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A.G. Schneiderman Announces Indictment Charging Cortland County Farmer With Child Labor Violations Following Death Of 14 Year-old Employee

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News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
November 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 Announces Indictment Charging Cortland County Farmer With Child Labor Violations Following Death Of 14 Year-old Employee

Park Family Farm Owner Luke Park Arraigned On Charges Of Child Labor Violations, Endangering Welfare Of A Child, Falsifying Unemployment Contribution Returns

Schneiderman: We Will Fully Prosecute Employers That Place Minors In Harm’s Way

Homer, New York – Attorney General Eric T. Schneiderman today announced the arraignment on a 15-count indictment of Luke Park, owner of the Park Family Farm located at or near 3036 East River Road in Homer, New York. Mr. Park was arraigned this afternoon before Judge William F. Ames of the Cortland County Court on 8 felony counts of Falsifying Business Records and Filing False Unemployment Insurance Contribution Returns with the State and 7 misdemeanor counts including Endangering the Welfare of a Child, Illegal Hours of Work for Minors, Prohibited Employment of Minors, and the Willful Failure to Pay Unemployment Insurance Contributions. Mr. Park’s next court date is scheduled for January 13.

“New York law prohibits children from operating heavy and dangerous machinery—for good reason,” said Attorney General Schneiderman. “Our labor laws exist to protect children who are working from tragic situations like this. My office will prosecute, to the fullest extent of the law, any employer that places a minor in harm’s way.”

Mr. Park was indicted on the 15 counts contained in a Felony Complaint filed earlier this summer. That complaint alleged that on July 1st of last year, Alex Smith, a 14 year old boy, was killed while working on the Park Family Farm. The boy was allegedly operating a New Holland LS170 Skidloader with a hydraulic lift and fork attachment, which is explicitly prohibited by child labor laws, in an attempt to prepare bales of hay for cow feed. The complaint further alleged that the defendant, Luke Park admitted to the State Police that he found the boy’s body pinned underneath the hydraulic lift and bale of hay, with the engine of the Skidloader still running. The medical examiner’s autopsy concluded that the chest and abdomen were crushed resulting in his death by mechanical asphyxiation.

"I commend A.G. Schneiderman on his swift response to this terrible tragedy,” said NYS Department of Labor Commissioner Roberta Reardon. “Child labor laws exist so something like this never happens, and those who do not comply must be held accountable to the fullest extent of the law."

In addition, the investigation into the operation of the Park Family Farm revealed that Mr. Park allegedly employed other minors on his dairy farm and required them to work approximately 60 hours a week which exceeds the 48 hour per week maximum for 16 and 17 year olds when school is not in session. The earlier filed Felony Complaint also alleged that many employees were paid off-the-books resulting in an alleged underpayment in Unemployment Insurance Contributions amounting to over $10,000.00.

New York’s Child Labor sets forth some of the strictest guidelines in the country on the employment of minors. The law sets forth safety guidelines with certain absolute prohibitions including the operation of hydraulic lift machinery.  The law also seeks to ensure that burdensome working hours do not interfere with a child’s education. For example, during weeks when school is in session, minors 16- and 17-years-old are limited to working no more than the following hours in most occupations: 28 hours in any week when school is in session and 48 hours per week when on vacation or over the summer. The law also requires that minors obtain an employment certificate (working papers) in order to be employed.  There are exceptions for certain jobs such as babysitting and newspaper carriers.           

The case was investigated by Attorney General Investigator’s Andrea Buttenschon, Mark Rudd, and Deputy Chief Investigator Jonathan Wood. The case is being prosecuted by Assistant Attorney Generals Mark Sweeney and James Shoemaker of the Binghamton Regional Office, with the assistance of Labor Bureau Criminal Section Chief Richard Balletta and Stephanie Swenton, the Deputy Bureau Chief of the Criminal Enforcement and Financial Crimes Bureau.  The case is being supervised by Bureau Chief of the Labor Bureau Terri Gerstein, Executive Deputy Attorney General for Social Justice Alvin Bragg, and Executive Deputy Attorney General for Regional Offices Martin J. Mack.

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

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A.G. Schneiderman Issues Alert On Phishing Scam Targeting New York Attorneys

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News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
November 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 ISSUES ALERT ON PHISHING SCAM TARGETING NEW YORK ATTORNEYS

NEW YORK — Attorney General Eric T. Schneiderman today issued a consumer alert following recent reports that hackers are targeting attorneys in New York pretending to be representatives of his office.  Attorneys are receiving email claiming that their business was subject of a complaint for which they have 10 days to respond.  The email includes a hyperlink to the “complaint” but in reality it links to a website that installs malicious software on the person’s computer.

An example of the email is below. If you receive this email, do not click on the link and delete it immediately.    

---------- Forwarded message ----------

From: The Office of The State Attorney <com.department@outlook.com>
Date: Wed, Nov 30, 2016 at 10:37 AM
Subject: The Office of The State Attorney Complaint
To: Bar Member

Dear Bar Member:

A complaint has been filed against your Business.

Enclosed is a copy of the complaint which requires your response. You have 10 days to file a rebuttal if you so desire.

You may view the complaint at the link below.

complaint88947.pdf 

Rebuttals should not exceed 15 pages and may refer to any additional documents or exhibits that are available on request.

The Office of The State Attorney cannot render legal advice nor can The Office of The State Attorney represent individuals or intervene on their behalf in any civil or criminal matter.

Please review the enclosed complaint. If filing a rebuttal please do so during the specified time frame.

Sincerely,

The Office of The State Attorney

Attorney General Schneiderman issues the following additional tips when handling suspicious email:   

  1. Use Caution When Opening Email: It is better to err on the side of caution and not open any email, and in particular clicking on a hyperlink in the email, that you do not recognize. Unless you are confident that a particular message is legitimate, assume it is not. You should never provide personal information via email to anyone and you should not reply directly to the email in question.
  1. Call the Sender: Instead of opening the suspicious email, you may simply delete the email and call the sender. Call the purported senders customer service number and explain what the email stated to verify its authenticity.
  1. Use the latest Anti-Virus software: You should have the latest anti-virus software updated with the latest virus definitions running on your computer at all times. Additionally, the latest generation web browsers have additional protections including against phishing attacks. These browsers will analyze web sites and compare them against known or suspected phishing sites and warn you if the site you are visiting may be malicious or illegitimate. 
  1. Report Suspicious Activity: If you receive emails that are part of a phishing scam or even seem suspicious you should report them. Report suspicious e-mails to your ISP, well-known spam filters and the Federal Trade Commission (FTC) at www.ftc.gov.

A.G. Schneiderman Announces Renika Moore As New Chief Of Labor Bureau

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News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
November 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 ANNOUNCES RENIKA MOORE AS NEW CHIEF OF LABOR BUREAU

NEW YORK – Attorney General Eric T. Schneiderman today announced the appointment of ReNika Moore as the new Chief of the Attorney General’s Labor Bureau, a part of the Division of Social Justice.

“ReNika has played a major role in all aspects of the Labor Bureau’s work as Deputy Bureau Chief, and I am confident that under her leadership the Bureau will continue to aggressively protect the rights of all workers in a changing economy,” said Attorney General Schneiderman.“ReNika has been particularly instrumental in the Bureau’s civil enforcement work, including its groundbreaking wage theft investigations of major fast-food chains. I am pleased that the Bureau will continue to benefit from her vision and dedication to defending the rights of low-wage workers.”

ReNika Moore said, “I’m honored to lead the Attorney General’s Labor Bureau. I’m excited to continue working with the Bureau’s talented team protecting the rights of New York’s workers, especially our most vulnerable workers, and enforcing New York's labor standards. Having represented workers to fight for fair wages and equal employment opportunity, I fully understand the importance to families and our economy of robust, dynamic labor law enforcement."

ReNika Moore joined the Labor Bureau of the Office of the Attorney General in June 2015, serving most recently as the Deputy Bureau Chief. Prior to joining the office of the Attorney General, Ms. Moore was the Director of the Economic Justice Group at the NAACP Legal Defense & Educational Fund. In that role, she led the NAACP LDF’s efforts to secure equal economic opportunities regardless of race. Among other matters, she represented a class of African-American store managers of a nationwide clothing retailer in an employment discrimination suit that resulted in a settlement for $7.5 million and extensive injunctive relief to improve racial equity in compensation, promotions, and performance evaluation. Prior to her time at the NAACP LDF, Ms. Moore was an associate at Outten & Golden, where she represented employees in wage and hour, discrimination, and sexual harassment actions. Ms. Moore clerked for the late Judge Robert L. Carter in the Southern District of New York and is a graduate of Harvard Law School.

The outgoing Chief of the Labor Bureau, Terri Gerstein, was awarded an Open Society Foundations Leadership in Government Fellowship, for seasoned public servants whose work in government has advanced economic and social justice. During her fellowship, Terri will develop the capacity of state and local government agencies nationwide to improve the conditions of low-wage and immigrant workers through strategic enforcement of labor laws, including through ongoing partnerships with NGOs. 

“Terri Gerstein has been a tireless leader for workers’ rights over the course of her career. Her vision and dedication to protecting the rights of all workers has enabled this office to recover millions in stolen wages for thousands of workers, obtain dozens of criminal convictions, and end on-call scheduling practices at major national retailers, among other important victories. I wish her the best of luck as she continues her life’s work through this fellowship with the Open Society Foundations,”Schneiderman said.

The Labor Bureau is principally charged with, and has been nationally recognized for, defending labor standards in low-wage industries by aggressively enforcing the laws protecting low-wage workers. Specifically, the Labor Bureau investigates violations of minimum wage, overtime, prevailing wage, and other basic labor laws throughout the state, brings civil and criminal prosecutions against employers who violate these laws, and represents the New York State Department of Labor in its enforcement of state labor laws.

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SCHNEIDERMAN ANUNCIA A RENIKA MOORE COMO NUEVA JEFA DE SU BURÓ DE ASUNTOS LABORALES

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NUEVA YORK - El Fiscal General Eric T. Schneiderman anunció hoy el nombramiento de ReNika Moore como la nueva jefa del Buró de Asuntos Laborales de la Fiscalía General, el cual forma parte de la División de Justicia Social.

“ReNika ha desempeñado un papel importante en todos los aspectos del trabajo del Buró de Asuntos  Laborales como Jefe Adjunta de la Oficina y confío en que bajo su liderazgo la oficina continuará protegiendo agresivamente los derechos de todos los trabajadores en una economía cambiante”, dijo el Fiscal General Schneiderman. “ReNika ha sido particularmente instrumental en el trabajo en el área de cumplimiento civil, incluyendo sus investigaciones pioneras de robo de salario de las principales cadenas de comida rápida. Me complace que la oficina continúe beneficiándose de su visión y dedicación a defender los derechos de los trabajadores de bajos salarios”.

ReNika Mooredijo: “Me siento honrada en poder dirigir el Buró de Asuntos Laborales de la Fiscalía General. Estoy muy entusiasmada en poder seguir trabajando con el talentoso equipo de la oficina para proteger los derechos de los trabajadores de Nueva York, especialmente a nuestros trabajadores más vulnerables, y hacer cumplir las normas laborales de Nueva York. Después de haber representado a los trabajadores para luchar por salarios justos e igualdad de oportunidades de empleo, entiendo completamente la importancia que tienen para las familias y nuestra economía la aplicación robusta y dinámica de la ley laboral”.

ReNika Moore se unió al Buró de Asuntos Laborales de la Fiscalía General en junio de 2015, sirviendo recientemente como Jefe Adjunta de la Oficina. Antes de unirse a la Fiscalía General, la Sra. Moore fue la Directora del Grupo de Justicia Económica en el Fondo de Defensa Legal y Educación de NAACP. En ese papel, dirigió los esfuerzos de la NAACP para asegurar oportunidades económicas iguales sin importar la raza. Entre otras cosas, representó a un grupo de gerentes de tiendas afroamericanos de una cadena nacional de ropa en una demanda por discriminación en el empleo que resultó en un acuerdo por $ 7.5 millones y una amplia medida cautelar para mejorar la equidad racial en compensación, ascensos y evaluación de desempeño. Antes de trabajar en la LDF de NAACP, la Sra. Moore era asociada de Outten & Golden, donde representaba a los empleados en acciones de salarios y horas, discriminación y acoso sexual. La Sra. Moore trabajó para el juez Robert L. Carter en el Distrito Sur de Nueva York y es graduada de la Escuela de Derecho de Harvard.

La Jefa saliente del Buro de Asuntos Laborales, Terri Gerstein, fue galardonada con una beca de Open Society Foundations Leadership in Government, para funcionarios experimentados cuyo trabajo en el gobierno ha avanzado la justicia económica y social. Durante su beca, Terri desarrollará la capacidad de las agencias gubernamentales estatales y locales en todo el país para mejorar las condiciones de los trabajadores de bajos salarios e inmigrantes a través de la aplicación estratégica de las leyes laborales, incluso a través de asociaciones continuas con las organizaciones sin fines de lucro.

