NEW YORK – Attorney General Eric T. Schneiderman today announced an antitrust lawsuit seeking to prevent pharmaceutical manufacturer Actavis plc and its New-York based subsidiary Forest Laboratories from forcing Alzheimer’s patients to switch medications as part of an anti-competitive strategy designed to maintain high drug prices. This maneuver would needlessly disrupt patient treatment and restrict patient choice just to protect corporate profits.

Actavis has announced a plan to withdraw its Alzheimer’s drug Namenda from the market. Namenda is protected by a patent that will expire shortly and the company will thus face competition from generic drug makers.  Instead of facing that competition, Actavis plans to force patients to switch unnecessarily to a very similar drug with a longer patent. Once patients switch to the new drug, Namenda XR, it’s likely that they will remain on that medication even after the Namenda generics hit the market due to the practical difficulties of switching back, thus allowing Actavis to insulate its profits from competition. 

“A drug company manipulating vulnerable patients and forcing physicians to alter treatment plans unnecessarily simply to protect corporate profits is unethical and illegal,” said Attorney General Schneiderman. “Unfortunately, schemes to block competition, without considering the consequences to patients, are a growing trend in the health care industry. By standing up to Actavis, we’re sending a clear message to all pharmaceutical companies: Prioritizing profits over patients’ rights will not be tolerated.”

Since 2004, Forest has made billions of dollars as the exclusive seller of the patented drug Namenda.  But by July, 2015, that patent will expire, allowing generic versions of Namenda to hit the market at drastically lower prices. To block competition from generics and protect its bottom line, Actavis and Forest intend to pull Namenda off the market early, forcing patients to switch to another of their drugs, Namenda XR, on which they hold the patent for several years to come.  

Actavis is relying on the fact that it would be difficult for patients who switch to Namenda XR to switch drugs again once generics becomes available. Normally, state substitution laws allow pharmacists to dispense generics without being forced to obtain physician approval; this allows generic drugs to compete effectively. But even though Namenda and Namenda XR have the same active ingredient, pharmacists will not be allowed to offer generic Namenda to patients taking Namenda XR; a doctor’s approval would be required to make that switch. This means that most Alzheimer’s patients and their families will end up paying for the higher-priced drug, even when the generic version is the doctor-recommended and cost-effective choice. 

As alleged in the lawsuit, Actavis’ stated reason for the switch – that Namenda XR is a superior drug simply because it can be taken once a day instead of twice – rings hollow. If that were the true reason for the switch, Actavis could simply give patients a choice rather than imposing this forced switch. The real reason is that Actavis knows that its profits will take a hit once the Namenda patent expires, and is seeking to blunt the financial impact. On an earnings call earlier this year, Forest’s CEO, Brenton Saunders, acknowledged this, saying: “If we do the hard switch … it’s very difficult for the generics.” He added, “It is an obstacle that will allow us to … go into a slow decline versus a complete cliff.”

The lawsuit alleges that, by forcing patients to switch to Namenda XR, Actavis is gaming the regulatory system that governs pharmaceuticals and violating antitrust laws designed to encourage competition and keep prices down for consumers. Generic drugs typically succeed by offering pharmacies lower prices to encourage them to dispense the generics instead of the more expensive name-brands. Patients benefit from this when they are able to obtain equivalent generic medication at far lower cost.  Actavis’s actions will undermine generics’ ability to compete and, worse still, accomplish this goal by eliminating patient choice and manipulating the treatment plans for these vulnerable patients.

The Attorney General’s complaint was filed in the United States District Court for the Southern District of New York on September 15.

This matter is being led by Antitrust Bureau Chief Eric J. Stock, Senior Enforcement Counsel Elinor R. Hoffmann, Assistant Attorneys General Saami Zain, Zachary W. Biesanz, and Joseph Antel, and Executive Deputy Attorney General for Economic Justice Karla G. Sanchez.

ROCHESTER – Attorney General Eric T. Schneiderman today announced that retail chain Wal-Mart Stores, Inc. has agreed to a settlement in a false advertising investigation by the Attorney General’s Office. The investigation involved claims that Wal-Mart advertised a nationwide sale of Coca-Cola soft drinks but charged customers in their 117 stores across New York State more than the advertised sale price.

In June 2014, Wal-Mart launched a Father’s Day sale, including advertising 12-packs of Coca-Cola products for $3.00. However, when consumers in New York State attempted to purchase the sale items, customers were routinely charged $3.50. According to the investigation by the Attorney General’s Office, in one Buffalo-area Wal-Mart store a consumer brought the error to the attention of staff and was told that the newspaper circular was a national ad and that it did not apply in New York. When consumers complained about being charged more than the advertised price, Wal-Mart staff falsely told them that New York has a ‘Sugar Tax.’ The investigation concluded that the markup of over 16% above the advertised price violates New York State’s General Business Law 349 and 350.

“There has to be one set of rules for everyone, no matter how rich or how powerful, and that is why our office must ensure that even the largest corporations cannot advertise one price and then charge a higher one to New Yorkers,” said Attorney General Schneiderman. “Whether it’s securing the largest financial settlements in U.S. history to address misconduct that crashed the economy, or settling cases with the nation’s largest retailers, this office will continue to stand on the side of ordinary New Yorkers.”

During the course of the investigation by Attorney General Schneiderman’s office, consumers were routinely overcharged in stores across the state. It was determined that cash registers were programmed to not recognize the advertised sale price. On June 12, 2014, the Attorney General’s Office requested that Wal-Mart immediately adjust prices to the amount advertised. Wal-Mart took corrective action after approached by the Attorney General’s Office.

The investigation also determined that Wal-Mart ran a similar sale in March that resulted in the company failing to honor the advertised price for Coca-Cola soft drinks in New York. Despite documented complaints from consumers about the price discrepancy, the company failed to adjust prices until requested by the Attorney General’s Office.  In total, Wal-Mart sold New Yorkers 66,000 12-packs of Coca-Cola at an inflated price.

The settlement requires Wal-Mart to pay over $66,000 in penalties and other costs, to improve its internal reporting to more quickly act on information it receives from consumers about overcharges, and to change business practices to comply with state law.

The case was handled by Assistant Attorney General Benjamin Bruce and the investigation was handled by Investigator Jennifer Hill, both of Rochester Regional Office. The Rochester Regional Office is led by Assistant Attorney General In-Charge Debra Martin. The Rochester Regional Office is part of the Division of Regional Offices headed by Executive Deputy Attorney General for Regional Affairs Marty Mack.

NEW YORK - Attorney General Eric T. Schneiderman, leading a coalition of eight states, today backed a federal proposal designed to ensure that the nation’s lakes, rivers, streams, and wetlands receive proper protection under the federal Clean Water Act (CWA).  The coalition’s support came in comments submitted to the heads of the U.S. Environmental Protection Agency and the Army Corps of Engineers’ Civil Works Office on their joint Waters of the United States Proposed Rule.  

The proposed rule seeks to clarify what types of waters are covered by the CWA – an issue that has become muddled by two recent U.S. Supreme Court decisions.  This lack of clarity has led to uncertainty among businesses, citizens, and state and local pollution control officials as to their obligations under the CWA.  It has also potentially stripped large numbers of waterways of federal protection, leaving them – and the downstream waters with which they connect – vulnerable to degradation.  All the Lower 48 states have waters that are downstream of other states.  

“Every New Yorker has an equal right to clean water, which is fundamental to the health, environment, and economy of our states,” said Attorney General Schneiderman.“The degradation of waters in upstream states can increase flooding, add pollution, damage hunting and fishing habitat, and foul the drinking water supplies of their downstream neighbors.  We applaud EPA and the Corps for recognizing that the interconnectedness of our waters requires their comprehensive coverage under the Clean Water Act.  This proposal will protect our states’ hard-earned gains in water protection by ensuring that all states share responsibility for clean water.”  

A lake, river, stream, wetland, or any other kind of surface water is afforded protection under the CWA only if it is a “water of the United States.”  Supreme Court decisions in 2001 and 2006 have led to substantial uncertainty as to whether some waters – particularly, small, seasonal, or rain-dependent streams, wetlands, and tributaries – are still considered waters of the United States.  As a result, roughly 20,000,000 wetland acres and 2,000,000 miles of streams in the Continental U.S. have lost, or have been placed in jeopardy of losing, their protections under the CWA.  And many of these threatened waters cannot rely on protections under state laws.   A 2013 study by the Environmental Law Institute found that 36 states have laws in place that could prevent state agencies or municipalities from protecting waters not covered by the CWA.

In today’s comments, the coalition cites three primary reasons for supporting the proposal:

• The rule is grounded in solid, peer-reviewed science, particularly with respect to the “connectivity” of waters.   Scientific studies demonstrate that many waters are connected by networks of tributaries and wetlands.  Because of these connections, physical, chemical, and biological pollution from upstream waters often impacts the health of associated downstream waters.
• The rule sets a strong floor for protecting our nation’s interconnected waters.  Such a floor ensures basic consistency and effectiveness in water pollution control among states, protecting downstream states from the effects of unregulated discharges from upstream states.
• By clarifying the scope of waters of the United States, the rule addresses the current confusion and disagreements in the courts regarding the application of the CWA.  States need this legal clarity to efficiently and confidently administer their water protection programs.     

Frances Beinecke, President of the Natural Resources Defense Council, said, “I commend the Attorneys General for their leadership on this critical action to restore protections for vulnerable waters across the nation.  This proposed rule strikes the right balance between state autonomy and the national imperative to control dangerous water pollution.”

