target on Trafficking,” And Interactive Tool Show How New York’s Strong Gun Laws Are Undermined By Lax Laws In Iron Pipeline States 

Rochester Has Highest Percentage of Low “Time-To-Crime” Guns – Guns Likely Bought With The Intent Of Being Used In A Crime 

Attorney General’s Office And Rochester Police Department To Host Gun Buy-Back This Saturday

ROCHESTER – Attorney General Eric T. Schneiderman stood today with Rochester leaders today in the state’s fight against illegal guns and to highlight the release of a first-of-its-kind analysis of tens of thousands of “crime guns” recovered by law enforcement, illustrating gun trafficking trends that undermine New York’s strong laws.

The ground-breaking analysis shows that 74 percent of all crime guns recovered by law enforcement across New York originated out-of-state, and nearly nine out of ten (86 percent) of recovered handguns come from out-of-state. Rochester itself sees somewhat different trends, with 44 percent of all recovered guns originating out-of-state and 56 percent of handguns recovered in Rochester coming from out-of-state.

Rochester leads the state in the amount of low “time-to-crime” guns, which are guns likely bought with the intent of being used in a crime.

The report released this week, “Target on Trafficking: Analysis of New York Crime Guns,” and the new interactive tool examine the purchase history of the nearly 53,000 crime guns recovered by law enforcement in New York between 2010 and 2015. A crime gun is any gun connected to a crime that is recovered by law enforcement.

“The gun violence epidemic has touched the lives of far too many Rochester families,” said Attorney General Schneiderman. “I am proud to stand shoulder-to-shoulder with law enforcement and other local leaders to put a spotlight on illegal guns pouring into Rochester. With this new gun trafficking data we have released, police and community leaders have a powerful new tool in our fight to rid our state of illegal guns.”

“This report makes it clear that decisions made by policy makers in other states are resulting in senseless violence and the tragic loss of life in cities like Rochester,” said Rochester Mayor Lovely A. Warren. “As the granddaughter of a shooting victim, I have first-hand experience with the pain and trauma that gun violence brings to our families, so I want to thank Attorney General Eric Schneiderman for shining a light on the important issue of gun trafficking. I hope the evidence that is presented here leads to common-sense gun regulations at the federal level so we can even the playing field across state borders.”

“On behalf of the Rochester Police Department, I thank the Attorney General for issuing this report on crime guns,” said Rochester Police Chief Michael Ciminelli. “This analysis and the data compiled by the Attorney General’s Office will be used to bolster our efforts to reduce gun violence in the City.”

The Attorney General’s office is the first statewide law enforcement agency to obtain and analyze such comprehensive crime gun data provided by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

The analysis showed sweeping and important trends in gun recoveries, particularly with regard to how out-of-state guns are flooding into New York from the “Iron Pipeline” -- states with lax guns laws along the I-95 corridor, namely Pennsylvania, Virginia, North Carolina, South Carolina, Georgia, and Florida. These findings offer significant policy implications and context for state and national leaders striving to reduce gun trafficking and violence.

“Attorney General Schneiderman’s new report makes it clear that we urgently need to make gun trafficking a federal crime,” said U.S. Senator Kirsten Gillibrand (D-NY). “Gun trafficking is recognized all around, by both parties, as a major source of fuel for American gun violence, yet there is still no federal law that prevents someone from crossing state lines with a truckload of guns and selling them to criminals in a parking lot. As long as gun trafficking is not a federal crime, it will continue to be shamefully easy for criminals to get their hands on these weapons, and law enforcement won’t have the tools they need to prosecute traffickers and remove these illegal guns from the black market. My gun trafficking bill is one of the only gun bills that has bipartisan support – and this is despite the efforts of the gun industry and its powerful lobby to protect their own profits and stop us. The American people are demanding that Congress respond to the gun violence crisis, and my bipartisan gun trafficking bill is an important part of that response.”

