NEW YORK – Two years ago, on October 29, 2012, Hurricane Sandy struck the Eastern seaboard with unprecedented strength and impact. Over 150 Americans lost their lives, including 53 in New York State, and millions were displaced.  The region suffered massive property damage – estimated at approximately $65 billion – to homes, buildings and infrastructure. Attorney General Eric T. Schneiderman today issued the following statement on this solemn anniversary:

“Two years ago today, Sandy slammed into our shores, wreaking havoc on our infrastructure and our communities. In the wake of this tragedy, people throughout the state, across the country and around the world came together to help however they could. Some helped neighbors to clean up, while others volunteered or donated to a charitable organization. Together, New Yorkers once again demonstrated tremendous resilience and our commitment build our state back even stronger than before.

“While federal, state and municipal programs have been the backbone of recovery efforts, the nonprofit sector played a critical role in the immediate aftermath of the storm and continues to be an important part of the long-term recovery. In light of the central role of charities in disaster relief and recovery, and the significant sums raised by charities from the public for Sandy relief, my office has been monitoring Hurricane Sandy charitable fundraising and spending to ensure that money raised for Sandy relief is used for Sandy relief.  We have also cracked down on price gougers, delivered back wages for recovery workers who were denied fair wages, funded housing counseling and legal services for homeowners who were at risk of foreclosure due to financial losses caused by Sandy, and intervened to ensure that Con Ed takes into account the risks of climate change in its planning for future storms. Our region has made significant progress, but too many of our neighbors are still struggling to get back on their feet. I will continue to use every tool at my disposal to fight for justice for every New Yorker.”

In the past two years, Attorney General Schneiderman has made several significant efforts to help New Yorkers overcome the challenges posed by Sandy. Among his achievements:

• Tracking more than $657 million in charitable giving after Sandy and issuing a second anniversary report on how those funds have been used;
• Intervening in a Public Service Commission proceeding on a proposed rate hike for Consolidated Edison and successfully advocating that the utility company be required to take into account the risks posed by climate change in its storm-hardening plans;
• Proposing legislation to require all electric and gas utilities in the state to ensure that the critical services they provide to millions of New Yorkers are properly protected from the impacts of climate change;
• Providing funding to counsel 1,500 homeowners on a range of Sandy-related home retention issues, including mortgage modifications and insurance problems;
• Obtaining more than $300,000 worth of penalties and costs from almost 50 gas stations that engaged in illegal price gouging after the storm;
• Securing more than $5.3 million for workers who were underpaid on Sandy recovery projects, including clean-up and utility repairs; 
• Cracking down on scammers who preyed on Long Island homeowners with fake notices that appeared to be from the state’s Department of Environmental Conservation in order to trick victims in to paying for unnecessary services;
• Intervening to prevent New Yorkers from being denied vital communications services in the post-Sandy rebuilding process.

Today, Attorney General Schneiderman issued a second anniversary report on the charitable response to Sandy. The report finds that charities raised more than $657 million for Sandy relief, and spent more than $601 million, or 91% of that amount, for Sandy relief. By comparison, in July 2013, the Attorney General’s office issued an interim report finding that six months after the storm, only 58% of the funds raised by responding organizations had been spent on Sandy relief. 

NEW YORK – Attorney General Eric T. Schneiderman issued the following statement on President Obama's nomination of Loretta Lynch, U.S. attorney for the Eastern District of New York, as United States Attorney General.

"I congratulate U.S. Attorney Loretta Lynch on receiving President Obama's nomination as United States Attorney General. I am proud of our work together to protect New Yorkers over the past four years, including our success in recovering millions of Medicaid dollars from unscrupulous actors. U.S. Attorney Lynch has time and time again demonstrated her commitment to ensuring there is one set of rules for everyone and to defending the principle of equal justice for all. I look forward to seeing her continue to uphold these most important tenets in her new position, and I urge the Senate to confirm her appointment as soon as possible."

NEW YORK - Attorney General Eric T. Schneiderman today issued a brochure offering tips to New Yorkers buying health insurance coverage for 2015. The pamphlet, titled “Shopping For Health Insurance Coverage,” is being released in advance of the New York State of Health Marketplace’s open enrollment period, which begins November 15. The Marketplace is the only official health insurance exchange for New York established under the Affordable Care Act (often referred to as Obamacare).

In anticipation of the upcoming open enrollment period, Attorney General Schneiderman, in particular, encourages consumers to confirm that their key health care providers participate in a plan before enrolling -- or that they are still participating in a plan before re-enrolling. 

“Take the time during the upcoming open enrollment period to evaluate available plans. I am urging you to do this even if you are happy with your current health plan because your plan, and other plans, may have changed,” Attorney General Schneiderman said. “I also strongly urge New York consumers not to rely solely on provider lists offered by insurance companies. Call the insurance company you are considering, as well as your providers, to confirm that they are in the plan’s network. Do this before you sign up. It’s a quick and easy way to protect your family’s health and your wallet.”   

The Attorney General’s brochure offers important information for all New Yorkers shopping for health insurance, whether they are considering purchasing health coverage for the first time, re-enrolling in their existing plan, or switching into a new health plan. The New York State of Health Marketplace first offered New Yorkers access to affordable health insurance coverage in 2014, and approximately 960,000 New Yorkers enrolled in the first year.

Open enrollment through New York State of Health begins on November 15, 2014, and New Yorkers seeking coverage effective January 1, 2015 must enroll by December 15.  Once open enrollment begins, you will be able to review all available health insurance plans, as well as determine what premium tax credits, or subsidies, you may be eligible for to reduce the cost of your monthly premiums. Take this opportunity to review all available plans. Prior to enrolling, take some time to: (1) identify your health needs for the upcoming year; (2) consider your budget; and (3) based on your identified health needs and budget priorities, compare the available plans to evaluate how they satisfy those needs.

The Attorney General’s Office encourages all New Yorkers shopping for health insurance to take the following steps when evaluating their health care providers:

1) Check and Confirm Your Provider’s Participation Status With the Insurance Company

• As a first step, check the list of participating providers made available by the health plan you’re considering.
  • Health plans typically make lists of their participating providers available on their websites, sometimes through a search tool. 
  • You can also search through the New York State of Health website if you are planning to enroll through the Marketplace.
• Next, if your providers are listed as participating, call the insurance company directly and ask a representative to confirm that your providers are participating in particular plans. 
• Keep in mind that health insurance companies often offer several different health plans, and the different plans may have different participating provider networks.  Make sure you’re searching and asking about the right plans.

2) Check With Your Providers

• Even if the insurance company confirms the provider’s participation in the plan, call your providers so they can confirm as well.  Do not just rely on information posted on the provider’s website, as it may not be current. 

3) Document All Searches and Conversations

• Document all online searches and calls, even if both the plan and provider confirm participation in the plan. 
• If you have conducted an online search of a provider directory, print or save the results of that search.
• If you speak with a health plan representative or provider, make sure to write down when you called, with whom you spoke, the providers discussed, and what you were told about each provider’s participation status.
• If a provider turns out to be incorrectly listed as participating, but you have taken these steps, you will be in a better position to obtain reimbursement for out-of-pocket expenses incurred as a result of the inaccurate listing and/or temporarily continue treatment with that provider.

If you encounter inaccurate provider listings once you are enrolled in a plan and cannot access needed care from that provider, contact the Health Care Bureau Helpline for assistance: 1-800-428-9071.

