SYRACUSE – Attorney General Eric Schneiderman today joined with elected officials and staff from the Syracuse Land Bank to announce that his office has awarded $20 million to New York State land banks that are working to rebuild and restore neighborhoods hit hard by the housing crisis. The Attorney General’s Land Bank Community Revitalization Initiative is making a new allocation of nearly $20 million to eligible land banks, in addition to the $13 million allocated through a competitive application process last year, bringing the total commitment to $33 million. Today’s announcement was made at 157 Maplewood Ave, one of 1,800 vacant and neglected structures in the City of Syracuse that negatively impact surrounding neighbor's quality of life and property values. This property is one of 50 homes undergoing renovation by the Greater Syracuse Land Bank, which has already received $3 million in funding from Attorney General Schneiderman’s office, and will be receiving nearly $2 million in additional funding as part of the second round of funding.

Funding for this new round will be drawn from the $25 billion settlement with the nation’s largest banks that the Attorney General helped negotiate in 2012. The following ten land banks in the State will receive funding: Greater Syracuse Land Bank; the Buffalo Erie Niagara Land Bank Investment Corporation; the Rochester Land Bank; Newburgh Community Land Bank; Suffolk County Land Bank; Chautauqua County Land Bank; Capital Region Land Bank; Albany County Bank; Troy Community Land Bank, and the Broome County Land Bank.

“Land banks are a critical tool to help communities recover from the housing crisis by ridding their streets of vacant and abandoned properties,” said Attorney General Schneiderman. “With this new round of funding, even more communities will reap the benefits of this powerful tool for urban revitalization. By funding and expanding land banks, we are empowering local communities to rebuild their own neighborhoods, house by house, block by block.”

“The additional funding from Attorney General Schneiderman’s Land Bank Community Revitalization Initiative is welcome news,” Onondaga County Executive Joanie Mahoney said. “The money helps ensure the Greater Syracuse Land Bank will continue working to transform individual properties and neighborhoods.”

“The Greater Syracuse Land Bank has received nearly $5 million in support from Attorney General Schneiderman and over $2.5 million in pledges for private investment,” Syracuse Mayor Stephanie A. Miner said. “The land bank is transforming our City property by property. I appreciate the Attorney General’s ongoing commitment to this program.”

"This award will enable the Greater Syracuse Lank Bank to continue the excellent work it is doing to revitalize our neighborhoods and improve the quality of life for residents,” State Senator David Valesky said. “I thank Attorney General Schneiderman for his continued leadership on this issue in Central New York and across the state."

“I applaud Attorney General Schneiderman for his efforts in holding banks accountable for their role in the mortgage crisis,” Assemblyman Bill Magnarelli said. “By utilizing these funds to support the Greater Syracuse Land Bank in its continued work to revitalize our blighted neighborhoods, the Attorney General demonstrates his commitment to our community."

“I commend Attorney General Schneiderman for this vital grant to the Greater Syracuse Land Bank,” Assemblyman Al Stirpe said. “Urban revitalization efforts like land banks benefit not only cities, but also surrounding towns. For districts like mine, the potential downstream effects of an urban land bank include rising property values, the attraction of new industries to our communities, and more middle-class jobs.”

“The Greater Syracuse Land Bank is excited to continue its partnership with Attorney General Schneiderman to clean up abandoned properties that blight our neighborhoods," Katelyn Wright, Executive Director of the Greater Syracuse Land Bank, said. "This second round of funding will provide us with the critical resources needed to address the community’s abandoned property crisis. This kind of public support from state and local sources is critical to our success in the years ahead."

“We are very proud to be working with Attorney General Schneiderman as he combats the challenges associated with vacant and underutilized properties in Syracuse,” Kerry Quaglia, Executive Director of Home HeadQuarters, Inc., said. “It is through innovative approaches such as this that Home HeadQuarters was able to renovate and restore the vacant property at 157 Maplewood Ave and sell it to a first-time homebuyer who is eager to call a place “home” and become part of a neighborhood.”

“This funding of over $1.25 million will be a critical resource in our ongoing efforts to address problems in certain neighborhoods that have experienced many years of blight and also to return vacant properties to the tax rolls,” Troy Mayor Lou Rosamilia said. “I would like to thank Attorney General Schneiderman for this commitment and we look forward to getting the Troy Community Land Bank up-and-running as quickly as possible.”

During the decade of the housing boom and bust, from 2000 to 2010, the number of vacant properties in New York State increased 27%. Following the collapse of the housing market, the New York State Legislature passed a law in 2011 establishing land banks — nonprofit organizations that can acquire vacant, abandoned, or foreclosed properties and rebuild, demolish, or redesign them. By restoring vacant or abandoned properties, land banks lower costs for local governments, benefit public schools, reduce crime and boost local economies.

However, the legislation that authorized land banks in New York did not provide funding for them. Attorney General Schneiderman launched the Land Bank Community Revitalization Initiative to fill that gap and allow land banks to fulfill their purpose. He has dedicated $33 million to fund that initiative. Earlier this year, the Attorney General’s bill to expand the number of land banks from 10 to 20 was passed by the Legislature and signed into law by the Governor.

The amounts awarded today are as follows: Greater Syracuse Land Bank (over $1.9 million); the Buffalo Erie Niagara Land Bank Investment Corporation ($2.5 million); the Rochester Land Bank (over $1.8 million); Newburgh Community Land Bank (over $1.9 million); Suffolk County Land Bank (over $1.9 million); Chautauqua County Land Bank ($1.3 million); Capital Region Land Bank ($3 million); Albany County Bank (over $2.8 million); Troy Community Land Bank ($1.25 million), and the Broome County Land Bank ($800,000).

Abandoned and vacant properties depress property values, discourage property ownership, and attract criminal activity, but land banks provide tools to quickly turn these properties back into assets that reinvest in the community's long-term vision for its neighborhood. Land bank programs act as an economic and community development tool to revitalize distressed neighborhoods and business districts. Land banks can benefit urban schools, improve tax revenues, expand housing opportunities, remove public nuisances, assist in crime prevention and promote economic development.

By transferring vacant and abandoned properties to responsible land owners, local governments benefit because they avoid the significant cost burden of property maintenance, such as mowing and snow removal. In addition, local governments benefit from increased revenue because the new owners pay taxes on the properties. In turn, local schools benefit because they receive more funding when there is an increase in the number of property owners in their school districts. Land bank programs can also increase the variety of mixed-income housing offered and provide more opportunities for affordable housing.

Land bank properties that become owner-occupied discourage criminal activity, benefiting public safety and decreasing the cost burden on local police and fire departments. Finally, the more residents and businesses that occupy property in a neighborhood, the more services and amenities will be needed, which boosts local economic activity.

The Attorney General’s office has partnered with Enterprise Community Partners to assist with the oversight and management of the Land Bank Community Revitalization Initiative. Enterprise is a nonprofit organization with more than 30 years of experience providing technical assistance and support to affordable community revitalization efforts. 

NEW YORK – Attorney General Eric Schneiderman and San Francisco District Attorney George Gascón today issued the following statement on the release of Google’s new version of Android software, which will incorporate theft deterrent technology for the first time.

“We applaud Google for including a ‘kill switch’ solution in its new version of Android, one of the most popular smartphone operating systems in the world.  The majority of smartphone owners now have access to an theft-deterrent solution. Through the work of the Secure Our Smartphones Initiative in concert with the smartphone industry, we are well on our way to safeguarding our loved ones from opportunistic thieves.

“But in order for these theft deterrents to effectively end the epidemic, they must be enabled by default so violent criminals lack the incentive to steal any smartphone.  We will continue to encourage every actor in the smartphone industry – including Google – to take the necessary, additional step of ensuring this technology is opt-out on all devices.”

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 all device are 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.

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 – A report issued today by Attorney General Eric Schneiderman found widespread illegality across New York City listings on the Airbnb website, with data indicating that as much as 72% of Airbnb reservations over the last several years violated New York law. The report, “Airbnb In The City,” also found commercial enterprises using Airbnb to operate multimillion-dollar businesses; in one instance, a single commercial user made $6.8 million in less than five years. The report is based on data obtained by the Attorney General’s Office as a result of a May 2014 subpoena for information about potential illegal hotels using Airbnb’s site.

Attorney General Schneiderman also announced the formation of a joint enforcement initiative with the City of New York to investigate and shut down illegal hotels in the five boroughs.  Together, the Attorney General’s Internet and Taxpayer Protection Bureaus and the City’s Departments of Finance and Buildings along with the Office of Special Enforcement will investigate violations of building and safety codes, tax regulations and the executive law.

“This report raises serious concerns about the proliferation of illegal hotels and the impact of Airbnb and sites like it on the City of New York,” said Attorney General Eric Schneiderman. “We must ensure that, as online marketplaces revolutionize the way we live, laws designed to promote safety and quality-of-life are not forsaken under the pretext of innovation. The joint city and state enforcement initiative is aimed at aggressively tackling this growing problem, protecting the safety of tourists and safeguarding the quality-of-life of neighborhood residents.” 

The data-driven report offers the first exploration of how users in New York City, one of Airbnb’s most important markets, utilize the online lodging rental platform. “Airbnb In The City” uses quantitative data to inform an ongoing debate about how best to embrace emerging technologies while protecting the safety and well-being of our citizens.

By analyzing Airbnb bookings for private stays between January 1, 2010 and June 2, 2014, the report offers a never-before-seen snapshot of how Airbnb is used and by whom. Among the key findings are:

• Up to 72% of Airbnb listings are illegal: Of the 35,354 private, short-term listings, data suggest that 25,532 of them violated either New York State’s Multiple Dwelling Law and/or New York City’s Administrative Code (zoning laws). Hosts generated approximately $304 million in revenue from these listings alone and, Airbnb itself earned almost $40 million from these transactions.
   
• Commercial users run multimillion-dollar businesses: Over 100 users controlled more than 10 different apartments that were rented out regularly through Airbnb. Together, these hosts booked 47,103 reservations and earned $59.4 million in revenue. The most prolific user administered 272 unique listings, booked 3,024 reservations and made $6.8 million in revenue. Additionally, while only 6% of hosts ran large-scale operations on Airbnb, that same group dominated the platform, generating 36% of all rental transactions and collecting 37% of total revenue – or $168 million. 
   