“Terri Gerstein ha sido una líder incansable de los derechos de los trabajadores a lo largo de su carrera. Su visión y dedicación para proteger los derechos de todos los trabajadores ha permitido a esta oficina recuperar millones de dólares en salarios robados para miles de trabajadores, obtener decenas de condenas criminales y poner fin a las prácticas de horarios impredecibles en las principales cadenas de tiendas nacionales. Le deseo la mejor de las suertes a medida que continúa el trabajo de su vida a través de esta beca con la Open Society Fundation”, dijo Schneiderman.

El Buró de Asuntos Laborales está principalmente enfocado en, y ha sido reconocido a nivel nacional, la defensa de las normas laborales en las industrias de bajos salarios mediante la aplicación agresiva de las leyes que protegen a los trabajadores de bajos salarios. En concreto, la Oficina  investiga las violaciones del salario mínimo, las horas extraordinarias, los salarios prevalecientes y otras leyes laborales básicas en todo el estado, comenzando procesamientos civiles y penales contra los empleadores que violan estas leyes. También representa al Departamento de Trabajo del Estado de Nueva York para hacer cumplir las leyes laborales estatales.

A.G. Schneiderman Announces Settlement With Furniture Company That Held Deceptive Sale

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News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
December 1, 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 FURNITURE COMPANY THAT HELD DECEPTIVE SALE

York Furniture Made False Statements In Advertisements For Going-Out-Of-Business Sale When Warehouse Was Not Closing; Paid $10K In Penalties 

Schneiderman: We Will Hold Unscrupulous Business Owners Accountable

ROCHESTER – Attorney General Eric T. Schneiderman today announced a settlement with a Henrietta-based furniture company for engaging in deceptive acts and making false statements in its advertisements.  Specifically, York Furniture Centers, Inc. advertised that they were holding a Warehouse Closing sale when in fact it did not intend to close its warehouse and while continuing to receive pieces of furniture, which is a violation of New York State law.  As a result of Attorney General Schneiderman’s investigation, York has paid $10,000 in civil penalties to the State and forfeited $500.00 to the Town of Henrietta for the application it was required to obtain.

“This settlement should serve as a warning to businesses out there that attempt to deceive and manipulate the public,” said Attorney General Schneiderman.“Business owners who use dishonest practices will be held fully accountable.”

On July 12, 2016, York began advertising a 5-day, going-out-of-business sale in the Town of Henrietta and the surrounding regions.  The advertisements stated that there was a “WAREHOUSE CLOSING,” that “all stock is limited to quantities on hand,” and that “all sales are final.”  

York held the sale throughout July.  The Town of Henrietta notified the Attorney General’s Office that York Home failed to obtain a license to conduct the sale, violating New York State’s General Business Law.  The Attorney General issued a Cease and Desist letter at York modified its advertisements to reflect the true nature of the sale “Warehouse Sale” and “Warehouse Consolidation Sale”.

Under New York Law, businesses must obtain a license to conduct a Going out of business type sale which includes a warehouse closing sale.  The law was enacted to prevent business from deceiving about the circumstances for a sale that lead consumers to believe that the business is selling the reaming goods on hand for sacrifice prices because a company is closing. 

The Attorney General’s investigation found that York did not intend to close its warehouse but simply reduce its size and rent out unneeded space.  York took orders for new furniture from customers and received shipments of the furniture after it began the sale.  Stock was therefore not “limited to quantities on hand,” making the advertisements false statements in violation of New York State’s General Business Law.  Also, the sale continued long after the 5 days advertised and extended its “Warehouse Consolidation Sale” for 3 months, more than enough time to reduce the inventory on hand at the start of the sale.

The agreement, known as an Assurance of Discontinuance, was signed by York.  The company agreed to end the sale and cease the deceptive practices.

The Attorney General wishes to thank the Town of Henrietta for its assistance in this investigation. 

The case was handled by Assistant Attorney General Benjamin Bruce in the Rochester Regional Office, which is led by Ted O’Brien, Assistant Attorney General In Charge.  The Rochester Regional Office is a part of the Division of Regional Offices that is led by Martin J. Mack, Executive Deputy Attorney General for Regional Offices.

A.G. Schneiderman and DEC Commissioner Seggos Announce Conviction of Local Business Owner for Discharging Polluted Water Into Creek

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News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
December 1, 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 DEC COMMISSIONER SEGGOS ANNOUNCE CONVICTION OF LOCAL BUSINESS OWNER FOR DISCHARGING POLLUTED WATER INTO CREEK 

Michael Jones And His Company, Coast Transportation And Recycling, LLC, Plead Guilty To Environmental Law Crimes; Will Pay $87,500 In Fines  

Schneiderman: Those Who Jeopardize The Safety Of New York’s Vital Waterways Will Be Held Accountable

SYRACUSE – Attorney General Eric T. Schneiderman and Department of Environmental Conservation Commissioner Basil Seggos today announced the conviction of Michael Jones, 44, of Skaneateles, and his company, Coast Transportation and Recycling, LLC (Coast), for environmental law crimes related to discharging polluted water into Ley Creek and failing to obtain appropriate state regulatory permits.  

Today, before the Honorable Anthony F. Aloi, Coast pleaded guilty to one count of Environmental Conservation Law Section 71-1933(3)(a)(i), a Class E felony, for knowingly discharging pollutants without first obtaining a New York State Pollution Discharge Elimination System (SPDES) Permit.  Jones pleaded guilty to two counts of Environmental Conservation Law (ECL) Section 71-2711(3) and one count of ECL Section 71-2703(2)(c)(i), Class A misdemeanors, for illegally discharging liquid containing hazardous substances and for storing petroleum-contaminated soil on the Coast property. 

“We will continue working to safeguard New York’s vital waterways from harmful pollution,” said Attorney General Schneiderman. “Guarding our state’s natural resources is critical to protecting both the health of New Yorkers and local economies, and those who jeopardize this will pay the price.”

Today’s convictions are the result of an investigation conducted by the New York State Department of Environmental Conservation (DEC).

“As this defendant showed a callous disregard for the health and safety of Ley Creek and it’s residents, this conviction sends a strong and clear message that this behavior will not be tolerated in New York State,” said DEC Commissioner Seggos. “I applaud the work of our Environmental Conservation Officers and the Attorney General’s office in pursuing this case and ensuring that the state's laws are enforced and our environment is protected.”

In July 2016, an Onondaga County Grand Jury charged Jones and Coast, an automobile salvage and scrap recycling facility located at 15 Dippold Avenue in the Town of Salina, in a 10-count indictment with violations of the New York State Environmental Conservation Law. 

According to court filings and statements made by the prosecutor, DEC’s investigation revealed that in February 2010, two underground storage tanks were removed from the Coast facility.  These tanks, which contained fuel oil, had leaked and contaminated the surrounding soil.  More than 500 tons of petroleum contaminated soil (“PCS”) was ultimately excavated from the areas surrounding the underground storage tanks and stored on Coast’s property.  The PCS was not removed from the Coast facility until October 2014, and neither Coast nor Jones ever applied for or obtained the necessary permit.  The ECL and DEC regulations allow the temporary storage of PCS on site, but only for a period of 60 days.  Storage of PCS for longer than 60 days constitutes the operation of a solid waste management facility and requires a permit issued by DEC.   Solid waste management facilities are subject to strict operational and closure requirements to avoid the adverse impacts to public health and the environment associated with solid waste. 

Also according to statements made by the prosecutor, DEC’s investigation further revealed that on May 15 and 19, 2011, liquid runoff from the soil pile flowed across the Coast property and into a storm water drain on Dippold Avenue, which ultimately discharged into a tributary of Ley Creek.  Laboratory testing by DEC revealed that the liquid flowing into the storm water drain contained the hazardous substances benzene, toluene, ethyl-benzene, and xylene.

Additionally, on September 18, 2012, Jones directed a Coast employee to set up and operate an electric pump to discharge storm water that had accumulated in the Coast parking lot into another storm water drain, which also ultimately discharged into a tributary of Ley Creek.  Laboratory testing by DEC revealed that this storm water contained motor oil.  Jones and Coast discharged the oil laden storm water without having obtained a SPDES permit or having a Storm Water Pollution Prevention Plan in place, both of which are required by the ECL. 

The DEC previously filed an administrative enforcement proceeding against both Jones and Coast in June 2011, related to improper dismantling of vehicles at the yard.  An Administrative Law Judge found that both Jones and Coast had failed to conduct proper “fluid draining, removal and collection activities” at the Coast facility and had intentionally released fluids and discharged “petroleum onto the ground at the facility.” Jones and Coast were assessed a civil penalty of thirty thousand dollars ($30,000). 

Both defendants are scheduled to be sentenced on January 24, 2017. Coast will be sentenced to an unconditional discharge; Jones will be sentenced to three years’ probation and will pay a fine of $87,500.

The Attorney General thanks the DEC for their assistance in this investigation. 

Also assisting in the investigation was Investigator Joel Cordone, Supervising Investigator Richard Doyle and Deputy Chief Investigator Antoine Karam. The Attorney General’s Investigations Division is led by Chief Dominick Zarrella. 

The case is being prosecuted by Assistant Attorney General Andrew Tarkowski with the assistance of Assistant Attorney General Hugh L. McLean of the Criminal Enforcement and Financial Crimes Bureau. The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Gary Fishman and Deputy Bureau Chief Stephanie Swenton. 

If you witness an environmental crime, contact the NYSDEC 24-hour Poacher and Polluter hotline at 1-844-DEC-ECOS (1-844-332-3267). 

A.G. Schneiderman Announces Settlement With Medrite Urgent Care And Carmel For Paying For Positive Reviews Online

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News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
December 2, 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 MEDRITE URGENT CARE AND CARMEL FOR PAYING FOR POSITIVE REVIEWS ONLINE 

Medrite Agrees To Pay $100,000 Penalty And Take Measures To Increase The Honesty And Transparency Of Its Online Reviews

Car Service Company Carmel Also Agrees To Pay $75,000 Penalty And Increase Transparency 

Agreements Are A Continuation Of A.G. Schneiderman’s Groundbreaking “Operation Clean Turf” Investigation Into Reputation Management Industry, Astroturfing And False Endorsements 

NEW YORK – Attorney General Eric T. Schneiderman today announced a settlement with medical emergency care service MedRite Care, LLC, d/b/a Medrite Urgent Care (“Medrite”) for paying for positive reviews on consumer-review websites. Over a 2-year period, Medrite paid thousands of dollars to internet advertising companies and freelance writers to write positive reviews of Medrite on consumer-review websites such as Yelp.com.  Medrite never required that the reviewers visit its facilities and experience its services, and never required the reviewers to disclose that they were paid for the review.  Medrite must pay $100,000, $50,000 of which is suspended assuming compliance with the settlement agreement, due to the financial condition of the company.

Attorney General Schneiderman also reached a separate settlement with Baron T, Ltd, d/b/a Carmel Car & Limousine Service, Svc (“Carmel”), the car-ride service, resolving an investigation into the company’s practice of extending discounts to customers for positive reviews on consumer-review websites. Carmel incentivized customers to write positive reviews of its services on consumer-review platforms Yelp, Google, Google Play, and Apple’s iTunes by offering a $10 discount off rides. As part of the settlement, Carmel will take steps to help educate the Livery Community on false advertising and consumer reviews online.

“Honesty and transparency are the hallmarks of consumer protection -- especially when it involves medical services. Consumers shouldn’t be misled when it comes to making important determinations about their health and well-being. Our investigation into Medrite sends a strong message to companies that the rules preventing deceptive advertising and practices must be upheld online,” said Attorney General Schneiderman. “Those same rules also apply to other service industries, and I appreciate Carmel’s cooperation in this investigation. Their efforts to educate other companies about unlawful incentives in customer reviews will help create a more transparent industry.”

Medrite Urgent Care 

MedRite is an emergent care service with three locations in New York City.  It provides individualized adult and pediatric health care on a walk-in basis.  Samuel Fisch is the Chief Executive Officer of Medrite.

MedRite paid internet advertising companies thousands of dollars for reviews on several different consumer-review websites. For example, in September, 2012, Medrite paid an internet advertising company $375 to post 15 positive reviews on Yelp.com, CitySearch, Yahoo Local Page, and Google Plus. Medrite also hired several free-lance writers through the Internet, including with job postings on Craigslist.com, to write positive reviews for $10 to $15 per review.  One writer responded to Medrite’s listing for Yelp reviews, “Send me your business name and I will give you a good review. I have been on yelp for 4 years and have more than 160 reviews already.”  Another writer responded, “Hello I saw your ad on craiglist and I would like to post a positive 5 star review for your business… .”