NEW YORK - Attorney General Eric T. Schneiderman today announced the conviction of Robert H. "Bob" Van Zandt, a Bronx-based tax preparer who pleaded guilty to operating a $4.8 million, multi-year Ponzi scheme. Van Zandt pleaded guilty to the 33-count indictment lodged against him, including two counts of Securities Fraud under the Martin Act (a Class E felony), 29 counts of Grand Larceny in the Second and Third Degrees (Class C and D felonies, respectively) and two counts of Scheme to Defraud in the First Degree (a Class E felony). Van Zandt pleaded guilty in Bronx County Supreme Court before the Honorable Justice Martin Marcus. In exchange for his plea, entered late yesterday afternoon, to the indictment, Justice Marcus agreed to sentence Van Zandt to 3 2/3 to 11 years in prison. 

Securities fraud is a serious crime which my office will prosecute to the fullest extent of the law," Attorney General Schneiderman said. “Mr. Van Zandt stole his victims’ life savings, forcing some of them to re-enter the workplace after their retirement and others to rely on government assistance to survive. The perpetrators of this and other Ponzi schemes will face justice.”

According to the indictment and statements made by prosecutors, Van Zandt ran the Van Zandt Agency, a well-known tax-preparation business in the Bronx, for decades. Starting in 2007, Van Zandt began accepting investments from tax preparation clients. In many cases, these investors handed over their entire life savings to Van Zandt. Van Zandt solicited money from unsuspecting clients, promising guaranteed rates of returns. Starting in approximately 2008, Van Zandt’s alleged investment opportunities turned into a purely Ponzi-style scheme. Van Zandt guaranteed high rates of return to new investors, promising to invest their money in lucrative securities, including real estate projects that were, in fact, impossible to build. This money was not invested as promised, but rather was used to pay previous investors or diverted for personal expenditures. This scheme fraudulently raised more than $4.8 million between 2008 and 2012 from the 29 investors named in the indictment.

Van Zandt abused his position as a manager of a tax preparations business to identify and lure new investors, targeting victims who had large amounts of money available, such as retirement funds, savings, inheritances or settlements. Van Zandt made materially false representations and failed to disclose material facts to his investors in order to induce them to make investments, which ranged from $25,000 to nearly $900,000.

The funds were deposited into accounts affiliated with the Van Zandt Agency or controlled by Van Zandt and then commingled and transferred between accounts as needed to pay investors, business expenses, and for Van Zandt’s personal use. Contrary to the promissory notes or shareholder agreements that Van Zandt gave to his victims, the funds were never legitimately invested. In particularly egregious cases, although Van Zandt promised that investment funds would be used to purchase government bonds or corporate securities, no such bonds or securities were ever purchased for the victims.

Van Zandt is set to be sentenced on January 5.   

The case stems from an investigation initiated by the Attorney General’s Investor Protection Bureau in 2010. A civil lawsuit, filed by the Investor Protection Bureau in 2012 against Van Zandt and other individual and corporate defendants, is still pending. The Attorney General's civil lawsuit seeks $35 million in restitution for over 250 investors defrauded in the scheme, including the 29 investors named in the criminal indictment. 

The case was a result of a joint investigation by the Attorney General's Office and the New York State Department of Financial Services (DFS).  DFS Investigator Robert Tarwacki of the Criminal Investigations Bureau provided invaluable assistance to the investigation. The director of the Criminal Investigations Bureau is Ricardo Velez.  Benjamin M. Lawsky is the superintendent of The New York State Department of Financial Services. The Attorney General thanked Superintendent Lawsky and his staff for their assistance in this investigation.

The Attorney General’s investigation was handled by Investigator Edward Ortiz, Supervising Investigator Luis Carter and Deputy Chief Investigator Vito Spano. The Investigations Bureau is led by Chief Dominick Zarrella.

This criminal case is being prosecuted by Assistant Attorneys General Joseph G. D'Arrigo and Lee Bergstein, of the Attorney General’s Criminal Enforcement and Financial Crimes Bureau, with the assistance of Legal Analysts Natasha Butalia and Bradley Rutty and Supervising Analyst Paul Strocko. The 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 civil case is being handled by Assistant Attorney General R. Verle Johnson.  The Investor Protection Bureau is led by Bureau Chief Chad Johnson and Deputy Bureau Chief Katherine Milgram. The Division of Economic Justice is led by Executive Deputy Attorney General Karla G. Sanchez.

NEW YORK – Attorney General Eric T. Schneiderman today released the following statement in observance of Veterans Day. 

“On this Veterans Day, I know I speak for all Americans in expressing deep gratitude for the tremendous sacrifices made by our military and their loved ones. This nation owes a great debt to our veterans and to the men and women in uniform, who continue to defend our liberties today. As we pay tribute to their bravery, we must also recommit to ensuring that their sacrifice is honored by caring for them during their service and long after they have returned. From protecting military families from predatory lenders, to helping to ease their path to home ownership, we must continue to defend the rights of those who risk their lives to protect ours." 

ALBANY – As part of his Animal Protection Initiative, Attorney General Eric T. Schneiderman today announced that his office is offering guidance to local governments interested in drafting enforceable laws that will help curb animal abuse by so-called “puppy mills” and pet retail stores, and, ultimately, expand the standards for animal welfare in New York State. The Attorney General’s Office seeks to help local governments implement a new state law that, for the first time, provides a mechanism for municipalities and county governments to protect consumers by regulating retail pet dealers and the breeders that supply them with cats and dogs. 

Offering the assistance, Attorney General Schneiderman is sending letters to 1,034 municipal and local governments today informing them of the expanded powers available to them under the new state law to regulate animal welfare standards, and offering assistance drafting legislation that protects consumers and their pets.   

“The legal backup we are offering will aid local officials who are seeking to protect vulnerable animals from abuse, and assure that pets sold to New Yorkers are healthy and free from mistreatment,” Attorney General Schneiderman said. “New Yorkers value their pets as companions and are entitled to know that they came from sources that treated them in a safe and healthy manner. By working with municipalities, we will help ensure that New Yorkers can be confident that their cats and dogs are healthy when they purchase them and that they were raised in a safe place.”  

Puppy mills, a major concern for New Yorkers, are large-scale breeding operations where pets are raised in squalid conditions and frequently mistreated, leaving these animals susceptible to illness, hereditary defects and other health problems. Substandard conditions in these breeding operations contribute to overcrowding at our animal shelters, disease, exorbitant veterinary bills, and even falsified pedigree information. New Yorkers deserve to know that their cherished pets were not subjected to abuse. 

The Attorney General’s guidance is also focused on pet stores. Pet retailers are of concern because of substandard conditions at some stores, and because many pet stores get puppies and kittens from large-scale puppy mill operations – making retail stores the main link between unscrupulous puppy mill operations and consumers. The new law, passed in January, allows municipalities to strengthen what have been weak documentation requirements and disclosure requirements by retailers to consumers who are often unaware of this connection. The new state law ended a preemption that barred municipal and local governments from regulating pet dealers at the local level, and it allows them to impose tougher standards than the state imposes. 

In his letter, Attorney General Schneiderman highlighted several areas of regulation that are particularly important, including more stringent minimum standards of care for the housing, feeding, veterinary care, exercise, and sanitation of animals; strict documentation requirements to prevent consumers from being misled as to the source of their pets; and effective protections for consumers who unwittingly purchase an animal with undisclosed health problems.  

Under the new law, local governments may, among other rules, issue or require:  

• Permits for local pet dealers, allowing municipalities to more accurately monitor the conditions and regulate the sources of animals sold in their area;
• Inspection of pet sellers;
• Pet sellers, as well as for breeders or middlemen through which sellers acquire animals, to abide by more stringent minimum standards of care; 
• More stringent minimum standards of access to food and water, nutritional value, cleanliness, and feeding times; daily minimums for exercise and prohibitions on forced methods; veterinary care and recordkeeping;
• Delegation of enforcement to a local not-for-profit animal welfare organization;
• Consumer protection rules, including access to health and source information for animals; refunds, exchanges or veterinary care reimbursement for animals with undisclosed health issues.