Jimmy Hague, Director of the Center for Water Resources at the Theodore Roosevelt Conservation Partnership, said, “America’s hunters and anglers support this rulemaking because Clean Water Act confusion has put our fisheries and waterfowl habitat at risk.  Today’s comments from the attorneys general underscore how important it is to restore protections to wetlands and headwater streams. They understand that clarifying which waters are covered by the Act – and just as importantly, which waters are not covered – benefits the states, sportsmen, and everyone else who cares about clean water.”

Jeanne Christie, Executive Director of the Association of State Wetland Managers,said, “The Clean Water Act must be implemented using sound science or the goals of the Act can never be achieved.   Study after study confirms that wetlands, streams, rivers, lakes and oceans are interdependent and that the loss or pollution of one part affects others.   The proposed rule recognizes that clean, abundant water is necessary to support a healthy environment and a strong economy. “

Kim Diana Connolly, Professor of Law and Director of Environmental and Natural Resources Law Program at SUNY Buffalo Law School,said, “The United States federal government has invested multiple decades attempting to clarify the appropriate regulatory role for the United States over waters of the U.S..  Based on this extensive research and analysis, EPA and the Corps have proposed an excellent revision to the definition of ‘waters of the United States.’ If approved, all stakeholders in the regulatory process will more clearly know whether a particular undertaking is compliant with the law, allowing the money that would otherwise be spent disputing this issue with the Corps, with EPA, in federal court, or in U.S. Congress, to instead be invested in efficient, environmentally-responsive infrastructure.”

Lakes, rivers, streams, wetlands, and other kinds of surface waters trap floodwaters, remove pollution, provide habitats for fish and wildlife, and maintain drinking water supplies.  The health and cleanliness of these waters is critical to their role in fishing, hunting, agriculture, recreation, energy generation, and manufacturing.  For example, approximately one in three Americans gets drinking water from public systems that rely on small, seasonal, or rain-dependent streams – the waters placed at greatest risk by the uncertainty created by recent Supreme Court decisions.

Joining Attorney General Schneiderman in co-signing today’s letter are the Attorneys General from Connecticut, Delaware, Illinois, Maryland, Rhode Island, Washington State, and the District of Columbia.

The matter is being handled by Watershed Inspector General Philip Bein, Assistant Attorney General Timothy Hoffman, and Environmental Scientist Charles Silver, of the Attorney General’s Environmental Protection Bureau, with support from Bureau Chief Lemuel M. Srolovic, Executive Deputy Attorney General for Social Justice Alvin Bragg, and First Deputy for Affirmative Litigation Janet Sabel. 

NEW YORK – Attorney General Eric T. Schneiderman today announced the arrest and indictment of five individuals for running an alleged identity-theft ring targeting customers of local banks. The defendants stole over $850,000 by having bank tellers access and steal personal information of hundreds of unsuspecting customers – account numbers and Social Security numbers, for example – and use it to withdraw money from those accounts, according to today’s allegations. The tellers indicted today worked for branches of Bank of America, JP Morgan Chase, HSBC, TD Bank and Wachovia in the Bronx, and Westchester and Orange Counties among others.

“Bank tellers have access to our most sensitive financial information and we must be able to trust that our data will remain safe and secure,” said Attorney General Schneiderman.“Identity theft is a complex and growing problem, and we must redouble our efforts to ensure that all of us – from large corporations, to small businesses and families – are better protected.”

The defendants allegedly used the stolen information to create fake drivers licenses and checks, which they used to withdraw money at bank branches. The investigation, which was conducted by the Attorney General’s Criminal Enforcement and Financial Crimes Bureau, revealed that the ring has been in operation for at least four years.

The alleged ring leader was Tyrone Lee, 28, of the Bronx. Three of his co-conspirators – Nadia Figueroa, 23 and Kalika Arline, 29, of the Bronx and Venise Cole, 27, of Florida – were employed as bank tellers at Wachovia and JP Morgan Chase, Bank of America and TD Bank, respectively. Anthony Davis, 29, of the Bronx was in charge of manufacturing the fraudulent documents used by the ring to steal from the victims.

According to the indictment unsealed today in Westchester County Court, the three tellers routinely accessed the bank accounts of hundreds of customers to obtain personal and financial data. They then relayed that information to Lee and Davis, who used the information to create fake documents using the stolen customers’ information with, in some cases, the defendants’ own pictures. Those fake IDs were then used to withdraw money at bank branches in New York City, and Westchester and Orange counties, as well as Long Island, Connecticut and Massachusetts.

During the investigation, investigators used court-authorized wiretaps to intercept telephone calls and text messages. The defendants were overheard speaking in code about customer accounts, which they called “joints,” the “bands” of money they would steal (referring to $1000 stacks of cash) and the banks they  intended to target, including “touchdown” for TD Bank and “Yase” for JP Morgan Chase.

Among the New York bank branches whose customers were victims of identity theft are:

• JP Morgan Chase: 5 West Burnside Avenue, Bronx, NY
• HSBC: 1 East Fordham Road, Bronx, NY
• Bank of America: 50 West Fordham Road, Bronx, NY
• Bank of America: 206 Main Street, White Plains, NY
• JP Morgan Chase: 235 Main Street, White Plains, NY
• JP Morgan Chase: 410 South Broadway, Yonkers, NY
• Bank of America: 479 North Broadway, Jericho, NY
• Wachovia (now Wells Fargo): 43 North Plank Road, Newburgh, NY

The bank tellers arrested and arraigned today worked at the following branches:

• Kalika Arline worked at the Bank of America branch at 206 Main Street in White Plains.
• Nadia Figueroa worked at the JP Morgan Chase branch, at 235 Main Street, White Plains.
• Nadia Figueroa also worked at the Wachovia branch (now a Wells Fargo bank branch), at 43 N. Plank Road, in Newburgh.
• Venise Cole worked at the TD branch, at 6176 N U.S. Highway 41, in Apollo Beach, Florida.

Today’s indictment charges all five defendants with multiple felony counts of Grand Larceny, Identity Theft and Scheme to Defraud. Several are also charged with Criminal Possession of a Forged Instrument. As part of this investigation, search warrants were executed earlier this year at the residences of Lee and Davis. As a result, Lee was arrested and indicted in June for possession of a 9-mm. handgun recovered at his home. Davis was charged with prior counts of Criminal Possession of a Forged Instrument and Falsifying Business Records. If convicted, Lee and Arline each face up to 15 years in prison. Davis, Figueroa, and Cole each face up to 7 years behind bars.

The Attorney General plans to bring additional charges against these defendants and other members of the fraud ring.

The charges are accusations and the defendants are presumed innocent unless and until proven guilty.

The case is being prosecuted by Assistant Attorneys General Lana Milojevic and Rhonda Greenstein and Deputy Bureau Chief Meryl Lutsky of the Criminal Enforcement and Financial Crimes Bureau. The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Gary T. Fishman and the Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

The investigation was conducted by Legal Support Analyst Theo Davidson, Investigators Steve Pratt, Vincent Gisonti, Sylvia Rivera, Israel Hernandez, Ryan Fannon and Dave Negron and Larry Riccio, Senior Investigator Dennis Maddalone, Supervising Investigator John Sullivan, and Deputy Chief Investigators John McManus and Greg Stasiuk.  The Investigations Division is led by Chief Investigator Dominick Zarrella.

NEW YORK – Attorney General Eric Schneiderman and San Francisco District Attorney George Gascón revealed that new iPhones sold with iOS 8 will include Apple’s theft deterrent system, Activation Lock, as a default setting.  This marks the first time in the history of the smartphone industry that theft deterrent technology is available by default on new products.

In addition to being standard on the new iPhone 6 and 6 Plus, newly-sold iPhones will also prompt users to upgrade to iOS 8.  Additionally, the new operating system can also be installed on most previous models of iPhones beginning today.
 
“After months of work with the Secure Our Smartphones Initiative, Apple has taken a significant step forward in our shared effort to make dangerous and often deadly smartphone thefts a thing of the past,” said Attorney General Schneiderman.  “By being the first manufacturer to make an effective theft deterrent a default setting on new products and making it available to customers using older products Apple is helping ensure the safety and security of their customers.  For smartphone theft deterrents to fully work, they need to be widely adopted thereby removing the economic incentive for stealing them in the first place, which is why I strongly encourage consumers to install all available theft deterrent options and why every manufacturer should move as quickly as possible make similar features a default setting for their products. ”

“This is a game changer,” said District Attorney George Gascón. “Apple device owners can look forward to a day in the near future when their smartphones won’t make them a target to opportunistic thieves. Apple products are the most commonly targeted smartphones, so deploying this technology on a default basis will safeguard almost all iPhone users in the years ahead. This is a major development that will change behavior on the street and eventually turn around this violent epidemic. In the meantime, it is essential that smartphone users remain alert, and that older iPhone users enable Find My iPhone.”  
 
Apple introduced Activation Lock with its iOS7 in September 2013.  Activation Lock makes it harder for anyone to use or sell any iPhone, iPad, or iPod touch if it’s ever lost or stolen.  With Activation Lock, any Apple ID and password are required before anyone can turn off Find My iPhone on a device, sign out of iCloud on a device or erase and reactivate a stolen device.  Thus, consumers can in essence “brick” their phones making them worthless to thieves.
 
As co-chairs of the Secure Our Smartphone (S.O.S.) Initiative – an international partnership of law-enforcement agencies, elected officials and consumer advocates – Attorney General Schneiderman and District Attorney Gascón led the effort to call on the wireless industry to address the global rise in smartphone thefts. The ultimate goal of SOS is for every mobile device to have a “kill switch” on by default.  A default solution is imperative because it ensures that the device will be worthless to thieves.
 