• Numerous units appear to serve as illegal hostels: New York law prohibits commercial enterprises from operating hostels. In 2013, approximately 200 units were booked through Airbnb for more than 365 nights during the year, indicating that multiple, unrelated guests shared the same unit on the same night, as they would in a hostel. The 10 most-rented units were booked for an average of 1,900 nights in 2013, with one top listing average 13 reservations per unit per night.
   
• Gentrified neighborhoods account for vast majority of Airbnb revenue: Bookings in just three Manhattan neighborhoods – Greenwich Village/SoHo, Chelsea/Hell’s Kitchen and Lower East Side/Chinatown – accounted for more than 40% of hosts’ revenue, or about $187 million. By contrast, all reservations in Queens, the Bronx and Staten Island combined brought in $12 million, less than 3% of the New York City total.
   
• Short-term rentals are displacing long-term housing options: In 2013, more than 4,600 units were booked for at least three months of the year. Of these, nearly 2,000 were booked for a cumulative total of six months or more, rendering them largely unavailable for use by long-term residents. Notably, the share of host revenue from units booked as short-term rentals for more than half the year increased steadily, accounting for 38% of the site’s revenue by 2013.

A copy of the report is available here.

NEW YORK – Attorney General Eric T. Schneiderman today filed a lawsuit in New York County Supreme Court against Papa John’s pizza franchisee New Majority Holdings, LLC and its owner, Ronald Johnson, for significantly underpaying delivery workers in violation of State Labor Law.  The violations include failing to pay delivery workers the minimum wage, shaving hours from their pay, and requiring them to pay for bicycles and safety equipment used to do their jobs.  The lawsuit seeks more than $2 million in restitution, damages, and interest for more than 400 delivery workers who were underpaid.  The lawsuit also seeks to halt the illegal business practices that are ongoing.

“Nobody who works 40 hours a week should have to live in poverty,” Attorney General Schneiderman said. “Like every other business in New York, fast-food employers must follow the law.  My office will combat wage theft whenever and wherever we see it in order to protect the rights of hardworking New Yorkers, including pizza delivery workers and others who toil at fast-food restaurants.”

The lawsuit stems from a year-long investigation by the Attorney General's Labor Bureau into New Majority’s pay practices.  As described in court papers, the evidence gathered over the course of the investigation, including Mr. Johnson’s testimony and the company’s time and payroll records, showed that the company:

• Brazenly shaved work hours, rounding down pizza delivery workers’ time for each pay period to the nearest whole hour and not paying them for the remainder;
• Paid pizza delivery workers as little as $5  an hour, far  less than the $7.25-per-hour minimum wage that was required for most of the time period covered by the lawsuit.  This $5-per-hour rate was below even the $5.65 rate available for some tipped service employees, when the employer has fulfilled the requirements for claiming a tip credit;
• Regularly failed to pay proper overtime to delivery workers who worked more than 40 hours in one week, by basing overtime on an unlawfully low hourly rate, and calculating overtime incorrectly in several ways; 
• Required workers to purchase and maintain all bicycle delivery-related equipment that New York City law requires an employer to provide, such as bicycles, helmets, locks, chains, and safety gear, at a cost of at least $500 per worker each year;
• Never paid delivery workers “spread of hours” pay, an additional hour of pay required by the Labor Law for shifts in which the interval between the start and end time was longer than 10 hours;
• Never compensated workers as required by the Labor Law for what is known as “call-in pay,” i.e., compensation for being called in to work and then being sent home early;
• Failed to provide delivery workers with required written notice of their pay rates and other employment information; and 
• Failed to maintain adequate records of wages and hours as required by the Labor Law.

The lawsuit notes that the majority of evidence in the case arises from the employer’s own admissions and documents.  The lawsuit also alleges that in addition to the corporation, Mr. Johnson is individually liable for damages owed to delivery workers, because he was their employer.  The Attorney General is seeking over $1 million in unpaid wage restitution for over 400 delivery workers, as well as liquidated damages and interest, bringing the total owed to over $2 million.  The Attorney General is also seeking injunctive relief, to ensure that the company properly pays delivery workers going forward and provides them with written notice of their terms and conditions of employment, as the law requires.

The lawsuit is the first to come out of ongoing investigations of numerous fast-food employers by the Attorney General’s Labor Bureau for labor law violations.  

The Attorney General has also reached several settlements with fast-food franchises.  In March 2013, the Attorney General secured a settlement with six Domino’s Pizza franchises, which collectively owned 23 restaurants, for unpaid minimum wages, overtime, and vehicle expense reimbursements for delivery drivers.  In a separate matter in March 2013, the Attorney General secured a settlement of almost $500,000 for mostly minimum-wage employees of McDonald’s franchises operated by the Cisneros Group and its owner Richard Cisneros.  In December 2013, the Attorney General obtained reinstatement for 25 workers at a Domino’s pizza franchise located in Washington Heights, in New York City.  

New Majority’s Papa John’s pizza restaurants, all in Manhattan, are located at 703 Lenox Ave, Suite 705, New York, NY 10039-4501, 301 Cathedral Parkway, New York, NY 10026, 2119 1st Avenue, New York, NY 10029, 3477 Broadway, New York, NY 10031, and 329 Lenox Avenue, New York, NY 10027 (now closed).  

"When I worked for Papa John's, I was cheated of my hours, and treated as less than human," said Darrell Roper, 51, a former New Majority Holdings employee. "Unfortunately that's the reality for so many delivery workers, but I know that today, we're on our way to getting justice."

“Fast-food workers all across the city and country are organizing for higher pay and union rights,” said Kendall Fells, organizing director of Fast Food Forward. “This suit shows why their campaign is so important. And it shows that Attorney General Schneiderman is serious about holding fast-food companies accountable for wage theft. Workers who make the minimum wage, or the even lower tipped minimum, cannot afford to have their employers stealing from their paychecks. The suit is a clear signal that unscrupulous employers will not be tolerated. And it is the latest reminder that giant fast-food companies like Papa John's must ensure that its franchise holders abide by the law and treat workers fairly.”

The case is being handled by Assistant Attorney General Elizabeth Wagoner and Section Chief Andrew Elmore in the Attorney General’s Labor Bureau, which is led by Bureau Chief Terri Gerstein.  Executive Deputy Attorney General for Social Justice is Alvin Bragg.

ROCHESTER – Attorney General Eric Schneiderman today joined with elected officials and staff from the Rochester Land Bank to announce that his office has awarded $20 million to New York State land banks that are working to rebuild and restore neighborhoods hit hard by the housing crisis, including $1.8 million to the Rochester Land Bank. The Attorney General’s Land Bank Community Revitalization Initiative is making a new allocation of nearly $20 million to eligible land banks, in addition to the $13 million allocated through a competitive application process last year, bringing the total commitment to $33 million. Today’s announcement was made at 279 Lake View Park, a property that has been fully renovated thanks to funds issued under the previous grant Attorney General Schneiderman’s Office awarded to the Rochester Land Bank. This property will be sold to a low-or-moderate-income first-time homebuyer upon successful completion of homebuyer services training.

“Land banks are a critical tool to help communities recover from the housing crisis by ridding their streets of vacant and abandoned properties,” said Attorney General Schneiderman. “With this new round of funding, even more communities will reap the benefits of this powerful tool for urban revitalization. By funding and expanding land banks, we are empowering local communities to rebuild their own neighborhoods, house by house, block by block.” 

Previous funds awarded to the Rochester Land Bank were used to expand the Home Rochester Program, which takes foreclosed, highly distressed properties, renovates them and resells them for homeownership. This year’s award of $1.8 million, bringing the total investment in Rochester to just over $4.5 million for three years, will enable the Rochester Land Bank to further expand its Home Rochester Program, increasing the number of home renovations they can complete by 10 to 15 properties. In addition, funds will also enable the land bank to launch two new programs: “Strategic Blight Removal” will allow the Land Bank to demolish 10-12 severely blighted homes in areas that are undergoing redevelopment; and a new construction program—“Neighborhood Builders”—that will create 6 new homes to be built on currently vacant land, which will then be targeted to low and moderate income families.

Funding for this new round will be drawn from the $25 billion settlement with the nation’s largest banks that Attorney General Schneiderman helped negotiate in 2012. The following ten land banks in the State will receive funding: Greater Syracuse Land Bank; the Buffalo Erie Niagara Land Bank Investment Corporation; the Rochester Land Bank; Newburgh Community Land Bank; Suffolk County Land Bank; Chautauqua County Land Bank; Capital Region Land Bank; Albany County Bank; Troy Community Land Bank, and the Broome County Land Bank.

“I would like to thank Attorney General Eric Schneiderman for securing $1.8 million in additional funding for Rochester’s Land Bank,” said Rochester Mayor Lovely Warren. “In just 14 months of operation, the Rochester Land Bank Corporation has proven to be critical in our continued efforts to strengthen and invest in our neighborhoods across the city. Despite difficult fiscal times, our Land Bank has been able to help us deal with our most challenged properties in new and innovative ways which, in turn, has led to neighborhood and community revitalization.”

"For Rochester neighborhoods at the tipping point between revitalization and sliding further into blight, new and creative methods of improvement and investment are needed,” said State Senator Ted O’Brien. “I applaud Attorney General Schneiderman for being a tireless advocate for the people of this state, using the proceeds of settlements wisely to help strengthen our communities, and being a very active partner in our ongoing work to transform Rochester's neighborhoods into thriving communities that provide safety and prosperity to every citizen."

“The Office of the Attorney General’s support of the Rochester Land Bank Corporation through the Community Revitalization Initiative has been the wellspring of our work in combating vacancy and blight in City neighborhoods,” said Carol Wheeler, Board Chair of the Rochester Land Bank Corporation. “The generous award provided under Round 2  will not only allow us to invest in refreshing some of the  City’s housing stock, but will allow us to impact properties that have had a destabilizing effect on neighborhoods and could not be addressed with the programs currently available.”

During the decade of the housing boom and bust, from 2000 to 2010, the number of vacant properties in New York State increased 27%. Following the collapse of the housing market, the New York State Legislature passed a law in 2011 establishing land banks — nonprofit organizations that can acquire vacant, abandoned, or foreclosed properties and rebuild, demolish, or redesign them. By restoring vacant or abandoned properties, land banks lower costs for local governments, benefit public schools, reduce crime and boost local economies. 

