NEW YORK– In the wake of President Obama’s executive action on immigration, Attorney General Eric T. Schneiderman today issued a consumer alert warning undocumented immigrants to beware of potential scammers offering immigration services. It is estimated that the president’s executive action will impact an estimated five million individuals, by expanding the population eligible for the Deferred Action for Childhood Arrivals (DACA) program to young people who came to this country before turning 16 years old and have been present since January 1, 2010, and extending the period of DACA and work authorization from two years to three years.  In addition, the new executive order will allow parents of U.S. citizens and lawful permanent residents who have been in the country since January 1, 2010, to request deferred action and employment authorization for three years, in a new Deferred Action for Parental Accountability program, provided they pass required background checks.  In addition, the order will expand the use of provisional waivers of unlawful presence to include the spouses and sons and daughters of lawful permanent residents and the sons and daughters of U.S. citizens.

"I welcome President’s Obama Executive Order, which will provide millions of undocumented immigrants the opportunity to come out of the shadows and stop living in fear,” Attorney General Schneiderman said. “Unfortunately, we know that following past changes in immigration policy, scammers have been quick to seize on moments of reform to take advantage of desperate families seeking a pathway to citizenship. My office is warning immigrant communities to do their homework and not to fall victim to unscrupulous individuals making promises they can’t keep."

New York City Council Speaker Melissa Mark-Viverito said, "President Obama's administrative relief announcement is great news for thousands of New Yorkers and we now must make sure that those immigrants who are covered are protected from costly scams and fraud. I commend Attorney General Eric Schneiderman for looking out for the rights of immigrants and look forward to working with the Attorney General's office to protect New Yorkers."

Attorney General Schneiderman has taken action to shut down fraudulent immigration services providers that have engaged in the unauthorized practice of law, made false promises of citizenship, and took payments for services that they did not provide. Attorney General Schneiderman shut down two organizations that engaged in such fraud and secured $2.2 million in restitution for victims. 

Attorney General Schneiderman warned that, since the president’s executive action will only impact a fraction of the estimated 12 million undocumented immigrants living in the United States, anyone seeking to change their immigration status should consult with an authorized immigration services organization to find out if they qualify.  Such consultation services are often available for free. Unauthorized immigration service providers can not only cost victims thousands of dollars, but can also negatively impact victims’ chances of adjusting their immigration status as a result of lost documents, or improperly filed paperwork.  In addition, the Attorney General noted that President Obama’s recently announced initiatives have not yet been implemented and the public should take steps to verify whether these new actions have gone into effect before taking steps to submit applications to USCIS.

Attorney General Schneiderman has issued the following tips to protect New Yorkers from becoming victims of fraud:

• Confirm whether the President’s new immigration actions have gone into effect and been implemented before taking steps to submit an application to USCIS.
• Never pay a fee for an expedited application. Individuals cannot expedite your application for a fee.
• No one can guarantee you will get approved for specific benefits. If someone makes such a guarantee, don't employ his or her services.
• Only attorneys or Board of Immigration Appeals (BIA)-accredited representatives can give you advice on which forms to submit to apply for a new program.
• Only you, an attorney, or a BIA-accredited representative can represent you before USCIS and inquire about the status of your request.
• An immigration service provider that does not employ attorneys may not give you legal advice, threaten to report you to immigration authorities, promise to obtain special favors from immigration authorities, instruct you to provide false information to immigration authorities, or charge you for a referral to someone qualified to assist you with  immigration matters.
• Although Notarios Publico are attorneys in Spanish-speaking countries, Notaries Public in the United States are not attorneys. Do not hire them for legal advice.
• Remember, before you sign any immigration form, you must understand it and agree to the truth of it. If a form is not written in your language, and you don't understand it, do not sign it. Anything you sign that is not true and accurate may be considered fraudulent by USCIS, and this will have serious repercussions.
• If you do go to an immigration service provider to have your paperwork filled out, the provider must do the following: give you a contract (which may be cancelled at any time) written in English and in a language you understand describing the services they will provide and the fees they will charge, post signs clearly indicating they are not attorneys and cannot give you legal advice, give you a copy of any documents filed with the government, return any original documents belonging to you, and give you a copy of your file on demand without a fee.
• It's always safest to pay for any service you obtain by money order, check, or credit card. Do not pay with cash. Note, too, that USCIS filing fees must be paid by those methods.

For more information on the president’s executive action, including guidelines, forms and timelines, please click here.

To find a licensed attorney in the State of New York, visit the New York State Bar Association or the American Immigration Lawyers Association.

If you think you've been the victim of an immigration services fraud scam, contact the Attorney General Schneiderman's Immigration Fraud Hotline at 1-866-390-2992. Our office will not inquire about your immigration status or share your information with anyone, including other government entities.

BUFFALO – Attorney General Eric T. Schneiderman today announced that his office has begun taking legal action against businesses that engaged in price gouging during last week’s historic snow emergency in Western New York. The Attorney General has already sent a cease and desist letter to one businesses accused of engaging in price gouging, and is investigating several complaints against other businesses alleged to have engaged in illegal price increases.  

Also, as residents in Western New York are beginning to turn towards recovery efforts and face the prospect of flood damage as the record amounts of snow starts to melt, Attorney General Schneiderman offered tips to consumers to help prevent them from being victimized by shady contractors performing home repairs and other work in the storm’s aftermath.  

“While the response to the tragic storm in Western New York has been overwhelmingly positive, a small handful of shady businesses are looking to use this moment of crisis to make a quick buck,” said Attorney General Schneiderman.  “Few things are more reprehensible than exploiting a tragedy to prey on your neighbors.  My commitment to the people of Western New York is to fight every day to crack down on scammers and fraudsters trying to take advantage of consumers who have already been victimized by this storm.”  

An alert that was issued by Attorney General Schneiderman when the storm first began warned businesses to avoid inflating the price of necessary goods and services like food, water, gas, generators, batteries and flashlights and encouraged consumers to report suspected cases of price gouging. The Attorney General's Office is actively investigating several price gouging complaints before the office and will continue to investigate claims in the storm’s aftermath.  Among the complaints already received are from consumers reporting a store that increased the price of a gallon of milk by 28 percent – far more than allowed under the law – and snow removal companies charging at least 3 times the amount of their normal service to plow driveways. 

The Attorney General urges the public to report any potential occurrences of price gouging by calling 800-771-7755 or by logging on to the office's website at www.ag.ny.gov. 

The volume of snow that has fallen in Western New York over the last week has presented significant challenges to residents and may necessitate the hiring of contractors to assist with additional snow removal and home repairs. Reports of roof collapses and the possibility of flooding from warming temperatures are two areas of significant concern.

Consumers should protect themselves when hiring contractors to perform storm related services by considering the following:

Shop around. Get at least three estimates from reputable contractors that include specific information about the materials and services to be provided for the job.

Get it in writing. Insist on a written contract that includes the price and description of the work needed.

Don't 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.

Get references. Check with the Better Business Bureau, banks, suppliers, and neighbors. Always contact references provided to you.

Know your rights. You have three days to cancel after signing a contract for home improvements. All cancellations must be in writing.

NEW YORK—Attorney General Eric T. Schneiderman today called upon the Federal Trade Commission to update the Telemarketing Sales Rule in order to reflect realities of today’s marketplace and better protect consumers from unscrupulous telemarketers.

In a letter, co-sponsored by the Florida and Pennsylvania attorneys general, and joined by 36 other attorneys general, Attorney General Schneiderman asked the FTC to update the Telemarketing Sales Rule to further protect consumers from the continued prevalence of telemarketing fraud and abuse. As detailed in Attorney General Schneiderman’s most recent “Pennies for Charity” report, for-profit telemarketers often retain a very high percentage of charitable donations they raise from the public. In 2012, an average of only 37.5% of funds raised by telemarketers were retained by the charities. In 50.3% of the campaigns, the charities retained less than 30% of the funds raised, or the expenses exceeded contributions. Since that report, the Attorney General has taken action against eight entities under investigation for fraudulent fundraising.

“Those who open their hearts and wallets deserve to know how their hard-earned dollars are being spent and how much of their money is going to pay telemarketers’ salaries and costs,” Attorney General Schneiderman said. “The FTC’s rules must contain protections for consumers that reflect the most abusive and common types of fraud and abuse. New Yorkers, and donors across the nation, must be able to know how much they give is going to charity, and how much remains in the pockets of fundraisers.”

The attorneys general support the existing Telemarketing Sales Rule but contend that the following are areas of concern: 

• An increase in the number of fraud complaints from consumers who are  contacted by telephone;
• The pervasiveness of general media solicitations and advertisements that have resulted in the growth of inbound telemarketing;
• The use of certain payment methods that allow retrieval of funds with little meaningful scrutiny of the recipient’s identity; and
• The pervasiveness of preacquired account marketing. 

Telemarketing and its abuses occur when consumers are engaged in phone calls with businesses in the privacy of their homes or on their personal cellular telephones. State attorneys general are on the forefront in fielding consumer complaints, investigating, and taking legal actions against those who prey on victims using telemarketing and negative option scams. According to recent statistics by the FTC, more than 3.7 million telemarketing complaints were filed with the Commission. Telemarketing complaints also rank among the top five complaint categories received from citizens in many states. 

The states and territories that signed today’s letter are: Alaska, Arizona, Arkansas, Colorado, Delaware, District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, and Washington.

Schneiderman also issued the following tips when making donations via phone solicitation:

• Resist Pressure To Give On The Spot.If you receive a call from a telemarketer, do not feel pressured to give over the phone. You can ask to receive information about the cause and a solicitation by mail.
   
• Ask The Telemarketer. Ask the caller what programs are conducted by the charity, how much of your donation will be used for charitable programs, how much the telemarketer is being paid and how much of your donation the charity is guaranteed.
   