The Attorney General’s assistance is aimed at helping local governments that want help writing enforceable legislation. By offering local governments the ability to draft legislation, the state law allows a tailored response to the needs of communities and puts enforcement in the hands of those with the ground-level knowledge and resources to best protect the welfare of our companion animals. The work of the Attorney General is aimed at giving New Yorkers the confidence of knowing that their state is at the forefront of efforts to protect animals from abuse.

Bill Ketzer, the ASPCA’s senior state director for the Northeastern Region,said, “The ASPCA worked tirelessly last year to enact state legislation that allows municipalities to regulate pet dealers. We are thrilled that the Office of the Attorney General is making animal abuse a priority and reaching out to assist localities that may wish to take advantage of the new law and regulate local businesses. Puppy mill puppies should not be sold in New York’s pet stores and local pet sellers and breeders need to be required to treat their animals more humanely. We look forward to working with the Attorney General and the localities themselves to ensure that new ordinances improve the lives of these many dogs.” 

Brian Shapiro, New York State director for The Humane Society of the United States,said, “Dogs and cats bred for the commercial pet trade are often raised in neglectful, substandard conditions and we encourage New York’s cities, towns and counties to pass legislation regulating pet dealers in their local communities. This is an opportunity to take advantage of the Attorney General’s offer to help draft sound, enforceable laws that protect our pets and consumers. We applaud Attorney General Schneiderman’s continued commitment to protecting the welfare of animals in New York State.” 

The initiative is being directed by Marty Mack, who is the Executive Deputy Attorney General for Regional Offices, with the assistance of Assistant Attorney General Richard Yorke of the Attorney General’s Nassau Regional Office.

A copy of the letter can be viewed here.

NEW YORK – Attorney General Eric Schneiderman today issued a consumer alert following recent reports of bogus tax debt collection scams. The New York State Taxpayer Rights Advocate has reported recent fraudulent activity by scammers posing as debt collectors seeking to settle alleged outstanding state tax debts. The scammers are pressuring consumers into sending payments via money order to satisfy debts that the consumers may not actually owe.

“Middle class families across New York State work hard to support their families and we don’t want them to get ripped off by scammers,” said Attorney General Schneiderman. “Consumers should be wary of any telephone solicitation asking them to send money and should always request appropriate documentation in writing.”

Attorney General Schneiderman has received a variety of complaints about tax-related consumer scams. This latest scheme involves scammers telling consumers they owe a tax debt to the state, which may not actually exist, and then promising to settle the alleged debt for a fraction of the cost that they claim is owed. Some of the calls have been reported as coming from the number 305-507-8505. 

Scammers are reportedly using high-pressure tactics to intimidate consumers into purchasing money orders to satisfy debts and then instructing them to call back for instructions on how to submit the payment. Both federal and state tax authorities send notifications in writing. Consumers should be wary of demands for tax payment via phone, especially if the caller suggests the use of a money order to remit payment.

Attorney General Schneiderman is urging New Yorkers to be vigilant consumers and to report instances of fraud to his office. Consumers who believe they have been victims of any tax scams are urged to file complaints by visiting the Office’s website www.ag.ny.gov or calling 1-800-771-7755.

In an effort to help New Yorkers avoid various tax-themed scams, the Attorney General’s Office offered the following tips:

• The IRS and legitimate government agencies never demand payment by phone;
• If you owe money, you will receive a legitimate notice in writing that identifies the agency and the reason you owe money;
• Do not give out personal information, including your Social Security number or bank account information, to telephone callers;
• Legitimate government organizations will never threaten arrest or deportation for failure to pay a debt.

Some additional websites with helpful information include:

Internal Revenue Service

New York State Taxpayer Rights Advocate

NYS Consumer Bill of Rights Regarding Tax Preparers

NYC Department of Consumer Affairs

PEARL RIVER – Attorney General Eric T. Schneiderman today announced that his office filed felony complaints against and arrested Jeanine Santiago, a medical doctor, and Wendy Potter, a registered nurse, on charges that they conspired for Potter to provide physician services to hundreds of Santiago’s elderly and infirm homebound patients. Filed in Dutchess County’s Town of Wappinger Justice Court, the court papers allege that Santiago gave Potter blank and pre-signed prescription slips issued in Santiago’s name and that Potter, in her sole discretion, filled out the prescriptions, including for powerful narcotics, and gave them to Santiago’s patients. Santiago is further charged with defrauding Medicare of more than $50,000 and Medicaid more than $1,000 by submitting claims for more expensive physician services which were in fact provided by a nurse. 

“Doctors making house calls is a noble practice. Doctors stealing money and allowing home-bound patients to be treated by an untrained and unlicensed assistant is not,” Attorney General Schneiderman said.  “There has to be one set of rules for everyone, particularly when the health and well-being of our elderly citizens is at stake and how our taxpayer dollars are spent.  My Office will hold accountable those who disregard such rules.” 

Santiago’s practice was located in Dutchess County, where she and Potter treated in excess of 300 patients, most of them elderly. From 2008 through 2013, Potter worked for Santiago treating patients in their homes. As part of the treatment rendered by Potter, she is accused of fraudulently issuing prescriptions for powerful narcotics, including morphine and oxycodone. 

The felony complaint charges Santiago, 52, of Wappinger, N.Y., with Grand Larceny in the Second Degree, a class C felony; Grand Larceny in the Fourth Degree, Offering a False Instrument for Filing in the First Degree, and Unauthorized Practice of a Profession, class E felonies. In a separate felony complaint, Wendy Potter, 50, of Fishkill, N.Y., is charged with Unauthorized Practice of a Profession. If convicted on the top counts, Santiago faces up to 5 to 15 years and Potter faces up to 1 1/3 to 4 years in state prison.

Judge Heather L. Kitchen of the Town of Wappinger Justice Court arraigned the defendants yesterday and set bail in the amount of $1,000 dollars cash or $2,000 bond for both defendants. 

The charges come after an 16 month joint investigation with the US Department of Health and Human Services, Office of Inspector General, and the New York State Police. The Attorney General thanked the New York State Department of Health, Bureau of Narcotic Enforcement for its assistance during the investigation.   

The investigation was conducted by Medicaid Fraud Control Unit (MFCU) Special Investigator Peter Olsen, along with Special Auditors/Investigators John Annunziata and Christopher Giacoia with the assistance of Supervising Investigator Peter Markiewicz, Deputy Chief Investigator Kenneth Morgan and Regional Chief Auditor John Regan.  

The criminal case is being prosecuted by Special Assistant Attorney General Susan Bloom with the assistance of Regional Director Anne Jardine. Thomas O’Hanlon is MFCU’s Chief of Criminal Investigations – Downstate.  MFCU is led by Acting Director Amy Held.  The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan. 

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

NEW YORK – Attorney General Eric T. Schneiderman today announced an agreement with the Finger Lakes Health network of hospitals and healthcare facilities to strengthen its policies concerning communication with patients and their family members or companions who are deaf or hard of hearing.  The agreement will expand access to sign-language interpreters, as needed, and improve policies and training to ensure that medical staff members are able to effectively communicate with the deaf and hard of hearing.  

“Access to healthcare should be available to every New Yorker, regardless of a disability,” Attorney General Schneiderman said. “My office is committed to ensuring that hospitals and other healthcare facilities provide effective communication, as required by law, so that people can understand what their doctors are telling them, and so they get the healthcare they need and deserve.”

In cooperation with the Attorney General’s Office, Finger Lakes Health agreed to improve its policies to ensure that doctors, nurses, and other staff communicate effectively with individuals who are deaf or hard of hearing.  Finger Lakes Health has agreed to expand access to communication aids and services, including qualified sign-language interpreters, to patients and their companions as required by law; strengthen its policies and training protocols for evaluating and meeting the needs of individuals who are deaf or hard of hearing; and improve its procedures for recordkeeping and investigation of complaints.