In early 2014, Yelp discovered that Medrite was sending email messages to people on Yelp through their Yelp accounts to write positive reviews for Medrite.  In particular, Medrite sent the following email to members of Yelp, “I see you are yelping a lot.  I own a company in nyc and would like to get more reviews… would you come checkout our company and write a review? (will pay).” 

In March, 2014, Yelp posted the following “Consumer Alert” on Medrite’s Yelp profile for 90 days which alerted consumers to its findings that Medrite was paying for reviews:

Medrite

New York’s Executive Law§ 63(12) and General Business Law §§ 349 and 350 prohibit misrepresentation and deceptive acts or practices in the conduct of any business. Similarly, the Federal Trade Commission’s “Guides Concerning the Use of Endorsements and Testimonials in Advertising,” 16 CFR Part 255 (the “FTC Endorsement Guidelines”) provides that it is a deceptive practice to provide an endorsement for a product or service that fails to disclose material connections between the endorser and the sponsoring advertiser. Medrite never required that the reviewers visit its facilities and experience its services, and never required the reviewers to disclose that they were paid for the review. Pursuant to the settlement, Medrite is prohibited from misrepresenting that an endorser is an independent user of the product or service being promoted. Medrite is also prohibited from compensating a reviewer who has not made the required disclosures. 

Carmel

Carmel is a well-known car service based in New York City.  The investigation into Carmel found that between May 5, 2016 and July 27, 2016, the company sent 161,000 email messages to Carmel customers requesting feedback regarding their recent ride with Carmel.  Customers were asked to evaluate Carmel services by clicking “Perfect” or “Good,” listed with an opportunity for ten dollars ($10) discount off the next ride, or “Bad,” which did not offer any discount.  Upon clicking the “Perfect” and “Good” links, the customer was directed to a consumer-review website such as Yelp.com and provided a $10 discount off their next ride upon confirmation of the review. If a customer clicked on the “Bad” button, he or she was directed to a web portal at Carmel with the opportunity to leave feedback. However, in this case, they were not directed or otherwise told to post the review on a consumer-review website and were not offered a discount or any other form of compensation.

Paying for a positive review without disclosing the payment would lead a reasonable consumer to believe that the review was a neutral, third-party review.  Incentivizing customers to provide favorable reviews without disclosing such payments is a form of false advertising and a deceptive trade practice, and it violates New York Executive Law § 63(12), New York General Business Law §§ 349 and 350, as well as the FTC Endorsement Guidelines.

Carmel cooperated in the investigation, and pursuant to the settlement, Carmel also has agreed to educate the for-hire car transportation industry on false advertising law and online consumer reviews, including without limitation, the FTC Endorsement Guidelines. Among other things, Carmel will communicate with members of the for-hire car transportation industry by email and newsletter, take out one full-page advertisement in the livery industry’s trade newspapers, and conduct educational seminars.

Ensuring honesty on the Internet is of paramount importance to consumers because of the effect that online reviews can have in influencing consumers’ purchasing decisions.  According to one survey, 90% of consumers say that online reviews influence their buying decisions.  Multiple studies have concluded that online reviews can make or break companies.  A 2015 Nielsen Study reveals that 66% of the global consumers trust consumer opinions posted online, making it the third-most-trusted source of information about businesses after word-of-mouth and recommendations from friends and family.  A highly-cited Harvard Business School study from 2011 estimated that a one-star rating increase on Yelp translated to an increase of 5% to 9% in revenues for a restaurant.  Cornell researchers have found that a one-star swing in a hotel's online ratings at sites like Travelocity and TripAdvisor is tied to an 11% sway in room rates, on average. 

These settlements announced today are continuation of Attorney General Schneiderman’s commitment to ensuring accurate and reliable consumer reviews. In September, 2013, AG Schneiderman announced “Operation Clean Turf,” the largest investigation into astroturfing by a law enforcement agency, resulting in settlements with 19 companies that paid over $350,000 in penalties. After an extensive undercover investigation into the reputation management industry, the office found that companies had flooded the Internet with fake consumer reviews on websites such as Yelp, Google Local, and CitySearch; used techniques to hide their identities, such as creating fake online profiles on consumer review websites; and paid freelance writers from as far away as the Philippines, Bangladesh and Eastern Europe $1 to $10 per review.  In addition, in February 2016, the office announced settlements with four other companies including Machinima, Inc., regarding either the payment for positive reviews that were either fake or did not disclose the compensation.

These cases were handled by Bureau of Internet and Technology Deputy Bureau Chief Clark Russell, under the supervision of Bureau Chief Kathleen McGee. The Bureau of Internet and Technology is overseen by Executive Deputy Attorney General for Economic Justice Manisha M. Sheth.

A.G. Schneiderman And Comptroller Dinapoli Announce Conviction And Sentencing Of Florida Man For Theft Of Over $180K In NYS Pension Benefits

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News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
December 2, 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 AND SENTENCING OF FLORIDA MAN FOR THEFT OF OVER $180K IN NYS PENSION BENEFITS 

Robert Schusteritsch Stole Pension Benefits Intended For Deceased Brother For Over 7 Years; Impersonated Deceased Brother To Maintain Eligibility For Benefits

Schneiderman: Those Who Illegally Obtain Pension Funds Intended For Someone Else Do So At The Expense Of Hardworking New Yorkers

ALBANY – Attorney General Eric T. Schneiderman and New York State Comptroller Thomas P. DiNapoli announced today the conviction and sentencing of Robert J. Schusteritsch, 71, a resident of the State of Florida, for the crimes of Grand Larceny in the Second Degree, a class C felony, and Criminal Impersonation in the Second Degree, a class A misdemeanor, in Albany County Court. Schusteritsch’s conviction comes after a joint investigation by the Attorney General’s Office and the Office of the Comptroller, which revealed that Schustertisch stole over $180,000 in pension benefits issued by the New York State and Local Employees Retirement System to his deceased brother, Martin Petschauer, between July 2008 and September 2015. Schusteritsch was sentenced today to six months in jail and five years’ probation.

“Those who illegally obtain pension funds intended for someone else do so at the expense of hardworking New Yorkers who rely on their pension for a secure retirement,” said Attorney General Schneiderman. “Comptroller DiNapoli and I will continue our joint efforts to root out pension system theft and hold those responsible accountable.”

According to the Attorney General’s and Comptroller’s Office, Petschauer was a New York State pensioner who retired as Chief of the Pooling and Audit Review Section of the New York Metro Milk Marketing Area in approximately 1986. He passed away on July 9, 2008.  At the time of Petschauer’s death, his pension benefits were being direct deposited into a bank account held in a trust for the benefit of Petschauer; Schusteritsch was the sole trustee for his brother and had exclusive access to the bank account. 

"Today’s sentencing of Mr. Schusteritsch proves once again that stealing from New York State's pension system is risky business," said State Comptroller Thomas P. DiNapoli. "My office will continue to thwart pension thieves and protect our New York State & Local Retirement System in partnership with Attorney General Schneiderman."

When Petshauer died, Schusteritsch concealed his brother’s death from the bank and the Retirement System and kept the trust account open to maintain the direct deposits.  He then routinely accessed the pension deposits and spent the money for his own benefit. All told, Schusteritsch stole over $180,000 in pension benefits until the Retirement System discovered Petschauer’s death in October 2015.   Further, when the Retirement System learned of Petschauer’s death and stopped paying benefits into the trust account, Schusteritsch called the Retirement System’s call center on November 2, 2015, pretended he was Petschauer, and asserted that he was not actually dead, in an effort to maintain eligibility for the pension benefits.  

This past summer, Schusteritsch was arrested in his home state of Florida and transported to Albany County, where he was arraigned on an indictment charging him with the crimes of Grand Larceny in the Second Degree, a class C felony, and Criminal Impersonation in the Second Degree, a class A misdemeanor. On September 16, 2016, Schusteritsch pleaded guilty before Hon. Peter A. Lynch, Albany County Court to the entire indictment.

Today, Schusteritsch was sentenced by the Hon. Peter A. Lynch to six months in jail and five years’ probation, and signed a confession of judgment in the amount of $180,140.45 in favor of the New York State and Local Employees Retirement System.

The 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.

Attorney General Schneiderman and Comptroller DiNapoli thanked the Charlotte County Sheriff’s Office in Florida for their assistance.

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

The case was prosecuted by Assistant Attorney General Benjamin S. Clark 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. 

The Attorney General’s investigation was conducted by Investigator Samuel Scotellaro, III and Deputy Chief Antoine Karam. Forensic accounting was performed by Meaghan Scovello, Associate Auditor. The Investigations Bureau is led by Chief Dominick Zarrella.  The Forensic Audit Section is led by Chief Auditor Edward J. Keegan. The Comptroller’s investigation was handled by the Division of Investigations working with the New York State and Local Retirement System.


A.G. Schneiderman Announces Settlement With Medrite Urgent Care And Carmel For Paying For Positive Reviews Online

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News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
December 2, 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 MEDRITE URGENT CARE AND CARMEL FOR PAYING FOR POSITIVE REVIEWS ONLINE 

Medrite Agrees To Pay $100,000 Penalty And Take Measures To Increase The Honesty And Transparency Of Its Online Reviews

Car Service Company Carmel Also Agrees To Pay $75,000 Penalty And Increase Transparency 

Agreements Are A Continuation Of A.G. Schneiderman’s Groundbreaking “Operation Clean Turf” Investigation Into Reputation Management Industry, Astroturfing And False Endorsements 

NEW YORK – Attorney General Eric T. Schneiderman today announced a settlement with medical emergency care service MedRite Care, LLC, d/b/a Medrite Urgent Care (“Medrite”) for paying for positive reviews on consumer-review websites. Over a 2-year period, Medrite paid thousands of dollars to internet advertising companies and freelance writers to write positive reviews of Medrite on consumer-review websites such as Yelp.com.  Medrite never required that the reviewers visit its facilities and experience its services, and never required the reviewers to disclose that they were paid for the review.  Medrite must pay $100,000, $50,000 of which is suspended assuming compliance with the settlement agreement, due to the financial condition of the company.

Attorney General Schneiderman also reached a separate settlement with Baron T, Ltd, d/b/a Carmel Car & Limousine Service, Svc (“Carmel”), the car-ride service, resolving an investigation into the company’s practice of extending discounts to customers for positive reviews on consumer-review websites. Carmel incentivized customers to write positive reviews of its services on consumer-review platforms Yelp, Google, Google Play, and Apple’s iTunes by offering a $10 discount off rides. As part of the settlement, Carmel will take steps to help educate the Livery Community on false advertising and consumer reviews online.

“Honesty and transparency are the hallmarks of consumer protection -- especially when it involves medical services. Consumers shouldn’t be misled when it comes to making important determinations about their health and well-being. Our investigation into Medrite sends a strong message to companies that the rules preventing deceptive advertising and practices must be upheld online,” said Attorney General Schneiderman. “Those same rules also apply to other service industries, and I appreciate Carmel’s cooperation in this investigation. Their efforts to educate other companies about unlawful incentives in customer reviews will help create a more transparent industry.”

Medrite Urgent Care 

MedRite is an emergent care service with three locations in New York City.  It provides individualized adult and pediatric health care on a walk-in basis.  Samuel Fisch is the Chief Executive Officer of Medrite.

MedRite paid internet advertising companies thousands of dollars for reviews on several different consumer-review websites. For example, in September, 2012, Medrite paid an internet advertising company $375 to post 15 positive reviews on Yelp.com, CitySearch, Yahoo Local Page, and Google Plus. Medrite also hired several free-lance writers through the Internet, including with job postings on Craigslist.com, to write positive reviews for $10 to $15 per review.  One writer responded to Medrite’s listing for Yelp reviews, “Send me your business name and I will give you a good review. I have been on yelp for 4 years and have more than 160 reviews already.”  Another writer responded, “Hello I saw your ad on craiglist and I would like to post a positive 5 star review for your business… .”

In early 2014, Yelp discovered that Medrite was sending email messages to people on Yelp through their Yelp accounts to write positive reviews for Medrite.  In particular, Medrite sent the following email to members of Yelp, “I see you are yelping a lot.  I own a company in nyc and would like to get more reviews… would you come checkout our company and write a review? (will pay).” 