• Ask How Your Donation Will Be Used. Ask specifically how the charity plans to use your donation, including the services and organizations your donation will support. Avoid charities that make emotional appeals and are vague in answering your questions. Be wary if an organization will not provide written information about its charitable programs and finances upon request. Any legitimate organization will be glad to send you this information.
   
• Look Up Charities. Review information about the charity before you give. The Attorney General’s interactive website allows potential donors to easily search the "Pennies for Charity" report by the name of the charity or by region in New York State. (A link to the search tool can be found on the Attorney General’s charities website at www.charitiesnys.com.) Users can also see how much money was raised by a professional fundraiser and how much money actually went to each charitable organization. Also confirm that the charity is eligible to receive tax-deductible donations by searching the IRS website at www.irs.gov.
   
• Give To Established Charities. Donate to organizations you are familiar with or ones with a verifiable record of success in meeting their charitable missions. Closely examine charities with names similar to more established organizations.
   
• Never Give Cash.It's best to give your contribution by check made payable directly to the charity. This is safer than giving by credit or debit card and far safer than sending cash. Be careful about disclosing personal or financial information; never give out such information to an organization or individual you don't know.
   
• Report Suspicious Organizations. If you believe an organization is misrepresenting its work, or that a scam is taking place, please contact the Attorney General’s Charities Bureau at charities.bureau@ag.ny.gov or (212) 416 8401.

NEW YORK - Attorney General Eric T. Schneiderman today announced the plea of Ock Chul Ha, President of the Korean Social Service Center, a not-for-profit organization, for operating a pervasive scam on primarily elderly Korean-Americans for more than three years. Ha allegedly falsely promised clients – who came to him for advice regarding Medicare or Social Security – placement in low-income housing in the city’s coveted 421(a) program. Under the terms of his plea agreement, Ha will serve 1-3 years in state prison, the Korean Social Service Center will be shuttered, and victims who cooperated with the investigation have received restitution judgments in their favor.

Ha pleaded guilty to one count of Grand Larceny in the Second Degree (a Class "C" felony), one count of Scheme to Defraud in the First Degree (a Class "E" felony), and Criminal Tax Fraud in the Third Degree (a Class "D" felony).

“At a time when more New Yorkers than ever are struggling with the cost of housing, Mr. Ha dangled the promise of an affordable home to steal hundreds of thousands of dollars, ruining lives in the process,” said Attorney General Schneiderman. “Exploiting insecurity and vulnerability – especially in one’s own community – is despicable, and hopefully this conviction can bring some measure of justice to the victims of Ha’s scheme.  This conviction also ensures that Mr. Ha will never again use his social service center as a tool for fraud and deception.”

According to Ha’s fully allocated plea, Ha was the President of Korean Social Services, a Manhattan not-for-profit located at 16 West 32nd Street, Suite 301. Based on our investigation, Ha preyed on vulnerable people, who he believed would be least likely to notify law enforcement of his scam.  He generally conned elderly Korean-American immigrants, widows and those on disability who spoke limited English. He admitted to scamming an electrician, who lost his entire life savings to Ha and an artist who borrowed money from relatives. He would gain their trust by relying on his position as a social worker, and then offer them an opportunity to obtain a precious commodity in New York: affordable housing.

The investigation found that after Ha propositioned his victims, he would call them repeatedly, warning them that they would lose their chance at a 421(a) apartment if they did not act quickly. Often he would demand $28,500 from his victims. Most of his victims drained their bank accounts, borrowed from friends or pooled money from relatives to pay Ha. Ha would then demand more money from his victims, often citing the need for security deposits equaling six months of rent. He would provide his victims with a receipt from the Korean Social Service Center that reflected the total amount provided by his victim (often in the tens of thousands of dollars), the victim’s name, and a note indicating that these monies were for a deposit on a “N.Y.C H.D.” apartment.  Ha admitted to stealing approximately $207,000 from such victims.

The investigation further revealed that after a March 18, 2014, search warrant was executed at Ha’s office, he began calling his victims and urging them not to cooperate with law enforcement. Ha dangled the prospect of reimbursement as a reward for their refusal to cooperate.  Despite such empty promises, several brave men and women cooperated with law enforcement to bring Ha to justice.

Ha, 58, of Fort Lee, NJ, pleaded guilty before Judge Larry Stevens and will be sentenced to 1-3 years in state prison on March 3, 2015.

This investigation, initiated by the Attorney General’s Charities Bureau, was a joint collaboration between the Attorney General’s Office and the New York State Department of Tax and Finance. The Attorney General thanks the New York City Department of Investigation for its cooperation on this case.

The investigation was initiated by Assistant Attorney General Michael Torrisi of the Charities Bureau and handled by Investigator Edward Ortiz and Chief Dominick Zarrella of the Attorney General’s Investigations Bureau, and Michael Yun formerly of the NYS Department of Tax and Finance. This case was prosecuted by Special Counsel John R. Spagna, Chief Auditor of the Forensic Audit Section, Edward J. Keegan, Senior Analyst Jacqui Brown, and Associate Forensic Auditor Matthew Crogan, in the Attorney General’s Criminal Division, which is led by Executive Deputy Attorney General for Criminal Justice Kelly Donovan. 

NEW YORK – Attorney General Eric T. Schneiderman today announced the indictment of three pharmacies and seven individuals for allegedly defrauding Medicaid of over $5 million. The pharmacies were allegedly paying customers for prescriptions obtained from a local doctor and then billed Medicaid for the drugs even though they were never dispensed.   

“Those who defraud Medicaid to line their own pockets are scamming taxpayers and depriving others of important health care services, and today’s indictment sends a clear message that there will be consequences,” said Attorney General Schneiderman. “My office will continue to crack down on those who engage in waste, fraud, and abuse of taxpayer money.” 

Corporate defendants Perfect Gift US, Inc., d/b/a Central Pharmacy, located at 397 Mother Gaston Blvd., Princess RX, Inc., d/b/a Hastings Drug Corp., located at 2061 Atlantic Ave., and Bright RX, Inc., d/b/a Buffalo Drugs, located at 183 Buffalo Ave., and their owners and operators, Munir A. Khan, Beenish Daha, and Muhammed Z. Khan, a/k/a Sean Chris, were indicted for committing various felonies, including  Grand Larceny in the First Degree, Grand Larceny in the Second Degree, and Offering a False Instrument for Filing in the First Degree.  In addition, two pharmacists, Louis A. Pisani and Kenneth Brown, were indicted on similar charges. Two others, Chaudury M. Yaqoob and Jose Cepeda, were also indicted for various felonies, including Grand Larceny in the Fourth Degree and Offering a False Instrument for Filing in the First Degree.  If convicted of the Class B felonies, the defendants face up to twenty-five years in state prison.  

In response to information provided by the New York City Human Resources Administration, the Attorney General’s Medicaid Fraud Control Unit (“MFCU”), together with the New York State Office of the Welfare Inspector General, learned that Jose Cepeda was allegedly directing or steering patients from a local doctor’s office to Perfect Gift Pharmacy with their prescriptions. The clerk who was working behind the counter, Chaudury M. Yaqoob, would allegedly pay cash for the prescriptions.  The pharmacy would then allegedly bill Medicaid for the medications that were never dispensed, but were, instead, placed back on the shelf. 

The investigation disclosed that Perfect Gift and Princess Pharmacies were owned and operated by Munir A. Khan. Munir A. Khan was banned from billing Medicaid and deported to Pakistan following a 2008 federal conviction for adulteration of prescription drugs and the filing of false tax returns. To hide Khan’s involvement in the pharmacies, a violation of Medicaid’s rules, both Perfect Gift and Princess Pharmacies were allegedly, on documents filed with the state, owned by Khan’s daughter, Beenish Daha, who was listed as President.  Bright RX was solely owned and operated by Munir Khan’s son, Muhammed Z. Khan, a/k/a Sean Chris, as President.   

Audits conducted on Perfect Gift, Princess, and Bright RX pharmacies, revealed a short fall between the amount of drugs ordered by the pharmacies from their suppliers and the amount of medication that the pharmacies claimed to Medicaid to have provided to Medicaid recipients. The shortfall showed inordinate billings of Medicaid for medications that were allegedly never bought and sold. The audit showed a shortfall of $3,523,755.33 at Perfect Gift Pharmacy, $955,341.79 at Princess Pharmacy, and $861,935.80 at Bright RX Pharmacy.  

The investigation further revealed that two of the pharmacies, Perfect Gift and Bright RX, Inc. billed, and were paid by Medicaid, for allegedly rendering services while using a supervising pharmacist who had been barred or excluded from the Medicaid program – another violation of Medicaid rules and regulations. Medicaid paid Perfect Gift $1,368,300.11 while Louis A. Pisani was allegedly its supervising pharmacist and Bright RX $175,057.37 while allegedly using Kenneth Brown as its supervising pharmacist. The unsealed indictment charged the three pharmacies and seven individuals as follows: 

Corporate Defendants 

Perfect Gift US, Inc., d/b/a Central Pharmacy, is charged with two counts of Grand Larceny in the First Degree, Class B Felonies, one count of Grand Larceny in the Fourth Degree, a Class E Felony, and seven counts of Offering a False Instrument For Filing in the First Degree, Class E Felonies.   

Princess RX, Inc., d/b/a Hastings Drug Corp., is charged with one count of Grand Larceny in the Second Degree, a Class C Felony.   

Bright RX, Inc., d/b/a Buffalo Drugs, is charged with two counts of Grand Larceny in the Second Degree, Class C Felonies, and three counts of Offering a False Instrument For Filing in the First Degree, Class E Felonies.   

If convicted, the corporations can be ordered to pay a fine of double what they gained from their criminal conduct as well as restitution to those victimized by their conduct. 

Individual Defendants 

Munir A. Khan, age 61, is charged with two counts of Grand Larceny in the First Degree, Class B Felonies, one count of Grand Larceny in the Second Degree, a Class C Felony, one count of Grand Larceny in the Fourth Degree, a Class E Felony, and seven counts of Offering a False Instrument for Filing in the First Degree, Class E Felonies.  If convicted, the defendant faces up to 25 years in prison. 