According to U.S. Census estimates, more than 700,000 New Yorkers are either deaf or have serious difficulty hearing, including more than 60,000 residents of the Finger Lakes region.  

The Finger Lakes Health network includes two hospitals, two surgery centers, and eight other healthcare facilities, including nursing homes, located across the Finger Lakes region of New York.  The region is home to large deaf and hard-of-hearing populations.  The Rochester metro area is home to the National Technical Institute for the Deaf and has the largest per capita working-age deaf population in the nation.  In addition, hearing loss is one of the most common conditions affecting elderly individuals, and the Finger Lakes region is home to a substantial population of seniors.  

Michael Schwartz, associate professor at the Syracuse University College of Law and director of the Disability Rights Clinic, said, “Deaf and hard-of-hearing people are entitled to effective communication under state and federal laws, and all places of public accommodation, including hospitals, clinics, and medical offices, must provide sign-language interpreters if needed to ensure effective communication.  With this agreement, Finger Lakes Health recognizes its obligation under our laws to accommodate members of the deaf and hard-of-hearing community who need access to its services.  Attorney General Eric Schneiderman is to be applauded for securing an agreement that promotes equal access for patients and their companions.”

Matthew Starr, a board member at Partners in Deaf Health which organizes the Finger Lakes Deaf Health Fair and other events promoting access to healthcare for deaf New Yorkers, said, “When communication barriers in healthcare settings are removed, members of the deaf community can decide on healthcare treatment options in a more equitable and timely manner. This agreement, along with efforts to educate and advocate for communications accessibility, helps to ensure that deaf patients do not forego meeting their immediate health needs due to communication barriers.”

This matter is being handled by Assistant Attorneys General Mayur Saxena, Ajay Saini, and Anjana Samant 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 individuals with disabilities 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.

BINGHAMTON – Attorney General Eric Schneiderman today announced that his office has obtained a judgment against home improvement contractors who repeatedly and persistently ripped off customers in the Southern Tier and Central New York by going door-to-door seeking to pave and repair driveways. The contractors performed shoddy and incomplete work, intimidated customers into paying more than the negotiated price, and failed to abide by New York’s home improvement contract laws.

“This judgment makes it clear that my office will continue to fight for middle class families and hold scammers accountable when they take advantage of ordinary New Yorkers,” said Attorney General Schneiderman. “There has to be one set of rules for everyone, from Wall Street to Main Street, and I am pleased we were able to seek justice and secure restitution for victims.”

Attorney General Schneiderman entered into an agreement to settle his investigation against Joshua Cooper of Ovid, NY and Robert Cooper of Romulus, NY, who were doing business under the name Finger Lakes Asphalt. As part of the agreement, a judgment was entered against the Coopers requiring them to pay $8,150 in restitution to six consumers who were harmed as a result of illegal and fraudulent conduct. Additionally, any other consumers who believe they have been ripped off by the Coopers or Finger Lakes Asphalt may file a complaint with the Attorney General’s Office by December 27, 2014 to seek restitution.

The investigation into this matter revealed that the Coopers would go through neighborhoods knocking on doors and representing that they had an extra load of blacktop in the back of their trucks. They claimed that they could give the homeowners a good price for the work and that they would do quality work. They would quote a price for the work, but did not provide homeowners with written contracts prior to performing the work. They would begin working on the driveway immediately and then approach the homeowner asking for payment in an amount greater than initially quoted. If homeowners would protest, the Coppers would intimidate them until they paid the higher price. Additionally, the work performed was often poorly done and incomplete.

New York State Supreme Court Justice Jeffrey A. Tait signed a Consent Order and Judgment against the Coopers prohibiting them from harassing and intimidating consumers into allowing them to perform driveway paving work in the future and inflating initially quoted prices upon completion of the work. Justice Tait also ordered them to comply with New York’s Home Improvement Contract Law by furnishing consumers with written contracts before any work is performed, which include, among other things, a description of the work to be performed, estimated dates when the work is to begin and be substantially completed, and contain a notice that the consumer has three business days to cancel.

Attorney General Schneiderman offers the following tips to consumers who are considering hiring a home improvement contractor:

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

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

This matter is being handled by Assistant Attorney General Michael J. Danaher, Jr. with the assistance of Sr. Investigator Kathleen Coppersmith of the Binghamton Regional Office. The Binghamton Regional Office is run by Attorney General In-Charge James E. Shoemaker. The Division of Regional Offices is run by Executive Deputy Attorney General for Regional Affairs Marty Mack.

ALBANY- Attorney General Eric T. Schneiderman today issued a consumer alert offering tips for New Yorkers to avoid falling victim to unscrupulous snow removal contractors as winter approaches. By following several basic tips when hiring a contractor, consumers can help ensure quality work and avoid falling victim to scams.

“Snow removal is an essential part of everyday life for many New Yorkers during the winter months, and taking basic precautions now can help ensure quality work and avoid problems later,” said Attorney General Schneiderman.“As snow begins to fall, consumers should ask important questions of snow removal contractors to ensure they’re getting a quality service from a reputable provider.”

The Attorney General's office recognizes that most snowplowing and snow removal service owners and operators are honest, but consumers should ask questions to avoid potential problems. Consumers should take the following precautions when hiring contractors for snow removal to help protect themselves from fraud:

• Obtain several quotes for snow plowing services. This will give consumers a good sense of the range of prices currently being offered. 
• Don't accept a quote simply because it's the lowest.  If a quote is very low, the contractor may run out of money before the winter season is over or the contractor may not have money to pay for repairs when a vehicle breaks down.  
• Use a contractor that has been in business for a few years or that comes recommended by friends and neighbors.  The winter season brings out many people who decide to get into the snowplowing business.  New businesses may have the best of intentions, but may not have the necessary experience. 
• Check to see if your local government requires snow plow contractors to be licensed. If so, use a contractor who is licensed. 
• Use a contractor who is insured and has proof of insurance. 
• Check for complaints with the Better Business Bureau: www.bbb.org. 
• Pay one half of the contract at the beginning of the season, and one half at the end to help ensure that services promised will be provided. 
• Pay by check so you have proof of payment. 
• Get a signed contract that has the name, address (do not accept a post office box) and telephone number of the snowplow operator.  The contract should spell out how much snow must fall before the operator is required to plow your driveway.
• Obtain proof of identity of the contractor.  Ask to see the contractor’s driver's license and copy down the address and identification number. 
• Copy down the license plate number of the vehicle that plows your driveway. 
• If you have special requirements, spell it out in the contract (for example, if you are an emergency responder who must have your driveway plowed by 7:00 a.m. to get to work, make sure it is in the contract). 

If consumers feel they have been victimized, they are urged to contact the Attorney General's Consumer Helpline: (800) 771-7755.

BUFFALO – Attorney General Eric T. Schneiderman today issued a consumer alert warning both consumers and businesses about price gouging during major weather events. Today, a state of emergency was declared in the towns of Lancaster, Orchard Park, and West Seneca. Heavy snowfall has occurred throughout the greater Buffalo and Western New York region. General Business Law prohibits excessive increases in prices of essential items like food, water, gas, generators, batteries, and flashlights, and services like transportation, during natural disasters or other events that disrupt the market. 

“The law is clear when it comes to price gouging during emergency weather events, and our office will have zero tolerance for price gouging,” said Attorney General Schneiderman. “Consumers should report instances of price gouging to our office and businesses should understand that the law prohibits capitalizing on weather events to inflate prices.”