In a June 2014 report by the S.O.S. Initiative, new data showed that criminals now target devices not likely to be equipped with a kill switch.  In New York, London and San Francisco, robberies and grand larcenies involving iPhones plummeted following the release of Apple’s Activation Lock while violent crimes against people carrying phones without a kill switch surged. This demonstrated the importance of immediately implementing life-saving technology by all manufacturers. Because kill switches are mostly available on a solely opt-in basis, not enough consumers are signing-up. Kill switches must be a standard opt-out function on all phones and other mobile devices.

The Secure Our Smartphones Initiative is a groundbreaking coalition of state attorneys general, major city mayors, district attorneys, major city police chiefs, state and city comptrollers, public safety activists and consumer advocates from around the world. This initiative is working to encourage the industry to implement meaningful solutions that will end the national epidemic of violent thefts of mobile communications devices such as smartphones and tablets.

For more information on efforts by Attorney General Schneiderman and District Attorney Gascón to combat “Apple Picking,” visit the New York State Attorney General’s website and the San Francisco District Attorney’s website.

NEW YORK – Attorney General Eric T. Schneiderman today announced the arrest of Timothy Griffin, a Westchester real-estate attorney, for allegedly stealing from his own clients’ escrow account and using the money to help fund his family’s extravagant lifestyle. The Attorney General's investigation revealed that Griffin, who lives in Ridgefield, CT and practices in Bronxville, stole more than $1 million money from clients between April 2009 and February 2014, according to the criminal complaint and information made public at arraignment.  

As a real-estate attorney, Griffin’s clients would give him money to be held in escrow for pending transactions. Instead of keeping the money in escrow, as required by law, Griffin allegedly transferred it to his personal bank account and then used that money to make payments on: a membership at Westchester’s Waccabuc Country Club, a BMW, a Lexus, expensive jewelry and other personal expenses.

“Attorney-client privilege does not give lawyers the right to steal from clients in order to fund their own lavish lifestyle,” said Attorney General Schneiderman. “Clients must be able to trust their attorneys and abusing that trust is both unethical and illegal. Today’s arrest sends the message that there must be one set of rules for everyone.”

Today’s charges came to light following the Attorney General’s investigation into the theft of nearly $2 million from the not-for-profit United Hebrew Cemetery in Staten Island. In late 2012, Griffin was asked to serve as the Acting President of the Cemetery after the previous president and his wife were found guilty of embezzling approximately $850,000 (which was also an investigation conducted by the Attorney General’s office). In his capacity as Acting President, Griffin allegedly made six unauthorized wire transfers from the cemetery’s account to his own attorney escrow account totaling $1.9 million. (He was indicted earlier this year for felony Grand Larceny in that case.)

Investigators with the Attorney General’s Criminal Enforcement and Financial Crimes Bureau believe that Griffin stole from the cemetery in order to reimburse the escrow account from which he’d been stealing his clients’ money for years.

Griffin was charged today with seven counts of felony Grand Larceny. He was arraigned this morning in New Rochelle before the Honorable Susan Kettner. If convicted, he faces up to 25 years in prison on today’s charges in Westchester County. (He also faces up to 25 years in prison on the previous indictment.)

The charges against the defendant are allegations and he is presumed innocent until proven guilty in a court of law.

The Attorney General's Office thanks the New York State Department of State, Division of Cemeteries, for their valuable assistance in this case.

The case is being prosecuted by Assistant Attorney General Chin-Ho Cheng, with the assistance of Supervising Legal Analyst Paul Strocko 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 Criminal Justice Division is led by Executive Deputy Attorney General Kelly Donovan.

The investigation was handled by Investigators Sixto Santiago and Ryan Fannon, Supervising Investigator Luis Carter and Deputy Chief of Investigations Vito Spano.  Also assisting in the investigation were Supervising Auditor Edward J. Keegan and Associate Auditor Matthew Croghan.  The Investigations Division is led by Chief Dominick Zarrella. 

NEW YORK – Attorney General Eric T. Schneiderman today announced that 46 states and the District of Columbia have reach a settlement agreement with Minnesota-based company Medtronic to resolve claims under the False Claims Act that Medtronic improperly induced physicians to recommend Medtronic devices to treat cardiac rhythmic disease. New York led a national team composed of members from Oregon, Texas and California to negotiate the settlement. The federal government settled its matter in May of this year.

“Physicians should determine the best course of treatment for their patients based on sound medical judgment, not on any special treatment that they may receive from a manufacturer,” Attorney General Schneiderman said. “Such conduct puts patients at risk and unfairly impacts those companies that follow the law. My office will vigorously pursue health care companies that try to improperly influence health care professionals.”

The agreement requires Medtronic to pay the settling states $362,362, which will go to those states’ Medicaid programs. The matter was brought by a whistleblower, Adolfo Schroeder, and was filed in U.S. District Court for the Eastern District of California. The Attorney General would like to thank Mr. Schroeder for bringing this matter to the government’s attention. Under the terms of the agreement, the New York Medicaid Program will receive $67,369.31.

This settlement concludes the investigation concerning Medtronic based on the allegations brought by Mr. Schroeder. In 2012, the states and Medtronic entered into a settlement agreement in which Medtronic agreed to pay the states $844,800. In that matter, New York received $201,148.20. In addition to Mr. Schroeder, the Attorney General would like to thank the Department of Justice and the United States Attorney’s Office for the Eastern District of California.

The national team was led by Jay Speers, Counsel to the New York Medicaid Fraud Control Unit. Stacey Millis, Supervising Auditor Investigator, was the national analyst, assisted by Michael LaCasse, Chief Auditor for the Civil Enforcement Unit, and Matthew Tandle, Senior Special Auditor/Investigator. The Medicaid Fraud Control Unit is led by Acting Director Amy Held. The Criminal Justice Division is led by Executive Deputy Attorney General Kelly Donovan.

NEW YORK – Attorney General Eric T. Schneiderman and New York State Police (NYSP) Superintendent Joseph A. D’Amico today announced the indictment of 41 people charged with operating two related drug trafficking pipelines that transported heroin between New York City; Providence, RI; Worcester, MA, and Syracuse, and cocaine from Puerto Rico to Syracuse. Nine members of the same Syracuse family helped run one of the rings, and one of those family members was involved in the second ring. The defendants were arrested today in a series of early morning raids in Syracuse, the Bronx, Manhattan, Ossining, NY, and Paterson, NJ.

“Heroin has become one of the deadliest forces attacking communities across New York and the country,” said Attorney General Schneiderman. “Takedowns like this one strike a significant blow to the criminal element of narcotics trafficking, particularly across Central New York. To protect our communities from the heroin scourge, we must wage war on several different fronts — by equipping our law enforcement officers with antidotes to overdoses and cracking down on prescription drug abuse to stem heroin addiction before it starts.”

“Our partnership with the Attorney General and the Organized Crime Task Force (OCTF) has once again resulted in shutting down a major drug operation – this one operating right here in Central New York,” said New York State Police Superintendent Joseph A. D’Amico. “The New York State Police remain committed to working with the Attorney General’s Office, and our partners in local law enforcement, to identify these dealers, shut down their operations and send a message loud and clear to anyone dealing these dangerous and deadly drugs -- we will find you and you will be held accountable.”

According to one of two indictments unsealed today in Onondaga County Court, the first drug ring comprised at least 19 individuals, 9 of whom are members of the same family. This ring allegedly imported cocaine from Puerto Rico and heroin from Worcester, MA, and Rochester to Syracuse, and then distribute it in and around the area. Over the course of the nine-month investigation, which was led by OCTF, NYSP and the Syracuse Police Department, authorities seized 29 bags of heroin, more than a kilogram of cocaine, a large quantity of prescription pills and several thousand dollars in cash in connection with this indictment.

The second and larger indictment accuses a group of 24 individuals, two of whom also participated in the first ring, of importing heroin from New York City and Rhode Island and cocaine from Puerto Rico into the Syracuse area for resale. Authorities seized more than a kilogram of heroin and three kilograms of cocaine, as well as over $75,000 in cash, from the investigation into this ring. Three members of this ring – Maria Rodriguez, Christopher Ramos and Jeyson Pizarro – are charged with Operating as a Major Trafficker, the most serious drug crime under New York State law, and face potential life sentences.

The two separate indictments charge 41 individuals with crimes including Operating as a Major Trafficker, various counts of Criminal Sale and Criminal Possession of a Controlled Substance (class A and B felonies), and Conspiracy to commit those crimes. The Operating as a Major Trafficker statute (§220.77 of the Penal Law of the State of New York), authored by Attorney General Schneiderman when he was a legislator, went into effect in November 2009 as part of reforms to the Rockefeller-era drug laws and is the only felony narcotics charge in the state that carries a possible life sentence.