“Each trace represents the life of a crime gun, and together these data tell a crucial story – both about how guns make their way to criminals, and about how law enforcement can crack down on gun trafficking,” said John Feinblatt, President, Everytown for Gun Safety. “Communities across the state are devastated by handguns that come up the Iron Pipeline from states with weak laws. The Attorney General’s report shows the power of bringing data together, and we hope that law enforcement elsewhere take note.” 

“This report provides an unprecedented look at the flow of illegal guns into New York and offers a stark illustration of the challenge faced by states like New York whose strong gun laws are undermined by a lax approach to this issue taken by other states,” said Chelsea Parsons, Vice President of Guns & Crime Policy, Center for American Progress. “This is the most comprehensive analysis of statewide crime gun trace data to date and provides invaluable information to law enforcement, policymakers, and community stakeholders seeking to prevent gun violence across the state. We are hopeful that other states will follow the example of this report and conduct a similar analysis to continue shining a light on the illegal trafficking networks currently operating in this country.”

“This important new report gives our lawmakers even more evidence that when enacted, smart, responsible gun laws work: they reduce crime and protect communities. As Attorney General Schneiderman has shown with this report, the Washington gun lobby's oft-repeated canard that gun laws are ineffective is just that. This report also shows the need for our lawmakers in Washington to do more to combat the illegal gun trade, and the consequences of making it easy for criminals to traffic firearms from a state with weak gun laws into one with stronger laws. Gabby and I applaud Attorney General Schneiderman for his continued leadership on preventing gun violence,” said Navy combat veteran and retired NASA astronaut Captain Mark Kelly, the Co-Founder of Americans for Responsible Solutions. 

As part of this week’s announcement, Attorney General Schneiderman also released the Tracing Analytics Platform, a powerful and publicly available online tool that empowers members of the public to dive into the data themselves, analyzing gun trends by region, year, gun type, time-to-crime, and other factors. The tool’s interactive features also enable New York law enforcement, lawmakers, and residents to explore the gun trafficking patterns occurring in their individual communities.

The findings in the new report include:

• 52,915 Total Gun Recoveries
• New York State law enforcement agencies recovered 52,915 firearms between 2010-2015. In the most recent year of data, 2015, New York recovered 7,827 guns.

• Only 6% Of Guns Were Recovered From a Possessor Who Was Also The Original Purchaser
• Only 3,208 guns were recovered from a possessor who was also the original purchaser of the gun. About half of these were low time-to-crime guns.

• 74% of All Recovered Guns Total (handguns, rifles, etc) Originated Out-of-State
• 34,344 of the 46,514 recovered guns with a known purchase state originated outside of New York — well above the national average. Over half of these guns originated in Iron Pipeline states.

• 86% of Recovered Handguns Came From Out-of-State
• Nearly 9 out of 10 recovered handguns, the weapon of choice for violent criminals, came from out-of-state.

• 57% of All Recovered Guns Were Out-of-State Handguns
• For all the guns recovered in New York State, over half belong to a single category: out-of-state handguns. Handguns are known as the weapon of choice among violent criminals.

• New York has a low per-capita rate of gun recovery
• With 39.5 recoveries per 100,000 people in 2015, New York had half the per-capita recoveries than the national per-capita average (84 per 100,000 people).

• But New York has a very high rate of out-of-state gun recoveries
• A strong majority of crime guns originated out-of-state in 2015 (75%), more than double the national average (29%) of out-of-state sources of crime guns.

• 1 in 5 Recovered Guns Were “Recently Trafficked”
• Of the 30,595 guns for which we have complete data, 6,162 exhibited indicia of recent trafficking into New York.

Rochester’s gun problem is unique in the state – it is the only region in the entire state without a majority of crime guns coming from out-of-state, but also has the highest percentage of low “time-to-crime” guns.

• 4,536 Total Gun Recoveries

• 44% of Guns From Out-of-State (30 points lower than state average)

• 56% of Handguns From Out-of-State

• 23% are Low “Time-to-Crime” Guns, the Highest in the State

Monroe County law enforcement recovered 4,536 crime guns -- or 9% of all recoveries in the State. Rochester is unique among the markets with the highest percentage of low “time-to-crime” guns, the lowest percentage of guns originating out-of-state, and the lowest percentage of handguns compared to the State average.