However, the legislation that authorized land banks in New York did not provide funding for them. Attorney General Schneiderman launched the Land Bank Community Revitalization Initiative to fill that gap and allow land banks to fulfill their purpose. He has dedicated $33 million to fund that initiative. Last month, the Attorney General’s bill to expand the number of land banks from 10 to 20 was passed by the Legislature and signed into law by the Governor. 

The amounts awarded today are as follows: the Rochester Land Bank (over $1.8 million); Greater Syracuse Land Bank (over $1.9 million); the Buffalo Erie Niagara Land Bank Investment Corporation ($2.5 million); Newburgh Community Land Bank (1.9 million); Suffolk County Land Bank ($1.9 million); Chautauqua County Land Bank ($1.3 million); Capital Region Land Bank ($3 million); Albany County Bank ($2.8 million); Troy Community Land Bank ($1.25 million), and the Broome County Land Bank ($800,000).

So far, the program has achieved great success in the six land banks that have already been funded.

Abandoned and vacant properties depress property values, discourage property ownership, and attract criminal activity, but land banks provide tools to quickly turn these properties back into assets that reinvest in the community's long-term vision for its neighborhood. Land bank programs act as an economic and community development tool to revitalize distressed neighborhoods and business districts. Land banks can benefit urban schools, improve tax revenues, expand housing opportunities, remove public nuisances, assist in crime prevention and promote economic development. 

By transferring vacant and abandoned properties to responsible land owners, local governments benefit because they avoid the significant cost burden of property maintenance, such as mowing and snow removal. In addition, local governments benefit from increased revenue because the new owners pay taxes on the properties. In turn, local schools benefit because they receive more funding when there is an increase in the number of property owners in their school districts. Land bank programs can also increase the variety of mixed-income housing offered and provide more opportunities for affordable housing.

Land bank properties that become owner-occupied discourage criminal activity, benefiting public safety and decreasing the cost burden on local police and fire departments. Finally, the more residents and businesses that occupy property in a neighborhood, the more services and amenities will be needed, which boosts local economic activity.

The Attorney General’s office has partnered with Enterprise Community Partners to assist with the oversight and management of the Land Bank Community Revitalization Initiative. Enterprise is a nonprofit organization with more than 30 years of experience providing technical assistance and support to affordable community revitalization efforts. 

BUFFALO – Joined by elected officials and staff from the Buffalo Erie Niagara Land Bank, Attorney General Eric T. Schneiderman today announced that his office has awarded $20 million to New York State land banks that are working to rebuild and restore neighborhoods hit hard by the housing crisis, including more than $2.5 million to the Buffalo Erie Niagara Land Bank Investment Corporation (BENLIC). The Attorney General’s Land Bank Community Revitalization Initiative is making a new allocation of nearly $20 million to eligible land banks, in addition to the $13 million allocated through a competitive application process last year, bringing the total commitment to $33 million. Today’s announcement was made on Northland Avenue on Buffalo's East Side, the heart of the community that BENLIC hopes to redevelop with funds provided by the Attorney General’s Office, in partnership with the City of Buffalo.

“Land banks are a powerful tool to help communities statewide rid their streets of vacant properties that attract crime and drag down property values,” said Attorney General Schneiderman. “With this new round of funding, we are doubling our commitment to Buffalo’s revitalization, including the ongoing redevelopment of the East Side. By expanding land banks, we can continue to empower more communities to rebuild their own neighborhoods, house by house, block by block.”

This year’s award of $2.5 million to BENLIC will bring the total investment in Buffalo to just over $4.5 million over three years. Those funds will enable BENLIC to expand their rehabilitation program to target the Northland Avenue Belt Line Corridor, a priority area for redevelopment on the East side of Buffalo. BENLIC expects to complete 12-16 rehabilitations of distressed homes, and 50-75 demolitions over the next two years throughout the region.

Funding for this new round will be drawn from the $25 billion settlement with the nation’s largest banks that Attorney General Schneiderman helped negotiate in 2012. The following ten land banks in the State will receive funding: Greater Syracuse Land Bank; the Buffalo Erie Niagara Land Bank Investment Corporation; the Rochester Land Bank; Newburgh Community Land Bank; Suffolk County Land Bank; Chautauqua County Land Bank; Capital Region Land Bank; Albany County Bank; Troy Community Land Bank, and the Broome County Land Bank.

“Vacant and abandoned property casts a shadow over neighborhoods across the City of Buffalo and Western New York,” said Congressman Brian Higgins.  “Attorney General Schneiderman’s successful fight to secure a federal settlement is providing needed resources to help local communities fight the blight and take back our communities.”

“The land bank has been a critical instrument in the fight against the dilapidated, abandoned houses that dot our communities and lower our property values," said Erie County Executive Mark Poloncarz. "Since its inception in 2012, the land bank has been a positive factor for change across our region, helping to restore housing to the tax rolls and mend the fabric of neighborhoods, I would like to thank my partner in government, Attorney General Schneiderman, for his focus on this issue and his commitment to addressing vacant properties.”

“I thank Attorney General Schneiderman for his continued focus on revitalizing neighborhood’s in Buffalo through the Buffalo Erie Niagara Land Improvement Corporation, giving our city the tools and resources needed to help us reach our full potential,” said City of Buffalo Mayor Byron W. Brown.  “Our Land Bank is an important tool for the revitalization of neighborhoods in Buffalo, creating jobs and opportunities for small businesses.”

“Western New Yorkers take pride in their homes and neighborhoods, however, we still have vacant and blighted properties tarnishing our community and bringing down home values,” said Senator Kennedy (D-Buffalo). “Land banks are a powerful resource for municipalities like Buffalo, Cheektowaga and Lackawanna, who can use this funding to bring distressed properties up to code and back on the tax rolls. A $20 million state investment in land banks will reverse the negative cycle of blight and decline that has hit Buffalo hard, and convert it into a positive cycle of neighborhood improvement and development.  I’d like to thank Attorney General Eric Schneiderman for recognizing the importance of this funding to continue our efforts to improve Western New York's neighborhoods."

Assemblywoman Crystal Peoples-Stokes said, “Buffalo is growing at a rate that has not been seen in generations, community redevelopment has to match that rate said. Abandoned and vacant properties have an effect on property values, more importantly the surrounding communities. The Buffalo Erie Niagara Land Bank Investment Corporation (BENLIC) focuses on this very issue; community redevelopment through returning delinquent properties to productive use. I applaud Attorney General Eric Schneiderman for the $2.5 million in funding to BENLIC and his continued efforts impacting the Queen City.”

Assemblyman Michael Kearns said, “Saving our  neighborhoods is essential to our community  and  $2.5 million is a great start to help address vacant and abandon properties.”

Assemblyman Sean Ryan said, “I thank Attorney General Schneiderman for working diligently to utilize settlement funding to invest in Land Banks all across our state. Here in Western New York, our Land Bank is working to combat the vacant housing crisis, and this funding will be a huge boost to our efforts. The Land Bank law was a game-changer that allowed Erie County, the City of Buffalo, and municipalities across New York create land banks that can significantly reduce the number of vacant properties that negatively impact our communities. This new funding will help to local governments save money, combat blight, and improve neighborhoods throughout Western New York."

Jocelyn Gordon, Executive Director of the Buffalo Erie Niagara Land Improvement Corporation, said, "Western New York is reinventing itself before our very eyes.  For those of us with a long history in this region, we are witnessing progress which we likely never imagined could occur in our lifetime.   Many thanks to the Office of the Attorney General for their continued confidence in BENLIC, and for providing this tremendous catalyst to spur continued development in Buffalo and beyond. "

During the decade of the housing boom and bust, from 2000 to 2010, the number of vacant properties in New York State increased 27%. Following the collapse of the housing market, the New York State Legislature passed a law in 2011 establishing land banks — nonprofit organizations that can acquire vacant, abandoned, or foreclosed properties and rebuild, demolish, or redesign them. By restoring vacant or abandoned properties, land banks lower costs for local governments, benefit public schools, reduce crime and boost local economies.

However, the legislation that authorized land banks in New York did not provide funding for them. Attorney General Schneiderman launched the Land Bank Community Revitalization Initiative to fill that gap and allow land banks to fulfill their purpose. He has dedicated $33 million to fund that initiative. Last month, the Attorney General’s bill to expand the number of land banks from 10 to 20 was passed by the Legislature and signed into law by the Governor.

The amounts awarded are as follows: the Rochester Land Bank (over $1.8 million); Greater Syracuse Land Bank (over $1.9 million); the Buffalo Erie Niagara Land Bank Investment Corporation ($2.5 million); Newburgh Community Land Bank (1.9 million); Suffolk County Land Bank ($1.9 million); Chautauqua County Land Bank ($1.3 million); Capital Region Land Bank ($3 million); Albany County Bank ($2.8 million); Troy Community Land Bank ($1.25 million), and the Broome County Land Bank ($800,000).

In the first round of funding provided by the OAG, six land banks received grants and to date they have each made tremendous progress. The Attorney General’s funds are assisting land banks in building their capacity so they are able to take on these types of community redevelopment initiatives, as well as enabling the land banks to begin implementing their local community development plans.

Abandoned and vacant properties depress property values, discourage property ownership, and attract criminal activity, but land banks provide tools to quickly turn these properties back into assets that reinvest in the community's long-term vision for its neighborhood. Land bank programs act as an economic and community development tool to revitalize distressed neighborhoods and business districts. Land banks can benefit urban schools, improve tax revenues, expand housing opportunities, remove public nuisances, assist in crime prevention and promote economic development.

By transferring vacant and abandoned properties to responsible land owners, local governments benefit because they avoid the significant cost burden of property maintenance, such as mowing and snow removal. In addition, local governments benefit from increased revenue because the new owners pay taxes on the properties. In turn, local schools benefit because they receive more funding when there is an increase in the number of property owners in their school districts. Land bank programs can also increase the variety of mixed-income housing offered and provide more opportunities for affordable housing.

Land bank properties that become owner-occupied discourage criminal activity, benefiting public safety and decreasing the cost burden on local police and fire departments. Finally, the more residents and businesses that occupy property in a neighborhood, the more services and amenities will be needed, which boosts local economic activity.

The Attorney General’s office has partnered with Enterprise Community Partners to assist with the oversight and management of the Land Bank Community Revitalization Initiative. Enterprise is a nonprofit organization with more than 30 years of experience providing technical assistance and support to affordable community revitalization efforts.