Those charged in today’s two indictments are:

VINCENTE ALVAREZ-MEDINA of Ossining, NY
IRISAIDA BERMUDEZ of Syracuse, NY
JEAN CARLOS CALDERON of Syracuse, NY
DANIEL CARRASQUILLO of Syracuse, NY
LUIS CARRASQUILLO of Syracuse, NY
JOSE CASTRO of Bronx, NY
JENNIFER CEPEDA of Syracuse, NY
LUIS CHARLEMAN of Syracuse, NY
EDWIN COLON-LOPEZ of Syracuse, NY
LUIS CRUZ of Syracuse, NY
MARIO D. CRUZ-ALMONTE of Paterson, NJ
MOISES FIGUEROA-HERNANDEZ of Syracuse, NY
YELITZA MARQUEZ-ALEJO of Syracuse, NY
EZEQUIEL MARTINEZ of Syracuse, NY
JOSUE MARTINEZ of Syracuse, NY
JOSE MERCEDES of Bronx, NY
MARISELA ORNELAS of Syracuse, NY
(Minor, Name Withheld) of Syracuse, NY
ROBERTO OSORIO-COMACHO of Syracuse, NY
JEAN CARLOS OSORIO-PARRILLA of Syracuse, NY
AVINADERT VIDAL PEREZ of Aguadilla, Puerto Rico
GIOBANNY PEREZ-DOMINGUEZ of Paterson, NJ
JERRY PINEDA of Bronx, NY
JEYSON PIZARRO of Syracuse, NY
KENY PIZARRO of Syracuse, NY
CHRISTOPHER RAMOS of Syracuse, NY
RAFAEL NELSON RAMOS-MALDONADO of Bronx, NY
ALEX RIVERA of Paterson, NJ
ANGEL LUIS RIVERA a/k/a JIMMY RIVERA of Syracuse, NY
EDGAR RIVERA (Alejandro) of Syracuse, NY
IRIS RIVERA of Bronx, NY
JULIO RIVERA of Bronx, NY
MARIA RODRIGUEZ of New York, NY
MIGUEL RODRIGUEZ of New York, NY
NICOLAS RODRIGUEZ-REYES of Paterson, NJ
LUZ ROSARIO of Syracuse, NY
CARMEN SANABRIA of Bronx, NY
VICTOR SANCHEZ of Bronx, NY
ZACHARY SNYDER of Central Square, NY
JESSICA TEIXEIRA of Bronx, NY
JOE ALVAREZ VEGA of Syracuse, NY

The investigation was conducted by OCTF Special Investigator William Elsenbeck, Supervising Investigator Thomas M. Wolf and Deputy Chief Eugene Black from the Attorney General’s office; Investigator Luc France of the New York State Police Special Investigations Unit and Sobrina Vasquez of the New York State Police Community Narcotics Enforcement Team. The Attorney General’s Investigations Bureau is led by Chief Investigator Dominick Zarrella. Detective Raul Santana and Special Investigation Division Captain Timothy Gay of Syracuse Police Department were also integral to the investigation.

Several additional agencies participated in the investigation, including the Oswego County District Attorney's Office, Onondaga County Sheriff's Department, Onondaga County District Attorney's Office, Onondaga County Attorney’s Office, Onondaga County Probation Department, Syracuse Police Department, Camillus Police Department, Solvay Police Department, Rochester Police Department, Cortland County Sheriff's Department, United States Parole, United States Postal Inspectors, United States Border patrol and Syracuse University Police.

The case is being prosecuted by OCTF Assistant Deputy Attorney General and Senior Investigative Counsel James J. Mindell and Deputy Attorney General Peri Alyse Kadanoff. The Executive Deputy Attorney General for Criminal Prosecutions is Kelly Donovan.

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

Tomorrow in New York City, the UN Climate Summit will bring heads of state, business community leaders and activists together to push for action to protect our planet from climate change.

While the need for a response is urgent and felt every day in communities across the country, our leaders in Washington have failed to find a way past partisan gridlock and get something done. That is why I will be hosting a special program today on what our states and local communities can do, absent leadership from Washington. Because one thing is clear: We can’t afford to wait.

Here in New York, we are already seeing how climate change contributes to increasingly violent and extreme weather that has cost us dearly, in both damage and in lives.

Earlier this month, my office issued a report that demonstrated the toll that extreme rainstorms and floods are taking on communities all over the State. The report illustrates how our climate is changing and how climate change poses a clear and present danger to every New Yorker, every American and every citizen of every country on the globe.

A few examples of what a changing climate means for New Yorkers:

In 2009, severe thunderstorms dropped nearly 6 inches of rain in less than two hours in Cattaraugus, Chautauqua, and Erie counties, causing extensive flash flooding. Cattaraugus Creek rose from 6 to nearly 13 feet in less than hour, damaging over 400 structures and leaving many families homeless.

In 2011, Hurricane Irene dropped over 11 inches of rain in 24 hours on the Hudson Valley, eastern Adirondacks, Catskills and Champlain Valley, causing catastrophic flooding. Over 1 million people lost power, more than 33,000 had to evacuate, and 10 were killed. Damage estimates totaled $1.3 billion. 

One week later, Tropical Storm Lee dumped up to a foot of rain on the Southern Tier, then moved north into areas already reeling from Irene's devastation.

Last month, a stalled weather front dumped more than 13.5 inches of rain in a few hours on Long Island, flooding over 1,000 homes and businesses, opening massive sinkholes, and forcing hundreds to evacuate. That's almost as much rain as Long Island typically gets in an entire summer. Cleanup costs could exceed $30 million.

What is disturbing about these devastating storms is not just their historic nature; it's the fact that this kind of extreme weather is becoming all too common.

Historical weather data analyzed in my report revealed a disturbing increase in the intensity and frequency of storms across New York. In fact, the amounts of rain falling in 24-hour periods rose so dramatically between 1978 and 2007 that so-called 100-year storms now happen, on average, every 60 years.

The report also found that, based on the United States National Climate Assessment, if greenhouse gas emissions follow current trends, the frequency of extreme rainstorms that typically produce 4 to 6.5 inches of rain a day in New York is projected to increase on the order of 300 to 400 percent by century's end.

The bottom line is clear: Climate change is a reality, and it is having a real impact.

Unfortunately, despite the urgency of the situation, gridlock in Washington has forced state governments to step up to get greenhouse gases reduced and make our infrastructure more resilient.

That is why my Environmental Protection Bureau has worked aggressively and creatively to curb greenhouse emissions, protect critical infrastructure from a changing climate, and ensure clean air and water for every New York community.

It is why we proposed legislation to require electric and gas utilities to incorporate storm hardening into their planning.

The time has come to join together to demand immediate action if we are to overcome the challenges of climate change, and ensure a safer, healthier, more sustainable state, nation and world for the present and the future.

NEW YORK – Attorney General Eric T. Schneiderman today issued tips to help consumers avoid potential scams ahead of Derek Jeter’s final Major League Baseball games. With the Yankees shortstop, future Hall of Famer, and five-time world champion set to play what will likely be his final game at Yankee Stadium on Thursday, and his final professional baseball game on Sunday in Boston, news reports are already highlighting the enormous demand for tickets and the potential for counterfeit tickets at these events.  Attorney General Schneiderman’s consumer protection tips are intended to help New Yorkers avoid scams when they purchase tickets for major events secondhand.  
 
“Unfortunately, major events tend to attract major scammers,” said Attorney General Schneiderman.  “As New Yorkers, we are all preparing to give Derek Jeter the warm and heartfelt goodbye he deserves as his Hall of Fame career comes to an end.  Consumers who are hoping to honor Jeter in person by attending his final games should take steps to protect themselves from people trying to sell counterfeit tickets and other scammers.  
Exercising a few basic precautions can mean the difference between enjoying this momentous occasion and being scammed out of hard-earned money.”

Historically, major sporting events and concerts have seen spikes in scams aimed at duping consumers.  For example, when the Super Bowl was played in the New York City area last year, hundreds of fake tickets and tens of millions of dollars in counterfeit merchandise were seized by law enforcement officials.  
 
When purchasing tickets secondhand, consumers should:

• Check to see if the venue, sports team, or event has an official, verified source for buying and reselling tickets. The New York Yankees have an officially sanctioned ticket exchange that can be accessed online here.
• Be wary of tickets that are printed at home. Even though a ticket looks authentic, it may not be.  Many venues allow consumers to print tickets from their personal computers.  Scammers can sell the same ticket to multiple buyers.  Based on the bar code, only the first buyer to show up at the venue will get in.  Counterfeiters can also reproduce bar codes – you may get into the venue, but then the real ticket holder shows up and you have to leave. When possible, seek out tickets printed by the venue.
• Be wary of ticket prices that are too good to be true and of any high-pressure sales tactics.  Ask questions of the seller to verify that the tickets are legitimate.  Ask to see their proof of purchase. If the deal seems too good to be true, it probably is.
• Avoid paying for tickets by cash, wire transfer or pre-paid money transfer.  If the tickets turn out to be fake, it is highly unlikely you will get your money back.  If you pay by credit card or PayPal and the tickets turn out to be fake, you can dispute the charge.
• If you buy from an online ticket broker, check out its reputation first through the Better Business Bureau and consumer complaint sites.  Tickets from reputable online brokers may be expensive, but they may come with added protections.  For example, some brokers will provide replacement tickets or full refunds if the tickets turn out to be fake.
• Fake ticket scams are more common for popular events, when the demand is high.

If you believe you are the victim of a scam, you can contact Attorney General Eric Schneiderman’s Consumer Frauds Bureau by calling 1-800-771-7755 or clicking here.

NEW YORK – Attorney General Eric T. Schneiderman and New York State Education Department Commissioner John B. King, Jr., today announced a joint initiative on student bullying and harassment. As part of that initiative, the Office of the Attorney General and the State Education Department issued a survey today to all 700 school districts in New York seeking information on steps and actions they have taken to implement core provisions of the Dignity for all Students Act.  The Dignity Act is New York’s first comprehensive statewide anti-bullying legislation and stands as a powerful tool against discrimination and harassment in public elementary and secondary schools. The results of the survey will be used to identify steps that schools have taken and to model policies and practices being implemented by districts to help ensure that students are provided with safe school environments free from harassment, bullying, and discrimination.
 