Just one zip code in Rochester (14621) accounted for 22% of recoveries in the region. Two additional zip codes (14611 and 14609) contributed another 21% of recoveries.

Rochester, with 165 likely-trafficked guns and the largest percentage of in-state gun contributions, still gets its likely-trafficked guns from Pipeline states. The same source states top the list – Georgia (20%), Florida (15%), and Pennsylvania (11%). Rochester had the lowest proportion of guns that were handguns, with 87%.

In collaboration with the Rochester Police Department, the Office of the Attorney General is hosting a Community Gun Buy-Back in Rochester this Saturday, October 29, 2016. One of the benefits of a gun buy-back event is for anyone to sell a gun with no questions asked. Possessing a handgun without a pistol permit is illegal. Unwanted guns can sit around for years or go missing, creating both a public safety and public policy problem if they end up in the hands of kids, grandkids, or violent criminals.

See the full flyer for the Community Gun Buy-Back here.

In addition to unprecedented data on trafficking patterns, the Attorney General’s report also provides key policy recommendations to deal with the trafficking challenges faced by New York State, including:

• Congress should require universal background checks and close the “gun show loophole.”

• Congress should make gun trafficking a federal crime; there is currently no comprehensive law that criminalizes each stage of illegal gun trafficking.

• Congress should expand access to aggregate trace data so non-law enforcement actors can analyze crime gun data to make more informed decisions about gun laws and law enforcement strategies.

• States should require licenses to own handguns.

• New York should pass the Gun Kingpin Bill to punish traffickers so severely (up to 25 years to life in prison) that the business becomes too risky a proposition.

This report was prepared by Senior Advisor and Special Counsel Nicholas Suplina, Director of Research and Analytics Lacey Keller, and Data Scientist Meredith McCarron.

Special thanks to Deputy Attorney General Peri Kadanoff, Chief of the Organized Crime Task Force, the Executive Division’s Research and Analytics Department, and the OAG Web Team for their assistance preparing the report. Additional thanks to ATF’s New York Field Office and National Tracing Center for their assistance in obtaining the data used in this report. 

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
October 28, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-473-5525
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN ANNOUNCES SETTLEMENT WITH AMAZON DELIVERY CONTRACTOR THAT UNDERPAID MORE THAN A HUNDRED WORKERS 

Cornucopia Logistics, LLC Deducted Money For Meal Periods That Workers Never Received

NEW YORK -Attorney General Eric T. Schneiderman today announced a settlement with Amazon delivery contractor Cornucopia Logistics, LLC (“Cornucopia”) that will require the company to pay $100,000 to workers whose wages were deducted for lunch breaks they never received because of back-to-back deliveries. An investigation by the AG’s office also found that Cornucopia routinely failed to compensate workers for “call-in pay,” which must be paid when employees report to work but are sent home or otherwise instructed not to complete their shift. Cornucopia also failed to keep required records documenting actual hours worked each week.

Cornucopia delivers Amazon.com packages and food from Amazon Fresh to residential and commercial addresses in New York City. More than a hundred current and former Cornucopia employees, including drivers, drivers’ helpers, and messengers, are eligible to receive restitution from the $100,000 settlement fund.

“I’m proud that this settlement will allow workers who were shortchanged to receive the restitution they deserve,” said Attorney General Schneiderman. “Delivery workers travel all hours of the day and night and through all kinds of weather to meet tight time frames. They deserve to have a proper lunch break, and when they don’t, they certainly must be properly compensated for all of their work.”

New York State's labor laws require employers to pay workers for all hours worked and to provide workers with certain specified meal periods – typically a half hour. The law also requires employers to maintain accurate payroll records, and to pay “call-in pay” of four hours (three for restaurant workers) when an employee reports to work on a given day. 

In addition to the payment of restitution funds, the settlement requires Cornucopia to comply with the law going forward, and bars Cornucopia from retaliating against employees for cooperating with the investigation.  Cornucopia will also designate an internal officer responsible for ensuring prospective labor law compliance, including furnishing the Attorney General’s Office with quarterly reports and payroll documents.