New York State’s Price Gouging Law (General Business Law § 396-r) prohibits merchants from taking unfair advantage of consumers by selling goods or services for an “unconscionably excessive price” during an “abnormal disruption of the market.” The price gouging law covers New York State vendors, retailers and suppliers, including but not limited to supermarkets, gas stations, hardware stores, bodegas, delis, and taxi and livery cab drivers. 

Attorney General Schneiderman urged New Yorkers to call his office at 800-771-7755 or log on to his office’s website, www.ag.ny.gov, to file a complaint if they believe price gouging has occurred. 

New York's price gouging law takes effect only upon the occurrence of triggering events that cause an “abnormal disruption of the market.” An “abnormal disruption of the market” is defined as “any change in the market, whether actual or imminently threatened,” that results from triggering events such as “weather events, power failures, strikes, civil disorder, war, military action, national or local emergency, or other causes.” During an abnormal disruption of the market like a major weather event, all parties within the chain of distribution for any essential consumer goods or services are prohibited from charging unconscionably excessive prices. “Consumer goods” are defined by the statute as “those used, bought or rendered primarily for personal, family or household purposes.” For example, gasoline, which is vital to the health, safety and welfare of consumers, is a “consumer good” under the terms of the statute. Therefore, retailers may not charge unconscionably excessive prices for gasoline during an abnormal disruption of the market.

New York's price gouging law does not specifically define what constitutes an “unconscionably excessive price.” However, the statute provides that a price may be unconscionably excessive” if: the amount charged represents a gross disparity between the price of the goods or services which were the subject of the transaction and their value measured by the price at which such consumer goods or services were sold or offered for sale by the defendant in the usual course of business immediately prior to the onset of the abnormal disruption of the market. 

ALBANY – Attorney General Eric T. Schneiderman today announced the filing of a lawsuit against a Cortland County property owner for allegedly causing the flooding of a cemetery and State Route 281.  The Attorney General’s suit alleges that James C. Stevens, III of Cortlandville undertook excavation activities on his property that diverted stormwater onto St. Mary’s Cemetery and New York State Route 281 in violation of state environmental and public nuisance laws.  Stevens has not corrected these violations, even though cemetery flooding has allegedly desecrated grave sites, and necessitated the disinterment and reburial of several bodies. The suit was filed in the New York Supreme Court in Cortland County and the filing can be found here.

“New York’s environmental laws not only serve to protect our health and environment, they also provide safeguards against public nuisances,” said Attorney General Schneiderman. “Nobody is above the law, and our office is committed to holding people accountable when their actions harm other New Yorkers.”

Attorney General Schneiderman’s suit alleges that, in undertaking clearing, grading, and other construction activities on his Ridgeway Avenue property beginning around July 2012, Stevens altered the direction of stormwater runoff.  As a result, stormwater from 120 acres of land that had previously drained into a wooded area without causing harm has been redirected through a series of conveyances and ultimately downslope onto cemetery burial plots and other nearby properties, including State Route 281.   

The complaint charges that Stevens’ activities violate several state environmental laws, including by releasing unpermitted discharge of stormwater from construction activity and failing to implement a stormwater pollution prevention plan.  The suit also charges that his illegal activities, having allegedly injured the property, health, safety or comfort of a considerable number of persons– particularly with respect to the flooding of St. Mary’s Cemetery and State Route 281 – constitute a public nuisance under state law.  

The complaint cites reports of the Catholic Cemeteries of the Roman Catholic Diocese of Syracuse, which owns St. Mary’s Cemetery, that several families have been forced to disinter and rebury bodies of their loved ones due to significant erosion caused by Stevens’ alleged illegal stormwater discharges.  The Diocese also reports that the discharges have transported sediment, gravel, and dirt from the Stevens’ property and caused significant soil erosion on cemetery property.  On multiple dates, the discharges have reportedly desecrated grave sites at St. Mary’s by covering them with debris and by eroding them.  

In addition to the impacts at the cemetery, the complaint alleges that illegal stormwater discharges have on multiple dates caused runoff to flow downslope onto Route 281 where it has overwhelmed the stormwater collection system, flooded the road, and threatened public safety.

According to the complaint, since July 2013, the New York State Department of Environmental Conservation (DEC) has informed Stevens of the violations of state environmental law and sought his cooperation in correcting them.  However, Stevens has not corrected the violations and his illegal discharges allegedly continue.  

In the suit, Attorney General Schneiderman asks the court to require Steven to take several actions, including to:

• immediately cease violation of State environmental laws; 
• immediately abate the public nuisance he has created; 
• mitigate and remediate the harm from the violations, as directed by DEC; and 
• to pay civil penalties, as determined by the court;

Attorney General Schneiderman thanks the DEC for its assistance in this matter.

This case is being handled by Assistant Attorneys General Joseph M. Kowalczyk and Michael J. Myers, and Environmental Scientists Mauricio Roma and Charles Silver, with support from Environmental Protection Bureau Chief Lemuel M. Srolovic, Executive Deputy Attorney General for Social Justice Alvin Bragg and First Deputy for Affirmative Litigation Janet Sabel.  DEC Region 7 Regional Attorney Joseph Sluzar and Environmental Program Specialist Scott Cook assisted in the case.

NEW YORK – Attorney General Eric T. Schneiderman today announced four settlements with a landlord and three developers who received lucrative tax incentives from New York City under the state’s “421-a” program, which is aimed at encouraging development, but who failed to comply with the program’s prevailing wage and rent-stabilization requirements. The settlements return more than $460,ooo in unpaid wages to about a dozen building workers at two buildings. They require that nearly two dozen apartments in four buildings be added to the state’s rent regulation registry. They also provide more than $150,000 in restitution to New York City. 

“Tax breaks offered to developers and landlords are not freebies. They come with legal obligations to New York taxpayers – ones that developers and landlords agree to abide by when they accept the tax incentives,” Attorney General Schneiderman said. “My office is dedicated to ensuring that everyone plays by the rules. In this case that means holding accountable those who accept lucrative tax exemptions and then ignore their responsibilities, including paying required wages to building service employees and providing rent-stabilized leases to New York families.”

These agreements are the first to come out of an ongoing investigation by the Attorney General’s Office into property developers and landlords who accept the incentives but fail to live up to legal requirements mandated by the program. Tax dollars recovered from the investigation will go to New York City’s newly established “Affordable Housing – AG Settlement Fund,” and be used by the city’s Department of Housing Preservation & Development to fund housing developments for low income families. New York State enacted Section 421-a of the Real Property Tax Law to spur housing development and affordable housing. 

New York City Mayor Bill de Blasio said, “We need to get the most out of every dollar we spend, and it is vital that the people with whom we do business treat their workers fairly and deliver the affordable housing they promise. We won’t stand for anything less. We are deeply grateful to Attorney General Schneiderman for recouping back wages and protecting the affordability of dozens of apartments. We look forward to working together to build and preserve more affordable housing in every community."

New York City Department of Housing Preservation and Development Commissioner Vicki Been said, “I thank the Attorney General for his work and partnership on this issue. These property owners are receiving a public benefit and should be held accountable for complying with the program’s legal requirements. This settlement will ensure that building staff are properly paid and tenants receive the rent stabilization rights to which they are entitled. In addition, the money recovered will help fund affordable housing for low-income New Yorkers."

The four settlements announced today include:

• A $500,000 settlement with 150 Fourth Ave, LLC, which owns a 95-unit luxury condominium, The Arias, located at 150-158 Fourth Avenue, in Park Slope, Brooklyn. 

Of the total settlement, $454,082 will go to about a dozen workers, including doormen and porters, to cover wage underpayments. The service workers are owed wages for work in which they were paid $8.50 to $11 an hour, far below the applicable prevailing wage rate, which started at over $16 per hour for a new employee. In addition during the time period in question, the workers did not receive benefits or paid vacation or sick time as required under the prevailing wage law.  