“Students cannot learn when they live in fear of being harassed and bullied at school,” Attorney General Schneiderman said. “This survey will explore the steps New York school districts are taking to put the Dignity Act into effect. I am pleased to partner with our state’s Department of Education in this effort to make sure that all of our students have the safe and welcoming learning environments they deserve.”

New York State Commissioner of Education John B. King, Jr., said, “We’ve all seen the hurt and suffering bullying can cause to our students.  There’s no place anywhere for that kind of behavior, but it’s even more disturbing in our schools.  Schools must be a refuge, a safe place for children to learn without fear.  We’ll continue to work with Attorney General Schneiderman to protect all of our students.”

New York State Assembly Member Daniel O’Donnell, the Dignity Act’s author and sponsor, said, “Bullying is a pervasive and damaging problem facing New York’s and the nation’s children. I welcome this initiative to identify how the Dignity Act’s guidelines are succeeding in the real world, and to help schools comply with the Dignity Act. The Dignity Act helps schools across the state discourage discrimination and harassment. This summer, I began a review of New York City’s implementation and found that while there’s progress, it is uneven, and much more needs to be done to improve awareness and support for schools making changes. It will take a great many people working together, from the schools themselves all the way up to the state level, to create the kind of productive conversation and lasting positive change we need.”

State Senator Brad Hoylman said, "Recent studies show that a majority of LGBT youth have been bullied at school, including verbal harassment and physical violence. That’s why Attorney General Schneiderman’s and State Education Commissioner King’s joint effort to combat student bullying is so important. By taking stock of New York’s anti-bullying law, the Dignity for All Students Act, this initiative will help get school districts the support they need to implement DASA and protect our kids.” 

The Act, which became law in 2010, requires that school districts (i) modify their Code of Conduct to include prohibitions on harassment, bullying, and discrimination, and disseminate the updated code to students and their parents, (ii) train school employees on topics of bullying, harassment, and discrimination, (iii) designate Dignity Act Coordinators for each district school, and (iv) provide students with instruction intended to discourage harassment, bullying, and discrimination.

The collaborative survey will identify the steps that districts have taken to comply with the Dignity Act’s  requirements while illuminating successful strategies that have been put in place since the law’s implementation. The results of the survey will also be used to help determine the kind of technical assistance that districts may need to ensure that they are fully meeting their obligations to provide safe learning environments for all students.  

The Act became law in 2010, with an effective date of 2012 for its major provisions.  In the decade leading up to the bill’s passage, awareness grew nationally about the epidemic nature of bullying within schools.  In 2009, more than 7 million U.S. students ages 12 to 18 – 28 percent – reported being bullied at school.  A 2011 survey of New York high school students revealed that nearly 18 percent had been bullied on school property.  Prior to passage of the Dignity Act, only 1 in 5 students in New York State attended a school with a comprehensive anti-bullying and anti-harassment policy.
 
Empire State Pride Agenda Executive Director Nathan M. Schaefer said, “Every young person has a right to an education without fear of bullying. September is Suicide Prevention Month, an appropriate time to investigate the bullying in our schools that can lead LGBT youth to feel unsafe and sometimes, sadly, to take their own lives. We’re proud of the leadership role we played in the passage of the Dignity for All Students Act and know that a law is only as good as its implementation. We commend Attorney General Eric T. Schneiderman and New York State Education Department Commissioner John B. King, Jr., for taking up this important cause to identify where we need to do a better job of protecting our students from bullying.”
 
Donna Lieberman, executive director of the New York Civil Liberties Union, said, “The NYCLU welcomes the AG-SED survey as an important measure to help schools prevent bullying and bias-based harassment. It provides the first comprehensive review of how the Dignity Act is being implemented statewide and will offer examples of both successes and challenges. By providing technical support for schools that identify challenges, the AG-SED initiative will help schools meet their obligations under DASA to create a positive educational climate.”
 
Evan R. Bernstein, New York Regional Director of the Anti-Defamation League, said, “There is no place for bullying or harassment in our schools. We commend the Office of the Attorney General and the Department of Education for taking these essential steps to ensure that the Dignity Act is being used to its greatest potential. ADL looks forward to working with Attorney General Schneiderman and Commissioner King on this important initiative.”

The survey requests that districts provide information within six weeks of receipt of the questionnaire.  After an opportunity to review information provided by districts, the initiative will provide technical assistance, where needed, to school districts. A copy of the survey sent today is available here and a letter sent to school districts here.

This initiative is part of a new partnership, launched in the 2014-15 academic year, between the Attorney General’s Office and the New York State Education Department to jointly promote equal educational opportunity across New York State.  In addition to the joint initiative on bullying and harassment, the Attorney General’s Office and the Department of Education are also working together to promote broad compliance with various state and federal civil rights requirements.

This matter is being handled by Assistant Attorney General Justin Deabler and Bureau Chief Kristen Clarke of the Civil Rights Bureau. Executive Deputy Attorney General for Social Justice is Alvin Bragg.

The Attorney General's Office is committed to ensuring access to equal educational opportunity. To file a complaint, contact the Civil Rights Bureau at (212) 416-8250, civil.rights@ag.ny.gov or visit www.ag.ny.gov.

BUFFALO – Attorney General Eric T. Schneiderman today announced the arrest of two employees of Erie County Medical Center Skilled Nursing Facility (now known as Terrace View Long Term Care Facility) in Buffalo, following an investigation into their treatment of a nursing home resident. The investigation, which relied on a hidden camera placed in the patient’s room, revealed an alleged pattern of neglect. The two nursing assistants are charged with a variety of felony and misdemeanor counts in Buffalo City Court.

“Nursing home residents are among our state’s most vulnerable citizens, and the neglect that the victim in this case suffered is reprehensible,” Attorney General Schneiderman said. “Today’s arrests send a clear message that my office will not tolerate anyone being neglected by those responsible for their care, and we will use every tool in our arsenal, including hidden cameras, to ensure that those most in need of help are safely cared for and treated with respect and dignity.”

The victim in this case, identified in court papers only as “MH” in order to protect her privacy, is a 79-year-old resident who suffers from Alzheimer’s disease and dementia. She is non-ambulatory and totally dependent on nursing staff of the facility, located at 462 Grider Street, for her care.

As alleged in the felony complaint, video footage recorded by the Attorney General’s Office revealed that Donna Laury, 48, and Nakeia Green, 35, both certified nurses' aides from Buffalo, violated the resident’s personal care plan by failing to use two people when performing incontinence care and failing to use a mechanical lift to transfer the resident. On occasions when the aides did use a mechanical lift, they failed to use two people to operate it.  The aides then allegedly falsified documents in an effort to conceal their neglect.

The nurses' aides are charged with Falsifying Business Records in the First Degree (class E felony), Endangering the Welfare of an Incompetent or Physically Disabled Person (class A misdemeanor) and Wilful Violation of Public Health Laws (unclassified misdemeanor).  A class E felony carries a prison sentence of up to four years.

Attorney General Schneiderman thanks the Erie County Medical Center Corporation for its cooperation and assistance with this investigation.

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

The case was investigated by Investigators Katie O’Neill and Scott Barnes, and former Supervising Special Auditor/Investigator Raymond August, Medicaid Fraud Control Unit (MFCU) Buffalo Regional Chief Kathleen Donahue and MFCU Deputy Chief Investigator William Falk. The case is being prosecuted by Special Assistant Attorney General Thomas N. Schleif of the MFCU Buffalo Regional Office. Gary A. Baldauf is the Regional Director of the MFCU Buffalo Regional Office. Catherine Wagner is the Chief of Criminal Investigations-Upstate. The Medicaid Fraud Control Unit is led by Acting MFCU Director Amy Held. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

HAUPPAUGE – Attorney General Eric T. Schneiderman today announced the arrest of Nasreen Kader, a psychiatrist, on charges she unlawfully sold prescriptions for controlled substances in the course of her professional practice, without a legitimate medical purpose.  The investigation was opened by the Attorney General’s office after two Long Island families complained that Kader was over prescribing highly addictive controlled substances to their family members.  The felony case lodged against the Suffolk County doctor charges that she repeatedly offered prescriptions for Xanax and Klonopin, powerful tranquilizers used to  treat anxiety disorders, and Ritalin, a stimulant prescribed for concentration disorders including Attention Deficit Hyperactivity Disorder, to undercover Attorney General investigators posing as patients who sought the drugs for illegitimate purposes.
 
“Doctors swear to save lives, and must be stopped if they are found to be feeding the prescription drug addiction epidemic that is devastating families across New York and across our country,” Attorney General Schneiderman said. “A drug dealer is a drug dealer, whether they work on the street or inside a doctor’s office. We will use every tool at our disposal to bring criminal charges against those who endanger our citizens by fueling dangerous addictions to prescription medications.”

Kader, 48, of Central Islip, was arraigned today in Suffolk County Court before the Judge Paul Hensley, on fifteen counts of Criminal Sale of a Prescription for a Controlled Substance, a class C felony. She faces up to 5 ½ years behind bars on each count.
 