In March, 2014, Yelp posted the following “Consumer Alert” on Medrite’s Yelp profile for 90 days which alerted consumers to its findings that Medrite was paying for reviews:

Medrite

New York’s Executive Law§ 63(12) and General Business Law §§ 349 and 350 prohibit misrepresentation and deceptive acts or practices in the conduct of any business. Similarly, the Federal Trade Commission’s “Guides Concerning the Use of Endorsements and Testimonials in Advertising,” 16 CFR Part 255 (the “FTC Endorsement Guidelines”) provides that it is a deceptive practice to provide an endorsement for a product or service that fails to disclose material connections between the endorser and the sponsoring advertiser. Medrite never required that the reviewers visit its facilities and experience its services, and never required the reviewers to disclose that they were paid for the review. Pursuant to the settlement, Medrite is prohibited from misrepresenting that an endorser is an independent user of the product or service being promoted. Medrite is also prohibited from compensating a reviewer who has not made the required disclosures. 

Carmel

Carmel is a well-known car service based in New York City.  The investigation into Carmel found that between May 5, 2016 and July 27, 2016, the company sent 161,000 email messages to Carmel customers requesting feedback regarding their recent ride with Carmel.  Customers were asked to evaluate Carmel services by clicking “Perfect” or “Good,” listed with an opportunity for ten dollars ($10) discount off the next ride, or “Bad,” which did not offer any discount.  Upon clicking the “Perfect” and “Good” links, the customer was directed to a consumer-review website such as Yelp.com and provided a $10 discount off their next ride upon confirmation of the review. If a customer clicked on the “Bad” button, he or she was directed to a web portal at Carmel with the opportunity to leave feedback. However, in this case, they were not directed or otherwise told to post the review on a consumer-review website and were not offered a discount or any other form of compensation.

Paying for a positive review without disclosing the payment would lead a reasonable consumer to believe that the review was a neutral, third-party review.  Incentivizing customers to provide favorable reviews without disclosing such payments is a form of false advertising and a deceptive trade practice, and it violates New York Executive Law § 63(12), New York General Business Law §§ 349 and 350, as well as the FTC Endorsement Guidelines.

Carmel cooperated in the investigation, and pursuant to the settlement, Carmel also has agreed to educate the for-hire car transportation industry on false advertising law and online consumer reviews, including without limitation, the FTC Endorsement Guidelines. Among other things, Carmel will communicate with members of the for-hire car transportation industry by email and newsletter, take out one full-page advertisement in the livery industry’s trade newspapers, and conduct educational seminars.

Ensuring honesty on the Internet is of paramount importance to consumers because of the effect that online reviews can have in influencing consumers’ purchasing decisions.  According to one survey, 90% of consumers say that online reviews influence their buying decisions.  Multiple studies have concluded that online reviews can make or break companies.  A 2015 Nielsen Study reveals that 66% of the global consumers trust consumer opinions posted online, making it the third-most-trusted source of information about businesses after word-of-mouth and recommendations from friends and family.  A highly-cited Harvard Business School study from 2011 estimated that a one-star rating increase on Yelp translated to an increase of 5% to 9% in revenues for a restaurant.  Cornell researchers have found that a one-star swing in a hotel's online ratings at sites like Travelocity and TripAdvisor is tied to an 11% sway in room rates, on average. 

These settlements announced today are continuation of Attorney General Schneiderman’s commitment to ensuring accurate and reliable consumer reviews. In September, 2013, AG Schneiderman announced “Operation Clean Turf,” the largest investigation into astroturfing by a law enforcement agency, resulting in settlements with 19 companies that paid over $350,000 in penalties. After an extensive undercover investigation into the reputation management industry, the office found that companies had flooded the Internet with fake consumer reviews on websites such as Yelp, Google Local, and CitySearch; used techniques to hide their identities, such as creating fake online profiles on consumer review websites; and paid freelance writers from as far away as the Philippines, Bangladesh and Eastern Europe $1 to $10 per review.  In addition, in February 2016, the office announced settlements with four other companies including Machinima, Inc., regarding either the payment for positive reviews that were either fake or did not disclose the compensation.

These cases were handled by Bureau of Internet and Technology Deputy Bureau Chief Clark Russell, under the supervision of Bureau Chief Kathleen McGee. The Bureau of Internet and Technology is overseen by Executive Deputy Attorney General for Economic Justice Manisha M. Sheth.

A.G. Schneiderman Announces Indictment Of Brooklyn Man Charged With Fraudulently Holding Himself Out As An Attorney

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News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
December 5, 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 INDICTMENT OF BROOKLYN MAN CHARGED WITH FRAUDULENTLY HOLDING HIMSELF OUT AS AN ATTORNEY

Mikhail Perlov Charged With Defrauding Unsuspecting Clients And Judges And Stealing Tens Of Thousands Of Dollars In Legal Fees; Faces Up To 7 Years In Prison 

Schneiderman: My Office Will Remain Vigilant Against Fraudsters Who Target Our Immigrant Communities, Particularly At A Time Of Heightened Fear And Anxiety 

NEW YORK—Attorney General Eric T. Schneiderman today announced the indictment of Mikhail Perlov for allegedly defrauding unsuspecting clients, particularly in the Russian community, by passing himself off as a licensed attorney.  From 2013 to 2016, Perlov allegedly held himself out as a lawyer in New York, defrauding multiple victims of tens of thousands of dollars in legal fees. Perlov allegedly continued his illegal practice of law despite entering into a Consent Order and Judgment with the Attorney General’s Office in September 2015, which permanently banned him from misrepresenting himself as an attorney.  Today’s 18-count indictment charges Perlov with multiple counts of felony grand larceny and scheme to defraud. If convicted, Perlov faces up to 2 1/3 to 7 years in prison.

“This defendant has time and time again held himself out as a resource to many in the immigrant community, but instead has allegedly lined his own pockets at the expense of vulnerable New Yorkers,” said Attorney General Schneiderman. “This type of fraud is particularly egregious as its preys on those who are in need of legal assistance. My office will remain vigilant against fraudsters who target our immigrant communities, particularly at a time of heightened fear and anxiety.”

According to a Petition previously filed in Kings County Supreme Court an investigation by the Attorney General’s Brooklyn Regional Office revealed that Perlov advertised himself as an “attorney at law” in Russian-language newspapers and targeted Russian-speaking victims. Perlov claimed to have a wide expertise and extensive experience practicing in New York, New Jersey and Florida courts, and offered legal services related to criminal defense, commercial disputes, accidents, domestic violence, real estate and immigration matters. 

Also according to the Attorney General’s Petition, Perlov maintained an office at 2083 East 19th Street, 2nd Floor in Brooklyn, with a sign stating, “Mikhail Perlov, Esq. Attorney at Law.”  He also advertised his services on a Facebook page which included phony reviews.  Perlov’s advertisement on RusRek.com, the online advertising service operated by Russian-language weekly newspaper Russkaya Reklama, stated “Problems with the law?” “Under arrest?!” “Are you being accused!” “Will help with getting charges dropped, will help with getting out of jail.”       

As a result of the Attorney General’s Petition, in September 2015, Perlov entered into a Consent Order and Judgment in Kings Count Supreme Court permanently enjoining him from participating or engaging in the unauthorized practice of law. Pursuant to the Order and Judgment, Perlov disclosed the names of 51 of his clients and was ordered to pay over $40,000 in restitution to his victims and $10,000 in penalties.

According to the indictment filed today in Kings County Supreme Court and statements made by the prosecutor at arraignment, a subsequent investigation by the Attorney General’s Office revealed that after the Order and Judgment was entered in September 2015, Perlov allegedly continued to carry on his illegal law practice.  After closing his office in Brooklyn, Perlov allegedly met clients at public locations and sometimes at his home in Brooklyn.  Perlov is also charged with appearing multiple times in Kings County Criminal Court, falsely representing himself to be an attorney and filing false documents.

The prosecutor further stated that in one instance, Perlov allegedly promised to win millions of dollars in a nonexistent civil lawsuit for a 78-year-old victim.  Perlov allegedly showed up near the victim’s residence when he knew the victim was getting a pension check, and continually took monies from the victim for phony legal services.  On occasion, Perlov himself used the victim’s ATM card to withdraw money directly from the victim’s account.   Taking advantage of the victim’s unfamiliarity with the legal system and limited English, Perlov allegedly urged the victim not to tell anyone his name nor anything about the case, as it would cause the case to be delayed.  The prosecutor further stated that although the lawsuit was entirely fictitious, Perlov allegedly stole over $20,000 from this victim over a two-year period for purported legal services.   

The 18-count indictment, unsealed today in Kings County Supreme Court, charges Perlov with stealing over $50,000 from multiple victims between January 2013 and August 2016.  Perlov is charged with one count of  Criminal Possession of a Forged Instrument in the Second Degree (a Class “D” felony), five counts of Grand Larceny in the Third Degree (a Class “D” felony), two counts Grand Larceny in the Fourth Degree (a class “E” felony), one count Practicing or Appearing as an Attorney-at-Law Without Being Admitted and Registered (a Class “E” felony), two counts of None but Attorneys to Practice in the State (a Class “E” felony), five counts of Falsifying Business Records in the First Degree (a Class “E” felony) and two counts of Scheme to Defraud in the First Degree (a class “E” felony).

Perlov was arraigned on the indictment today before Kings County Supreme Court Justice Miriam Cyrulnik. Prior to the filing of today’s indictment, the Attorney General previously arrested Perlov on a felony complaint in relation to a single victim.  Bail was continued in the amount of $25,000 bond or $10,000 cash. 

The defendant is presumed innocent until proven guilty in a court of law.

The Attorney General’s investigation of this matter continues.  If you feel you have been a victim of this type of crime or if you have additional information regarding this matter, please contact the Attorney General’s office at (212) 416-8758. Russian-speaking personnel will be available for individuals who do not speak English.

Attorneys must be licensed in the State of New York by the New York State Unified Court System, Office of Court Administration. If possible, before meeting or retaining an attorney, consumers should confirm his or her license on the OCA website: iapps.courts.state.NY.us/attorney/AttorneySearch.

If you are seeking legal representation outside of New York State, contact that state’s licensing authority to confirm that the person is in fact licensed to practice in that jurisdiction.

The case is being prosecuted by Assistant Attorney General Yana G. Knutson with the assistance of Legal Analyst Jacques Courbe of the Criminal Enforcement and Financial Crimes Bureau.  Assistant Attorney General Matthew S. Eubank of the Attorney General’s Brooklyn Regional Office also assisted in this investigation. The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Gary T. Fishman and Deputy Bureau Chief Stephanie Swenton. The Brooklyn Regional Office is led by Assistant Attorney General in Charge Michael Barbosa. 

The investigation was handled by Investigator Anna Ospanova with assistance from Supervising Investigator Sylvia Rivera. The Investigations Bureau is led by Chief Dominick Zarrella.

A.G. Schneiderman Releases Comprehensive Report Examining Unprecedented Number Of Voter Complaints During April Presidential Primary And Proposes New Statewide Voting Protections And Reforms

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A.G.’s Civil Rights Bureau Uncovers Significant Barriers To Voting Before And During Elections Throughout New York State

Schneiderman Lays Out Comprehensive Voting Reforms To Address Statewide Voting Problems, Including Early Voting, Automatic And Same-Day Voter Registration, Consolidated Primaries, Shortened Party Registration Deadlines, And More

Investigation By Attorney General’s Office Into The Purge Of More Than 100,000 Voters In Kings County Is Ongoing

NEW YORK – Attorney General Eric T. Schneiderman today announced the results of his office’s statewide inquiry into widespread voter complaints received before, during, and after the April 2016 presidential primary. The inquiry found New York’s current election system erects significant barriers to voter access in at least two major ways: first, the state’s rules, laws, procedures, and practices governing voter registration prevented many New Yorkers from participating in the primary; second, some of the rules, laws, procedures, and practices governing voting itself restricted voter access to the ballot.

The Attorney General’s office launched the inquiry after receiving a record number of complaints from voters during the primary election. The 1,500 calls to the office’s voter protection hotline during the presidential primary were 10 times higher than any previous election.

“The voting issues we uncovered during the April primary were widespread, systemic and unacceptable,” said Attorney General Schneiderman. “The right to vote is the right that protects all other rights. New York must become a national leader by protecting and expanding voting rights throughout the state.”

To follow up on individual voter complaints, the attorney general’s office contacted eight Boards of Election (BOEs) throughout the state – New York City (which covers Bronx, Kings, New York, Queens and Richmond counties), and Nassau, Suffolk, Westchester, Erie, Onondaga, Monroe, and Albany Counties. After the primary, the Office of the Attorney General sent letters to the BOEs that oversee elections in each of these counties requesting information regarding individual voter registration files, voter registration policies and procedures, and affidavit and absentee balloting information. Investigators also spoke with representatives of the New York State Department of Motor Vehicles (“DMV”) and the New York State Board of Elections.