The owners paid an additional $45,918 in restitution to the city fund for the tax benefits they received while they were out of compliance, between November 2010 and February 2014. In order to take a tax exemption under the 421-a program, buildings with more than fifty units are required to pay the prevailing wage rate to building service employees, or rent at least half of the building’s units at affordable rates. The Arias failed to offer affordable housing units and failed to pay prevailing wages. The prevailing wage is a rate higher than the minimum wage. It is set annually and required to be paid on certain government-related projects.

• A second settlement, with Tuhsur Development, LLC, in Queens, returns nearly $10,000 to three building service workers for prevailing wages they were not paid by the 63-36 99th Street building beginning in June 2011. The developer also paid $90,000 in restitution to the fund. The developer will further provide leases to three families living in the Rego Park building, who were renting without being offered the required leases from April of 2012 to July 2014.  

Two additional agreements were reached with developers who took 421-a incentives and rented apartments in three buildings, but failed to provide tenants with rent stabilized leases, which offer affordability and security to tenants, as required under the 421-a program:

• On Staten Island: Montgomery Development Associates, LLC, will now provide rent regulated leases to families living in the 30-38 Montgomery Avenue building’s 11 units, and has paid $5,500 to the city fund. The developer of “Montgomery Gardens” began renting units in July 2011 but failed to register them as rent regulated units; 
• In Queens: B & S Management, LLC, will provide rent regulated leases to eight families in two buildings located at 138-06 35th Avenue, in Flushing. The company began renting apartments in the 8-unit complex in July 2010 but failed to register those apartments under the program. The company has paid $10,000 in restitution to the city fund. 

Rent regulated units must be registered with the New York State Division of Housing and Community Renewal.

32BJ SEIU President Héctor Figueroa said, “These settlements should send a message to other 421-a buildings that there are consequences if you don’t follow the law and pay the prevailing wage. We urge developers that are not in compliance to start paying the prevailing wage immediately. This will improve the lives of hundreds of New York residential workers and their families.” 

Jose Casillas, a  46-year-old Queens father of three and concierge at The Arias who is among the workers who will be receiving back wages, said, “Getting this back pay will make a big difference for me and my family, especially paying for my daughter’s college tuition. The situation in our building has gotten much better in the last few months since we got our union contract and saw our pay go up to prevailing wage.”

A copy of the settlement agreements are available [here, here, here and here]. 

The Attorney General thanks the city’s Department of Housing Preservation & Development, the New York State Division of Housing and Community Renewal and the Service Employees International Union 32BJ for their assistance in the investigation.   

The investigation is being handled by Assistant Attorneys General Kevin Lynch, Section Chief Seth Kupferberg, Bureau Chief Terri Gerstein, all of the Attorney General’s Labor Bureau, and Executive Deputy Attorney General for Social Justice, Alvin Bragg.  The investigation is also being handled by Assistant Attorneys General Elissa Rossi and Nicholas J. Minella, Special Counsel Jeffrey R. Rendin, Deputy Bureau Chief Andrew Meier, Bureau Chief Erica F. Buckley, of the Attorney General’s Real Estate Finance Bureau, and Executive Deputy Attorney for Economic Justice General Karla G. Sanchez.  

NEW YORK – Attorney General Eric Schneiderman today asked New York’s colleges and universities to help combat the so-called “grandparent scam,” where perpetrators impersonate relatives in need and then dupe unsuspecting seniors into sending them money. The scam involves a call to a senior citizen in which the caller impersonates a grandchild claiming to be in serious trouble and asks the unsuspecting grandparent to wire money immediately. The Federal Trade Commission recorded more than 40,000 incidents of grandparent scams from 2010 to 2013 and the scam is widely considered to be underreported.

In the letter sent Wednesday to the presidents and deans of 86 SUNY and CUNY schools and an open letter to the administration of New York’s private institutions, the Attorney General warns that the grandparent scam tends to increase in frequency during school breaks, like the upcoming December/January vacation, when it is especially believable that a grandchild would be traveling. Often, the scammer will pose as a grandchild in college, claiming to be in legal trouble or even physical danger.

“It is despicable that these scammers abuse the love that grandparents have for their grandchildren to dupe them into thinking they are helping a family member,” Attorney General Schneiderman notes in the letter. He continues: “with the holidays approaching and winter vacation around the corner … my hope is that you can help us make your students and their families aware of the scam.”

Last month, the Attorney General launched an intergenerational initiative, “Grandkids Against The Grandparent Scam,” to get older adults the information they need to avoid becoming victims. Given the tendency of scammers to impersonate college students as part of this scam, the Attorney General has asked all of New York’s higher-education institutions to make their students aware of the initiative. The program provides students with specifics about how the scam works and an informational brochure to share with their parents and grandparents. The brochure offers students a script and other tips to warn their grandparents about this dangerous scam. Some of the tips include: 

• 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 Attorney General is asking the schools to distribute the brochures to as many students as possible and offering to have his statewide elder abuse coordinator speak directly to students about how they can best protect their families.

A copy of the “Grandkids Against The Grandparent Scam” brochure is available here.

A copy of the letter is available below:

November 18, 2014

With the holidays approaching and winter vacation around the corner, I am writing to make you aware of an increasingly prevalent phone scam and to ask for your help with a new initiative my office has undertaken to combat it. My regional offices across the state have reported a rise in the so-called “grandparent scam.”  The scam involves a call to a senior citizen in which the caller impersonates a grandchild claiming to be in serious trouble.  The caller then asks the unsuspecting grandparent to send money. Victims of these phone scams have lost almost $450,000 over the last several months.

The grandparent scam tends to increase in frequency during school breaks, like the upcoming December/January vacation, when it is especially believable that a grandchild would be traveling. Often, the scammer will pose as a grandchild in college and tell the grandparent that they are in legal trouble or even physical danger. They will ask the unsuspecting grandparent to wire money immediately and, as a means of avoiding detection, ask the victim not to tell other family members about the situation. For example, a 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 s/he may claim to have been mugged, to have been in a car accident or to need money for bail or customs fees to get back into the United States from another country. It is despicable that these scammers abuse the love that grandparents have for their grandchildren to  dupe them into thinking they are helping a family member.

Last month, to help prevent unsuspecting seniors from being victimized by this all-too-common scam, my office launched a program titled “Grandkids Against the Grandparent Scam.”  This intergenerational program represents an innovative approach to getting our older adults the information they need to avoid becoming victims. The initiative provides students with specifics about how the scam works and an informational brochure that they are then encouraged to share with their parents and grandparents.

My hope is that you can help us make your students and their families aware of the scam. Please access the brochure here and distribute it to as many students as possible. For anyone interested, our statewide elder abuse coordinator, Gary Brown, would also be happy to speak directly to your students about the scam and how they can best protect their families.

For more information or if you have questions about the program and how you can help, please contact Gary Brown at 914-422-8755 or gary.brown@ag.ny.gov.

Sincerely,

Eric T. Schneiderman

NEW YORK – Attorney General Eric T. Schneiderman and New York City Police Commissioner William J. Bratton today announced the takedown of a high-volume gun trafficking ring that allegedly funneled firearms from Florida to New York City, often beneath Chinatown buses.  According to the 196-count felony indictment made public today, the investigative team seized more than 70 illegal guns bought at gun shows in Florida, many of which were then resold in New York for up to four times their original price. As a result of the investigation, known as “Operation Midnight Run,” eight members of the ring were charged today with numerous counts of conspiracy, criminal possession and criminal sale of firearms. If convicted, seven of the eight defendants face up to 25 years in prison. 