According to a criminal complaint, between August 2012 and September 2013, Kader met with undercover agents posing as patients on 12 separate occasions at her Suffolk County office, at 228 Carroll Avenue in Ronkonkoma. Each time, Kader gave prescriptions to her “patients” for Xanax, Klonopin and/or Ritalin, which are among the most frequently abused prescription medications on the market today. She offered the prescriptions after engaging in only brief visits with the “patients,” some lasting a minute or less,” without conducting a medical history, physical assessment, or psychological evaluation of their symptoms, and in disregard for the “patient’s” behavior, which included statements that the drugs were being unlawfully shared with others.

Kader also maintained offices in Holbrook, at 223 Union Avenue. The doctor surrendered her license in June to the state Department of Health’s Office of Professional Medical Conduct, based upon a finding that she had inappropriately prescribed and overprescribed controlled substances to numerous patients.

In 2012, the New York State legislature unanimously passed Attorney General Schneiderman’s landmark Internet System for Tracking Over-Prescribing Act, or I-STOP. I-STOP requires doctors to review a patient’s prescription drug history and update it, in real time, when writing prescriptions for certain controlled substances. Had such a system been in place at the time Kader committed her crimes, authorities could have more quickly detected these crimes. 

Attorney General Schneiderman thanked the New York State Department of Health, Bureau of Narcotics Enforcement and Office of Professional Medical Conduct for their assistance in this investigation.

The charges against the defendant are accusations and Kader is presumed innocent unless and until proven guilty in a court of law.
 
The investigation was conducted by MFCU Investigator George Feliciano, Supervising Auditor Investigator John Grunenberg and Associate Special Auditor Investigator Gretchen Hugh, with assistance from Hauppauge’s Regional Chief Investigator Greg Muroff and Chief Auditor Margaret McArdle.
 
The case is being prosecuted by Special Assistant Attorney General Lara Merchan of the Attorney General’s Medicaid Fraud Control Unit. Jane Zwirn-Turkin is the Regional Director of the MFCU’s Hauppauge Regional Office. Thomas O’Hanlon is MFCU’s Chief of Criminal Investigations – Downstate. The Medicaid Fraud Control Unit is led by Acting Director Amy Held. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

NEW YORK – Attorney General Eric Schneiderman today announced a settlement with Alstate Maintenance LLC, a contractor operating at Terminal One of John F. Kennedy International Airport, for paying nearly 40 skycaps at an hourly rate far below minimum wage. The $925,000 settlement consists of about $625,000 in restitution and another $300,000 in damages, all of which will be distributed to workers. In addition to the restitution and damages, Alstate has agreed to a number of reforms moving forward to ensure that its workers are properly compensated.

“I am committed to combating wage theft wherever and whenever we see it,” said Attorney General Schneiderman. “I will fight the tough fights to ensure there is one set of rules for everyone, and that everyone who works hard and plays by the rules gets a fair shake. Airlines and the companies that operate our airports should make certain that the contractors they hire act responsibly. Together, we can send a strong message to anyone that would take advantage of low-wage workers: we won’t stand for it.”  

Skycaps play a critical role in helping airport operations run smoothly. Whether it’s curbside check-in for departing passengers or helping arriving passengers get their luggage from baggage carousels to their cars, they also make travel easier for customers, particularly those who may need extra assistance.

The investigation began after several workers notified the  Service Employees International Union Local 32BJ, which has been organizing airport workers, that they were not earning at least a minimum wage and the union contacted the Attorney General’s Office. In fact, between 2008 and 2014, Alstate paid the skycaps as little as $3.90 per hour , which fell far below the minimum wage (ranging from $7.15 to $8.00 per hour during the six years covered by this investigation). The rates paid by Alstate during most of this time period were even lower than New York minimum wage in 1991, which was $4.25/hour

"I was proud to lend my support last week to John F. Kennedy Airport Terminal One workers in their efforts to organize, and I am equally proud today to join Attorney General Eric Schneiderman in announcing this successful settlement with Alstate Maintenance,” said New York City Public Advocate Letitia James.  “Many airport employees continue to be grossly underpaid, and it is particularly egregious that this contractor paid skycaps below the legal minimum wage. I join Attorney General Schneiderman in calling for change."

Hector Figueroa, president of 32BJ SEIU, said, “We are glad to see this group of airport workers getting justice, and thank Attorney General Schneiderman and his team for their dedication and hard work on this case and others. While today we celebrate a big victory, we know that too many other airport workers continue to be exploited by contractors who feel they are able to get away with cheating and short-changing their employees. That’s why we’ve been working with the Port Authority for a longer-term, permanent solution in which employers are bound by a contract and workers are protected by a union of their choice. We know justice for airport workers and jobs with dignity and respect are within our reach, and today is a big step forward.”

Although most skycaps receive tips, Alstate failed to qualify  for a tip credit which would have allowed the company to pay workers at a lower hourly rate. Furthermore, even if Alstate had qualified, the meager rates paid to these airport workers were even lower than the legal tipped minimum wage would have been. (Allowable tipped minimum wage rates for skycaps during these years ranged from $5.40 to $6.05 per hour.)

In addition, Alstate did not reimburse these skycaps for the costs of laundering and maintaining their mandatory uniforms, as required by law.  For skycaps, if the cost of laundering uniforms reduces their wages below the minimum wage, employers are required either to provide laundry facilities or to pay a weekly set amount to cover the cost of cleaning uniforms.

Along with payment of restitution and damages, the settlement requires Alstate to implement a number of reforms to come into compliance with New York’s labor laws.

Alstate has agreed not to claim a tip credit for its workers going forward, even though it has a legal right to do so. Should Alstate wish to claim a tip credit in the future, it must notify the Attorney General’s office and hire an Independent Monitor at the company’s expense to ensure compliance. Alstate also must designate a compliance officer who will be responsible for ensuring that wages are calculated and paid properly and will keep the Attorney General’s office apprised as to ongoing compliance.

The case was handled for the Attorney General’s Office by the Labor Bureau’s Assistant Attorney General Kevin M. Lynch, Assistant Attorney General Benjamin Holt, and Bureau Chief Terri Gerstein. The Executive Deputy Attorney General for Social Justice is Alvin Bragg. 

NEW YORK – Attorney General Eric T. Schneiderman released the following statement today in honor of the Rosh Hashanah holiday.

“Tonight at sundown, I will join families across our state and around the world to gather for Rosh Hashanah in celebration of the Jewish new year. As we celebrate this joyous holiday, let us also take this time to reflect upon the past year, revisiting both our accomplishments and our failings, so that we may all move forward as better sons, daughters, parents and friends.

May you and your families be blessed with a sweet and happy New Year. L’Shanah Tovah.”

NEW YORK – Attorney General Eric T. Schneiderman today announced an agreement between New York State and Correctional Medical Care, Inc. (CMC), a Pennsylvania-based, for-profit prison health care contractor that provides medical services in jails in 13 upstate counties. The agreement comes on the heels of an investigation by the Attorney General’s office that found CMC, which holds over $32 million in contracts with the New York counties, violated key provisions of its contracts with two of the counties, Monroe and Tioga.  CMC understaffed facilities and shifted work hours from physicians and dentists to less qualified and lower-wage staff, including, in one case, a nurse with a felony conviction. The settlement agreement requires that an independent monitor oversee that CMC meets its obligations to provide medical care in jails in all the counties where CMC is contracted to with for a period of three years, and requires the company to pay restitution and penalties.

“Tax dollars meant to cover medical care of our county prisoners must not be wasted-- and substandard care and mismanagement are not an option,” Attorney General Schneiderman said. “Shortchanging medical services provided to jail populations can lead to direct harm to individuals and misses a public health opportunity to provide care to individuals who often have undiagnosed, untreated medical needs. We will bring to justice contractors who line their pockets while failing to uphold their obligations to the people of New York.”

New York State Assembly Health Committee Chairman Richard N. Gottfriedsaid, “This is a clear example of the dangers of business corporations providing health care. Attorney General Schneiderman has won an important victory that matters not only to jail inmates but to all New Yorkers.”

Commissioner Phyllis Harrison-Ross, M.D., chair of the Commission's Medical Review Board,said, "The Commission of Correction and its Medical Review Board have consistently raised serious concerns about the medical care provided by Correctional Medical Care and has documented those concerns in reports issued a result of its investigations into deaths at CMC-served facilities. Incarceration should not prevent an individual from receiving competent care and all medical care providers in New York must conform to the state’s laws, rules and regulations governing medical care delivery. The Commission will continue to monitor CMC, other private health care providers and locally-provided jail health services to ensure a standard of quality care."

New York State Education Commissioner John B. King, Jr.said, "Every tax dollar must be spent the right way to provide the best services. When unqualified personnel make important medical decisions, public safety is compromised and tax dollars are wasted. Attorney General Schneiderman's investigation will make sure qualified medical personnel are on the job, providing the appropriate medical services and protecting the public health and safety."

The Attorney General’s investigation of CMC began as a result of a referral from the New York State Commission of Correction and the New York State Education Department. The Commission of Correction found significant lapses in medical care provided to six prisoners who died in custody between 2009 and 2012 at five county jails contracted with CMC. The board also found that medical records lacked evidence of physician or psychiatrist oversight and did not include required information. In addition, CMC staff dispensed medications without medical orders.  

An ensuing investigation by the Office of the Attorney General found that CMC was understaffing facilities and shifting work hours from physicians and dentists to less qualified and lower-wage staff.  CMC also hired several unlicensed and inexperienced staff members, including one nurse with a felony conviction. Despite CMC’s contract violations, it continued to charge New York counties more for its services. Its contract with Tioga County nearly doubled, to approximately $331,000 in 2013, from about $193,000 in 2008.  