Beenish Daha, age 31, of Jersey City, NJ, is charged with two counts of Offering a False Instrument for Filing in the First Degree, Class E Felonies.  The defendant was arrested on November 13, 2014 and was released in her own recognizance after surrendering her passport. She was directed to return to court on January 14, 2015.  If convicted, the defendant faces up to four years in prison. 

Muhammed Z. Khan, a/k/a Sean Chris, age 33, of Queens, is charged with two counts of Grand Larceny in the Second Degree, Class C Felonies, and three counts of Offering a False Instrument for Filing in the First Degree, Class E Felonies.  The defendant was arrested today and arraigned by the Honorable Danny Chun.  If convicted, the defendant faces up to fifteen years in prison. 

Louis A. Pisani, age 63, of Elmont, is charged with one count of Grand Larceny in the First Degree, a Class B Felony, and three counts of Offering a False Instrument for Filing in the First Degree, Class E Felonies.  The defendant surrendered to MFCU investigators on November 6, 2014 and was released on his own recognizance after surrendering his passport.  He was directed to return to court on January 7, 2015.  If convicted, the defendant faces up to 25 years in prison. 

Kenneth Brown, age 64, of Brooklyn, is charged with one count of Grand Larceny in the Second Degree, a Class C Felony, and three counts of Offering a False Instrument for Filing in the First Degree, Class E Felonies. The defendant surrendered to MFCU investigators on November 6, 2014 and was released on his own recognizance.  He was directed to return to court on January 7, 2015.   If convicted, the defendant faces up to fifteen years in prison. 

Chaudury M. Yaqoob, age 56, is charged with one count of Grand Larceny in the Fourth Degree, a Class E Felony, and two counts of Offering a False Instrument for Filing in the First Degree, Class E Felonies.  If convicted, the defendant faces up to four years in prison. 

Jose Cepeda, age 66, of Brooklyn, is charged with one count of Grand Larceny in the Fourth Degree and two counts of Offering a False Instrument for filing in the First Degree, Class E Felonies.  The defendant was arrested today and is awaiting arraignment. If convicted, the defendant faces up to four years in prison. 

Defendants Munir A. Khan and Chaudury M. Yaqoob have not yet been arrested and are believed to be living in Pakistan.  

Attorney General Schneiderman thanks the New York City Human Resources Administration, the New York State Office of the Welfare Inspector General, the Office of the Medicaid Inspector General and the New York City Police Department for their assistance in this investigation. 

The investigation was conducted by Senior Investigator Arelis Restituyo, with the assistance of Supervising Investigator Victor Maldonado, and Deputy Chief Investigator Kenneth Morgan.  MFCU’s audit investigation was conducted by Associate Auditor Investigator David Verhey and Special Auditor Investigator Ryan Rafferty with the assistance of Principal Special Auditor Investigator Emmanuel Archer and New York City Regional Chief Auditor Thomasina Smith. 

The criminal case is being prosecuted by Special Assistant Attorney General William J. Wallace with the assistance of New York City Regional Director Christopher M. Shaw. Thomas O’Hanlon is MFCU’s Chief of Criminal Investigations – Downstate.  The Medicaid Fraud Control Unit is led by Acting Director Amy Held.  The Criminal Justice Division is led by Executive Deputy Attorney General Kelly Donovan. 

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 Schneiderman today issued a letter to retailers across New York State reminding them of their legal obligation to ensure the safety of children’s products ahead of the holiday shopping season. The letter focuses on toys that contain toxic chemicals that present risks to human health. The Attorney General and DCA Commissioner Julie Menin also offered tips for consumers to avoid hazardous toys as well as tips about charitable donations, online shopping, and purchasing gift cards.

The Attorney General’s announcement was made today in New York City with New York City Public Advocate Letitia James; City Comptroller Scott Stringer; City Department of Consumer Affairs Commissioner Julie Menin; New York State Assemblymember Jeffrey Dinowitz; New York City Councilmember Rafael Espinal; and Bobbi Chase Wilding, Deputy Director of Clean & Healthy New York.

“Retailers have both a legal and moral obligation to protect children’s safety when selling toys and other products this holiday season,” said Attorney General Schneiderman.“In the hopes of having a safe and joyous holiday season for all New Yorkers, we want to remind retailers of their important responsibilities and also provide tips to consumers as they begin shopping and making seasonal charitable donations.”

Both state and federal agencies, including the Office of the New York State Attorney General, have taken legal action in the past to protect children from toys and articles that contain toxic chemicals that present health risks. Recent investigations have reported toys and articles intended for use by children containing elevated levels of toxic chemicals offered for sale by retailers. For example, a recent report entitled Toxic Toys in Albany County by Clean & Healthy New York, Inc. and the New York League of Conservation Voters Education Fund, Inc. reported children’s items purchased in Albany County containing toxic chemicals, including arsenic, mercury and lead.

State law empowers the attorney general to take appropriate enforcement action when a determination is made that items containing toxic chemicals at unsafe levels are being sold. Specifically, the law prohibits the sale, import, and manufacture of children’s products that pose an unreasonable risk of injury. The law authorizes the attorney general to seek injunctive relief, as well as penalties of up to $1,000 per violation. 

“As the father of two young boys, it is beyond troubling to me that harmful toxins frequently end up in toys and other products marketed to our children,” said New York City Comptroller Scott Stringer. “I want to thank Attorney General Eric Schneiderman for his attention to and work on this issue. No parent should ever have to worry that the gifts they give might pose a threat to the health of their children.” 

"I applaud Attorney General Eric Schneiderman for pushing retailers to ensure safety of children’s toys this holiday season,” said New York City Public Advocate Letitia James. “The use of cheap and dangerous materials in children’s toys is far too common and many local retailers may be unaware that they are carrying these items. I urge parents to to keep an eye out for metal toys in particular, like costume jewelry, which can be made of hazardous chemicals. As City and State Officials, we have a responsibility to protect and alert consumers about the dangers of toxic toys. Working together, we can help remove them from store shelves and protect countless children in New York State."

“Retailers have an important responsibility to ensure that the products they sell are safe for children,” said Assemblyman Jeffrey Dinowitz.“The letter Attorney General Schneiderman sent to retailers across the state makes it clear that elected leaders at all levels of government are committed to protecting New York children this holiday season. As chairman of the Assembly Committee on Consumer Affairs and Protection, there is no higher priority than keeping our children safe."

New York City Councilmember Rafael L. Espinal, Jr. said “As we kick off the holiday season, it is important that all New Yorkers think about children’s safety when buying gifts.  I’m proud to join Attorney General Eric Schneiderman in his effort to ensure that all New Yorkers are able to make informed, safe purchases.”  

"This week kicks off the busiest shopping season of the year and a time when we gather with our loved ones, which often includes giving gifts, especially to the children in our lives," said Department of Consumer Affairs Commissioner Julie Menin. "Each year, nearly 200,000 children visit the emergency room because of toy-related injuries so I encourage parents to be vigilant in choosing the toys their children play with. I also join Attorney General Schneiderman in calling for the toy industry to ensure that the products on the shelves are safe.”

“As our recent report with Clean & Healthy New York shows, there are still too many dangerous toys on the store shelves in our state,” said Marcia Bystryn, President of the New York League of Conservation Voters.“Retailers must refuse to sell children’s products that contain toxic chemicals. State and local lawmakers should also protect our kids by expanding the list of chemicals that are prohibited in toys and requiring the disclosure of chemicals of concern. We are deeply grateful to Attorney General Schneiderman for raising awareness of this important issue and for leading the charge to protect consumers in New York State.” 

“We have been finding heavy metals in children’s products for many years with our extensive testing,” said Judy Braiman, president of the Empire State Consumer Project and co-author of Consumer Reports Books Toy Buying Guide.“While there are many other dangers children are being exposed to -- such as laundry pods, nicotine flavors used for e-cigarettes, and nursery furniture – the presence of toxic chemicals in toys, costume jewelry, and other items specifically intended for children is very serious and something must be done.  We applaud Attorney General Schneiderman for his important action.”

"Our research for the report, Toxic Toys in Albany County, uncovered a dozen toxic toys for sale in Albany County containing heavy metals like lead, cadmium, antimony, and cobalt,” said Bobbi Chase Wilding, Deputy Director of Clean and Healthy New York, which issued Toxic Toys in Albany County with the League of Conservation Voters Education Fund last Monday. “One product was made of nearly 25% cadmium - almost 250,000 parts per million. How is it that in 2014 parents still can't count on retailers to only sell toxic-free products? We applaud Attorney General Schneiderman for his action to remind retailers of this duty, and urge lawmakers to act by passing broader and stronger protections to safeguard our children's health.  This holiday season and year-round, they're counting on us."

Theletter from Attorney General Schneiderman’s Office said, “As a retailer, you are in a position to safeguard children from toxic chemicals. We urge you to implement measures to identify unsafe products and keep them off your shelves.”

Attorney General Schneiderman’s focus on children’s exposure to toxic chemicals is warranted as studies have shown that the incidence of cancer in children has steadily risen since the 1970s. In 2011, cancer surpassed traumatic injuries to become the leading cause of death of New York’s children between the ages of 5 and 14, and it is the second leading cause of death in children ages 1-19 overall. Environmental factors, including chemical exposures, have been linked to the rise in cancer rates among children. Children are at special risk due to their small body mass and rapid physical development.  

In addition to state law, federal law requires manufacturers and importers of children’s products to certify that their products comply with all children’s product safety rules enforced by the Consumer Product Safety Commission, which includes rules related to toxic chemicals that may be found in children’s products. The Consumer Product Safety Improvement Act of 2008 requires that this certification be based on third-party testing at a laboratory approved by the CPSC. A Children’s Product Certificate must be issued by either the manufacturer or importer indicating compliance with all applicable standards. The manufacturer or importer must provide or make the certificate available to distributors and retailers.  