Results of the Inquiry

Nearly two-thirds of complaints received by the Attorney General’s office involved barriers posed by voter registration rules, laws, procedures and practices, including:

  • Voters not affiliated with the Democratic or Republican party had to meet exceedingly restrictive deadlines for party enrollment in order to vote in the primary.
  • Voters were barred from voting because state agencies did not transmit registration information in a timely way, or at all, to local BOEs.
  • The DMV’s online registration system stalled twice and ultimately went offline after receiving an unprecedentedly high volume of registration requests prior to the deadline.
  • Voters were barred from voting because of errors on the part of local BOEs in processing registrations.

An additional 20 percent of complaints involved barriers posed by unwieldy laws, rules, procedures and practices related to the voting process, such as:

  • Local BOEs inhibited voter access to affidavit ballots
  • Reduced poll hours in select counties led to confusion and prevented some voters from voting
  • Voters were confused about their polling locations because they were not warned their polling place had moved.

The full “Report On Voter Access In The 2016 Presidential Primary” is available here.

To help alleviate these challenges, Attorney General Schneiderman also pledged to introduce the 2017 New York Votes Act, a comprehensive bill to reform the state’s voting systems. The reforms are aimed at simplifying the voting process, boosting voter registration, and expanding voter turnout.  The reforms include:

  • Voter Registration
    • Automatic Registration of Eligible Voters
      • Any state or local “source agency” that collects information from a person who has formal contact with that agency as part of an application, registration or other similar process would be required to automatically electronically transmit identifying information for that person (e.g., name, address, date of birth, driver’s license number, Social Security Number) to the New York State Board of Elections (BOE) for inclusion in a statewide voter registration database.
    • Same-Day Registration For New Voters
      • Amend New York State Election Law to permit a qualified person who is not registered to vote in the state to appear personally at the appropriate polling place on the day of any primary, general or special election, register to vote, and simultaneously cast his or her ballot. Once the registration is vetted, the voter’s ballot would be counted, and the voter would be added to the voting rolls
    • Online Voter Registration
      • Allow electronic voter registration, so that any qualified registrant can complete the entire registration process online via a desktop computer or handheld device
    • Create a System of Permanent Voter Registration
      • Implement a system of “permanent” voter registration in the state by requiring the State BOE and local BOEs to update the registration of any consenting voter who moves within the state and submits change of address information to officials at designated government agencies.
    • Allow Registered Voters to Change Their Party Enrollment Closer to Primary Day
      • Allow already-registered voters to change their party affiliation up to 25 days (if so postmarked by mail) or up to ten days (if delivered in person to the local BOE) prior to any primary election
  • Voting
    • Adopt a System of Early Voting
      • Permit a registered voter to vote at the local BOE in the same county or city where the voter is registered, and at one or more other designated polling places, seven days per week (excluding certain holidays) starting two weeks before an election
    • Provide for "No Excuse" Absentee Voting
      • Repeal, in its entirety, the current requirement that absentee ballots can only be obtained and cast by otherwise qualified voters if they meet one of several statutorily-enumerated justifications for obtaining such ballots. The bill also would allow online submission of applications for absentee ballots.
    • Ensure Uniformity of Poll Site Hours Across the State
      • Require poll sites to open at 6:00 a.m. and close at 9:00 p.m. during all primary elections.
    • Consolidate Federal, State and Local Primaries on Single Day
      • Hold all statewide primary elections on one day in early June.
    • Enact Disaster Preparedness Protections
      • Vest authority in the Governor to delay elections; create procedures for relocating poll sites and extended absentee voting periods after a disaster; and provide broad authority to the State BOE to create the rules and plans necessary to conduct an election during an emergency
  • Enhance Access to the Ballot
    • Increase Language Access
      • Whenever any local BOE finds that 3% of the voting-age residents of an election precinct have Limited English Proficiency, according to the U.S. Census Bureau, it shall provide ballots as well as registration or voting notices, forms, instructions, assistance, and other materials or information relating to the electoral process in the primary language of the population in question, in a manner that provides the same opportunity for access and participation as voters whose primary language is English
    • Protect Voters from Improper Challenges
      • Require a good faith basis and supporting documentation for anyone challenging voter eligibility on Election Day, as well as penalties for those who abuse this provision of the law
    • Restore Voting Rights for Citizens on Parole
      • Restore voting rights to parolees with felony convictions. Restoration would not be contingent upon payment of fees, fines, restitution, or other legal financial obligations
    • Enhance Poll Worker Training and Recruitment
      • Mandate all poll workers in the state complete training approved by the State BOE. Also, help local BOEs strengthen existing training programs

“Citizens Union is pleased to have Attorney General Schneiderman’s leadership on this important issue to modernize and improve the way New Yorkers register to vote and cast ballots.  New York may not actively seek to suppress voter participation like other states did during this past election but its antiquated system of voting is nothing other than a passive form of voter suppression. Citizens Union has just launched a ten-year campaign to increase voter turnout throughout the state of New York to achieve many of the reforms laid out in the AG’s proposal.  We look forward to working with him.  New York has one of the lowest voter turnout rates in the country in large part due to our old-fashioned voting laws and processes that produce noncompetitive elections. Our election system must focus on modernization by increasing the ways and days New Yorkers have to cast a ballot which  this package of reforms seeks to do”, said Dick Dadey, executive director of Citizens Union, a New York City based democratic reform civic group.

“New York is consistently at the 'bottom of the nation's barrel' in voting participation.  That lousy ranking demands a policy response.  NYPIRG applauds the Attorney General's effort to push Albany to act.  New York needs to be the nation's engine in voter participation, not its caboose,” said Blair Horner, executive director of the New York Public Interest Research Group (NYPIRG).

“Voting in New York should be as simple as possible, but our outdated system makes it difficult for many to even get registered. Automatic voter registration has the potential to add a million eligible New Yorkers to the rolls, and implementing it at agencies beyond the DMV would make our state a nationwide leader. And, restoring the right to vote to individuals on parole would not only give 40,000 New Yorkers a second chance to contribute to our society, but also make it much easier to administer our elections,” said Jennifer L. Clark, Counsel for the Democracy Program at the Brennan Center for Justice. “The Brennan Center applauds the Attorney General for his leadership in helping bring New York State's elections into the 21st century.”

“The success of our democracy depends on one person one vote. Citizen Action thanks the AG for his report, and urges the Governor and legislature to enact voting reform so that we reduce the barriers to voting and increase voter participation in New York,” said Ivette Alfonso, President of Citizen Action of NY.

“Attorney General Schneiderman's review of the laws, policies, and practices that govern our voting process is crucial to understanding the weaknesses in the system and the steps we need to take to ensure integrity and fair access to this most basic aspect of our democracy,” said Assemblymember Brian Kavanagh, who sponsors bills that would enact many of the reforms the Attorney General recommends. “We must reject the idea that the problems identified in this report are inevitable, and work to improve and modernize every aspect of the system—and remove unnecessary impediments—from the moment an eligible voter seeks to register until all votes are counted and the results are verified. I look forward to working with the Attorney General, my colleagues in the legislature, and many other New Yorkers who are committed to this vital effort.”

“For one reason or another, voter participation has dropped over the years to levels that are very concerning,” said Assemblymember Brennan (D-WF, Brooklyn). “This year, the Assembly passed one of my bills, A.3874, which would eliminate the current requirement that a voter must satisfy one of the excuses included in the State Constitution to receive an absentee ballot. Once these excuses are eliminated, a system can be created that permits voters to vote by mail. This bill provides voters, who find it difficult to physically appear at their polling location, the opportunity to ensure their ballot is counted on Election Day. With this measure, we hope to increase voter interest in elections and encourage more individuals to exercise their fundamental right to vote.”

“My office has never received as many complaints about Election Day operations as we did this year. My constituents experienced every hassle imaginable: long lines, broken scanners, a lack of supplies, even pollworkers furnishing incorrect information,” said Assemblymember Dan Quart.“While the Board of Elections should certainly improve their performance on Election Day, it is undeniable that we need to simplify and streamline the voting process to eliminate the importance of Election Day. Early voting is one important piece of this puzzle - when New Yorkers can vote on their own schedule, Election Day will operate much more smoothly for those who choose to go to the polls that day. I applaud all of my colleagues who have joined me in calling for policies that will improve our election system for all voters.”

“We need to better protect the right of everyday citizens to participate in their government through nominating candidates and voting,” said Assemblyman Thomas J. Abinanti.

“I am happy to stand with Attorney General Schneiderman on reforming the Board of Elections and the automated voting process and procedures,” said Assemblymember Latrice Walker. “Issues such as these are why I introduced ‘The Modernized Voter Registration Act (A.8626)’ – an omnibus bill that comprehensively protects the right to vote in New York.  I am proud to stand with the Attorney General’s office championing these reforms.”

“Early voting increases citizen involvement and turnout in elections,” said Assemblymember Peoples-Stokes. “Exercising the right to vote should not be burdensome for New Yorkers. The early voting measure proposed in bill (A3117) will allow voters to cast a ballot in person prior to Election Day.  Over the years Election Day has created a challenge for many voters at the polls ranging from long lines, wrong polling sites and/or faulty machines. I applaud Attorney General Schneiderman in supporting New York State’s early voting initiative. I look forward to New York keeping pace with the rest of the country in providing early voting.”   

"A critical element in the success of our form of government is that voting be made accessible to foster the widest possible participation," said Assemblymember Colton. "Providing translation in the primary speaking language to large populations that speak English as a second language will encourage the largest number of voters. We need to make every effort to facilitate voting and translating voting materials in a bilingual manner will help accomplish that goal." 

“Attorney General Schneiderman’s findings come as no surprise. The anger and frustration in the voice of an active voter who for one reason or another cannot cast a ballot is palpable, and it’s becoming a regular occurrence for my office; I can only imagine the nature of the calls and emails to AG Scheiderman’s office. We have to make changes. We have to give voters every opportunity to participate in our Democracy. I look forward to working alongside AG Schneiderman as he pursues the necessary reforms to help guarantee a New Yorker’s fundamental right to vote,” said Senator Martin Malavé Dilan.

“As elected officials we must protect one of our most sacred pillars of democracy, the right to vote,” said State Senator Leroy Comrie. “After an intense election season that saw many irregularities around the county and here in our state, voting reform is more critical than ever. As ranking member of the Elections Committee, I will work alongside Attorney General Schneiderman, my colleagues in government and the advocates to increase ballot access for all New Yorkers. It is our duty to empower voters--to not do so is akin to silencing them.”

“Today's state laws fail New Yorkers trying to exercise their right to vote with broken, archaic rules -- that has to change,” said State Senator Daniel Squadron. “The Attorney General's report outlines real problems, and real solutions. Now Albany needs to take real action, including on my bill to create realistic time-frames for party enrollment (S570). Thank you to Attorney General Schneiderman, my colleagues, and advocacy partners for their continued focus on improving voting laws.”

“New York is one of the worst states for voter participation in the country and that needs to change. In many instances, New Yorkers move to other counties across the state and fail to transfer their voter registration and forget to re-enroll in their new voting district,” said Senator David Carlucci. “My bill, S.858, aims to make voting easier in New York by transferring voter registration and enrollment wherever someone moves in the state. By making the voting and registration process simpler, I believe that more New Yorkers will feel encouraged to vote.”

"It is imperative that we continue to urge members of our community to uphold their civic duty and vote during each election. Unfortunately, chronic problems with our voting apparatus appear to be worsening each election cycle. I thank the Attorney General's office for taking New Yorkers complaints seriously, and calling for reforms to our electoral system that include legislative measures that I currently have before the State Senate.  I look forward to working with Attorney General Schneiderman and my colleagues in the Legislature to ensure these reforms are enacted into our laws this session,” said Senator Kevin Parker.

The inquiry is being handled by Assistant Attorneys General Ajay Saini, Diane Lucas, and Sania Khan of the Civil Rights Bureau, led by Bureau Chief Lourdes Rosado, and Nicholas Suplina, Senior Advisor and Special Counsel, and Brian Mahanna, Chief of Staff. The Social Justice Division is led by Executive Deputy Attorney General Alvin Bragg. 

Schneiderman Publica Informe Integral Examinando El Nivel Sin Precedentes De Quejas De Votantes Durante Las Primarias Presidenciales De April Y Propone Nuevas Protecciones Y Reformas De Votación En El Estado

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La Oficina de Derechos Civiles de la Fiscalía General descubre barreras significativas  para votar antes y durante las elecciones en todo el estado de Nueva York

Schneiderman propone reformas integrales para abordar problemas de votación a nivel estatal, incluyendo la votación anticipada, el registro automático de votante y de un mismo día, consolidar las primarias, y reducir los plazos de registración

Investigación de la Fiscalía General sobre la  exclusión de más de 100,000 votantes en el condado Brooklyn sigue en curso

NUEVA YORK - El Fiscal General Eric T. Schneiderman anunció hoy los resultados de la indagatoria a nivel estatal de su oficina sobre las extensas quejas de votantes recibidas antes, durante y después de las primarias presidenciales de abril de 2016. La pesquisa encontró que el actual sistema electoral de Nueva York tiene barreras significativas al acceso de votantes en al menos dos maneras principales: primero, las reglas, leyes, procedimientos y prácticas estatales que norman el registro de votantes impidieron que muchos neoyorquinos participaran en la primaria; En segundo lugar, algunas de las reglas, leyes, procedimientos y prácticas que rigen la votación en sí restringen el acceso de los votantes a la votación.