Quality correctional health services are critical to inmate safety and health, and to safeguard the health of communities that inmates return to.  Medical services provided at jails and prison also offer a chance to track -- and forestall -- the spread of infectious disease and to stop chronic health problems faced by inmates from becoming debilitating conditions.

Soffiyah Elijah, executive director of the Correctional Association of New York,said, “Given the extensive health needs of people incarcerated in New York county jails, it is crucial for them to receive quality medical and mental health services. This would be in the best interests of overall public health. We commend the Attorney General, the State Commission of Correction and the Education Department for working together to identify, make public and hold CMC accountable for the improper care being provided to its patients.”

Attorney General Schneiderman’s investigation also found that CMC violated New York’s prohibition of the corporate practice of medicine, which bars corporations from practicing medicine or employing physicians to provide medical services.  The law aims to ensure that a licensed medical provider is ultimately responsible for health care and that profits never override sound medical opinion.  CMC’s owner is not a licensed medical provider – nor is the owner’s husband, who is an officer of the company.

The agreement provides for the restructuring of CMC contracts, oversight of CMC by the independent monitor, restitution to Tioga County, and civil penalties. Monroe County has already received restitution for staffing shortages in January 2011 through June 2013, totaling $340,017.  Tioga is receiving restitution for CMC’s failure to meet its contractual obligation to hire a licensed social worker from 2009 to 2012. Provisions include:

• CMC will pay for an independent monitor for a period of three years to ensure compliance with its contracts.
• CMC will submit all 13 county contracts to an initial audit and then annual audits by the independent monitor.  
• CMC will pay $100,000 in restitution to Tioga County and $100,000 in civil penalties to New York State.
• CMC will provide only administrative services to bring operations into compliance with New York law prohibiting the corporate practice of medicine, and will create a separate professional medical corporation to provide medical care.

The agreement does not prohibit Tioga, Monroe or any other county from seeking additional restitution from CMC.

The case was investigated by Assistant Attorney General Dorothea Caldwell-Brown of the Attorney General’s Health Care Bureau, which is led by Bureau Chief Lisa Landau. Executive Deputy Attorney General for Social Justice is Alvin Bragg. 

BINGHAMTON – Attorney General Eric T. Schneiderman and Comptroller Thomas P. DiNapoli today announced the indictment of Roger Burlew, former Highway Superintendent for the Town of Erin, in a public corruption case involving the alleged theft of more than $50,000 in goods and services from the town. The indictment charges that Burlew stole the money by submitting fraudulent vouchers for payment to the Town of Erin.

“This indictment shows that nobody is above the law – a principle that has guided my office in aggressively prosecuting over 50 individuals in corruption cases since 2011, including a sitting state senator, a current member of the New York City Council, and elected officials from both parties across New York State,” said Attorney General Schneiderman. “Corruption undermines faith in government and wastes taxpayer dollars, and that is why I will continue to pursue those who betray the public trust.”

"Cases such as these remind us why constant scrutiny of public spending is needed," said State Comptroller DiNapoli. "New Yorkers can rest assured that auditors and investigators from my office will continue to partner with Attorney General Schneiderman and law enforcement to detect fraud and hold those who would rip off taxpayers accountable. The message is clear – unethical behavior will be investigated and prosecuted, and stolen public money will be recouped."

According to papers filed in the Town of Erin Court, Burlew, who was appointed Highway Superintendent in 1998, submitted numerous fraudulent vouchers to the Town of Erin since 2007.  Burlew allegedly submitted vouchers for parts for equipment the Town does not own. One such voucher referenced the purchase of forklift tires when the Highway Department does not have a forklift. Further, according to court papers, Burlew submitted a voucher requesting payment for a 2-cylinder gas engine for the Highway Department’s 4-cylinder diesel Cat Loader. It is believed the parts and services expensed were instead purchased for Burlew’s personal use.

Burlew is charged with one count of Grand Larceny in the Second Degree, a Class C Felony, three counts of Offering a False Instrument for Filing in the First Degree, a Class E Felony, and Defrauding the Government, a Class E felony.  He faces a maximum of 5 to 15 years in state prison if convicted of the highest charge filed against him.

The Joint Task Force on Public Integrity is a cooperative effort between Attorney General Schneiderman's and Comptroller DiNapoli's offices to root out public corruption and maximize the resources of each office.  Attorney General Schneiderman thanks the staff at Comptroller DiNapoli’s Office for their invaluable cooperation and assistance in this investigation.

Assistant Attorney General Colleen Glavin of the Public Integrity Bureau is prosecuting the case, with support from Deputy Bureau Chief Stacy Aronowitz, Bureau Chief Daniel Cort, and Executive Deputy Attorney General for Criminal Justice Kelly Donovan. The prosecutors were assisted by Investigations Bureau Investigator Joel Cordone, with support from Supervising Investigator Richard Doyle, Deputy Bureau Chief Antoine Karam, and Bureau Chief Dominick Zarrella.

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

NEW YORK– Attorney General Eric T. Schneiderman today announced that his office is committing up to $40 million in additional funding to organizations that provide free, high quality housing counseling and legal services to struggling homeowners around New York State through his Homeowner Protection Program (HOPP). The new funding, which will extend the program for an additional two years, brings the total commitment of funds by the Attorney General’s Office to $100 million over five years to help New York families stay in their homes. The HOPP program is designed to provide free housing counseling and legal services to homeowners facing foreclosure – and particularly to ensure that no New Yorkers has to navigate the treacherous loan modification or foreclosure process alone. Of the 34,000 families helped by HOPP since 2012, thousands of families have been able to stay in their homes.

Since it was established in 2012, HOPP has allocated funding to 89 legal services and housing counseling agencies working in every county in New York. Today at the Center for Housing Solutions Regional Summit in New Windsor, and the annual conference of the New York State Coalition for Excellence in Homeownership Education in Albany, Attorney General Schneiderman announced the additional funds and discussed findings in his new report, “Staying Home: A Report on the Second Year of New York Attorney General Eric T. Schneiderman’s Homeowner Protection Program.” In the program’s first two years, more than 9,303 homeowners, close to one third of those helped, found the program by calling the HOPP hotline, at 855-HOME-456.

“After just two years, our Homeowner Protection Program has helped tens of thousands of New Yorkers in danger of losing their homes. This additional $40 million dollars extends my commitment to help homeowners and communities across New York recover from the devastating impact of the housing crisis,” Attorney General Schneiderman said. “No individual or family should have to navigate the foreclosure process alone. By funding housing counseling and legal services, we are keeping families in their homes and stabilizing struggling communities across the state of New York.”

“This is a multi-million dollar investment that affords homeowners in the Hudson Valley who have been badly hit by the mortgage crisis the opportunity to stay in their homes,” saidRep. Sean Patrick Maloney (NY-18).“I thank Attorney General Schneiderman for dedicating these necessary funds to help undo the lasting damage done by the financial crisis to New York homeowners."

Albany County Executive Daniel P. McCoysaid, “I commend Attorney General Schneiderman for his tireless efforts to assist New Yorkers through this initiative. Even today we are seeing the effects of the foreclosure crisis in the Capital District. Programs like HOPP provide the necessary resources for those residents who are desperately trying to hold on to their homes and it is worthy of our support.”

Erie County Executive Mark C. Poloncarzsaid, "Thanks to Attorney General Schneiderman, homeowners across New York State have a friend who can help them with much-needed counseling and advice when they are threatened with the loss of their home, and will work with them if they are struggling with the foreclosure process. Preventing homes from being foreclosed on also prevents those buildings from becoming potential zombie homes, which blight neighborhoods and diminish property values for all. With Attorney General Schneiderman's help, more New York homeowners have been able to successfully remain in their homes and avoid foreclosure."     

Ulster County Executive Mike Heinsaid, “I want to commend Attorney General Eric Schneiderman for extending his Homeowner Protection Program and helping those families who are in danger of losing their homes. A stable, welcoming home provides families with a sense of security and this program has helped those who were facing foreclosure or unjust eviction by ensuring that their voices were heard and their loved ones were protected.”

City of Newburgh Mayor Judy Kennedy said, “I thank Attorney General Schneiderman for continuing to protect homeowners throughout New York State, and particularly in the City of Newburgh, through the Homeowner Protection Program. This program ensures that struggling homeowners are able to receive crucial services during stressful times, and will continue to assist families throughout New York to stay in their homes.”

“We appreciate Attorney General Schneiderman’s leadership in ensuring that funds from the bank settlements were used to fight foreclosures, especially in lower income neighborhoods and communities of color that have been hard hit by abusive lending and servicing practices,” said Josh Zinner, Co-Director of New Economy Project.“As a result, New York has one of the strongest networks of non-profit foreclosure prevention advocates in the nation.”

Today’s report shows that the areas hardest-hit by the mortgage crisis were low- and moderate-income neighborhoods in major population centers, including New York City, Long Island, the Hudson Valley and several upstate cities, including Troy and Buffalo. It also found that the majority of those who sought assistance from the HOPP network came from households with children – including almost 5,800 single-parent households – underscoring the deep impact the mortgage crisis has had on families across New York State.

In October 2012, the Attorney General’s Office launched HOPP, with a three-year commitment of $60 million, to fund housing counseling and legal services for struggling New York homeowners. HOPP counselors provide at-risk mortgage holders with a range of services, including direct advocacy with lenders, financial counseling and assistance in preparing the complex documentation that homeowners need to submit applications for loan modifications. This process often results in lower monthly mortgage payments and prevents foreclosures from going forward – but the process can take more than a year to negotiate.