“Gun-trafficking rings fuel the epidemic of gun violence that is killing children and families across New York and the United States,” said Attorney General Eric Schneiderman. “We must do absolutely everything in our power to keep deadly weapons out of the hands of criminals. We have strong gun control laws in New York State and sensible, cooperative solutions like the Model Gun Show Procedures to ensure background checks on anyone purchasing a firearm at a New York gun show.  Preventing criminals from circumventing these measures by illegally shipping dangerous weapons into our communities is literally a matter of life or death.”

New York City Police Commissioner William J. Brattonsaid, “This investigation demonstrates the demand for illegal guns in our city and the continued commitment of the New York City Police Department and the New York Attorney General’s Office to intercept these weapons before they are used to commit violent crimes.  Thanks to these collaborative efforts, we very likely prevented a life from being taken by one of these firearms.” 

The joint investigation, led by the Attorney General’s Organized Crime Task Force and the NYPD’s Firearms Investigation Unit, began this past spring. According to the indictment, the ring was led by Natasha Harris – who regularly traveled from her Brooklyn apartment to gun shows in Florida to purchase guns for resale – and Quincy Adams, who helped finance the ring’s purchases and personally transported some of the weapons back to New York City. 

Earlier this year, an undercover investigator began purchasing guns directly from the alleged ringleader and, subsequently, electronic surveillance was used to monitor the ring’s activity. The surveillance revealed that ring members communicated regularly, often sending each other text messages that included photographs of the guns for sale. In less than three months, an undercover investigator purchased 33 guns from the ring in 11 separate face-to-face transactions conducted in Brooklyn. The undercover led the defendants to believe that he intended to resell the weapons to his own customers.

Between May and November of this year, the two ringleaders and other defendants made several trips from New York City to Florida. Harris and others, including a Florida-based straw-buyer, would allegedly purchase multiple guns from multiple shows. The ring would then transport the weapons back to New York primarily by stowing them beneath commercial buses – including the Star Line bus company – bound for Manhattan’s Chinatown, according to the indictment. 

For example, as alleged in documents made public today, the investigation revealed that on October 24th, Harris drove from Brooklyn to Florida. Over the next two days, she and some of her co-defendants (along with Harris’s grandmother and two young children) attended the Orlando Gun Show and Bunnell Gun Show, purchasing several guns at each show. On the afternoon of October 26th, Harris and Octavio Batista met the ring’s female courier at the Orlando Bus Depot (5144 West Colonial Drive, Orlando) and placed a purple suitcase full of firearms they’d purchased in the luggage compartment of an overnight Star Line bus #9597, headed to Chinatown (95 Canal Street, Manhattan). The courier then boarded the bus. On the morning of October 27th, the New Jersey State Police, working in coordination with ‘Midnight Run’ investigators, stopped the bus at the New Jersey Turnpike’s Joyce Kilmer rest area (in East Brunswick, N.J.) and seized the purple suitcase, which contained 33 firearms.

Firearms sales charged in the indictment ran the gamut from .22 caliber pistols to assault weapons. Other guns allegedly sold by the ring include:

• Mossberg .22 caliber semi-automatic pistol
• Sig Sauer 9mm semi-automatic pistol
• Glock 9mm semi-automatic pistol
• Smith & Wesson 9mm semi-automatic pistol
• Rock Island Armory .45 caliber semi-automatic pistol
• Taurus .45 caliber semi-automatic pistol
• Beretta .40 semi-automatic pistol
• Smith & Wesson .380 caliber semi-automatic pistol
• Steyr 9mm semi-automatic pistol
• Hi-Point .45 caliber semi-automatic pistol
• Taurus .40 caliber semi-automatic pistol (stainless steel) 
• Keltec 9mm semi-automatic pistol 
• SCCY 9mm semi-automatic pistol
• Lorcin .380 caliber semi-automatic pistol
• North American Arms .22 caliber revolver
• Charter Arms .38 caliber revolver
• Colt .38 caliber revolver
• Interarms .357 caliber pistol
• Rossi .22 caliber revolver, among dozens of others. 

Approximately 18 of the guns seized had the serial numbers filed off, making the weapons untraceable. Investigators are in the process of tracing the other weapons. 

“Operation Midnight Run” highlights the lax procedures at gun shows across the country and the need for New York’s Model Gun Show Procedures to be adopted by other states. For example, Florida law requires anyone purchasing a gun at a Florida gun show to be a resident of that state. On numerous occasions, Natasha Harris – a resident of Brooklyn, N.Y. – was able to purchase multiple guns at Florida shows because no background check was performed. 

The Model Procedures grew out of an undercover investigation conducted by Attorney General Schneiderman's office in 2011, which found that private sales of guns — made without background checks — were a common occurrence at gun shows. After that sting operation, the Attorney General's Office and several gun show operators worked together to develop the procedures, which balance the rights of sportsmen and gun collectors with the need to protect the public from the sale of guns to people who would not be eligible to legitimately purchase guns at those shows. 

The Model Procedures go beyond the requirements of New York’s gun show laws, including a process that ensures all guns brought into the gun shows are tagged so that, upon exiting, the operator can determine whether guns were sold and that a proper background check was performed. Today, nearly every gun show in New York State employs Model Gun Show Procedures voluntarily.

The indictment unsealed today charges the following defendants:

• Natasha Harris, 33, of Brooklyn
• Quincy Adams, 35, of Brooklyn
• Octavio Batista, 25, of Brooklyn
• Michelle Cantres, 24, of Brooklyn
• Draxel Clarke, 32, of Brooklyn
• Deryl Springs, 36, of Queens
• Michael Liburd, 24, of Florida
• Unidentified Female Courier

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

The Attorney General would like to thank Kings County District Attorney Kenneth Thompson and his office for their cooperation with this case.

The investigation was directed by OCTF Investigator Brian Fleming and Supervising Investigator Paul Grzegorski, with the assistance of OCTF  Investigator Mary Laspina and OCTF Deputy Chief Christopher Vasta, and by Detective Ted Wendling of the NYPD’s Firearms Investigation Unit under the supervision of Lieutenant Michael Jennings, Captain Robert Van Houten, commanding officer of the Firearms Investigation Unit, Captain Brian Gill, commanding officer of the Firearm's Suppression Division, and the overall supervision of Chief Thomas P. Purtell, Organized Crime Control Bureau, NYPD.  Chief Dominick Zarrella is the head of the Attorney General’s Investigations Bureau. The case is being prosecuted by OCTF Assistant Deputy Attorney General Diego Hernandez.  Deputy Attorney General Peri Alyse Kadanoff runs the Attorney General’s Organized Crime Task Force. The Executive Deputy Attorney General for Criminal Justice is Kelly Donovan.

NEW YORK – Attorney General Eric Schneiderman today announced that his office received an order of the Supreme Court, Oneida County, to permanently shut down and dissolve Lucky Dog Rescue of Mohawk Valley, Inc. The group illegally raised funds from the public as a dog rescue shelter for abused, abandoned, and neglected dogs. 

The Attorney General brought the proceeding to dissolve Lucky Dog Rescue and to enjoin the group, its registered agent Jan Miller, and others acting on the group’s behalf from the solicitation, receipt and use of donated funds, and for an accounting of any and all funds received, for restitution and repayment of funds received by Lucky Dog Rescue, and for the corporation’s dissolution. Records reviewed during the course of the investigation revealed that thousands of dollars had been received from the public with few animals benefiting.

“Unregistered organizations that take advantage of the charitable spirit of New Yorkers do a disservice to the causes they claim to support,” said Attorney General Schneiderman. “Those who donate to charitable organizations should have every confidence that their money is going towards its intended purpose, and our office will hold people accountable when they betray the trust of donors and the communities they serve.”