HAUPPAUGE – As part of his statewide gun buyback program, Attorney General Eric T. Schneiderman is holding a press conference at a gun buyback program in Hauppauge today along with Suffolk County Executive Steven Bellone. The program accepts working and non-working, unloaded weapons in exchange for compensation on site. The Long Island event, the seventh gun buyback program sponsored by Attorney General Schneiderman’s office, is a collaborative effort among the office, Suffolk County Executive Steven Bellone and the Suffolk County Police Department. 

“By providing a financial incentive for individuals to turn in unwanted weapons, we are helping to prevent dangerous firearms from ending up in the wrong hands,” Attorney General Schneiderman said. “My office’s gun buyback program is a critical component of our ongoing efforts to eradicate the devastating gun violence that has plagued our neighborhoods for far too long and give New Yorkers across the state the peace of mind they deserve.”  

County Executive Steve Bellonesaid, “I thank Attorney General Schneiderman for bringing this gun buyback program to Suffolk County. Providing the buyback opportunity for Suffolk residents to turn in unwanted firearms helps to make our communities safer.” 

Suffolk County Police Commissioner Edward Webbersaid, “Removing firearms from our streets is a key component in combatting violent crime in Suffolk County. The department would like to thank Attorney General Eric Schneiderman for securing funds for this program that will benefit all residents.” 

The event, which is running from 9 a.m. to 12 p.m., is being held at the H. Lee Dennison Building, at 100 Veterans Memorial Highway. 

Attorney General Schneiderman launched his statewide guy buyback program in Rochester in September 2013.  Saturday’s event in Hauppauge was the seventh the office has sponsored. The events resulted in the turning in of 749 firearms, not including weapons returned today.  

In 2011, close to 33,000 Americans were victims of gun-related deaths. The Brady Campaign to Prevent Gun Violence reports that an average of 268 people are shot every day in America. That's 97,820 people shot per year. 

At the events, the Attorney General's Office offers money in the form of debit cards when a gun is received by law enforcement officers. Debit cards with the appropriate amount are issued after each unloaded gun is received and screened by the officers on site. 

Guns must be transported to the drop-off site unloaded and placed in a plastic or paper bag or box. Both working and non-working firearms will be accepted. There is no limit on the number of firearms an individual can return. Licensed gun dealers and active or retired law enforcement officers are not eligible for this program. 

The Attorney General's Office will be providing the following compensation by debit card for firearms returned on site: 

• $25 for non-working or antique firearms;
• $75 for rifles and shotguns;
• $100 for handguns;
• $150 for assault weapons. 

The gun buyback program is one part of Attorney General Schneiderman’s broader initiative to protect New Yorkers from gun violence. In March, he toured the Long Island Gun Show in Hauppauge to highlight the success of his office’s Model Gun Show Procedures, which ensure that everyone who buys a gun at a gun show undergoes a background check. Virtually every gun show operator across the state has voluntarily signed on to the procedures, making sure that firearms stay out of the wrong hands. More information on the event is available here.

WESTCHESTER -- State Attorney General Eric T. Schneiderman announced today that his office has reached a settlement with Westchester Foreign Autos, Inc., d/b/a Westchester Toyota, a Yonkers auto dealer that was adding a bogus “buyout fee” to the price customers paid for buying their vehicle at the end of their lease. Under the settlement, Westchester Toyota will repay a total of $149,407 to 228 customers who were charged the bogus buyout fee.  The dealership will also pay $22,000 in costs and penalties to New York State.

“New York auto dealers, like all New York businesses, cannot charge hidden fees and offer nothing in return. If they do so, they are breaking the law, deceiving their customers and creating an unfair marketplace,” Attorney General Schneiderman said.  “My office will continue to monitor this dealer’s business practices and those of other auto dealers, to ensure that they are fair and honest.”

Between January 1, 2011, and January 31, 2013, Westchester Toyota, located at 2167 Central Park Avenue, charged its customers a Lease Buyout Processing Fee (“buyout fee”) in addition to the residual value of the vehicle, which is the amount the vehicle is worth and can be purchased for at the end of the lease (the “buyout price”).  The buyout fees ranged from $295 to $2,895.

The buyout fee was not disclosed to consumers when they leased their vehicles. They learned of it only when it was added to the vehicle’s buyout price at the expiration of their lease.

Westchester Toyota provided few, if any, services or benefits to consumers in exchange for the buyout fee.  The buyout fee was, for the most part, an extra fee for which consumers did not receive commensurate services or benefits.

The Westchester Toyota case was handled by Assistant Attorney General Sandra Giorno-Tocco and Senior Consumer Frauds Representative John Katzenstein. Gary Brown is the assistant attorney general-in-charge of the Westchester Regional Office and Marty  Mack is executive deputy attorney general for regional affairs.

NEW YORK – Attorney General Eric Schneiderman today issued a consumer alert warning New Yorkers about scams related to fears of Ebola. Scammers commonly use moments of heightened public fear to perpetuate frauds, and reports have surfaced of fundraising scams claiming to benefit victims of Ebola. There have also been dubious offers by companies selling bogus Ebola preparedness kits and preventative medications while there is not an FDA-approved vaccine for Ebola.
 
“New Yorkers should beware of fundraising solicitations and offers of goods and services related to Ebola,” said Attorney General Schneiderman. “Scammers are shamefully exploiting this moment of heightened concern about public health to defraud good people. These frauds detract from the positive work of the brave medical professionals fighting this disease and the charitable spirit of New Yorkers looking to help out.”
 
If you receive solicitations about Ebola, consider the following tips:

• Do your homework on the disease. With scammers selling bogus emergency preparedness kits and medical treatments, be sure to know the facts. There are no FDA-approved vaccines, medications, or dietary supplements to prevent or treat Ebola, so be wary of offers promising otherwise. Stay informed about the disease, the latest emergency preparedness measures, and the most medically accurate information by visiting the Centers for Disease Control and Prevention website and the New York State Department of Health website.
  • Consumer Reportspublished an article referencing a bogus e-mail solicitation offering a $29 “surplus protection kit” supposedly designed for emergency response teams and law enforcement agencies.
  • The Federal Trade Commission has warned that there are no FDA-approved medical treatments for Ebola and that consumers should file complaints with the FTC and the FDA if they encounter a fraud.
  • According to USA Today, at least three companies have been issued warnings by the Food and Drug Administration in the past month for selling bogus treatments, solutions, or therapies for Ebola.
• Donate to reputable charities. Fraudulent solicitations have been received claiming to pay funds to families of Ebola patients and promising to fight the disease. If you receive a charitable solicitation, do some research to determine whether the charity is legitimate. The Better Business Bureau (BBB) has a website called www.give.org that allows users to look up charities and see whether they meet various standards of accountability. Charity Navigator also offers a listing of reputable charities responding to the Ebola outbreak that can be found online here.
  • According to a report in Daily Finance, the Better Business Bureau’s New York office has received complaints about fraudulent telephone solicitations involving a charity claiming to raise funds to help Ebola victims. There have also been reports of door-to-door frauds claiming to raise money for a Texas nurse who became infected with the disease.
• Do not click on unsolicited links in e-mail or online.Scammers sometimes utilize a technique called phishing, in which victims are baited into clicking on harmful links or entering personal information under false pretenses. Consumers have reported receiving fraudulent e-mails linking to dubious websites where charitable donations can be made. Learn more about an organization before clicking on links or providing donations or personal information.
  • CBS News has reported that fake e-mail solicitations about Ebola have been linked to malware.
• Ask tough questions.If you receive a charitable solicitation, ask what percentage of your donation will go to the organization and how much will go to professional fundraisers and overhead costs. Ask the charity to send you written information, such as brochures.
• Pay close attention. Some fraudsters will use names similar to those of legitimate charities or mimic the appearance of a legitimate charity’s website to deceive potential donors.
• Report potential scams.If you believe you are the victim of a scam or have been solicited by a scammer, take the time to report the incident. One of the best ways to fight back against scammers is to report them.
  • Report the unlawful sale of bogus medical products to the U.S. Food and Drug Administration.
  • Report suspicious charitable solicitations: If you believe an organization is misrepresenting its work or that a scam is taking place, contact Attorney General Schneiderman’s Charities Bureau at charities.bureau@ag.ny.gov or (212) 416-8402.

NEW YORK — Attorney General Eric T. Schneiderman today announced an agreement with the Newburgh Police Department that will help strengthen language access services for residents who are limited English proficient (LEP). The agreement will improve the ability of officers in the Newburgh Police Department to provide interpretation and translation services when needed. Newburgh’s Police Department protects a diverse population.  

“Equal justice under law requires that all New Yorkers have access to the important public safety services provided by law enforcement agencies, regardless of their language ability,” Attorney General Schneiderman said. “This agreement with the Newburgh Police Department — and similar agreements my office has reached with other police departments around New York state — will help us ensure that the delivery of police services are not limited or restricted by language barriers.” 

In cooperation with the Attorney General’s Civil Rights Bureau, the police department has agreed to improve its language access policies for individuals who are limited English proficient. The department will: 

• Ensure that its officers, and its civilian employees who have regular contact with the public, effectively communicate with LEP persons, including when responding to calls for assistance; making traffic stops; taking complaints; interviewing crime victims; making public service announcements, and issuing safety alerts;
• Ensure effective communication with LEP subjects of criminal investigations;
• Provide annual training on how to effectively communicate with LEP persons;
• Take steps to recruit, hire and retain bilingual officers and staff and maintain a mechanism for testing proficiency levels;
• Translating vital documents, and relying upon translated materials made available through other law enforcement entities, agencies and courts;
• Making English- and Spanish-language Personnel Complaint Forms available at all Newburgh Police Department buildings and on the department’s website; and
• Regularly meet with the Attorney General’s Office to discuss the success of its language access program. 

According to Census data, approximately 2.5 million New Yorkers do not speak English as their primary language and have a limited ability to read, speak, write, or understand English. More than 44 percent of residents in the City of Newburgh, age 5 and over, speak a language other than English at home, and more than 19 percent of Newburgh’s residents speak English less than “very well.” Newburgh’s population is nearly 48 percent Hispanic, among the largest percentage of any city in the state.  The police department’s strengthened language access program will help ensure that all individuals in its communities have full access to vital police services, regardless of language ability.   