Schneiderman’s office urged retailers to not purchase products from manufacturers and importers that have not certified their products’ safety.  Retailers were also urged to check the Consumer Product Safety Commission website regularly for information on product recalls. There are a number of resources, including a tip sheet prepared by the OAG, available to consumers to help them protect their children from toxic chemicals in children’s products, but retailers are the first line of defense.

Department of Consumer Affairs Commissioner Menin also sent a letter to the Toy Industry Association urging it to voluntarily create a standard that goes well beyond federal law and ban toxic chemicals in all products made or sold by its members; pull all toys with suspected toxic chemicals off the shelf; cease efforts to oppose legislation that would keep toxic toys off the market.

In addition to issuing a letter to retailers about children’s products ahead of the holiday shopping season, Attorney General Schneiderman also addressed issues related to holiday gift cards and charitable donations during a press conference in New York City. During the press conference, Schneiderman offered tips to consumers.

Holiday Season Consumer Tips

Tips to Avoid Hazardous Children’s Toys

Just because a toy or any other consumer product is being sold in a reputable store does not necessarily mean that the product itself is safe or even in compliance with government regulations.  All too often, a toy is on the market for months, even years, before problems are identified. Here are some tips to keep your children safe:

• Be On The Lookout For Toys That May Have Toxic Chemicals: Avoid buying toys made of cheap metals and materials, such as jewelry, trinkets, and other similar children’s products. If a piece of jewelry or trinket is inexpensive, yet is heavy for its size and looks like silver, it could contain hazardous metals. The United States Consumer Product Safety Commission (CPSC) has a Federal Toy Safety Standard that limits the concentration of certain toxic chemicals in children’s products. Covered chemicals are lead, cadmium, mercury, antimony, arsenic, barium, chromium, selenium and phthalates. Click here further information on the CPSC standards.
   
• Keep An Eye On Your Child: Because toxic chemicals can be on the surface of toys, jewelry, and trinkets, you should never allow your child to chew, suck on, or otherwise mouth these products.  Swallowing small parts can be particularly dangerous.  Since children commonly exhibit hand-to-mouth activity, practice regular hand washing as a safeguard against exposure to toxic chemicals.
   
• Think BIG When Buying Toys For Infants And Toddlers: Follow the age recommendations on toy packaging, even if you believe your child is more advanced. Many toys have small pieces that are a choking hazard, especially for children under 3 years of age. To prevent choking, buy toys that are bigger than the child’s fist. Inspect all toys to make sure there are no small parts that could break off and be swallowed or choked on. 
   
• Check For Product Recalls: Check the CPSC website for information on children’s products that have been recalled due to health or safety concerns.  You can also call the CPSC toll-free consumer hotline at 800-638-2772. If you own a recalled item, take the item away from your child immediately and either discard it or check the recall notice for information on returning it for a refund or replacement.   

If you think your child may have been exposed to lead:

• Talk With Your Child’s Doctor:  Because it often occurs with no obvious symptoms, lead poisoning frequently goes unrecognized in children.  In general, if you have any concerns about your child and lead – whether through exposure to children’s products, lead paint in your home, or any other source ask your health care provider about having your child tested.  The federal Patient Protection and Affordable Care Act requires health insurance providers to pay for lead testing for children at risk.  Check with your insurance provider to find out what’s included in your plan.  In addition, Medicare pays for lead testing for all enrolled children.  You can also contact your local health department to see if it has a lead testing clinic or arranges for testing children who lack health insurance coverage.
   
• Contact Health Officials:  For more information about protecting your child from lead poisoning, contact your local county health department or visit the New York State Department of Health’s Lead Poisoning Prevention website here.

For more information, contact the New York State Attorney General’s Office’s consumer hotline at 1-800-771-7755.
Charitable Contribution Tips 

• Use Your Charitable Dollars Wisely: Only gift to charities that you know are reputable. 
   
• Be Aware Of Similar Charity Names: Some charities use names that are similar to well-known charities in order to confuse donors. Always double check the name of the organization to which you’re donating.
   
• Be Wary of Emotional Appeals: Appeals that talk about problems but are vague on how donations will be spent. Do not hesitate to ask for information in writing.
   
• Many Phone Solicitations Come From For-Profit Fundraisers: New Yorkers should know that many phone solicitations for charities actually come from for-profit fundraisers. In some cases, less than half the money you give through a paid telemarketer actually goes to the charity. Donors can learn more about how charities use their donations by visiting the Attorney General’s website here.

Online Shopping Tips:

• Use A Secure Internet Connection: Do not transmit credit card information over public Wi-Fi networks or a home network that is not password protected.
   
• Look For ‘https’ At The Beginning Of The Web Address: If you’re paying online, look for ‘https’ because the ‘s’ means that your sensitive data will be encrypted for your protection.
   
• Protect For Checking Account: Using a credit card to make online purchases you can afford to pay off is safer than using a debit card because a debit card can imperil your entire bank account balance if it’s stolen.
   
• Don’t Click On E-mail Links: Scammers often use fake promotional emails that look like they are from major companies to try to steal your data, so don’t click on e-mail links. Just type the store’s URL into your web browser directly.

Gift Card Tips:

• Be Wary Of Fees: Always read the fine print and understand what you’re really getting for your money. 
   
• Consider Inactivity Fees: Remember that state and federal law prohibit inactivity fees or other service fees for a year after the issuance of a gift card.

NEW YORK — Attorney General Eric T. Schneiderman today announced action taken by the Wayne County Sheriff’s Office to enhance accessibility of law enforcement services for residents with limited English proficiency. Through adoption of a comprehensive written policy, the Wayne County Sheriff’s Office expands upon its existing commitment to provide interpretation and translation assistance when needed. 

“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. “Through adoption of a comprehensive language access policy, the Wayne County Sheriff’s Office now stands as a model for other law enforcement agencies in the Finger Lakes region by ensuring that the delivery of police services are not limited or restricted by language barriers.” 

The sheriff’s office has implemented a written language access policy that builds upon its long-standing commitment to be responsive to its community, and meeting the needs of all those served by the office.  Pursuant to the policy, Wayne County Sheriff’s Office personnel will: 

• Ensure that its officers and civilian employees who have regular contact with the public can effectively communicate with LEP persons, including when responding to calls for assistance; conducting 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;
• Translate vital documents including complaint forms and other materials; and
• Provide English- and Spanish-language Personnel Complaint Forms at the  sheriff’s office and on the office’s website.

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. Census data also indicates that among approximately 93,476 residents in Wayne County, nearly 4% percent are Hispanic.  Between 2008 and 2012, 4.8% (or 4,224) of Wayne County’s population spoke a language other than English at home, with Spanish being the most common language after English. Approximately 40% of Wayne County’s Spanish-speaking population reported speaking English less than very well. The sheriff’s office’s strengthened language access program will help ensure that all individuals in its communities have full access to essential police services, regardless of language ability.

The Wayne County Sheriff’s Office is a full-service, fully-accredited law enforcement agency that protects and serves the residents of Wayne County. The office includes approximately 184 employees, including 66 full- and part-time police service deputies.  

Wayne County Sheriff Barry C. Virts said, “Our office has always been committed to ensuring that all people are treated with dignity and respect. Working with the Attorney General’s Civil Rights Bureau, we have developed a written policy that reflects our practices and values.  This written language policy will help ensure that deputies continue to take the initiative to effectively communicate with individuals who have limited English proficiency and provide these individuals with timely and meaningful access to all Wayne County Sheriff’s Office’s services. As a professionally trained and state accredited law enforcement agency, it is my responsibility to constantly strive to improve our services to all our community members.”  

The Wayne County Sheriff’s Office joins the Newburgh Police Department, the Nassau County Police Department, the Rochester Police Department, the Ontario County Sheriff’s Office, and the Middletown Police Department in working with the New York State Attorney General’s Office to strengthen language access. These agreements come as our nation marks 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.”

Ramona Palmer of the Victim Resource Center of Finger Lakes Region said, "Through our work on behalf of some of the most vulnerable populations in the Finger Lakes Region, including domestic violence victims and migrant workers, we know that it is critical that law enforcement agencies be able to serve and protect all communities regardless of their ability to speak English. The Wayne County Sheriff's Office, with whom we've worked cooperatively before, has taken the important step of adopting a written language access policy that addresses language barriers and helps ensure greater protection for crime victims, witnesses and the public at large. We thank the Attorney General's Civil Rights Bureau for making promotion of language access a central civil rights priority."

Attorney General Schneiderman has made promotion of language access 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 today issued the following statement applauding the U.S. Environmental Protection Agency’s proposal of new, more health-protective national air standards for ozone pollution: 

“The EPA’s proposal today of protective, science-based standards for ozone smog is truly a breath of fresh air. These standards will literally save lives and will also help ensure that New York’s efforts to combat ozone pollution are not undercut by pollution generated by upwind states. I applaud the EPA for taking this critical action to protect public health, and look forward to working to ensure these standards are put in place as soon as possible.”

Yesterday, Attorney General Schneiderman lead a coalition of states, including Maryland, New Hampshire, New Mexico, and Rhode Island, in a letter urging the federal Office of Management and Budget to support EPA’s proposal of strengthened national ambient air quality standards for ozone.  The letter cited EPA’s independent Clean Air Scientific Advisory Committee’s support of a national primary standard in the range of 60 to 70 parts per billion to better protect public health and a stronger secondary standard to adequately protect forests and crops.  

Elevated ozone smog levels can cause a range of harmful health impacts, including chronic respiratory illness, decreased lung function, cardiovascular disease, asthma and even premature death.  According the American Lung Association’s 2014 “State of the Air” report, more than 4 in 10 people in the United States (44.8%) live in areas with unhealthful levels of ozone.  The Association ranks the New York City metropolitan area as the 12th most ozone-polluted city in the nation.