The proceeding was based on the organization’s persistent and active solicitation of charitable contributions from the public while having failed to register as a charitable agency with the New York State Attorney General’s Office. The group also failed to file the necessary annual reports and financial audits with the Attorney General's Office. The group was in violation of New York's Not-for-Profit Corporation Law, Estates, Powers & Trusts Law, and Executive Law. The organization also lacked IRS 501-c-3 status. In its fundraising solicitations, the organization improperly advised those donating their donations were tax deductible. A restitution hearing will be scheduled by the court.

Consumers can check out Attorney General Eric Schneiderman’s Pennies for Charity website to find out how charitable donations are used. Users can search for the name of a charitable organization and see the gross receipts of the charity, the net amount going towards charitable purposes, and the percent being retained for the charity. The database is accessible online here.

This case is being handled by Assistant Attorney General James Williams in the Utica Regional Office and Investigator Joseph Kelly, with support from Executive Attorney General for Regional Offices Marty Mack.

NEW YORK – Attorney General Eric T. Schneiderman issued the following statement regarding the decision by the Taxi and Limousine Commission (TLC) to revise a proposed rule that would have required dispatchers to agree in writing before for-hire drivers could accept rides from rival bases. In response to that proposal, on November  7, 2014, Attorney General Schneiderman wrote to the TLC expressing his concern about the rule and its potentially anticompetitive consequences. The Commission has since revised its proposed rules and eliminated the inter-base agreement requirement:

“I applaud Commissioner Joshi and the Taxi and Limousine Commission for revising its proposed rules to promote competition and innovation in the for-hire vehicle industry. By allowing for-hire drivers to accept dispatches from multiple bases, the TLC will increase driver efficiency, lower the costs of entry for new services, and encourage more competition in the taxi industry. I want to thank Commissioner Joshi for incorporating feedback on this proposal, and pushing to implement smart, forward-looking regulations.”

NEW YORK - Attorney General Eric T. Schneiderman today announced the felony conviction and sentence of a Long Island man who spent years stealing from customers by pretending to be a legitimate insurance agent. Darren Downes, who defrauded clients and insurance companies by submitting hundreds of fraudulent auto insurance policies, was convicted of fraud and identity theft and sentenced to up to four years in prison. 

Downes admitted to charging customers hundreds of dollars each to submit policy applications on their behalf to auto-insurance companies like Progressive and GEICO, promising to get them a better policy than they could get on their own.  He then falsified customer information, using stolen social security numbers, incorrect zip codes and fictitious professional and educational backgrounds to obtain discounted policies. When insurance companies discovered the false information, Downes’ unsuspecting customers found their policies cancelled or were forced to pay significantly higher premiums. Downes fraudulently obtained approximately $75,000 in policy application fees from customers. 

"All New Yorkers pay a price for insurance fraud, which drives up premiums across the board,” Attorney General Schneiderman said. "This sentence sends a clear message: this office will prosecute anyone who breaks the law to take advantage of unsuspecting customers for personal profit."

Downes, 33, of Baldwin, pleaded guilty on July 1, 2014 in Nassau County Court to Scheme to Defraud in the First Degree, a Class E felony, Identity Theft in the First Degree, a Class D felony and Grand Larceny in the Third Degree, a Class D felony.  

Downes was sentenced Wednesday by Judge Paradiso to 1 1/3 to 4 years in prison, and a judgment was entered against him for an $85,000 fine.

The Attorney General thanks GEICO, Progressive, the New York State Department of Financial Services and the National Insurance Crime Bureau for their valuable cooperation in this investigation.  

The case is being prosecuted by Assistant Attorney General Irwin Weiss of the Criminal Enforcement and Financial Crimes Bureau's Auto Insurance Fraud Unit, with the assistance of Legal Analyst Christopher Michel.  The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Gary Fishman and Deputy Bureau Chief Stephanie Swenton. The Criminal Enforcement and Financial Crimes Bureau is part of the Criminal Justice Division, led by Executive Deputy Attorney General for Criminal Justice Kelly Donovan.

The Attorney General's investigation was conducted by Investigator Patrick Lubin of the Auto Insurance Fraud Unit, under the direction of Supervising Investigators Edward Keegan and Natalie Shifrin and Deputy Chief Leonard D'Alessandro. The Investigations Bureau is led by Chief Dominick Zarrella.

NEW YORK -- Attorney General Eric T. Schneiderman today announced the conviction and sentencing of Leonid Fridman for failing to pay legally required wages to his workers on a Port Authority of New York and New Jersey construction project. Fridman pled guilty to the felony crimes of grand larceny in the second degree and violation of prevailing wage requirements of New York State Labor Law.  As a condition of the plea, Fridman agreed to pay $200,000 in restitution to underpaid workers and prohibition from working on public works projects for five years.  Fridman was sentenced to five years of probation.

“Mr. Fridman is being held accountable for stealing wages from workers who renovated parts of JFK,” Attorney General Schneiderman said. “My office will continue to take strong action, including filing criminal charges, against employers who violate New York’s labor laws, steal taxpayer dollars and violate the public trust.” 

Based upon court filings and statements in court, Fridman, 60, owned and operated Millennium Commercial Corp., a Brooklyn-based company that performed tile work. The defendant and his company, located at 200 Brighton 15th St., performed tile restoration work as a subcontractor on the renovation of the TWA Flight Center at John F. Kennedy Airport in 2009 and 2010. Under the Port Authority contract for the project and the Labor Law, the defendant was required to pay his employees over $50 per hour for Laborers and Mason Tenders and over $70 per hour for Tile Setters. Fridman was aware that he was required to pay the prevailing wages but still paid some of his workers as little as $10 per hour. 

To avoid detection, Fridman filed false certified payroll reports stating he paid his workers the prevailing wages, and also issued paychecks to the workers that matched those payroll reports. 

Michael Nestor, Inspector General for the Port Authority of NY & NJ, said, "Companies doing business with municipalities, state agencies and authorities are legally bound to pay their employees the fair and prevailing wage.  In this case, the defendant chose to enrich himself at the expense of his own workers. Today’s sentencing will serve notice to all contractors that the Port Authority of NY & NJ will not tolerate wage fraud or any other criminal misconduct on public projects.  The Port Authority Office of Inspector General and its Law Enforcement partners will aggressively identify, investigate and bring to justice those who corrupt the integrity of the construction industry.”

Fridman pled guilty to one count each of Grand Larceny, a class "C" felony, and  Failing to Pay the Prevailing Wage in violation of Labor Law § 220(3)(d)(i)(3), a class "D" felony. 

New York's prevailing wage law seeks to ensure that government contractors pay wages that are comparable to the local norms for a given trade. The law requires an hourly rate for construction work performed for public agencies, along with benefits, and also higher wages for overtime, weekends or work at night.

The Honorable Dorothy Chin-Brandt of Queens Supreme Court sentenced the defendant to 5 years of probation and to pay $200,000 in restitution for the workers he underpaid. 

This case was investigated by Investigator Robert Ward, Investigator Mark Fionda and Forensic Auditor Tiffany Coles of the Port Authority of New York and New Jersey Office of the Inspector General, under the supervision of Acting Director of Investigations Steven Pasichow and Assistant Director of Investigations Salvatore Dalessandro and Supervisory Police Investigator Jeffrey Schaffler.

The Attorney General thanks the Port Authority of New York and New Jersey Office of the Inspector General for its investigation and assistance in the prosecution.

New York Office of the Attorney General Supervising Investigator Luis Carter and Deputy Chief Vito Spano also participated in the investigation. 

The case was prosecuted by Assistant Attorney General Benjamin Holt. The Labor Bureau Section Chief is Richard Balletta.  The Bureau Chief is Terri Gerstein, and the Bureau is overseen by Executive Deputy Attorney General for Social Justice Alvin Bragg.