La oficina del Fiscal General inició la pesquisa después de recibir un número récord de quejas de los votantes durante las elecciones primarias. Las 1.500 llamadas a la línea directa de protección de votantes de la oficina durante la primaria fueron 10 veces más altas que cualquier elección anterior.

"Las problemas de votación que descubrimos durante las primarias de abril fueron generalizados, sistémicos e inaceptables", dijo el Fiscal General Schneiderman. "El derecho al voto es el derecho que protege todos los demás derechos. Nueva York debe convertirse en un líder nacional al proteger y expandir los derechos de voto en todo el estado".

Para dar seguimiento a las quejas individuales de los votantes, la oficina del Fiscal General se puso en contacto con ocho Juntas de Elección (BOEs) en todo el estado - la ciudad de Nueva York (que cubre los condados de Bronx, Brooklyn, Manhattan, Queens y Staten Island), Nassau, Suffolk, Erie, Onondaga, Monroe y Albany. Después de la primaria, la Oficina del Fiscal General envió cartas a los BOE que supervisan las elecciones en cada uno de estos condados solicitando información con respecto a los archivos de registro de votantes individuales, políticas y procedimientos de registro de votantes y declaración de declaraciones juradas y votos ausentes. Los investigadores también hablaron con representantes del Departamento de Vehículos Motorizados del Estado de Nueva York ("DMV") y la Junta de Elecciones del Estado de Nueva York.

Resultados de la pesquisa

Casi dos tercios de las quejas recibidas por la oficina del Fiscal General involucraban las barreras planteadas por las reglas de registro de votantes, leyes, procedimientos y prácticas, incluyendo:

  • Los votantes no afiliados con el Partido Demócrata o Republicano tuvieron que cumplir con los plazos extremadamente restrictivos para inscribirse en el partido para votar en la primaria.
  • Se negó a los votantes votar porque las agencias estatales no transmitieron la información de registro de manera oportuna, o en absoluto, a los BOE locales....
  • El sistema de registro en línea del DMV se estancó dos veces y, en última instancia, quedó sin conexión después de recibir un volumen de solicitudes de registro sin precedentes antes de la fecha límite.
  • Se prohibió a los votantes votar debido a errores cometidos por las Juntas Electorales (BOE) locales en el procesamiento de los registros.

Un 20 por ciento adicional de las quejas involucraba barreras planteadas por leyes, reglas, procedimientos y prácticas relacionados con el proceso de votación, tales como:

  • Los BOE locales inhibieron el acceso de los votantes a las boletas de declaración jurada
  • La reducción de las horas de votación en los condados seleccionados llevó a confusión e impidió que algunos votantes votaran
  • Los votantes estaban confundidos acerca de sus lugares de votación porque no se les advirtió que su lugar de votación se había cambiado.

El reporte completo sobre el acceso de votantes en la primaria presidencial 2016 está disponible aquí.

Para ayudar a aliviar estos desafíos, el Fiscal General Schneiderman también se comprometió a presentar en proyecto de ley de Nueva York Vota 2017, una ley integral para reformar los sistemas de votación del estado. Las reformas tienen como objetivo simplificar el proceso de votación, impulsar el registro de votantes y ampliar la participación electoral. Las reformas incluyen:

  • Registro de votantes
    • Registro Automático de Votantes Elegibles
      • Se requerirá a cualquier "agencia fuente" estatal o local recopilar información de una persona que tenga contacto formal con esa agencia como parte de una solicitud, registro u otro proceso similar para que automáticamente transmita electrónicamente esta información de identificación para esa persona (por ejemplo, nombre, dirección, fecha de nacimiento, número de licencia de conducir, número de seguro social) a la Junta de Elecciones del Estado de Nueva York (BOE) para su inclusión en una base de datos estatal de registro de votantes.
    • Registro del mismo día para los nuevos votantes
      • Modificar la Ley Electoral del Estado de Nueva York para permitir que una persona calificada que no esté registrada para votar en el estado comparezca personalmente en el lugar de votación apropiado el día de cualquier elección primaria, general o especial, pueda registrarse para votar y botar simultáneamente, luego de que el registro sea revisado. El voto debe ser contado y el votante añadido al padrón.
    • Registro de votantes en línea
      • Permitir el registro electrónico de votantes, de modo que cualquier registrante calificado pueda completar todo el proceso de registro en línea a través de una computadora o dispositivo portátil.
    • Crear un sistema de registro permanente de votantes
      • Implementar un sistema de registro de votantes "permanente" en el estado, requiriendo que el BOE estatal y los BOE locales actualicen el registro de cualquier votante que se mude dentro del estado y envíe información de cambio de dirección a funcionarios de agencias gubernamentales designadas.
    • Permitir que los votantes registrados cambien la inscripción de su partido más cerca del día de las primarias
      • Permitir que los votantes ya inscritos cambien su afiliación partidaria hasta 25 días (si es así por correo postal) o hasta diez días (si se entregan en persona al BOE local) antes de cualquier elección primaria
  • Poder Votar
    • Adoptar un sistema de votación temprana
      • Permitir que un votante registrado vote en el BOE local en el mismo condado o ciudad donde está inscrito el votante, y en uno o más lugares de votación designados, siete días a la semana (excluyendo ciertos días festivos) comenzando dos semanas antes de una elección
    • Proveer  votación ausente sin necesidad de “Excusa"
      • Derogar, en su totalidad, el requisito actual de que las boletas de voto en ausencia solo pueden ser obtenidas y emitidas por votantes que califican de otra manera si cumplen una de varias justificaciones estatutariamente enumeradas para obtener tales boletas. El proyecto de ley también permitiría la presentación en línea de las solicitudes de boletas de votación en ausencia.
    • Asegurar la Uniformidad en horarios de votación en todo el Estado
      • Requerir que los sitios de votación abran a las 6:00 am y cierren a las 9:00 pm durante todas las elecciones primarias.
    • Consolidar las Primarios Federales, Estatales y Locales en un Día Único
      • Realizar todas las elecciones primarias a nivel estatal en un día a principios de junio.
    • Promulgar las protecciones de preparación ante desastres
      • Darle autoridad al gobernador para retrasar las elecciones; Crear procedimientos para reubicar los sitios de votación y prolongar los períodos de votación en ausencia después de un desastre; Y proveer amplia autoridad al BOE estatal para crear las reglas y planes necesarios para conducir una elección durante una emergencia
  • Mejorar el acceso a la boleta electoral
    • Aumentar el acceso al idioma
      • Siempre que un BOE local encuentre que el 3% de los residentes en edad de votar de un distrito electoral tienen Competencia Limitada en Inglés, de acuerdo con la Oficina del Censo de los Estados Unidos, deben proporcionar boletas, así como avisos de inscripción o votación, formularios, instrucciones, asistencia y otros materiales o información relacionada con el proceso electoral en la lengua primaria de la población en cuestión, de manera que proporcione la misma oportunidad de acceso y participación como a votantes cuya lengua materna es el inglés
    • Proteger a los votantes de retos indebidos
      • Requerir una base de buena fe y documentación de respaldo para cualquier persona que cuestione la elegibilidad de los votantes el día de las elecciones, así como sanciones para quienes abusen de esta disposición de la ley
    • Restablecer los derechos de voto de los ciudadanos en libertad condicional
      • Restablecer los derechos de voto a las personas condicionadas con condenas por delitos graves. La restauración no estaría supeditada al pago de honorarios, multas, restitución u otras obligaciones financieras legales
    • Mejorar la capacitación y reclutamiento de los trabajadores de elecciones
      • Requerir a todos los trabajadores electorales una capacitación completa aprobada por el BOE  estatal. Además, ayudar a los BOE locales a fortalecer los programas de capacitación existentes

 “En Citizens Union nos sentimos bien en tener el liderazgo del Fiscal General Schneiderman en esta importante cuestión para modernizar y mejorar la forma en que los neoyorquinos se inscriben para votar y votar. Nueva York no buscó activamente suprimir la participación de votantes como lo hicieron otros estados durante estas elecciones pasadas, pero su anticuado sistema de votación no es otra cosa que una forma pasiva de supresión de votantes. Citizens Union acaba de lanzar una campaña de diez años para aumentar la participación electoral en todo el estado de Nueva York para lograr muchas de las reformas establecidas en la propuesta del Fiscal General. Esperamos trabajar con él. Nueva York tiene una de las tasas más bajas de votantes en el país en gran parte debido a nuestras antiguas leyes de votación y procesos que producen elecciones no competitivas. Nuestro sistema electoral debe centrarse en la modernización, aumentando las formas y los días que los neoyorquinos tienen para emitir un voto que este paquete de reformas busca establecer", dijo Dick Dadey, Director Ejecutivo de Citizens Union, un grupo cívico basado en la reforma democrática de la ciudad de Nueva York.

"Nueva York está constantemente en el 'fondo del barril de la nación' en la participación electoral. Esa pésima clasificación exige una respuesta política. NYPIRG aplaude los esfuerzos del Fiscal General para que Albany actúe. Nueva York debe ser el motor en el tren de la nación en cuando a la participación de los votantes, no en uno de sus vagones”, dijo Blair Horner, director ejecutivo del Grupo de Investigación de Interés Público de Nueva York (NYPIRG).

“El éxito de nuestra democracia depende del voto de cada persona. Citizen Action agradece al Fiscal General por su informe e insta al Gobernador y a la legislatura a que promulguen una reforma electoral para reducir las barreras a la votación y aumentar la participación de los votantes en Nueva York “, dijo Ivette Alfonso, Presidenta de Citizen Action de NY.

“La votación en Nueva York debe ser lo más simple posible, pero nuestro sistema obsoleto dificulta que muchos se registren. El registro automático de votantes tiene el potencial de agregar un millón de neoyorquinos elegibles a los padrones, y su implementación en agencias más allá del DMV haría que nuestro estado sea un líder nacional. Y restaurar el derecho a votar a personas en libertad condicional no sólo daría a 40.000 neoyorquinos una segunda oportunidad de contribuir a nuestra sociedad, sino que también haría mucho más fácil administrar nuestras elecciones ", dijo Jennifer L. Clark, abogada del Programa Democracia En el Centro de Justicia Brennan. "El Centro Brennan aplaude al Fiscal General por su liderazgo en ayudar a traer el sistema electoral del Estado de Nueva York al siglo XXI”.

“La revisión del Fiscal General Schneiderman de las leyes, políticas y prácticas que gobiernan nuestro proceso de votación es crucial para entender las debilidades en el sistema y los pasos que debemos tomar para asegurar la integridad y el acceso justo a este aspecto más básico de nuestra democracia”, dijo el asambleísta Brian Kavanagh, quien patrocina el proyecto de ley que promulgaría muchas de las reformas que el Fiscal General recomienda. “Debemos rechazar la idea de que los problemas identificados en este informe son inevitables y trabajar para mejorar y modernizar todos los aspectos del sistema -y eliminar los impedimentos innecesarios- desde el momento en que un votante elegible busca inscribirse hasta que se cuentan todos los votos y los resultados se verifican. Tengo muchas ganas de trabajar con el Fiscal  General, mis colegas en la legislatura y muchos otros neoyorquinos que están comprometidos con este esfuerzo vital”.

La pesquisa en este asunto está siendo manejada por los Fiscales Adjuntos Adjay Saini, Diane Lucas, y Sania Khan, de la Oficina de Derechos Civiles, dirigida por la Jefa de la Oficina Lourdes Rosado, y Nicholas Suplina, Asesor Principal Especial, y Brian Mahanna, Jefe de Gabinete de la Fiscalía General. La División de Justicia Social está dirigida por el Fiscal Ejecutivo Adjunto Alvin Bragg.