NEW YORK – Attorney General Eric T. Schneiderman today released the following statement in honor of Thanksgiving: 

“Warmest wishes for a happy Thanksgiving to all. As we begin the joyous holiday season by giving thanks for our blessings over the past year, let us also remember the many in our state and across the country who are struggling and in need. Giving back is one of the most important community building efforts we can participate in. I hope all New Yorkers can share in the season’s compassion by showing kindness to friends, neighbors or strangers who are less fortunate.”

NEW YORK – Attorney General Eric T. Schneiderman today released the following statement in support of all those gathering at more than 2,000 Wal-Mart locations nationwide to demand a fair, living wage for workers. 

“Today, as millions of Americans kick off the holiday shopping season, I encourage all of them to consider the enormous injustice suffered by many of the workers who are helping them with their purchases.  Across the country, workers are standing up to demand a fair day's pay for a fair day's work. I’m proud to stand with them as they raise their voices to send an important message: No one who works full-time should have to struggle to feed their families. Over the past four years, I’ve fought to crack down on employers who cheat hardworking New Yorkers our of their wages. And while we will continue to do everything we can to enforce current laws, we must also move toward enacting new laws to remedy the pervasive income inequality that is plaguing our nation.” 

Since 2011, Attorney General Schneiderman has successfully returned more than $17 million in restitution to almost 14,000 workers across New York, and recovered more than $2 million in restitution and penalties for the state. Some of the Attorney General’s actions, which were detailed in this report, including:

• Protecting the rights of fast food and car wash workers;
• Enforcing the prevailing wage laws, which require a higher rate of pay for construction and maintenance of governmental buildings;
• Combating unlawful employer retaliation against employees who have stood up for their rights;
• Criminally prosecuting employers who commit egregious violations, showing extreme disregard for workers’ basic rights and the rule of law;
• Innovating to protect workers who are not covered by traditional labor laws; and
• Protecting workers in a digital world.

Attorney General Schneiderman encourages every worker who feels that his/her rights have been violated to contact the Office of the Attorney General’s Labor Bureau by calling (212) 416-8700 or visiting the Office of the Attorney General's website at www.ag.ny.gov. 

NEW YORK – In advance of Cyber Monday – consistently one of the most popular days of the year for online shopping – Attorney General Eric T. Schneiderman issued tips for consumers who plan to shop online.  Last year, consumers spent almost a record $2.29 billion on Cyber Monday, and sales are expected to exceed that this year. Unfortunately, not all advertised deals are what they claim to be, and some websites may be fake or tools for scammers.  

“As the holiday shopping season kicks off and more consumers plan to shop online, there are simple steps you can take to avoid scams and protect your personal data,” said Attorney General Schneiderman. “Consumers should know how to spot fake websites and deals that are too good to be true.” 

In an effort to help consumers shop safely online, Attorney General Schneiderman issued the following tips:  

• Shop only on secure Internet connections: Do not conduct any transaction that involves personal, financial or credit card information while using an open and unsecured Wi-Fi connection. Unsecured connections are common in public spaces such as transportation hubs, municipal hotspots, and in stores and coffee shops. Be careful not to shop, conduct business, or send sensitive or personal information out on these networks because identity thieves often stake out open networks seeking victims. Shopping and other activities that involve sensitive information may be performed safely on password-protected wireless networks, virtual private networks (VPN), or on hardwired Internet connections. 
   
• Only process payment on HTTPS web pages: When entering payment information online you should verify that HTTPS is in your address bar to protect yourself from identity thieves and cyber criminals. URLs that begin with https:// instead of the standard http:// are secured by SSL, an internet security protocol. Web pages served over SSL help protect you by encrypting sensitive information, such as credit card numbers, during the transaction.  
   
• Do not be tricked by confusingly similar website and domain names: Pay particular attention to your retailer’s URL when shopping online. Scammers use variants of a known company’s Internet address to try and lure users into visiting fake websites. They often target users through email or social media.  Avoid clicking on links from email or social media sites.  Watch out for websites with URLs that differ slightly from those of legitimate online retailers, and also links that appear genuine but direct your browser to a completely different URL. To ensure safe shopping online type the URL of your desired retailer directly into your web browser — and watch for typos.  
   
• Protect yourself by using credit cards:With the advent of point-of-sale malware and rampant data breaches, identity thieves are now more sophisticated and dangerous than ever. If you are going to make purchases online, you can best protect yourself from the risks of identity theft and fraud by using credit cards. Credit cards generally offer better purchase protection and fraud dispute resolution than other methods of payment. Debit cards link directly to your bank account, potentially threatening your entire account balance.  Some banks also offer temporary credit card numbers with a set purchase maximum, which may be useful for some transactions or some consumers.   Remember that credit cards charge high interest rates so it is best to use credit cards for only those purchases you can afford. 
   
• Be wary of too-good-to-be-true contests and prize promotions: Consumers should be suspicious of any email, messages, or posts on social networks promoting giveaways or contests that seem too good to be true, e.g., free high-value gift cards, tablets, and smartphones. These “contests” are often scams designed to bilk consumers out of money and/or to collect consumers’ personal information for resale. Genuine sweepstakes and contests are commonplace on the Internet; however, you should avoid any contest or promotion that requires you to pay money or to perform any sort of financial transaction. Also, think twice before participating in promotions that require entrants to register with multiple third-party websites; often these are ploys to build marketing lists. Promotions that require users to provide more than simple contact information may even be phony or run by scammers who resell consumer information to collect referral fees! 
   
• Read the fine print: Broadly worded promotional offers and advertisements often mislead consumers into paying full price for items they believed were on sale.  Consumers should carefully examine Internet deals by reading any and all fine print in the promotional materials, identifying the exact brand and model number on sale. Consumers should also avoid bait-and-switch advertisements or promotions that lure consumers with basement prices that are not guaranteed to be in stock. Fine print stating that quantities are limited is a tell-tale sign of this bait-and-switch tactic. 
   
• Watch out for hidden shipping costs: Internet shoppers will undoubtedly find great deals this holiday season. It is common practice for Internet retailers to advertise prices that do not factor in shipping and handling. This makes the Internet retailer’s pricing appear lower than what the consumer will actually pay. This holiday season consumers should be sure to examine all shipping and handling costs before committing to any online purchases. When all costs are considered, what you may have thought was a great Internet deal may be more costly than your local retailer. 

NEW YORK – Attorney General Eric T. Schneiderman today announced his office’s new consumer education initiative, which features a web-based app, AGScamHelp. The app will help homeowners determine whether a company has been vetted by a government agency and will urge homeowners at risk of foreclosure to work with a qualified agency within the Attorney General’s Homeowner Protection Program (HOPP), a network of more than 85 housing counseling and legal service providers who offer services to struggling homeowners at no cost. As part of this new initiative, the Attorney General’s Office will also send monthly mailings with tips on avoiding foreclosure scams to New York homeowners who are within 90 days of a potential foreclosure filing. 

The announcement was made this morning at a housing forum held at Brooklyn Law School. Attorney General Schneiderman was joined by New York City Public Advocate Letitia James, New York Department of Consumer Affairs Commissioner Julie Menin and housing advocacy organizations, including HOPP anchor partner, the Center For New York City Neighborhoods, which is assisting the Attorney General’s consumer education initiative.  

“While my office is committed to cracking down on scam operations that target struggling New Yorkers, the most powerful tool against these frauds is to ensure that consumers are informed and aware of the free services that are available to them through our Homeowner Protection Program,” said Attorney General Schneiderman.“Through our new education initiative, we’re putting facts in the hands of those who are at immediate risk of foreclosure – and at immediate risk of getting scammed. I encourage all homeowners to utilize AGScamHelp to check a company offering to help with your mortgage and report potential scams to our office in real-time.” 

New York City Public Advocate Letitia James said, “As we continue to promote programs that keep homeowners in their homes, and help them exit foreclosure, we must ensure that we remain vigilant in identifying and rooting out scams perpetrated by fraudulent companies. The innovative measures being announced by Attorney General Schneiderman today will protect homeowners at immediate risk of foreclosure, and help inform consumers about the growing threat of foreclosure rescue scams. Foreclosure rescue scams disproportionately target low-income, at-risk, and uninformed property owners, and I am proud to stand with Attorney General Schneiderman as he takes substantive action against predatory schemes, and seeks to educate homeowners at-risk of foreclosure.”

New York City Department of Consumer Affairs Commissioner Julie Meninsaid, “In recent years, New Yorkers have been hit hard by an epidemic of foreclosure rescue scams. I commend Attorney General Schneiderman for working hard to make sure that New Yorkers have all the information they need to indentify fraudulent foreclosure rescue companies, find safe, legal providers of mortgage assistance and report frauds.” 

Christie Peale, Executive Director of the Center for New York City Neighborhoods, said, “Foreclosure rescue scammers have an incredibly damaging impact on our neighbors and our communities. But thanks to AG Schneiderman, New Yorkers can fight back against scammers by learning how to spot scams and by reporting them in real time to the Attorney General. We urge any homeowner who has fallen behind on their mortgage, or worried they might, to call the Homeowner Protection Program Hotline today at 855-HOME-456.” 

Foreclosure rescue scams target vulnerable homeowners and, for an upfront fee, generally promise to save their homes by negotiating lower mortgage payments or principal reductions with the homeowners’ mortgage servicers or lenders. After collecting upfront fees, these scam operations fail to provide the services promised, placing their victims at even greater risk of foreclosure. 

As with the foreclosure crisis itself, New Yorkers have been hit hard by the foreclosure rescue scam epidemic. According to a new report by the Center For New York City Neighborhoods and the Lawyers’ Committee for Civil Rights Under Law, from March 2010 to September 2014, New York homeowners have submitted over 2,700 foreclosure rescue scam complaints, which documented at least $8.25 million in losses. New York homeowners trail only California and Florida in the number of complaints reported to the Loan Modification Scam Database. On average, each New York victim of a foreclosure rescue scam reported a loss of $4,183. However, these scams often result in a domino effort that raises that dollar figure: Homeowners can end up losing tens or even hundreds of thousands of dollars more because their homes fall into foreclosure as a direct result of the scam. 