The report, which covers HOPP services provided between October 2012 and September 2014, shows that families across the state have benefited from the HOPP program. Regional break downs of families served are as follows:

• Hudson Valley: More than 5,000 families served.
• New York City: More than 12,000 families served.
• Monroe County and its surrounding areas: More than 2,000 families served.
• Mid Central New York:  More than 1,700 families served.
• Capital and Northern New York: More than 1,400 families served.
• Long Island: More than 8,800 families served.
• Buffalo and its surrounding areas: More than 2,100 families served.

The Office of the Attorney General has made it a priority to ensure that HOPP funding and servicers are specifically targeted to the communities where the foreclosure crisis has been the most devastating. For instance, the Attorney General’s research indicates that Long Island has some of the highest rates of mortgage distress in New York State. Roughly 24% of the mortgages in the towns of Hempstead and Brentwood are 90 days or more delinquent. In response the Attorney General’s office has increased funding to HOPP groups serving Long Island by more than $1 million, from about $3.4 million last year up to $4.4 million in 2014-15.

The report also highlights some of the families who have been able to stay in their homes as a result of the program. Among them are:

• After losing her father in 2008,  Shari Roufberg, who lives in Westchester County, became bogged down in a protracted legal battle which ultimately caused her to lose her family business. By 2011, Ms. Roufberg had exhausted her savings and was having difficulty making mortgage payments on her home. Initially, Ms. Roufberg attempted to negotiate with her mortgage company on her own. She got nowhere. Then she heard about Westchester Residential Opportunities (WRO), a housing counseling agency and HOPP grantee that serves Westchester County. A housing counselor at WRO spent almost three years working to get Ms. Roufberg a mortgage modification. In May, she was granted a permanent loan modification, which significantly lowered her monthly mortgage payments.
  
  “I could not have gotten through this without the help of WRO,” said Shari Roufberg. “It was such a stressful time for me and every day I feared I’d find the Sheriff at my door, ready to evict me. The assistance I received provided tremendous relief and made it easier for me to sleep at night.”

In addition to providing legal assistance to New York homeowners recovering from the foreclosure crisis, Attorney General Schneiderman proposed new legislation earlier this year to help communities across New York that are burdened by vacant and abandoned properties. Attorney General Schneiderman proposed legislation, which was passed and signed into law this year, to increase the maximum allowable number of land banks from 10 to 20. Land banks are local non-profit organizations charged with rehabilitating or tearing down vacant and abandoned properties. Many cities do not have land banks but have a critical need for the kind of community redevelopment that land banks can make possible. With the passage of Attorney General Schneiderman’s legislation authorizing 10 new land banks, this valuable resource will reach even more communities in need.

Another piece of legislation proposed by Attorney General Schneiderman addresses the problem of so-called zombie properties. Too often, when a homeowner falls behind on mortgage payments and receives a notice of arrears or a foreclosure notice, the homeowner abandons the property. Many families may not understand that they have the right to remain in their home until a judge declares the foreclosure complete, which can take years. At the same time, there is evidence that lenders are actually slowing down the foreclosure process, and in some cases, seeking court orders to cancel the foreclosure action in the middle of the process. With no one maintaining these derelict properties, they become vulnerable to crime, decay, vandalism and arson. Furthermore, these zombie homes decrease the property value of neighboring homes and become an enormous burden for local code enforcement and emergency service providers.

An epidemic of zombie homes has impacted communities statewide, including in Erie and Niagara counties. Across the state, RealtyTrac estimates more than 15,000 properties to be zombie foreclosures. And according to U.S. Census data, 50,000 housing units in Erie and Niagara counties – about 10 percent of the entire housing stock -- are vacant.

Attorney General Schneiderman proposed legislation to close the current loophole, changing state law to make lenders responsible for delinquent properties soon after they are abandoned – not at the end of a lengthy foreclosure process. It would also create a statewide registry for zombie properties, so municipalities will be able to track abandoned homes and enforce local property maintenance codes.

Homeowners who are in need of assistance are encouraged to call the Attorney General’s statewide foreclosure hotline at 855-HOME-456 and visit www.AGHomeHelp.com to connect with organizations and agencies in their area that can provide foreclosure prevention services.

NEW YORK – Attorney General Eric T. Schneiderman today issued a consumer alert about a scam targeting school districts across New York and at least 21 other states. The scam involves a bogus company named Scholastic School Supply mailing phony invoices to school districts in the hope of receiving payments without rendering goods or services. One Rochester-area school district contacted the Attorney General’s Office to report receiving an invoice in the amount of $657.50 for an English Language Arts Practice Book that was never purchased or supplied. The scammer even included a self-addressed stamped envelope along with the fraudulent invoice. At least four other school districts in New York State have also reported receiving these invoices.  

“Schools across New York State should be on the lookout for fraudulent invoices from scammers seeking to rip off our children to make a buck,” said Attorney General Schneiderman. “From the big banks that precipitated the housing crisis to the scam artists who defraud consumers, the law applies to everyone equally, and it is our mission to hold fraudsters accountable.”

Scholastic School Supply has mailed invoices with a return address listed as 1350 E. Flamingo Rd. Suite 820, Las Vegas, NV 89110. There have also been reports of the scam in other states across the country. Invoices include book details such as the book format (i.e. paperback workbook), publication date, the number of pages, the weight, and even the ISBN.

The Better Business Bureau has reported that, as of earlier this month, it has received at least 51 complaints from school districts in 22 states and over 2,300 inquiries regarding this scam.

School districts that have been targeted are encouraged to file a complaint with the Consumer Frauds Bureau in Attorney General Eric Schneiderman’s Office by calling the Attorney General’s Consumer Hotline at (800) 771-7755 or visiting the Attorney General’s website, www.ag.ny.gov.

NEW YORK – Attorney General Eric T. Schneiderman today filed a lawsuit in New York County Supreme Court against two law firms and their lead attorney accusing them of participating in a fraudulent mortgage rescue scheme. The lawsuit targets Litvin Law Firm; Litvin, Torrens & Associates, PLLC; and the firms’ principal attorney Gennady Litvin. Litvin and the two firms allegedly preyed upon financially vulnerable consumers by claiming they would provide them with a comprehensive legal services plan that would allow consumers to avoid foreclosure or obtain a mortgage modification. The firms, directly and through their marketers, collected hundreds of dollars in monthly fees from consumers and routinely failed to deliver on their promises. The lawsuit seeks to halt the illegal business practices, provide restitution to consumers, and seeks penalties and costs.

“Consumers facing foreclosure place a special trust in attorneys hired to help them navigate the myriad of legal issues they are facing, and our office will hold those accountable who perpetrate scams that prey upon families at risk of losing their home,” said Attorney General Schneiderman. “Coupled with our Homeowner Protection Program that has served over 30,000 New York families seeking help with their mortgage, we will continue to fight for those still struggling in the aftermath of the housing crisis.”

The lawsuit alleges that the firms and Gennady Litvin engaged in fraudulent and illegal practices in offering legal services and other foreclosure assistance to consumers in New York and other states. Through repeated television and radio ads, the Litvin Law Firm induced consumers to call its offices by falsely implying that they had a connection to “State Attorneys Generals and the Federal Government” and that homeowners could have their mortgages satisfied in full, a most unlikely result.

Through the use of third-party marketers, many of which used the term “legal” in their names, the firms solicited homeowners nationwide, representing that the homeowners would have a “custom made attorney defense team” that provided “a level of service that usually is only enjoyed by large corporate clients.”  The marketers also purported to provide homeowners with “forensic loan audits” that were “vitally important” to identify errors in their mortgage loan documents, defend against foreclosure, and win concessions from lenders.  On its website, the Litvin Law Firm led consumers to believe that it was a law firm with a nationwide presence, located in 31 states, and that the firm had the ability to provide foreclosure defense nationwide.

As described in court papers, based on these representations, struggling homeowners paid the firm and its marketers a monthly fee, typically $595 or $750, to obtain legal services.  However, many consumers did not receive the legal representation they were promised.  The Litvin Law Firm and Litvin, Torrens & Associates, which have offices only in New York and Florida, cannot provide nationwide foreclosure defense.  Moreover, the forensic audits typically had very little value in saving consumers’ homes.  In many cases, homeowners never spoke to an attorney in their state, never obtained a loan modification or other foreclosure relief, and wound up having to negotiate with lenders on their own.    

The Federal Trade Commission (FTC) recently reached a settlement with the marketers in which they agreed to, among other things, a permanent ban from the mortgage and debt relief services field and to pay close to $3.6 million in consumer redress.  Information about the FTC’s action is available here.

If you believe you were a victim of the Litvin Law Firm; Litvin, Torrens & Associates; or any of its affiliated marketers, or if you believe you were a victim of another mortgage fraud, please file a complaint with the Attorney General’s Office.  Complaint forms are available here.  You may also call the Attorney General’s Consumer Hotline at 1-800-771-7755.

Free help to homeowners is available through the Home Owner Protection Program (HOPP), which uses funds from the National Mortgage Settlement to fund legal services and housing counseling across New York to provide foreclosure prevention services.  Consumers can call 855-HOME-456 for help. Attorney General Schneiderman’s program funds roughly 90 organizations across the state, and HOPP has served a combined total of nearly 30,000 families since its launch in October of 2012.

This case is being handled by Special Counsel Mary Alestra, Deputy Bureau Chief Laura J. Levine, and Bureau Chief Jane M. Azia in the Bureau of Consumers Frauds and Protection, and Executive Deputy Attorney General for Economic Justice Karla G. Sanchez.