Michael Ferrara, Chief of the Newburgh Police Department,said, “As a professionally trained police department here in the City of Newburgh, it is our responsibility to constantly strive for improvement in the way we relate with our diverse population.  Our language access plan was designed to help us diminish language barriers that may arise in any situations the police department may encounter.  The purpose is for our officers to be more effective in every aspect of their work.  Communicating with witnesses, victims, complainants, suspects or any member of the general public with language barriers is challenging even in the best of circumstances. Newburgh officers regularly encounter susceptible LEP persons in crisis situations, at times when the need for accurate communication is paramount.”

Newburgh Mayor Judy Kennedy said, “We applaud the Attorney General for ensuring that the substantial number of farm laborers, rising number of limited English proficient Latinos, domestic violence victims and vulnerable crime victims are able to access the important public safety services of the police department regardless of their ability to speak English. Newburgh is a city where nearly fifty percent of its population is of Latino descent, and it’s critical we are being responsive to this population." 

Newburgh City Manager Michael Ciaravino said, “The City of Newburgh Police Department implemented a new language access policy to establish guidelines for assisting individuals with limited English proficiency.  The policy is intended to ensure maximum communications between law enforcement and all segments of our community and will enable the City of Newburgh Police Department to improve communication with our residents.  The City of Newburgh is committed to ensuring that all officers and civilian employees who have contact with the public are able to communicate effectively with those individuals seeking the assistance or services of the City of Newburgh Police Department. We appreciate the opportunity to work with the Attorney General’s Office to promote compliance with our goals and objectives.” 

Newburgh Police Department joins the Nassau County Police Department, the Rochester Police Department, the Ontario County Sheriff’s Department and the Middletown Police Department in working with the New York State Attorney General’s Office to strengthen language access.  These agreements come as we mark the 50th Anniversary of Title VI of the Civil Rights Act of 1964. Upon signing the act, then-President Lyndon B. Johnson observed: “This Civil Rights Act is a challenge to all of us to go to work in our communities and our states, in our homes and in our hearts, to eliminate the last vestiges of injustice in our beloved country.” 

Attorney General Schneiderman has made promotion of compliance with the language assistance requirements of the act a core civil rights priority. His Civil Rights Bureau is committed to promoting civil rights compliance and language access across New York State. To file a complaint with the Bureau, contact 212-416-8250 or Civil.Rights@ag.ny.gov.

The matter is being handled by Civil Rights Bureau Chief Kristen Clarke and Assistant Attorney General Anjana Samant. Executive Deputy Attorney General for Social Justice is Alvin Bragg.

NEW YORK – Attorney General Eric T. Schneiderman issued the following statement in response to the settlement announced today by Governor Cuomo and the New York Civil Liberties Union in the case of Hurrell-Harring v. New York State:

“The right to effective legal representation for every criminal defendant is a fundamental tenet of our criminal justice system.  As has often been said, the right to a lawyer is the right that protects all the rest of our freedoms. That is why, during my time in the State Senate, I proposed legislation that would have improved defense counsel for every New Yorker, not just the rich and powerful or those living in more affluent communities.  It is also why I congratulate Governor Cuomo and the New York Civil Liberties Union for reaching a settlement that will create a system to provide effective representation for criminal defendants in the five counties covered in this lawsuit. Now that this matter has been resolved, it is my hope that the approach outlined in this agreement can be a building block toward the kind of statewide reforms we need to move closer to the ideal of providing every criminal defendant in every part of our state with effective legal representation.”

A copy of the settlement can be read here.

NEW YORK – Attorney General Eric T. Schneiderman today announced the arrest and indictment of the top two executives of Narco Freedom, a nonprofit organization that provides treatment for substance abuse to tens of thousands of New York City residents at ten locations in Brooklyn, Queens and the Bronx. The organization’s director, Alan Brand, allegedly received personal kickbacks for housing some of Narco Freedom’s facilities in the buildings of a particular real estate developer. He then used the proceeds of these illegal dealings to fund a lavish lifestyle, according to today’s indictment. Alan Brand has been charged with bribery, grand larceny and money laundering for this part of the alleged scheme; if convicted, he faces a maximum of 15 years in prison. 

Brand’s son, Jason, was also indicted this morning and, along with his father, accused of falsely filing a $3.5 million insurance claim for the restoration of a Narco Freedom treatment facility in Brooklyn. Like his father, Jason Brand is accused of spending the organization’s funds for his personal use. If convicted of this part of the alleged scheme, Jason and Alan Brand each face a maximum of 25 years in prison.

“People motivated solely by personal greed have no business administering to the serious health needs of other New Yorkers,” said Attorney General Schneiderman. “New York has the greatest nonprofit sector in the nation, but a case like this reminds us of the need to remain vigilant and strengthen our oversight of the industry.”

In addition to the criminal indictment, the Attorney General obtained a civil court order freezing the bank accounts, property and possessions of both Alan Brand and Jason Brand and corporations they control. In accordance with the court order, four properties have been frozen: 23 Barrington Place, Melville (Jason Brand’s N.Y. home), 18 Phaetons Drive, Melville (Alan Brand’s N.Y. home), 8140 Santalo Cove Court, Boynton Beach (Florida property belonging to Jason Brand) and 99 SE Mizner Blvd, Boca Raton (Florida property belonging to Alan Brand). The order also freezes the Bronx headquarters of both Narco Freedom (250 Grand Concourse) and Jason Brand’s construction company, DASO Development (1735 West Farms Road). Additionally, investigators seized six cars today belonging to Alan and Jason Brand, including a 2013 Tesla Model S, a 1969 Chevy Corvette and a 2002 Jaguar X.

Narco Freedom is a New York State Medicaid provider; it receives nearly $40 million annually in taxpayer-funded state Medicaid reimbursements and additional money from the New York State Office of Alcoholism and Substance Abuse Services. In addition to treatment facilities, the organization provides medical, mental health and other support programs to tens of thousands of people across New York City. 

The investigation into the Brands’ criminal conduct, which was spearheaded by the Attorney General’s Medicaid Fraud Control Unit (MFCU), began in 2013. Between 2009 and 2014, Alan Brand allegedly solicited and received a monthly kickback of $13,000 from a real estate developer who rented buildings to Narco Freedom. In exchange for the monthly payments, Brand agreed to house many of the nonprofit’s facilities in the developer’s buildings, using taxpayer dollars to pay the rent, according to documents made public today. Through this arrangement, Brand was profiting personally, pocketing money rightly due to his charitable organization.

Narco Freedom is registered as a tax-exempt, not-for-profit corporation; Alan Brand is the Director and sole shareholder and was, until recently, its Chief Executive Officer. Under State law, shareholders of not-for-profit charitable organizations owe their organizations a duty of loyalty, a duty of care and a duty of obedience which mandates that they place their organization’s interests above their own, that they abide by all rules and regulations applicable to that organization and that they operate the organization in furtherance of its core mission.  Prosecutors allege that Alan Brand violated all three of these duties by entering into the aforementioned kickback scheme and by concealing the scheme from various individuals and regulatory agencies. 

In addition to the kickback scheme, today’s indictment alleges that Alan Brand, while C.E.O. of Narco Freedom, along with Jason Brand, while a high-ranking manager there and the owner of the DASO Development Corporation, defrauded Arch Insurance Company by filing a false insurance claim in connection with the restoration of 217 Court Street in Brooklyn, the location of a former treatment facility operated by Narco Freedom.  

The Brooklyn facility suffered substantial damage from a 2009 storm and, as the insured party, Narco Freedom received a $3.5 million payment with Arch to restore the location. During settlement negotiations, Jason Brand, negotiating on behalf of Narco Freedom, allegedly represented that restoration work would be completed by union employees; instead, day laborers were hired in an apparent effort to lower the cost of the project. The Brands also failed to disclose that Jason Brand owned the company hired to restore the facility, DASO Development Corporation, according to prosecutors. According to the indictment, Narco Freedom’s intentional misrepresentations and material omissions resulted in a significant loss to Arch, as the insurance company agreed to an unnecessarily large settlement.

As a result of today’s indictment, Alan Brand has been charged with Commercial Bribe Receiving in the First Degree, Grand Larceny in the Second Degree and Money Laundering in the Second Degree.  Alan and Jason Brand, as well as Narco Freedom and DASO Development Corporation as separate entities, have been charged with Insurance Fraud in the First Degree and Grand Larceny in the Second Degree.

The Attorney General’s investigation into the operation of Narco Freedom continues and additional charges are anticipated.

Throughout this investigation, the Attorney General’s office has worked closely with those state agencies that regulate Narco Freedom’s treatment programs. The goal of this coordinated effort is to ensure the continuity of care for all patients that use Narco Freedom’s services. In particular, the Attorney General would like to thank the Office of Alcoholism and Substance Abuse Services, the Office of the Medicaid Inspector General and the New York State Department of Health. 

The criminal case is being prosecuted by Assistant Attorneys General Kristen Conklin and Jihee Suh. The civil case is being handled by attorneys Carolyn Ellis, Alee Scott and Dave Abrams. The investigation was led by Deputy Chief Kenneth Morgan, Senior Investigator Albert Maiorano, Supervising Investigator Michael Casado and Investigators Dominic DiGennaro, Steven Broomer, Dave Ryan, Julie Clancy and Valerie Patrick. Audit support was provided by Special Audit Investigators Patricia Iemma and Giovanni Liotine. Christopher M. Shaw is MFCU’s New York City Regional Director, Thomas O’Hanlon is its Chief of Criminal Investigations – Downstate and Thomasina Smith is its Chief Auditor. Amy Held is the Acting Director of MFCU. The Criminal Justice Division is led by Executive Deputy Attorney General Kelly Donovan.

The charges filed in this case are accusations. The defendants are presumed innocent until proven guilty in a court of law.

NEW YORK – Attorney General Eric T. Schneiderman today announced a lawsuit alleging that Monroe County-based The Juice Factory Corp. for repeatedly violating multiple provisions of New York’s Returnable Container Act, otherwise known as the Bottle Bill.  Investigations by the Attorney General’s Office and the New York State Department of Environmental Conservation (DEC) revealed that for over two years, The Juice Factory collected deposits on beverage containers it sold in Monroe and Erie counties but failed to send $79,571 in unclaimed deposits to the State, as required by law. 

 The suit was filed in the Supreme Court of the State of New York, Monroe County.  