As many homeowners lack an awareness of foreclosure scams, Attorney General Schneiderman’s new initiative aims to direct needed information to New Yorkers who are most at risk of being victimized by foreclosure rescue scams, providing tips on how to avoid these scams and where to go for assistance. The Attorney General program will promote the web-based app, AGScamHelp, through monthly mailing to homeowners cautioning them about mortgage rescue scams, traditional marketing initiatives such as Google Ads and public service announcements, and grassroots outreach efforts in communities which have been particularly hard-hit by the foreclosure rescue scam epidemic. 

AGScamHelp App

AGScamHelp is a web-based app that is easily utilized on all electronic devices, including computers, smartphones and tablets. Users will also be directed to the app through the Attorney General’s HOPP website, www.AGHomeHelp.com. AGScamHelp has several informational features:

• Search Government-Vetted Companies: AGScamHelp will allow consumers to search the name of an individual or company to determine if that entity is a “government-vetted” agency (that is, either a member of the Attorney General’s HOPP network or a HUD-certified counseling agency). If the company searched is not a government-vetted agency, the consumer will be told to proceed with caution and advised with several tips on how to identify signs of a foreclosure rescue scam. 
   
• Locate Nearby HOPP Partners:The web-based app also features an interactive map that will allow a consumer to find the nearest HOPP grantee. The Attorney General has dedicated $100 million to fund HOPP, a network of more than 85 housing counseling and legal services agencies across the state that are dedicated to providing free assistance to New Yorkers. 
   
• Report Scams:Consumers who have already been contacted by or are in the process of working with a company suspected of operating a foreclosure rescue scam will also have the option to file a complaint with the Attorney General’s Office. They will be directed to a separate page where they can complete a complaint form online. All complaints will be directed to the Attorney General’s Consumer Frauds and Protection Bureau, and will be mediated by the Attorney General’s Office.
   
• Get Tips: AGScamHelp offers details on how to recognize signs of a foreclosure rescue scam, including samples of scam letters and other resources utilized by fraudsters to target homeowners, and provides information about recent foreclosure scams that have been the subject of enforcement actions brought by the Attorney General’s Office and other law enforcement agencies.

Attorney General Schneiderman also remains committed to enforcing laws against scam operations that prey on financially struggling homeowners and those facing foreclosure. His office has already taken action against two such operations, including Litvin Law Firm. Last month, the Attorney General obtained a judgment against Home Affordable Direct and interrelated companies, securing full restitution for all defrauded consumers as well as $2.5 million in penalties and costs. Other investigations into reported foreclosure rescue scams are ongoing.

NEW YORK — Attorney General Eric T. Schneiderman today issued a consumer alert following recent reports that live feeds from unsecured wireless network cameras, or “IP cameras,” have been made publicly available on several websites. These cameras, which thousands of New Yorkers use to remotely monitor their homes, offices, businesses, pets and loved ones, are often shipped to consumers with default user names and passwords that are publicly available. By not changing these default settings, many consumers unwittingly allow their IP cameras to broadcast unsecured, and sometimes unencrypted, live video feeds across the Internet.

“No New Yorker should feel violated in their own homes – especially by a webcam intended to keep our belongings and loved ones safe,” said Attorney General Schneiderman. “As we increasingly rely on web-based services, we must all take additional steps to inform ourselves of any dangers and protect our privacy. By following some simple steps and taking basic precautions, consumers can keep their webcam feed out of the reach of hackers and improve their security.” 

Using simple software, anyone can identify operational IP cameras whose default security settings have not been changed. From there, a hacker could gain access to the camera’s settings using the default login credentials and not only view the camera’s live feed, but also identify the geographical coordinates of the camera.  The hacker can also pan, tilt and zoom the camera to view different parts of the user’s home or business, and change the device’s settings so that the camera’s owner is no longer able to control it.

Attorney General Schneiderman issued the following tips to educate the public so they can better safeguard their privacy:   

• If you have not already done so, change the default username and password on your IP camera immediately.  Use a strong password that only you know.  You may be able to change the password by visiting the website that you use to access the live feed from your camera.  Otherwise, follow the instructions that came with your camera to learn how to change these settings.  If you no longer have the user manual that came with your camera, you may be able to find it on the camera manufacturer’s website.
• Some cameras allow users to deactivate the device’s security functions.  Verify that your camera’s password requirement is turned on. If your camera supports data encryption, make sure this feature is turned on as well.
• Be aware that if you either enter your camera’s login credentials or view your camera’s video feed on a website that does not use encryption technology, that information may be intercepted by others.  Websites that begin with “HTTPS” protect your information by encrypting data transmitted through the site.
• If you use a mobile app to access your camera’s video feed, check to see if the app encrypts your data. If not, avoid using the app on unsecured WiFi networks, such as public hotspots.
• Make sure that the software used to operate and manage your camera is up to date.  Check your camera manufacturer’s website to see if you have the latest version of the software and sign up for update notices.

NEW YORK – Attorney General Eric T. Schneiderman today issued a bulletin to law enforcement agencies around the state regarding the recent termination of the Secure Communities program.  Under the Secure Communities program, United States Immigration & Customs Enforcement (ICE) issued detainer requests which asked that local law enforcement agencies hold an individual in custody beyond the normal release date, while ICE decided whether to take custody of the individual and commence immigration proceedings. This program had come under increasing scrutiny since its launch in 2008.  

Going forward, ICE will no longer request that local law enforcement detain an individual and will instead seek notification of an individual’s pending release from custody. Requests for detention must specify that the individual in question is subject to a final order of removal or that there is sufficient probable cause to believe that the individual is removable.  The Attorney General reminds law enforcement agencies around the state that compliance with any request for detention is not mandatory and remains at the discretion of the responding agency. 

Following President Obama’s recent executive action concerning immigration reform, ICE issued a directive immediately terminating the Secure Communities program. 

"While more work remains to be done, termination of Secure Communities is an important first step towards more effective and supportive policing strategies,” Attorney General Schneiderman said.  “As the chief law enforcement agent for the State of New York, I am committed to ensuring that our police departments and sheriffs’ offices have the most up-to-date information necessary to tailor effective policing strategies to meet the needs of the communities they serve.”

The Secure Communities program will be replaced with the more narrowly prescribed Priority Enforcement Program (PEP). While additional federal guidance is anticipated, under the new program, ICE will continue to review data obtained about individuals who are arrested by local law enforcement. However, going forward, ICE will no longer request that local law enforcement detain an individual and will instead seek notification of an individual’s pending release from custody.  Decisions about whether to respond to such requests for notification of release are voluntary and compliance with these requests remains at the discretion of the local police department or sheriff’s office.

In a limited set of circumstances, ICE may ask that an individual be detained until it takes custody. Under the new federal program, requests for detention must specify that the individual in question is subject to a final order of removal or that there is sufficient probable cause to believe that the individual is removable.  The Attorney General reminds law enforcement agencies around the state that compliance with any request for detention is not mandatory and remains at the discretion of the responding agency. 

Law enforcement agencies across New York State may need to take steps to review their policies and procedures in light of the termination of the Secure Communities program.  

For more information regarding the termination of the Secure Communities Program, click here and here.

A copy of today's bulletin can be read here.

This matter is being handled by Assistant Attorney General Anjana Samant, Special Counsel Jessica Attie and Bureau Chief Kristen Clarke of the Civil Rights Bureau, with assistance from Anisha Dasgupta, Deputy Solicitor General of the Appeals & Opinions Bureau. Alvin Bragg is the Executive Deputy Attorney General for Social Justice.

BUFFALO – Attorney General Eric T. Schneiderman today met with local leaders in Buffalo and announced that he is making a network of housing counselors and legal services providers available to help area residents resolve issues with insurance companies and mortgage providers following extensive home damage from record snowfall. The Home Owner Protection Program and its network of lawyers and housing counselors will be available to help consumers resolve outstanding insurance claims, address contractor issues, and navigate other storm related problems that could impact homeownership. 

Attorney General Schneiderman also announced that he is calling on banks, mortgage providers, and utility companies to suspend late fees following the temporary suspension of the U.S. Postal Service. Mail delivery was suspended for several days, creating potential for a backlog in delivering mail, including key correspondence like utility bills, credit card statements, and other bills. The late payment of bills could result in fees and harm to consumers’ credit ratings.

“New Yorkers pull together during difficult times, and that is why our team of lawyers and housing counselors are ready to help Western New Yorkers impacted by this severe snowstorm,” said Attorney General Schneiderman.“Many families have been hit hard enough by the weather, and that is why we want to make additional resources available to homeowners and consumers in need.”

In addition to offering the services of the HOPP network, Attorney General Schneiderman also announced that he has created an “Escalations Unit” within his Buffalo Regional Office. This unit will engage directly with an insurance provider or lender on behalf of a consumer who is having problems with a mortgage lender or insurance provider if referred by one of the HOPP organizations. The program is modeled after the OAG program which the Attorney General launched following Superstorm Sandy to assist homeowners in New York City and Long Island. 

The 10 county region affected by the record snow storm will have access to 6 legal service organizations and 8 housing counseling agencies. They include:

Belmont Housing Resources for WNY, Inc.
Buffalo Urban League, Inc.
Consumer Credit Counseling Service of Rochester, Inc.
Friends of the North Country, Inc.
Home HeadQuarters, Inc.
Housing Assistance Program of Essex County, Inc.
Legal Aid Society of Mid NY
Legal Aid Society of Northeastern New York, Inc.
Legal Assistance of Western New York, Inc.
Legal Services of Central NY
The Legal Project
UNHS NeighborWorks HomeOwnership Center
Western New York Law Center, Inc.
West Side Neighborhood Housing Services

The Empire Justice Center, a state-wide non-profit who assists the Attorney General’s office in administering the HOPP program, will also be providing training and technical assistance to HOPP grantees on insurance claim advocacy during this initiative. 