A.G. Schneiderman Files Motion To Dismiss And Motion To Quash In Northern District Of Texas In Response To Exxon’S Efforts To Interfere With NY Ag’S Fraud Investigation

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News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
December 6, 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 FILES MOTION TO DISMISS AND MOTION TO QUASH IN NORTHERN DISTRICT OF TEXAS IN RESPONSE TO EXXON’S EFFORTS TO INTERFERE WITH NY AG’S FRAUD INVESTIGATION

NYAG’s Motion To Dismiss Outlines Legal Case Against Exxon Lawsuit And Debunks Exxon’s False And Misleading Claims Against NYAG 

A.G.’s Response Comes After NY State Court, In A Separate Proceeding, Recently Ordered Exxon To Comply With NYAG’s Investigative Subpoenas 

Dallas, TX - New York State Attorney General Eric T. Schneiderman filed a Motion to Dismiss (“MTD”) Exxon’s lawsuit against NYAG in the Northern District of Texas on Monday evening. NYAG also filed a Motion to Quash (“MTQ”) Exxon’s related requests for discovery. Exxon sued the NYAG nearly one year after AG Schneiderman launched an investigation into the company for potential violations of New York’s securities, consumer, and business fraud laws.

The NYAG’s Motion to Dismiss debunks numerous false and misleading statements made by Exxon in its lawsuit against NYAG. In doing so, it quotes Exxon’s own attorneys’ acknowledgments of the legitimacy of NYAG’s investigation during a recent appearance in NY Court. “The NY AG has ‘the right to conduct this investigation’” (MTD, p.5 quoting Exxon attorney).

Recently, in a related proceeding, a New York State Court ordered Exxon to comply with two subpoenas issued by NYAG in furtherance of the investigation.

The NYAG’s Motion to Dismiss cites binding legal precedent—including case law from the Fifth Circuit Court of Appeals and United States Supreme Court—to demonstrate why Exxon’s lawsuit should be dismissed.

The NYAG’s Motion to Quash cites similar precedent to demonstrate that permitting discovery of the NYAG by Exxon would undermine the integrity of an ongoing law enforcement investigation, (“As former United State Attorney General Robert Jackson put it: ‘Counsel for a defendant or a prospective defendant, could have no greater help than to know how much or how little information the Government has, and what witnesses or sources of information it can rely upon.’” (MTQ, p.2).

The Motion to Dismiss can be found here.

The Motion to Quash can be found here.

Statement Of A.G. Schneiderman On Federal Government’S Action On His Petition To Close Dangerous Loophole That Allows Rail Shipment Of Highly Flammable Crude Oil

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STATEMENT OF A.G. SCHNEIDERMAN ON FEDERAL GOVERNMENT’S ACTION ON HIS PETITION TO CLOSE DANGEROUS LOOPHOLE THAT ALLOWS RAIL SHIPMENT OF HIGHLY FLAMMABLE CRUDE OIL  

NEW YORK – Attorney General Eric T. Schneiderman issued the following statement on the announcement by the federal Pipeline and Hazardous Materials Safety Administration (PHMSA) that it will act on his petition seeking to close a loophole that currently allows highly flammable crude oil to be routinely shipped by rail through communities in New York and across the country: 

“I applaud the federal government for recognizing the need to address the danger that crude oil shipments pose to communities across New York State. In New York, trains carrying millions of gallons of crude oil routinely travel through our cities and towns without any limit on its explosiveness or flammability – which makes crude oil more likely to catch fire and explode in train accidents.  The federal government’s commitment to initiate a rulemaking marks a long overdue first step towards reducing the danger to residents in harm’s way of oil trains in New York and across the country.”

Background

In December 2015, Attorney General Schneiderman filed a petition for rulemaking to the federal Pipeline and Hazardous Materials Safety Administration (PHMSA) that would require all crude oil transported by rail in the U.S. to achieve a vapor pressure – a key driver of the oil’s explosiveness and flammability– of less than 9.0 pounds per square inch (psi).  Specifically citing the Attorney General’s petition, PHMSA announced that it will be seeking comment on vapor pressure thresholds, and will evaluate the potential safety benefits of utilizing a threshold in regulating the transport of crude oil and other dangerous materials.  The comment period will begin on December 30, 2016 and end February 28, 2017.  

Vapor pressure is a key contributor to crude oil’s explosiveness and flammability.  Crude oils with the highest vapor pressures – such as crude produced from the Bakken Shale formations in North Dakota – have the highest concentrations of propane, butane, ethane, and other highly volatile gases.  While the vapor pressure of the crude involved in train accidents is frequently not disclosed, in the limited number of instances it is known – including the horrific Lac-Mégantic, Quebec accident where a derailed train burst into flames, destroyed the downtown area, and killed 47 people – vapor pressures have exceeded 9.0 psi.

Attorney General Schneiderman’s petition directly addressed the fact that – despite recent derailments of trains carrying crude that have resulted in extraordinary explosions and uncontrollable fires – there is no federal limit on the vapor pressure of crude oil transported by rail.  The Attorney General’s petition argues that reducing crude oil vapor pressures to levels below 9.0 psi is not only practical, but is necessary for minimizing the risks and severity of accidents involving railroad tank cars.

The rulemaking announcement can be found on page 95 at  https://www.transportation.gov/regulations/report-on-significant-rulemakings. 

A.G. Schneiderman Announces Arrests Of Three Individuals For Allegedly Defrauding Medicaid-Funded Home Health Programs

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News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
December 7, 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 ARRESTS OF THREE INDIVIDUALS FOR ALLEGEDLY DEFRAUDING MEDICAID-FUNDED HOME HEALTH PROGRAMS 

Three Individuals Allegedly Stole From Medicaid By Submitting False Timesheets For Services Not Provided 

Schneiderman. Those Who Steal From Medicaid Will Be Prosecuted To The Fullest Extent

NEW YORK – Attorney General Eric T. Schneiderman today announced the conclusion of two separate investigations and the arrest of Tina Gabel, 58, and Sean Gabel, 23, of Poughkeepsie, and Enny Portillo, 58, of Highland Mills, for submitting over $50,000 of false home health care claims to Medicaid.  

“Medicaid programs are put in place to help those who need them most,” said Attorney General Schneiderman. “We will continue to aggressively pursue all individuals who steal from Medicaid to enrich themselves.”

These cases arose out of two home care programs funded by Medicaid, the Consumer Directed Personal Assistance Program (CDPAP) and the Community Habilitation program.  CDPAP allows a physically disabled individual or their representative to assume full responsibility for their home care and recruit, hire, train, supervise and fire the personal assistants providing the care.  Personal aides in the Community Habilitation program provide those with developmental disabilities with personal, social and vocational support needed to live in their community.

Tina Gabel and Sean Gabel, who is Tina Gabel’s son, were arraigned today in Dutchess County Court before the Honorable Edward McLoughlin on an indictment charging them with Grand Larceny in the Second Degree, Offering a False Instrument for Filing in the First Degree and Falsifying Business Records in the First Degree.

It is alleged that Tina Gabel and Sean Gabel submitted false timesheets to AccentCare of New York, Inc., (AccentCare), a fiscal intermediary for CDPAP, which claimed that Sean Gabel provided consumer directed personal assistant services to two of their relatives in Dutchess County, New York between October 2011 and February 2015 when Sean Gabel was not in Dutchess County.  As the relatives’ representative, Tina Gabel was responsible to administer CDPAP for both relatives and was responsible to submit and verify the accuracy of their assistants’ timesheets.  Based upon the false timesheets, Medicaid paid AccentCare over $50,000 for hours that Sean Gabel did not work.

Tina Gabel is also charged with conspiring with another aide to submit false timesheets to Taconic Innovations, Inc., a not-for-profit organization, claiming the personal aide had provided community habilitation services to one of Gabel’s relatives. Tina Gabel managed the community habilitation services for her relative and was responsible for verifying the assistants’ timesheets submitted to Taconic. Based upon the false timesheets, Medicaid allegedly paid Taconic Innovations, Inc. over $50,000 for hours that the personal aide did not work.  

Enny Portillo, 58, of Highland Mills, New York, was arrested and arraigned on November 1, 2016, in the Town of Woodbury Justice Court before the Honorable David Hasin on a felony complaint charging her with Grand Larceny in the Second Degree, Offering a False Instrument for Filing in the First Degree and Falsifying Business Records in the First Degree. 

According to papers filed in Court, Enny Portillo verified false timesheets submitted to Priority Home Care Services, Inc., (Priority), a fiscal intermediary for CDPAP, claiming that her daughter provided CDPAP services to Enny Portillo’s a Medicaid recipient while the recipient was out of the country in Columbia. Enny Portillo was the recipient’s representative and oversaw the care.  As such, she was responsible for the administration of the care, including certifying personal assistant’s timesheets submitted to Priority.  Based upon the submission of false timesheets, Medicaid allegedly paid Priority over $50,000 for hours that Enny Portillo’s daughter did not work.

All three defendants were released upon their own recognizance. Grand Larceny in the Second Degree is a class C felony and carries a maximum sentence up to fifteen years in state prison. Offering a False Instrument for Filing in the First Degree and Falsifying Business Records in the First Degree are class E felonies and carry a maximum sentence of up to four years of state prison.

The Attorney General would like to thank the New York State Office of the Medicaid Inspector General for referring these matters.

The investigations were conducted by MFCU Investigators Valerie Patrick and Jeffrey Pitts and Senior Audit Investigators Sandra Iskowitz and Melissa Stoebling with the assistance of Supervising Investigator Peter Markiewicz, Deputy Chief Investigator Kenneth Morgan, Principal Auditor Investigator Lora Pomponio, Principal Supervising Auditor Investigator Ann Winslow and Regional Chief Auditor John Regan.

The criminal cases are being prosecuted by Special Assistant Attorney General Todd Pettigrew with the assistance of Regional Director Anne Jardine.  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.

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


Statement By A.G. Schneiderman On The Reported Nomination Of Scott Pruitt As Administrator Of The U.s. Environmental Protection Agency

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 News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
December 7, 2016

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

STATEMENT BY A.G. SCHNEIDERMAN ON THE REPORTED NOMINATION OF SCOTT PRUITT AS ADMINISTRATOR OF THE U.S. ENVIRONMENTAL PROTECTION AGENCY

NEW YORK – Attorney General Eric T. Schneiderman issued the following statement on President-elect Trump’s reported intention to nominate Attorney General Scott Pruitt as Administrator of the U.S. Environmental Protection Agency:  

“President-elect Trump’s reported nominee to lead the EPA is a dangerous and unqualified choice. As Attorney General, Scott Pruitt consistently failed to uphold his responsibility to protect our nation’s air and water, instead acting as an agent of the oil and gas industry – at the expense of the American people – every time.

“The science is clear: climate change – and the existential threat it poses to all Americans – is real. Yet as Attorney General, Mr. Pruitt not only denied the existence of climate change, but took steps to accelerate its devastating effects on Americans.  

“If the EPA under Scott Pruitt fails to uphold our nation’s environmental laws, I stand ready to use the full power of my office to compel their enforcement by the agency. As New York’s top law enforcement officer, I am proud to be leading a coalition of states that is already aggressively fighting back against efforts to reverse the progress this country has made in combating climate change over the past eight years.

“Under the next administration, we will continue to defend the Clean Power Plan, fight to ensure that the U.S. can meet our obligations under the Paris agreement to reduce greenhouse gas emissions, and hold the EPA’s feet to the fire on its fundamental responsibility to protect our environment.”

A.G. Schneiderman Announces $1.6 Million Settlements With Auto Dealerships That Illegally Charged Thousands Of Customers For Hidden Purchases

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News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
December 8, 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 $1.6 MILLION SETTLEMENTS WITH AUTO DEALERSHIPS THAT ILLEGALLY CHARGED THOUSANDS OF CUSTOMERS FOR HIDDEN PURCHASES   

Settlements Conclude Investigations By A.G. Finding Dealerships In Staten Island And Floral Park Unlawfully Charged More Than 2,500 Consumers For Undisclosed Products, Services Costing Up To $2,000 Per Consumer; Dealerships Must Pay Restitution, Barred From Selling ‘After-Sale’ Items 

Since 2015, A.G. Schneiderman Has Obtained More Than $17 Million In Restitution, Penalties For More Than 22,000 Consumers Illegally Charged By Auto Dealerships For Hidden Products, Services

NEW YORK – Attorney General Eric T. Schneiderman today announced the settlement of a lawsuit against SG Hylan Motors Corp., a Staten Island dealership doing business as Staten Island Honda and Staten Island Nissan (collectively “SG Hylan”) and a separate settlement with Best Auto Outlet, Inc. (“Best Auto”) located in Floral Park.  The SG Hylan settlement resolves a lawsuit filed by the Attorney General in July 2016, which alleged that these auto dealerships unlawfully sold “after-sale” products and services, including credit repair and identity theft protection services, to over 2,300 consumers, sometimes exceeding a cost of $2,000 per consumer.  The settlement requires SG Hylan to pay $1.5 million in restitution to these consumers. The agreement with Best Auto, which returns $115,000 in restitution to consumers, concludes an investigation into this dealership for similar misconduct – alleged unlawful sale of credit repair and identity theft prevention services, and other “after-sale” items to over 200 consumers. 