“The Bottle Bill is one of New York’s hallmark environmental laws.  Companies that skirt the Bottle Bill not only hurt recycling and litter prevention efforts, but also cheat the State out of money that benefits the public,” Attorney General Schneiderman said. “As our suit alleges, The Juice Factory broke the law by pocketing tens of thousands of dollars in unclaimed deposits that it owed to the State.  We will continue to aggressively enforce New York’s Bottle Bill and other environmental laws by ensuring that everyone plays by the same set of rules.” 

“Unclaimed deposits support important environmental programs that protect our environment, reduce the amount of waste disposed in landfills and save energy,” DEC Commissioner Martens said. “Companies have a responsibility to comply with our state’s environmental laws, but in this case, the Juice Company violated those laws and the public trust.  I commend DEC investigators and our partners in the Attorney General’s Office and Tax Department for taking decisive action to ensure compliance with New York’s Bottle Bill law and put an end to deceptive practices that took advantage of consumers.”

According to the DEC, New York’s Bottle Bill has done a great deal to create a cleaner and healthier New York. The Bottle Bill program has reduced roadside container litter by 70 percent; recycled 90 billion containers, equal to 6 million tons of materials, at no cost to local governments; saved more than 52 million barrels of oil, and eliminated 200,000 metric tons of greenhouse gases each year.

New York’s Bottle Bill requires that there be a deposit of at least a 5-cents indicated on every beverage container covered by the law and that the deposit is collected on every beverage container that is sold in the State.  The entity that first sells or offers the beverage for sale in the State, and collects the first nickel deposit, is the “deposit initiator.”  The deposit initiator must register with the New York State Department of Taxation and Finance before selling in the State, and maintain a refund account for the deposits collected and from which to reimburse retailers and redemption centers that return empty containers that have been redeemed by consumers. Deposit initiators must remit to the State 80% of the unclaimed deposits held in the account on a quarterly basis.

The requirements that deposit initiators register with the State, establish a refund account, and remit 80% of all unclaimed deposits that accrue in that account was added by the State Legislature in 2009 to allow for a large portion of the unclaimed deposits to be paid over to the State, which were all previously kept by distributors.  Amendments to the law in 2013 provide for all monies collected through enforcement efforts to be deposited into the Environmental Protection Fund.  

The investigation conducted by Attorney General Schneiderman and DEC found that, between August 2009 and December 2011, The Juice Factory acted as a deposit initiator within the meaning of the Bottle Bill and repeatedly sold and collected deposits on Day’s brand soda it sold in Monroe and Erie counties, according to the suit.  Throughout this time, The Juice Factory failed to register as a deposit initiator with the State, failed to create a separate deposit refund account, and failed to remit the required 80% of unclaimed deposits to the State. Records indicate that the company collected $99,464 in deposits for a period spanning more than two years. However, The Juice Factory allegedly failed to remit to the State any of the required 80% of unclaimed deposits, an amount totaling $79,571. 

According to the complaint, State officials notified The Juice Factory on several occasions during the course of its investigation that the company was in violation of provisions of the Bottle Bill and instructed the company to come into compliance.  However, The Juice Factory ignored these warnings.  

In the lawsuit filed today, Attorney General Schneiderman asks the court to take several actions against The Juice Factory for its multiple, repeated violations of the state Bottle Bill.  These include ordering The Juice Factory to:  

• pay penalties, as provided for in the law, for violations of the Bottle Bill; 
• pay $79,571, plus interest, in restitution to the state; and
• fully comply with all requirements of the Bottle Bill in the future.  

Under a 2013 amendment to the Bottle Bill, all enforcement proceeds are to be deposited in the state’s Environmental Protection Fund.

In January, Attorney General Schneiderman obtained a settlement against a New Jersey-based company that underpaid New York nearly $330,000 in bottle deposits.

Attorney General Schneiderman thanks the DEC and the New York State Department of Taxation and Finance for their assistance.

This matter was handled by Assistant Attorneys General Jane Cameron and Andrew Gershon of the Environmental Protection Bureau, which is led by Bureau Chief Lemuel M. Srolovic. The Social Justice division is led by Executive Deputy Attorney Alvin Bragg. DEC Investigator Christopher T. Didion, Lieutenant Richard Thomas, Senior Attorney Cristin T. Clarke, and Environmental Program Specialist Jennifer Krumanassisted in this matter, as did Department of Taxation and Finance Deputy Counsel Deborah R. Liebman and Taxpayer Assistance Specialist David Foster.

NEW YORK— New York State Attorney General Eric T. Schneiderman, Board of Regents Chancellor Merryl H. Tisch, and State Education Commissioner John B. King, Jr. today announced that the State Attorney General’s Office and the State Education Department will immediately conduct a compliance review of school district enrollment policies and procedures for unaccompanied minors and other undocumented students.  The review, which will examine whether students are being denied their constitutional right to an education, will initially focus on districts experiencing the largest influx of unaccompanied minors from Central and South America. 

“Schoolhouse doors must be open to every student in our increasingly diverse state regardless of their immigration status—there is simply no excuse for denying that basic right, which is protected by the Constitution,” Attorney General Schneiderman said. “More than 30 years after the Supreme Court guaranteed a free public education for undocumented children, we must do everything we can to uphold the law and ensure equal access for all our students. This review is a crucial step in that effort."

"We have a legal and a moral obligation to provide every child, no matter where they come from or what they look like, with an education," said Chancellor Tisch.“And we're going to do everything possible to make sure that happens.  The Department will take strong and swift action against any district that breaks the law and denies a child a seat in a classroom.  

"The Board of Regents recognizes the fiscal impact an unanticipated influx of new students has on districts.  We are asking New York's Congressional delegation to support urgent action on proposals for federal funding for districts receiving unaccompanied minors.  Our State Aid proposal, to be announced later this fall, will call for immediate action on additional state aid for districts managing an influx of new students this school year."

“Every school district in New York State has an obligation to educate all of our children regardless of their immigration status,” Commissioner King said. “We will not stand by while districts ignore the law and prevent these children from receiving an education.  Department staff has already started this process, and we won’t stop until we’re sure every district is following the law and every child is in school.”

The joint compliance review will help determine whether districts in Nassau, Suffolk, Rockland and Westchester counties maintain policies and procedures that exclude or impair the ability of students seeking to enroll in school solely on the basis of their citizenship or immigration status, or that of their parents or guardians. The first phase of the compliance review will focus on districts experiencing the largest influx of unaccompanied minors from Central and South America.

The announcement follows a series of actions already taken by the Department.  On August 30, 2010, the Department issued guidance to districts on their obligations in enrolling students and making residency determinations, particularly students who are not citizens of the United States.

On September 10, 2014, the Department expanded the guidance to address the specific circumstances of unaccompanied minors who have recently entered the country in larger numbers.

On October 17, 2014, following allegations that the Hempstead School District was ignoring the law and preventing 34 Hispanic children from receiving an education, the Department launched a full investigation of enrollment policies in Hempstead.  The District subsequently committed to enroll the students and to provide them with an appropriate public education.  A report to the Department from the interim district superintendent of the Nassau Board of Cooperative Educational Services (BOCES) on the Hempstead policies is expected today.  King said the Department will direct the Hempstead School District to take immediate action to address concerns raised in the report. 

In 1982, the United States Supreme Court invalidated a Texas law that had denied state funding to schools to educate undocumented students and had authorized schools to deny enrollment to undocumented students (Plyler v. Doe, 457 U.S. 202).  The Court held that the U.S. Constitution guarantees equal protection under the law for undocumented children and explained that denying undocumented students an education would "deny them the ability to live within the structure of our civic institutions, and foreclose any realistic possibility that they will contribute in even the smallest way to the progress of our Nation." (Plyler, 457 U.S. at 223) As Plyler makes clear, the undocumented or non-citizen status of a student (or his or her parent or guardian) is irrelevant to that student's right to an elementary and secondary public education. 

This joint compliance review will be modeled on similar reviews conducted by federal agencies and will include an examination of districts’ written enrollment and registration materials, as well as a review of publicly-disseminated information regarding those procedures.  The first phase of the joint compliance review will focus on Suffolk, Nassau, Westchester and Rockland counties.  In addition, representatives of the Attorney General’s Office will meet with community based organizations and advocates to provide technical assistance as to the legal obligations of districts surrounding enrollment and the rights of students and parents, and to provide information on the due process rights of impacted students, including the right to appeal district enrollment decisions directly to the Commissioner (http://www.counsel.nysed.gov/appeals).

In addition, the New York State Technical and Education Assistance Center for Homeless Students (NYS-TEACHS) provides technical assistance to school districts, social service providers, shelters, families, youth and others about the McKinney-Vento Homeless Assistance Act.  NYS-TEACHS services include:

• A toll-free helpline for questions about school-related issues (800-388-2014);
• On-site training, webinars, and annual McKinney-Vento workshops on the education of students in temporary housing; and
• Free posters and brochures in multiple languages with information about the rights of students in temporary housing.

The NYS-TEACHS helpline has operators available to provide guidance and support to speakers of languages other than English.  Undocumented students who may qualify as homeless and are experiencing enrollment difficulties – and their parents, social service providers, and other advocates – should contact the helpline for assistance.

A copy of the letter sent to school districts in Suffolk, Nassau, Westchester and Rockland counties can be viewed here

BUFFALO – Attorney General Eric T. Schneiderman today announced the conviction of  Michael Rodriguez for the 1979 murder of his estranged wife, Patricia Scinta Rodriguez. Ms. Rodriguez’s body was found in a deserted section of Lackawanna’s Holy Cross Cemetery in the early morning hours of April 13, 1979 (Good Friday); she had been stabbed at least 108 times. Following a two-week trial and just three hours of deliberation, an Erie County jury today convicted Rodriguez of Murder in the Second Degree. He faces life in prison. 

“Our goal in bringing this case was to get justice for Patti and I hope today’s verdict brings a small measure of comfort to her family and friends,” said Attorney General Schneiderman. “No murder should go unsolved. Today’s verdict is a reminder that we will never stop seeking justice for victims and their families.”

During the trial, several witnesses testified that, on the night before her body was found, they saw Patricia Rodriguez and the defendant dancing at Danny Boy’s, a local bar. A longtime neighbor of Michael Rodriguez testified that he saw the pair leave the bar and enter the cemetery together. It was the last time that anyone saw Patricia Rodriguez alive. 