Attorney General Schneiderman was joined today at a press conference in Buffalo by U.S. Attorney William J. Hochul, Jr., Erie County Executive Mark Poloncarz, Buffalo Mayor Byron Brown, Senator Tim Kennedy, and Joe Kelemen, Executive Director of the Western New York Law Center.

“There are undoubtedly many people in need who will be able to take advantage of government resources,” said U.S. Attorney William J. Hochul, Jr.“At same time however, based on the experiences of our Office in the past, there may be some who attempt to take advantage of these programs for private gain. This office stands ready to ensure that any money will only go to those who it is intended for and efforts to steal from these funds will be prosecuted.”

“When the storm disrupted mail and other business for a number of days last week, residents were left facing a ticking clock as bills came due and late fees loomed,” said Erie County Executive Mark Poloncarz.“Families have a friend in Attorney General Schneiderman, who is working to protect them from unreasonable financial penalties incurred by the storm. His assistance is helping homeowners and families across Erie County.”

“The recent snowstorm demonstrated the very best that Buffalo and Western New York has to offer, with neighbors helping neighbors through an historic storm,” said Buffalo Mayor Byron Brown.“While most people extended a helping hand, I’m glad Attorney General Eric Schneiderman has been fighting would-be price gougers and is making housing counselors available to those still coping with problems following the storm.”

“I am proud to stand with Attorney General Eric Schneiderman today to ensure we’re making resources available to the people of Buffalo and Western New York following the recent snow storm,” said Senator Tim Kennedy. “The Attorney General’s Home Owner Protection Program’s housing counselors will be of tremendous help to those with questions on home repairs and filing insurance claims, and are exactly what we need to make sure that property owners know they are not alone in navigating this process.”

“We are proud to stand with Attorney General Eric Schneiderman to assist Western New Yorkers with housing related issues following the historic snowfall that blanketed the region,” said Joe Kelemen, Executive Director of the Western New York Law Center.“Families recovering from a natural disaster deserve the support they need in dealing with insurance claims and other recovery efforts, and we are happy to help our neighbors with this effort.”

The Homeowner Protection Program, launched by Attorney General Schneiderman in 2012, is a network of more than 85 organizations across New York State that assists homeowners who are struggling to avoid foreclosure. The HOPP program can be reached 24 hours a day at 1-855-HOME-456 or online at www.AGHomeHelp.com. Since the launch, the HOPP program has assisted more than 34,000 families with high quality foreclosure prevention services which are free of charge to all New York families.

Since the start of the storm, Attorney General Schneiderman’s office has received at least 60 complaints of price gouging in the wake of the storm and sent at least 39 cease and desist letters. All complaints remain under investigation. Categories of complaints include price gouging for: 

• Snow removal from roof:  17
• Snow removal from driveway/plowing: 17
• Groceries: 12
• Towing: 12
• Gas: 1
• Equipment rental: 1

The Attorney General urges the public to report potential occurrences of price gouging by calling 800-771-7755 or by logging on to the office's website at www.ag.ny.gov.  

NEW YORK – Attorney General Eric T. Schneiderman today issued the following statement on the decision by a grand jury in Staten Island to not issue an indictment in the death of Eric Garner:

“My heart and prayers go out to the Garner family. I understand and respect the anger and frustration that many are feeling right now, but I join Mayor de Blasio and the Garner family in calling for a peaceful response from anyone who may choose to exercise their right to protest.  As New Yorkers, we have a proud history of respectful and peaceful protests.  Continuing that leadership is critical to moving forward together toward meaningful reform.”

NEW YORK – Attorney General Eric T. Schneiderman and New York City Department of Investigation Commissioner Mark G. Peters announced today the arrests and indictments of a contractor and two labor brokers overseeing New York City School Construction Authority (SCA) and Housing Authority (NYCHA) projects for allegedly underpaying construction workers. The arrests stem from a joint investigation into underpayment and kickback schemes on projects at P.S. 196K, a public school in Brooklyn, and the Pomonok Houses Project in Queens. As alleged in two indictments, several workers were deprived of several thousand dollars each from the alleged schemes. If convicted on the top counts, each defendant faces up to seven years in prison.

“Contractors who work on public projects cannot ignore New York State’s labor laws in order to line their own pockets,” said Attorney General Schneiderman. “In this case and many others, my office is taking aggressive action, including criminal prosecution when appropriate, to ensure that workers are paid the wages they've earned.”

"Not only does prevailing wage fraud deprive honest workers of fair pay, but it is a gateway to other schemes that endanger public safety. Exposing and putting an end to prevailing wage fraud is a cornerstone of DOI's multi-pronged effort to combat corruption in New York City construction. I thank the Attorney General and his staff for their partnership on these important cases,” New York City Department of Investigation Commissioner Mark G. Peters said.

Singh Indictment:

Exterior renovations at P.S. 196K were being performed under a contract with the SCA. Article 8 of New York State Labor Law mandates that construction workers on any “public works” project receive prevailing wages, an hourly rate (above minimum-wage) that varies depending on the classification of the worker, and benefits. 

Many of the construction workers got their job through “labor brokers” Baldev and Avatar Singh. The Singh brothers would receive the workers’ wages from the contractor and disperse the money to the workers. However, as alleged in the indictment, the Singhs then established what amounted to a maximum daily rate for each worker – a figure well below the proper prevailing rate of pay – and demanded any earnings above that amount for themselves. While the contractor was paying the proper wages, the Singhs would allegedly deliver the paychecks, require that they be cashed and then require the return of any money above the “daily rate.” Baldev and Avtar Singh would allegedly demand these “kickbacks” from employees under the threat of termination of employment or preclusion from further employment, which is a violation of New York State Labor Law.

After the P.S. 196K construction was complete, the Singhs moved on to act as “brokers” on a NYCHA project in Queens known as the Pomonok Houses Project.  There too, from September 2014 through November 2014, Baldev and Avtar Singh allegedly engaged in the same systematic scheme of demanding “kickbacks” from workers who were being paid proper prevailing wages but who were not allowed to keep any portion over their so-called “daily rate.”  The total amount of “kickbacks” totaled in the thousands for each of several workers, according to the indictment.

Defendants Baldev Singh and Avtar Singh were indicted on multiple counts of Grand Larceny in the 3rd Degree under Penal Law Section 155.35(1), a class D felony, multiple counts of Grand Larceny in the 4th Degree under Penal Law Section 155.30(6), a class E felony, Scheme To Defraud in the 1st Degree for each project under Penal Law Section 190.65(1)(b), a class E felony, and multiple counts “Kickback of Wages Prohibited” under Labor Law Section 198-b(2), an unclassified misdemeanor.  If convicted, Baldev Singh and Avtar Singh each face a prison term of 2 1/3 to 7 years on the top count of Grand Larceny in the 3rd Degree.

Chatha Indictment:

Mohammed Chatha is the owner of M.B. Din Construction, Inc., a Brooklyn-based construction company that performed pointing, grinding and caulking work as a subcontractor on the P.S. 196K project between December 2012 and June 2013.  

As alleged in the indictment, which charges both Chatha and his company, Chatha failed to pay prevailing wages and benefits to several workers; in total, these workers were underpaid more than $100,000. 

To cover up that crime, Mohammed Chatha, on behalf of M.B. Din, allegedly submitted falsified payroll records to the SCA.  According to the indictments, these records indicated either that certain workers worked fewer hours than they had or that the workers had not worked at all, when they had.  The workers’ real hours were being monitored by investigators, who were tipped off at an early stage that several workers were not getting paid properly on the P.S. 196K project.

Mohammed Chatha and his company, M.B. Din Construction, Inc. were indicted on one count of Failure To Pay Prevailing Wages and Benefits under Labor Law Section 220(3)(d)(i)(3), a class D felony, several counts of Offering a False Instrument for Filing in the 1st Degree under Penal Law Section 175.35(1), a class E felony, and several counts of Falsifying Business Records in the 1st Degree under Penal Law Section 175.10, a class E felony. Mohammed Chatha faces a maximum prison term of 2 1/3 to 7 years if convicted of the top count of Failure To Pay Prevailing Wages and Benefits. Additionally, both he and his company M.B. Din Construction, Inc. face debarment from performing public work for 5 years as well as significant fines.

The Attorney General thanks the Inspectors General for the School Construction Authority and the New York City Housing Authority, both of whom report to the Department of Investigation, and their staffs for their assistance on this investigation.

Both cases were investigated by William O’Brien and Lee Callier of the School Construction Authority, Office of the Inspector General, under the supervision of Assistant Inspector General Thomas Mullen, Director of Investigations John Gray, First Assistant Inspector General Gerard McEnroe and Inspector General Maria Mostajo. Investigators Elsa Rojas, Sixto Santiago, Edward Ortiz and Salvatore Ventola and Supervising Investigators Luis Carter and Michael Ward, as well as Deputy Chief Investigator John McManus, all of the Attorney General’s Investigations Bureau, also assisted with the investigation. The Investigations Bureau is led by Chief Investigator Dominic Zarrella. 

The Pomonok Houses development project case was also investigated by Deputy Inspector General Douglas Schneider and Special Investigators Robert Diienno,  Ryan Covino and Emily Bizzarro of DOI's Office of the Inspector General for NYCHA, under the supervision of Inspector General Ralph Iannuzzi. Both the SCA and NYCHA Offices of the Inspector General are overseen by William Jorgenson, Associate Commissioner of the New York City Department of Investigation.

Both cases are being prosecuted by Assistant Attorney General Matthew Ross and Labor Bureau Criminal Section Chief Richard Balletta. The Labor Bureau Chief is Terri Gerstein, and the Bureau is overseen by Executive Deputy Attorney General for Social Justice Alvin Bragg.