“When consumers shop for a car, they deserve an honest and fair negotiation – and not to be misled by deceptive dealerships looking to saddle customers with hidden costs,” Attorney General Schneiderman said. “My office will continue to investigate and hold accountable any auto dealers trying to pad their pockets by charging fees for undisclosed products and services that consumers do not need and did not ask for.” 

Each agreement requires payment into a restitution fund to be distributed to consumers with CFI contracts. SG Hylan must also pay $100,000 in penalties, and Best Auto must pay $10,000 in penalties.

Under the settlements, the dealerships are prohibited from:

  • Selling, offering to sell or marketing credit repair and identity theft services in connection with the sale or lease of a vehicle;
  • Selling, offering for sale, or providing to consumers any after-sale product or service unless, prior to such sale, certain material terms, including price, are disclosed verbally and in writing;
  • Misrepresenting the price of the vehicle in final lease or sale contracts;
  • Failing to provide consumers with sales or lease agreements that clearly and conspicuously itemize each after-sale product or service and its price.

These settlements are part of the Attorney General’s initiative to end the practice that automobile dealers call “jamming,” or charging consumers for hidden purchases. In 2015, Attorney General Schneiderman announced a settlement with Credit Forget, Inc., the company that purported to provide the credit repair and identity theft protection services. Since 2015, the Attorney General has settled with 11 dealerships for amounts totaling over $17 million in restitution and penalties. Over 22,000 consumers have been eligible for restitution under these settlements. 

The settlements include the following dealerships:

  • Paragon Auto Dealership:  a group of automobile dealers in Queens and Westchester counties, including Paragon Honda, Paragon Acura, and White Plains Honda
  • Plaza Auto Dealership: a group of dealers located on Nostrand Avenue, Brooklyn, including, Plaza Toyota-Plaza Scion, Plaza Hyundai, Plaza Honda and Acura of Brooklyn
  • Manfredi Auto Dealership:  a group of dealers located on Hylan Blvd, Staten Island, including Manfredi Fiat and Fiat of SI, Manfredi Mitsubishi, Manfredi  Kia, Manfredi Hyundai, Manfredi Cadillac, Manfredi Chrysler Jeep & Dodge, Manfredi Fiat Inc., S.I. Toyota, Manfredi Toyota and Manfredi Scion, Manfredi Subaru, Manfredi Mazda and Staten Island Subaru
  • Koeppel Auto Dealership: a group of dealers located in Jackson Heights, Long Island City and Woodside, Queens, including Koeppel Nissan, Inc.; LK Automotive Enterprises, LLC. d/b/a Koeppel Subaru, KL Auto Enterprises LLC. d/b/a Koeppel Mazda and Koeppel Volkswagen, Inc.
  • I. Autoworld, Inc. d/b/a Generation Kia: located in Bohemia, Long Island
  • Nissan 112:   located in Patchogue, Long Island
  • Huntington Honda, Honda of New Rochelle and New Rochelle Toyota: located on Long Island and in Westchester counties
  • Westbury Jeep Dodge and Fiat of Westbury: located in Westbury, Long Island
  • Security Auto Sales, Inc. d/b/a Security Dodge: located in Amityville, Long Island

The office is continuing to investigate a number of other New York auto dealers that sold or sell after-sale services without the knowledge and consent of consumers. 

Consumers who believe they have been jammed with unwanted products or services in connection with a vehicle lease or purchase or who were sold Credit Forget It’s credit repair or identity theft protection services are urged to file complaints online or call 1-800-771-7755.

The case against SG Hylan is being handled by Assistant Attorneys General Elena González and Noah Popp. The case against Best Auto is being handled by Assistant Attorney General Herbert Israel and Elena González. Both cases are supervised by Deputy Bureau Chief Laura J. Levine, and Bureau Chief Jane M. Azia, all of the Consumer Frauds and Protection Bureau, and the Executive Deputy Attorney General for Economic Justice Manisha M. Sheth.

A.G. Schneiderman Announces Lawsuit Against Rochester Home Improvement Contractor For Allegedly Defrauding Consumers

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News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
December 8, 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 LAWSUIT AGAINST ROCHESTER HOME IMPROVEMENT CONTRACTOR FOR ALLEGEDLY DEFRAUDING CONSUMERS

Suit Would Bar Owner Of Dynabuild Construction Group, Inc. From Operating Home Improvement Contracting Business in NYS; Seeks $128K In Restitution And Penalties 

Schneiderman: We Will Keep Working To Bring Fraudulent Home Contractors To Justice

ROCHESTER – Attorney General Eric T. Schneiderman announced today that his office filed legal action seeking a permanent injunction against a Rochester-based home improvement contractor who contracted to perform home improvement contracting services for consumers Rochester area.

“When hardworking New Yorkers hire a contractor to make home improvements, they deserve to have that work fully completed and in a timely manner,” Attorney General Schneiderman said. “My office will keep working to ensure that fraudulent home contractors are brought to justice.”

The petition alleges that George Frisch, president of Dynabuild Construction Group, Inc., repeatedly and persistently defrauded consumers from the Rochester area by receiving full or partial payments from consumers for home improvement projects but failed to perform any work and what work would be performed was done in a shoddy and unprofessional manner. Consumers who asked for or were promised refunds did not receive them.

Frisch took deposits for snowplowing and home improvement work and spent the money on himself to buy a $30,000 built-in swimming pool and to go on vacation.  11 consumers lost over $70,000 in deposits and additional funds needed to repair poor workmanship left behind by Frisch.

The Attorney General is seeking a permanent injunction against Frisch that will bar him from ever operating a Home Improvement business in New York as well as restitution for defrauded consumers, costs and penalties.  If the court grants the injunction, Dynabuild and Frisch will be stopped from defrauding consumers through the home improvement business in New York. The lawsuit seeks over $70,000 in restitution for consumers and over $58,000 in penalties and costs.

When planning to use a home improvement contractor, consumers should consider the following tips:

  • Never agree to have work done on the spot, especially when potential contractors are marketing door-to-door
  • Determine exactly what you want done, then look for a qualified contractor
  • Shop around; get at least three estimates from reputable contractors that include specific information about the materials and services to be provided
  • Ask for references: check with the Better Business Bureau, banks, suppliers, and neighbors.
  • Always contact any references provided to you
  • Insist on a written contract that includes the price and description of the work needed
  • Do not pay unreasonable advance sums; negotiate a payment schedule tied to the completion of specific stages of the job
  • Never pay the full price up front
  • Remember that you have three days to cancel after signing a home improvement contract, but all cancellations must be in writing

Additional information on how to avoid fraudulent home improvement contractors can be found on the Attorney General’s Website.

Consumers who believe they may have been defrauded by or have unresolved disputes with a home improvement contractor are urged to call the Attorney General’s Consumer Help Line at (800) 771-7755.

The case is being handled by Benjamin Bruce, Assistant Attorney General of the Rochester Regional Office which is led by Ted O’Brien, Assistant Attorney General-in-Charge.  The Rochester Regional Office is a part of the Division of Regional Offices, led by Marty Mack, Executive Deputy Attorney General for Regional Offices.

A.G. Schneiderman Announces $19.5 Million Multi-State Agreement With Bristol-Myers Squibb To End Deceptive Advertising Practices And Off-Label Promotion Of Drug Used To Treat Schizophrenia

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News from Attorney General Eric T. Schneiderman

FOR IMMEDIATE RELEASE
December 8, 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 $19.5 MILLION MULTI-STATE AGREEMENT WITH BRISTOL-MYERS SQUIBB TO END DECEPTIVE ADVERTISING PRACTICES AND OFF-LABEL PROMOTION OF DRUG USED TO TREAT SCHIZOPHRENIA

NEW YORK—Attorney General Eric T. Schneiderman announced today a $19.5 million multistate agreement with Bristol-Myers Squibb (“BMS”) arising from alleged improper marketing and promotion of the drug Abilify. New York’s share of the settlement is $788,774.  Abilify is one of several second-generation antipsychotic prescription drugs, commonly referred to as “atypical antipsychotics,” that were originally used to treat schizophrenia.  The agreement is signed with 41 other State Attorneys General and the District of Columbia.

“Drug companies should not market their drug for off-label uses or make claims that are not supported by scientific evidence,” Attorney General Schneiderman said.  “Consumers must be able to rely on their doctor’s advice for medication without having to worry about drug companies manipulating their advertising to promote their products at the expense of patients.”  

Abilify is the brand name for the prescription drug aripiprazole.  It was originally approved by the U.S. Food and Drug Administration (“FDA”) for the treatment of schizophrenia in 2002.  Since then, the FDA has approved various formulations of Abilify for other indications. 

In a complaint filed today in New York County Supreme Court, Attorney General Schneiderman alleges that BMS engaged in off-label marketing, which is the promotion of drugs for uses that are not FDA approved.  BMS improperly promoted Abilify for pediatric use and for use in elderly patients with symptoms consistent with dementia and Alzheimer’s disease.  In fact, in 2006, Abilify received a “black box” warning stating that elderly patients with dementia-related psychosis who are treated with antipsychotic drugs have an increased risk of death.  The complaint further that BMS violated state consumer protection laws by misrepresenting and minimizing risks of the drug including metabolic and weight gain side effects and by misrepresenting the findings of scientific studies.

The consent decree contains strong injunctive terms prohibiting BMS from:

  • Promoting Abilify for off-label uses;
  • Making false or misleading claims about Abilify;
  • Compensating health care providers for merely attending a promotional activity for Abilify;
  • Promoting Abilify by highlighting selected symptoms instead of diagnoses without reference to the FDA-approved indications;
  • Using medical education grants, including Continuing Medical Education  grants, or any other type of grant to promote Abilify;
  • Rewarding health care providers with grants based on their prescribing habits;
  • Providing samples of Abilify to health care providers whose clinical practices are inconsistent with Abilify’s FDA-approved label.

States participating in the settlement include: Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Washington, West Virginia, and Wisconsin. 

The case was handled by Assistant Attorney General Benjamin J. Lee under the supervision of Bureau Chief Jane M. Azia in the Consumer Frauds and Protection Bureau, and Executive Deputy Attorney General of Economic Justice Manisha M. Sheth.

Schneiderman Presenta Moción  Para Que Se Anule El Proceso De Exxon En El Distrito Norte De La Corte Federal De Texas En Respuesta A Los Esfuerzos De Esa Compañía Por Detener La Investigación Por Fraude De La Fiscalía General De Ny

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La moción de la Fiscalía General de NY busca que se desestime el caso legal contra la demanda de Exxon y desmiente las declaraciones falsas y engañosas de Exxon contra el Fiscal General

Respuesta del Fiscal General llega después de la corte estatal de NY, en un procedimiento separado, ordenó recientemente a Exxon que cumpla con las citaciones investigativas de la Fiscalía General

Dallas, TX - El Fiscal General del Estado de Nueva York, Eric T. Schneiderman, presentó una moción para que se desestime una demanda de Exxon contra el Fiscal General en el Distrito Norte de Texas el lunes por la noche. El Fiscal General también presentó una moción para invalidar otras peticiones de descubrimiento relacionadas de Exxon. Exxon demandó a la Fiscalía General de Nueva York casi un año después de que el Fiscal General Schneiderman lanzara una investigación sobre la compañía por posibles violaciones de las leyes de Nueva York sobre valores, consumo y fraude comercial.

La moción de rechazo de la Fiscalía General desmiente numerosas declaraciones falsas y engañosas hechas por Exxon en su demanda contra NYAG. Al hacerlo, cita los reconocimientos de los propios abogados de Exxon sobre la legitimidad de la investigación de Nueva York durante una reciente aparición en Corte. "El Fiscal General de Nueva York tiene 'el derecho de conducir esta investigación'" (MTD, p.5, citando al abogado de Exxon).

Recientemente, en un procedimiento relacionado, un Tribunal del Estado de Nueva York ordenó a Exxon que cumpliera con dos citaciones emitidas por la Fiscalía General de Nueva York en la profundización de la investigación.

La Moción de Desistimiento de la Fiscalía General cita un precedente legal obligatorio -incluyendo la jurisprudencia del Tribunal de Apelaciones del Quinto Circuito y la Corte Suprema de los Estados Unidos- para demostrar por qué la demanda de Exxon debe ser rechazada.

La moción para anular de la Fiscalía General cita un precedente similar para demostrar que permitir el descubrimiento pedido por Exxon socavaría la integridad de una investigación en curso de una agencia de aplicación de la ley, ("Como el ex Fiscal General del Estado Robert Jackson lo dijo: Un abogado de del acusado o un acusado, no podría tener más ayuda que saber cuánto o cuán poca información tiene el Gobierno, y en qué testigos o fuentes de información puede confiar "(MTQ, p.2).

La moción para desestimar puede ser encontrada aquí.

La moción para anular puede ser encontrada aquí.

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