Michael Rodriguez’s girlfriend at the time, Donna Williams, testified that, just a few hours later, Rodriguez called her and said: “I killed Patti in the graveyard.” Just 19 years old at the time, she cleaned Rodriguez’s bloody, brown leather jacket when he came home that morning and later provided an alibi for Rodriguez in interviews with police. She testified that she lied to police because she loved Rodriguez, was pregnant with his child and wanted to build a life with him.  However, on the 30th anniversary of the murder in 2009, the New York State Police, led by Senior Investigator Christopher Weber, reopened the investigation and Ms. Williams felt compelled to come forward to police and tell the truth.

In 2009, when the New York State Police’s Major Crimes Unit reopened the case, forensic testing of the brown leather jacket determined that four dried bloodstains on the jacket matched Patricia Rodriguez’s DNA. Additional forensic testing in 2013 identified Michael Rodriguez’s DNA inside an intimate area of the clothing the victim was wearing on the night she was killed.

The brother of Rodriguez’s best friend also testified at trial, saying that he and his brother helped get rid of Rodriguez’s bloody shoes and clothes the day after the murder. He and his brother took the clothes, including a pair of bloody shoes belonging to Michael Rodriguez, to a remote area of Woodlawn Beach and burned them.

The two final witnesses for the Attorney General’s Office testified that Michael Rodriguez admitted to each of them, separately and years after the murder, that he had killed Patricia Scinta Rodriguez. An ex-girlfriend of the defendant testified that, in 1983, Rodriguez beat her and threatened to kill her “like I killed my children’s mother.” She said that she was too scared to call police; “I didn’t want to be another Patty,” she testified.

The defendant now faces a minimum sentence of 15 years to life and a maximum sentence of 25 years to life in prison, and is scheduled to be sentenced by the Honorable Michael L. D’Amico in Erie County Supreme Court on November 21st.   

The Attorney General thanks the New York State Police and Superintendent Joseph A. D’Amico, the Lackawanna Police Department, Erie County District Attorney Frank A. Sedita III, the Erie County Central Police Services Forensic Laboratory and the Erie County Office of the Medical Examiner for their valuable assistance in this investigation.  

The case was prosecuted by Assistant Attorneys General Diane LaVallee and Cydney Kelly of the Criminal Enforcement and Financial Crimes Bureau and Assistant Attorney General Patricia Carrington of the Organized Crime Task Force, with the assistance of Deputy Bureau Chief Stephanie Swenton and Assistant Attorney General Isaac Gilwit.  The case was overseen by Gary Fishman, Chief of the Criminal Enforcement and Financial Crimes Bureau. The Criminal Enforcement and Financial Crimes Bureau is part of the Division of Criminal Justice, led by Executive Deputy Attorney General Kelly Donovan. 

The prosecution was assisted by Supervising Investigator Richard Doyle, Senior Investigator Sandra Migaj, and Investigator Christopher Bzduch of the Attorney General’s Investigations Bureau, which is led by Chief of Investigations  Dominick Zarrella. 

The investigation was led by New York State Police Senior Investigator Christopher Weber and Captain Steven A. Nigrelli. The Lackawanna Police Department, under the direction of Chief James L. Michel, also assisted with the investigation. 

NEW YORK – Attorney General Eric T. Schneiderman today announced agreements with St. John’s University, Dowling College and Five Towns College to amend their admissions policies and practices with respect to applicants’ prior contact with law enforcement. The agreements ensure that each school will refrain from inquiring about irrelevant information regarding contacts with the criminal justice system, including arrests that did not lead to conviction, sealed or expunged records, or pardoned records.  

“An arrest or police stop that did not result in a conviction, or a criminal record that was sealed or expunged, should not – indeed must not – be a standard question on a college application. Such a question can serve only to discourage New Yorkers from seeking a higher education,” Attorney General Schneiderman said. “To the contrary, we need to provide opportunities to everyone seeking to better their futures. My office will work to ensure that all applicants receive fair treatment when applying to a college, a university, or for a job.” 

St. John's University is a private, Roman Catholic, coeducational university located in New York City, with a current enrollment of more than 20,000 students. Dowling College is a private college with three campuses located on Long Island. Five Towns College is a for-profit institution located in Dix Hills, Long Island.

The Attorney General’s Civil Rights Bureau reviewed the application process used by private colleges and universities across New York State after receiving information from the Center for Community Alternatives about the St. John’s application. The review, initiated in December 2013, revealed that the St. John’s application required applicants to disclose every instance of having been “arrested or detained” and that Dowling and Five Towns  also required applicants to disclose information regarding arrests, even when those arrests did not result in convictions.  

The Attorney General’s review of colleges and universities revealed that the information solicited by the schools was overbroad and not relevant to an applicant’s fitness as a student because it did not indicate that the applicant had committed any crime. 

Such questions disproportionately disadvantaged African-American and Hispanic men, who are more likely than white men to be stopped, detained, and arrested by police for minor misconduct. Nationally, racial and ethnic disparities in stops, detentions, and arrest rates remain substantial. In 2009, African-American males were incarcerated in state and federal prisons at close to 6.5 times the rate of non-Hispanic white males, and Hispanic males at 2.4 times the rate of non-Hispanic whites. 

Disqualifying college applicants based solely on information regarding stops, detentions, or other contact with the criminal justice system is inconsistent with New York State law, which bars employers from categorically denying job opportunities to candidates on the basis of a criminal conviction, and inconsistent with the state’s public policy of encouraging the employment and licensure of individuals with criminal records.    

The agreements also ensure that admissions staff will be properly trained in how to inquire about and evaluate criminal convictions for relevancy. Going forward, each school will consider prior convictions only to the extent that they are relevant to public safety or some aspect of the institution’s academic program.   

The work on this issue continues Attorney General Schneiderman’s ongoing efforts to ensure that every New Yorker has the chance to earn a living and lead a productive life after paying a debt to society. These agreements are part of the Attorney General’s Civil Rights Bureau’s broader initiative to combat barriers to re-entry faced by individuals with prior contact with the criminal justice system. The Attorney General’s Civil Rights Bureau has worked to address barriers put in place by private employers (click here and here for more information about those cases), municipalities (click here), and consumer screening agencies (click here).

Patricia Warth, director of Justice Strategies at Center for Community Alternatives, said, “For many individuals adjusting to life outside of prison, access to higher education can be key to rehabilitation. College can provide those individuals with the skills and confidence they need to secure steady employment and stay out of the criminal justice system. The Attorney General’s agreements today are important in communicating that message to colleges and help underscore the role higher education can play in the lives of people with past convictions.”

Glenn E. Martin, president of JustLeadershipUSA and Co-Founder of the EIO Coalition, said, “Communities across the state should be looking for ways to encourage individuals with criminal histories to seek and obtain the resources they need to rehabilitate. Arbitrary barriers, such as asking applicants for irrelevant arrest information, will only discourage applicants. I commend the Attorney General for making it his priority to address barriers to reentry.”

This matter was handled by Assistant Attorneys General Sandra Pullman and Ajay Saini of the Attorney General’s Civil Rights Bureau, which is led by Kristen Clarke.  The Executive Deputy Attorney General for Social Justice is Alvin Bragg.

The Civil Rights Bureau of the Attorney General's Office is committed to promoting access to equal employment opportunities and combating discrimination for all New Yorkers. To file a civil rights complaint, contact the Attorney General’s Office at (212) 416-8250, civil.rights@ag.ny.gov or visitwww.ag.ny.gov.

NEW YORK – Attorney General Eric T. Schneiderman today announced an agreement that requires an unlicensed tenant relocator to cease all operations. The agreement was secured following an investigation that revealed Misidor LLC and its owner, Michel Pimienta, harassed rent-stabilized tenants living in three New York City buildings.  The investigation also revealed that Pimienta operated illegally in more than 60 rent-regulated buildings, mostly in Manhattan and Brooklyn, but also in the Bronx.   

“My office is committed to ensuring that no one — no matter how rich or well connected — stands above the law and that everyone plays by the same rules. We will continue to take action against those who use illegal tactics in attempting to force rent-regulated tenants out of their homes so they can raise rents,” Attorney General Schneiderman said. “This agreement will help ensure that lawful tenants are not harassed or pressured into giving up their homes by an unlicensed and unscrupulous tenant relocator.”

Tenant relocators are increasingly common in New York, and particularly in gentrifying areas in New York City where some landlords are seeking to reduce rent-regulated housing and increase rents. To operate legally, tenant relocators must have a real estate broker’s license. They are prohibited from harassing or in any way pressuring tenants into giving up their rent-regulated homes.

The Civil Rights Bureau opened an investigation into Pimienta and his company, which operated out of 174 Fifth Ave. in Manhattan, last year after receiving complaints from tenants and housing advocacy groups alleging that he was harassing rent-regulated tenants. The complaints came from multiple tenants residing in three buildings: two on Manhattan’s Lower East Side and one in Brooklyn’s Boerum Hill neighborhood.

The investigation found that Misidor and Pimienta engaged in unlicensed tenant relocation in more than 60 buildings in New York City. The investigation revealed that Misidor and Pimienta never obtained a real estate broker’s license, despite engaging in the tenant relocation business for more than a decade.  

The investigation found that Misidor had engaged in a pattern of tenant harassment, including:

• falsely accusing rent-regulated tenants of lease violations;
• pressuring tenants in buildings undergoing construction to accept buyout offers while continually representing that their living conditions were unsafe;
• making repeated and unwanted buyout offers to tenants who had clearly indicated they did not want to communicate with Misidor;
• following tenants to work and interrogating their colleagues without the tenants’ consent; and
• shouting at tenants and threatening them with eviction.

In addition to requiring immediate termination of all operations and unlawful tenant harassment, Attorney General Schneiderman’s agreement with Misidor bans the company from engaging in tenant relocation business for a year and requires Pimienta and his company to obtain a real estate broker’s license and approval from the Attorney General’s Office prior to resuming operations.  Misidor and Pimienta must also adopt new policies, implement new business practices, maintain detailed records relating to tenant relocation work, provide training to brokers and salespersons, and  report to the Attorney General’s Office for a three-year period if they go back into business.  Finally, the agreement requires Misidor, which had no employees other than Pimienta, to pay to the State of New York $40,000 in penalties, fees, and costs.