In the past year, A.G. Schneiderman’s office has recovered nearly $5.7 million in back wages for more than 3,300 workers, as outlined in a September 2016 report. Since taking office, A.G. Schneiderman has recovered almost $27 million in stolen wages for more than 20,000 workers. 

Anyone who is aware of a violation of workplace rights in New York State is encouraged to file a complaint with the Office of the Attorney General by filling out a complaint form or by calling the Labor Bureau at (212) 416-8700.

The case was handled by Assistant Attorney General Donya Fernandez, with assistance from Director of Research & Analytics Lacey Keller and Data Scientist Meredith McCarron, under the supervision of Civil Enforcement Section Chief Mayur Saxena, Deputy Bureau Chief ReNika Moore, and Bureau Chief Terri Gerstein, and Executive Deputy Attorney for Social Justice Alvin Bragg.

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
October 28, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-473-5525
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN AND COMPTROLLER DINAPOLI

ANNOUNCE CONVICTION OF ARIZONA MAN FOR THEFT OF OVER $130,000 IN NYS PENSION BENEFITS

John H. Eydeler, III Stole Pension Benefits Intended For His Deceased Mother

ALBANY – Attorney General Eric T. Schneiderman and New York State Comptroller Thomas P. DiNapoli announced today the conviction of John H. Eydeler III, 66, a resident of Glendale, Arizona, on his guilty plea to Grand Larceny in the Second Degree, a Class C felony.  On October 12, 2016, Eydeler admitted to stealing pension payments from the New York State and Local Employees Retirement System intended for his mother, Dorothy Eydeler, a retired nurse who died in October of 1998. Today, he was sentenced to a five-year term of probation and a judgment in the amount of $131,038.60.

“The New York pension fund cannot serve as a personal piggy bank for those looking to scam the system,” said Attorney General Schneiderman. “I will continue to work with Comptroller DiNapoli to protect our state pension system and send a message that fraudsters who steal from the state will be punished.”

"My office has exposed more than $2.75 million in pension fraud in recent years, and we aggressively pursued prosecution in each case," said State Comptroller Thomas P. DiNapoli. "If you’re stealing from the retirement system, we will track you down no matter where you live and make sure you pay it back. I thank Attorney General Schneiderman for his prosecution of this case and others through our Operation Integrity partnership."

Eydeler concealed his mother’s death in 1998 from the New York State and Local Employees Retirement System. As a result, between October 1998 and December 2009, over $130,000 in pension benefits were deposited into a bank account in the name of Eydeler’s deceased mother. Eydeler then diverted these monies to himself by claiming to have power of attorney for his mother and writing checks to himself every month for over a decade. Eydeler altered his scheme to conceal the theft, and used the monies to prop up a small automotive repair business that he owned in Glendale, Arizona.

In August 2016, the Attorney General filed an indictment against Eydeler charging him with Grand Larceny in the Second Degree, a Class C felony.  Eydeler pleaded guilty to the indictment on October 12, 2016. Today, he was sentenced by the Honorable Stephen W. Herrick in Albany County Court to a five-year term of probation. Eydeler also confessed to a judgment being entered against him for the entire restitution amount of $131,038.60.

This case is the latest joint investigation under the Operation Integrity partnership of the Attorney General and Comptroller, which to date has resulted in dozens of convictions and more than $11 million in restitution. 

The Attorney General’s investigation was conducted by Investigator Mitchell Paurowski and Deputy Chief Antoine Karam.  The Investigations Bureau is led by Chief Dominick Zarrella. 

The Comptroller’s investigation was conducted by the Comptroller’s Division of Investigations, working with the New York State and Local Retirement System.

This case was prosecuted by Assistant Attorney General John R. Healy of the Criminal Enforcement and Financial Crimes Bureau.  The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Gary T. Fishman and Deputy Bureau Chief Stephanie Swenton. 