Brandon Kielbasa, lead organizer at the Cooper Square Committee, which organized tenants in multiple buildings targeted by Misidor, said, “Extreme turnover does not naturally occur in rent-regulated buildings.  Profit-hungry landlords need somebody on the ground turning tenants out to make it happen.  Misidor has stood out as one of the industry’s most aggressive operators.  We are very grateful to Attorney General Schneiderman for this investigation and the precedent it sets.”

Harvey Epstein, director of the Community Development Project at the Urban Justice Center,said, “This agreement demonstrates the New York State Attorney General’s continuing commitment to protecting tenants’ rights.  Tenant relocators and landlords must respect the basic human right of all New Yorkers to live peacefully in their homes.”

Mary Ellen Bizzarri, a special education teacher and former tenant of a rent-regulated apartment on the Lower East Side, said, “Amid heavy and dangerous construction that was causing significant stress to me and other tenants, Pimienta showed up on my doorstep, made it difficult to acquire a lease renewal, and tried to scare me into giving up my rent-stabilized apartment.  I have been a tenant in New York City for many years, and I am delighted that Attorney General Schneiderman is seeking to end harassment by illegal tenant relocators.” 

This agreement is part of the Attorney General’s ongoing initiative to combat harassment and discrimination faced by tenants in affordable housing units across New York State. The Attorney General’s Civil Rights Bureau has secured other agreements addressing tenant harassment in New York City. Click here for more information.

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

The Civil Rights Bureau of the Attorney General's Office is committed to protecting the rights of tenants throughout New York State.  To file a civil rights complaint, contact the Attorney General’s Office at (212) 416-8250, civil.rights@ag.ny.gov or visit www.ag.ny.gov.

WESTCHESTER -- State Attorney General Eric T. Schneiderman today announced that his office is launching a program, titled “Grandkids Against The Grandparent Scam,” to help prevent unsuspecting seniors from being victimized by this all-too common scam. The initiative, which includes a new and easy-to-read brochure, aims at empowering students to talk to their grandparents about the swindle. The program and brochure are being introduced at Ossining High School today.   

“My office will use every tool at our disposal to protect senior citizens from this scam – which is used by con artists and criminals to steal cash from unsuspecting seniors and which leaves them frightened about the welfare of their grandchildren,” Attorney General Schneiderman said. “This intergenerational program represents a new and innovative approach to giving our older adults the information they need to avoid becoming victims.”

The program provides high school students with specifics about how the so-called “grandparent scam” works and an informational brochure to share with their parents and grandparents. It will be introduced at Ossining High School by Attorney General Schneiderman’s statewide elder abuse coordinator, Gary Brown, who is speaking to four classes of seniors about this scam and will distribute the pamphlet and a script for students to better understand the scam. The Attorney General’s Office will make the brochure and script available to schools that request the materials, which are also available online.  

Among other tips, the brochure offers students a script to warn their grandparents about this dangerous scam: “When I go off to college, someone may call you and pretend to be me. The caller will say he’s in trouble and needs you to wire money fast. He’ll ask you to keep it a secret, and to not say anything to my parents.  This is a scam.  Don’t fall for it.”  

The swindle works like this: A senior receives an unexpected call from someone who claims to be their grandchild.  The caller says there is an emergency and asks the grandparent to wire money immediately. For example, the caller might say, "I’m in Canada and I’m trying to get home but my car broke down and I need money right away to get it fixed.” Or they may claim to have been mugged, or to have been in a car accident, or to have been arrested and need money for bail. The caller may also pose as an attorney or a law enforcement official contacting the grandparent on behalf of a grandchild.

Typically, the caller says he is embarrassed about what has happened to him, and asks the grandparent not to tell anyone else in the family.  If the grandparent questions why the caller doesn’t sound like their grandchild, the scammer will make up a reason such as “I’ve been sick with a cold” or “I broke my nose in the car accident.”

The scammers gather information about potential victims - - including the names of their grandchildren - - from a variety of sources including the Internet and lists that are sold on the black market. If the scammer doesn’t know the name of the grandchild he is impersonating, he may say “Hi grandma, it’s your favorite grandson,” hoping that she will reply, “David, is that you?” The scammer will then say “Yes!” Often these crooks call in the middle of the night to take advantage of the fact that the victim may not be alert enough to ask more questions, and that the victim may not want to disturb other family members by calling them to confirm the information. 

The grandparent scam tends to increase in frequency during school holiday breaks and during the summer, when it is especially believable that a grandchild would be travelling.Tips to protect against the grandparent scam:

• Be suspicious of anyone who calls unexpectedly asking you to wire money.
• Verify any supposed emergency, by calling friends and family, before wiring money.
• Develop a secret code or "password" with family members that can be used to verify a true emergency.
• Limit personal information, such as vacation plans, shared on social media sites.

The Federal Trade Commission recorded more than 40,000 incidents of grandparent scams from 2010 to 2013. The scam is widely considered to be underreported.

The initiative is being directed by Gary S. Brown, who is the Attorney General’s Statewide Elder Abuse Coordinator and also the Assistant Attorney General-in-Charge of the Westchester Regional Office.  Martin J. Mack is the Executive Deputy Attorney General for Regional Affairs.

NEW YORK—Attorney General Eric T. Schneiderman, and the Attorneys General of Connecticut and Vermont, announced today that they will challenge recently issued rules of the Nuclear Regulatory Commission (NRC) that govern the long-term storage of highly radioactive nuclear wastes on-site at the more than 100 reactors around the country, including the three Indian Point reactors in Westchester County, for 60 or more years after the reactors close.   

The coalition of attorneys general initiated a challenge to the rule, entitled “Continued Storage of Spent Nuclear Fuel,” in the U.S. Court of Appeals for the District of Columbia Circuit.  In its filing, Attorney General Schneiderman’s coalition argues that those rules, and the underlying environmental impact statement, do not comply with the National Environmental Policy Act (“NEPA”) and other requirements, and are inconsistent with earlier decisions by various federal courts concerning waste and accident issues.  

A copy of the petition is here.   

“In 2012, we won a landmark federal court ruling requiring NRC to perform a full and detailed assessment of the risks involved in the long-term, on-site storage of highly radioactive nuclear wastes at nuclear power plants,” Attorney General Schneiderman said.  “However, in responding to that ruling, the NRC has turned its responsibilities on their head -- focusing on issues that are unrelated to the risks posed to the environment, public health, and safety.  The NRC’s approach is wrong and illegal, and I will continue to fight to ensure that our communities receive the full and detailed accounting of the risks of long-term, on-site nuclear waste storage that they deserve.”   

The NRC’s Continued Storage of Spent Nuclear Fuel rule, and an environmental impact statement (EIS) for the rule, were finalized on September 19.  The rule and EIS are the NRC’s response to a June 2012 landmark victory by Attorney General Schneiderman in which the U.S. Court of Appeals for the District of Columbia Circuit ruled that federal law requires the NRC to complete review of the public health, safety, and environmental hazards that such storage would pose before allowing the long-term storage of nuclear waste in communities.  The appeals court found that the spent nuclear fuel stored on-site “poses a dangerous, long-term health and environmental risk.”  The Court invalidated an earlier regulation and remanded the matter back to NRC with a directive that the Commission fully comply with federal law.  

In its current challenge, the coalition asks the court to review the new rule and EIS, invalidate the NRC’s actions as inconsistent with federal regulations, and order the Commission to develop a remedy that fully complies with federal law. Today’s filing initiates the coalition’s challenge; the date by which the coalition will fully brief its challenge will be set by the court.

This matter was handled by Assistant Attorneys General Kathryn Deluca, Andrew Frank, Laura Heslin, John Sipos, and Monica Wagner of the 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 felony charges against an Oswego County husband and wife accused of abusing power of attorney to steal from an 84-year-old woman in their care. David Tetro, Jr. and Morgan Tetro, both of Minetto, NY, allegedly stole over $200,000 of the victim’s money for their personal use, including over $100,000 in gambling debts, purchases at Victoria’s Secret and assorted transactions on iTunes, Ebay and Facebook. Both defendants are charged with Grand Larceny, as well as falsely claiming taxpayer-funded public benefits, and face up 20 years each in prison.   

The victim, Colonel (Ret.) Irene Dennison, spent nearly 25 years serving in the United States Air Force, retiring in 1982 as a full colonel. She was instrumental in helping to negotiate the 1973 release of Senator John McCain when he was a P.O.W. in Vietnam.

“Stealing from anyone is wrong; stealing from an elderly woman who served her country is abhorrent,” said Attorney General Schneiderman. “Today’s indictment sends the message that those seeking to abuse the trust of someone they care for will be caught and brought to justice.”

Ms. Dennison rented a house to David Tetro Jr. several years ago and came to trust both him and his wife. According to the indictment and statements made at arraignment, the defendants eventually became her primary care providers and had exclusive control over her affairs, including a power of attorney for almost three years.  As alleged, the Tetros spent approximately $200,000 of the victim’s money during that time on personal expenditures, including more than $140,000 in gambling losses at Turning Stone Casino in Verona, N.Y. and several thousand dollars more in casino-related travel expenses to purchases on Ebay and other e-commerce sites.

The alleged frauds were discovered when David Tetro applied to Oswego County for Medicaid benefits and the income he listed didn’t match his expenditures, particularly the gambling losses.

The indictment further accuses the Tetros of falsely obtaining thousands of dollars in welfare and Medicaid benefits while they were living off the stolen funds.  Both are charged with additional counts of Grand Larceny and Welfare Fraud. Additionally, Morgan Tetro faces two counts of Tax Fraud for allegedly failing to report the money stolen from the victim, thereby evading thousands of dollars in income tax liability.

The Attorney General’s office thanks New York State Police BCI Investigators Alex Kurilovitch, Andrew Reed, Benjamin Miller and Joseph Saarie, Oswego County Department of Social Services, the New York State Police Financial Crimes Unit and the New York State Department of Taxation and Finance for their assistance throughout the investigation.  

The case is being handled by Assistant Attorney General Benjamin Clark of the Criminal Enforcement and Financial Crimes Bureau.  The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Gary T. Fishman and Deputy Bureau Chiefs Stephanie Swenton and Meryl Lutsky.  The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

The investigation was conducted by Investigator Samuel Scotellaro, III, with assistance from Investigators Joel Cordone and David Buske. The Investigations Division is led by Chief Investigator Dominick Zarrella.  Forensic audit work was performed by Associate Auditor Jason Blair. The Chief Auditor in the Forensic Audit Unit is Edward J. Keegan.  

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