News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
October 30, 2016

New York City Press Office / 212-416-8060
Albany Press Office / 518-473-5525
nyag.pressoffice@ag.NY.gov
Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN OFFERS TIPS TO HELP CONSUMERS COMPARE HEALTH CARE PLANS IN ADVANCE OF NYS MARKETPLACE OPEN ENROLLMENT FOR 2017 

Schneiderman: Choosing A Health Plan Is An Incredibly Important Decision And I Encourage Families To Take Time To Find Coverage To Meet Their Needs

NEW YORK - Attorney General Eric T. Schneiderman today issued an updated brochure offering tips to New Yorkers buying health insurance coverage for 2017. The pamphlet, titled “Shopping For Health Insurance Coverage,” is being released in advance of the New York State of Health Marketplace’s open enrollment period starting on November 1, and can be used to evaluate all health insurance options, both on and off the Marketplace. Attorney General Schneiderman encourages consumers to take advantage of open enrollment to evaluate how their current health plan has met their needs, to evaluate whether their current health plan will change in a way that impacts the benefits they expect to use, and to consider what other options are available.   

“Choosing a health plan is an incredibly important decision, and I encourage families to take time to find coverage to meet their needs,” Attorney General Schneiderman said. “Exploring the New York Marketplace is a great way to start making health care enrollment decisions by comparing plans and analyzing costs. I encourage all New Yorkers to see what options are available starting November 1.”

Open enrollment through New York State of Health begins on November 1, 2016, and New Yorkers seeking coverage effective January 1, 2017 must enroll by December 15. Once open enrollment for the Marketplace begins, New Yorkers will be able to review all health insurance plans available through the Marketplace, as well as determine what premium subsidy you may be eligible for to reduce the cost of your monthly premiums. Coverage is also available off of the Marketplace, and those plans may have different enrollment deadlines.Premium subsidies, however, are not available for plans purchased outside the Marketplace.

The Attorney General’s brochure offers important information for all New Yorkers shopping for health insurance –  whether they are considering purchasing health coverage for the first time, re-enrolling in their existing plan, or switching into a new health plan. Prior to enrolling, take some time to identify your health needs for the upcoming year, consider your budget, and compare the available plans to evaluate how they satisfy your health and budget needs.

The Attorney General’s Office encourages all New Yorkers, when shopping for health insurance, to:

(1) Determine whether a premium subsidy is available through the Marketplace to make coverage more affordable (such subsidies are only available through the Marketplace);

(2) Check and confirm your provider’s participation status within the health plan, using the steps set out brochure;

(3) If you take prescription medications, check whether they are included in the health plan’s formulary, as well as what your out-of-pocket expense will be and whether there any pre-authorization requirements; and

(4) Check what the co-payment or co-insurance will be for any medical services you expect to use during the plan year, such as for physical therapy or mental health services. 

Enrollment in Medicaid, Child Health Plus, and the Essential Plan is open year-round.  This means that if you are, or become, eligible for one of these programs during the course of the year, you can enroll at any time. These programs offer low-cost, comprehensive health insurance coverage to lower-income New Yorkers. Child Health Plus is a New York State insurance plan for children, and children who are not eligible for Medicaid may be eligible to enroll in Child Health Plus.  The Essential Plan offers coverage for up to $20 per month for lower-income individuals who do not qualify for Medicaid or Child Health Plus. 

To learn more about these programs and the qualifications for enrollment, please visit these websites:

• Medicaid: https://www.health.NY.gov/health_care/medicaid/
• Child Health Plus: https://www.health.NY.gov/health_care/child_health_plus/
• Essential Plan: http://info.nystateofhealth.NY.gov/EssentialPlan
  
  

If you have any questions about a health plan’s coverage, including whether your provider is participating, you should call the insurance company directly and take detailed notes, including when you called, with the name of the person with whom you spoke, what you discussed, and what you were advised.

If you encounter inaccurate provider listings once you are enrolled in a plan and cannot access needed care from that provider, or otherwise believe you were given inaccurate information during open enrollment, contact the Health Care Bureau Helpline for assistance: 1-800-428-9071.  For questions about the New York State of Health Marketplace, you can contact the Marketplace directly at 1-855-355-5777.