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

NEW YORK – Attorney General Eric T. Schneiderman issued the following statement on the fast food worker strikes that are taking place today in at least 190 cities across the country:

"I hope all New Yorkers and all Americans will sit up and listen to the message of the fast food workers taking to the streets today: Everyone deserves a fair day’s pay for a fair day’s work. As New York State attorney general, it is my job to ensure equal justice under law. It’s why I’ve fought to recover more than $19 million for nearly 14,000 workers over the past four years and why we continue to crack down on wage theft by unscrupulous employers in every industry, including bringing criminal charges. It’s why my office supports New Yorkers’ right to a safe working environment and their right to join a union, without fear of retaliation. And it’s why I stand with all workers in their struggle for justice and fairness."

A new report released today by the United States Labor Department shows that up to 6.5 percent of New Yorkers are paid less than the minimum wage, with more than 300,000 workers suffering minimum-wage violations each month. Since taking office in 2011, Attorney General Schneiderman has successfully take action in more than 50 cases of labor violations, returning more than $19 million in restitution to almost 14,000 workers across New York. Some of the Attorney General’s actions, including:

• Protecting the rights of fast food, car wash and airport workers, among others;
• Enforcing the prevailing wage laws, which require a higher rate of pay for construction workers on public works projects and for employees of building that have received lucrative tax incentives;
• Combating unlawful employer retaliation against employees who have stood up for their rights or voiced public safety concerns;
• Criminally prosecuting employers who commit egregious violations, showing extreme disregard for workers’ basic rights and the rule of law;
• Innovating to protect workers who are not covered by traditional labor laws; and
• Defending workers in a digital world.

Attorney General Schneiderman encourages every worker who feels that his/her rights have been violated to contact the Office of the Attorney General’s Labor Bureau by calling (212) 416-8700 or visiting the Office of the Attorney General's website at www.ag.ny.gov.

NEW YORK – As part of an ongoing initiative to stop the sale of so-called designer drugs, Attorney General Eric T. Schneiderman today announced that his office filed a lawsuit and won a temporary restraining order that prohibits Brooklyn-based KMG Direct, Inc., High Life USA, LLC, and owner Eli Kleiger, from selling synthetic drugs and commonly-known street drug alternatives, for example “salvia,” a powerful hallucinogen, and “spice,” which produces experiences similar to marijuana. The petition, filed in Supreme Court in Onondaga County, and order comes after an undercover investigation revealed that employees of the online, mail-order distributor and retailers were violating state labeling laws by selling and promoting dangerous and illegal drugs in New York State and Colorado. 

The sale of designer drugs has contributed to a public health crisis in New York State and across the nation. With psychoactive effects similar to those of more commonly known street drugs, these products are typically packaged with innocuous names and bright graphics to give the misleading impression that their use is harmless. Like street drugs, these designer drugs often lead to addiction, psychosis, acute arrhythmia, asphyxiation and even death. 

“The proliferation of illegal designer drugs is a health crisis with a national reach, and it is one that is hurting New York families and communities,” Attorney General Schneiderman said. “After successfully stopping 20 head shops across our state from selling these dangerous drugs, my prosecutors and investigators are tracking down dealers who are operating online. There is one set of rules for everyone, and whether you are selling illegal drugs on the street or on the web, you must stop -- or we will stop you.”

The Attorney General’s investigation found that the distributors named in the lawsuit were labeling dangerous products with names like “KratoMonster,” “ZanziBarz,” “Vector,” “Sativah,” “BaliDiesel,” “Salvia Max” or “Salvia Zone,” and marketing them with false descriptions such as “dietary supplement,” or “Euphoric Relaxation Tablets.”  Some products had practically no label information and most lacked comprehensive ingredient lists, warnings and directions for use, as required by law. Without ingredient disclosure, adequate usage and warning information, the labels are deceptive and the drugs are dangerous for consumers. The investigation revealed sales being made in New York, and as far away as Colorado.

The Attorney General’s lawsuits have also pursued retailers for illegal sale of nitrous oxide, better known as “Whip Its,” to the public, a specific violation of the State Public Health Law. Nitrous oxide has been linked to deaths by asphyxiation and other adverse health effects. The gas is typically used by youths who see it as an easy “high.” 

Today’s lawsuit is part of an ongoing effort by Attorney General Schneiderman’s office aimed at stopping the sale of designer drugs. The initiative, which began in 2012, successfully removed street drug alternatives and synthetic drugs from the shelves of numerous head shops across New York. The Attorney General’s office has filed dozens of lawsuits against head shops that sold designer drugs, which resulted in judges across the state issuing permanent injunctions barring stores from selling these products. The rulings came after the office showed the products were illegal because their contents are not properly labeled, thus violating state and federal laws. 

This newest lawsuit is the result of information received from the Colorado Attorney General’s Office that Kleiger’s companies were shipping drugs from New York to customers in Colorado. That tip came after Colorado prosecutors, in the course of their efforts to combat the scourge of designer drugs in their state, contacted Attorney General Schneiderman’s office about New York’s successful actions against head shops.

From March to September of this year, senior investigators from the Attorney General’s Office made multiple buys from wholesalers KMG and High Life, and their affiliated online storefronts, which operated out of a large warehouse located at 33 35th Street in Brooklyn. Operating on the phone and the internet, the agents purchased a variety of mind-altering substances including Xanax-lookalike pills called ZanziBarz, “Vector” party pills containing a banned stimulant, two smokable “spice”-type products named “BaliDiesel” and “Sativah,” psychoactive pills called “KratoMonster,” and multiple strengths of the highly hallucinogenic herb salvia, branded “Salvia Zone,” and “Salvia Max.” The agents also bought a variety of drug paraphernalia including disguised digital scales, grinders, crack pipes, marijuana pipes, among other items. The agents purchased a large box of nitrous oxide (N2O) along with the paraphernalia used to ingest the gas at a controlled pace.

A total of four deliveries were shipped to a P.O. Box on Hiawatha Boulevard in Syracuse in the name of a fake head shop, the Hiawatha Phatty Shack, created by Attorney General investigators.  

The lawsuit is seeking an accounting of all commodities sold or offered for sale by the companies, including the name of the product, the manufacturer and distributor of the product, a description of the product, the wholesale and retail prices of the product and the number of units sold. Federal and state laws and regulations require that all consumer commodities, at a minimum, be labeled to describe net contents, identity of the product, and the name and place of business of the product’s manufacturer, packer, and distributor. Drugs of any kind must be further labeled with particularized directions for use and comprehensive, intelligible warning information.

Although federal and state authorities have outlawed certain chemicals and their analogs in order to remove these items from commerce, their efforts continue to fall short as the chemists and producers providing the products to head shops simply alter formulas to stay ahead of the legislation.

The Attorney General’s office has obtained an affidavit from the medical community highlighting the need to combat these drugs. Dr. Maja Lundborg-Gray told the Attorney General’s office that patients who have taken these street drug-alternatives are frequently violent and present a definite danger to the public and first responders who care for them. As one label noted, consumption was expected to cause headache, disassociation, and/or an altered sense of perception. Ingestion was to take place only when sitting or lying down. “Always have a sitter present,” cautions the label.

Maja Lundborg-Gray, M.D., of Samaritan Medical Center in Watertown, said, “There is a completely new level of violence and unpredictability associated with these patients. This demonstrates the gravity of the danger posed by users of designer drugs. I support Attorney General Schneiderman’s efforts of getting these unlabeled, misbranded and misleading so called ‘designer drugs’ off store shelves in New York State.”

Like the earlier cases, the lawsuit, filed yesterday, and TRO, signed today, seek a permanent injunction against the online distributors, barring them from selling misbranded designer drugs. Further information about previous cases is available here. 

The investigation was conducted by Attorney General investigators David Buske, Dennis Churns, Chad Shelmidine, Supervising Investigators Richard Doyle and Chris Holland and Deputy Chiefs of Investigations Antoine Karam and Jonathan Wood. The Chief of Investigations is Dominick Zarrella.

The case is being jointly prosecuted by Assistant Attorney General Judith Malkin, and Assistant Attorneys General In-Charge Vincent Bradley and Deanna R. Nelson, who are led by Executive Deputy Attorney General for Regional Offices Martin J. Mack.

NEW YORK – Attorney General Eric T. Schneiderman today announced a lawsuit against New York City landlord Florence Edelstein for widespread violations of state oil spill prevention laws that govern the safe handling and storage of heating oil at residential properties. The Attorney General's suit seeks to enforce a July order by the Commissioner of the New York State Department of Environmental Conservation that found Edelstein liable for 90 violations of state laws at 25 properties, three in the Bronx and the others located in Upper Manhattan and on the Upper West Side of Manhattan. According to the complaint, Edelstein failed to correct the violations or pay a $113,500 penalty, as ordered by the DEC. 

“Oil spills pollute our land and water and pose serious risks to public health and safety – and that is why New York has laws aimed at preventing environmental damage before it happens,” Attorney General Schneiderman said. “Property owners have an obligation to protect our environment and our residents from the harm caused by oil spills. No one is above the law and my office will hold people accountable when they ignore New York’s environmental laws.” 

Oil spills can cause serious harm to human health and safety, as well as to New York’s water, land, and other natural resources. To prevent spills from large fuel storage tanks, including tanks used in residential buildings to hold heating oil, the state has adopted petroleum bulk storage (“PBS”) laws and related regulations applicable to tanks or groups of tanks that can hold more than 1,100 gallons of petroleum. The regulations require proper registration, installation, operation, maintenance, inspection, and, when applicable, closure of PBS tanks to prevent leaks and large-volume oil spills.

Department of Environmental Conservation Commissioner Joe Martens said, “The Petroleum Bulk Storage (PBS) regulatory program is designed to prevent petroleum spills threatening the environment and the public. In the Edelstein case, a landlord ignored New York State laws and put residents at risk, but thanks to the well-crafted storage and handling requirements, inspection program and enforcement procedures of the PBS program the violations were identified.”

Attorney General Schneiderman’s complaint details the 90 violations of state PBS laws by Edelstein – the owner and chief executive officer of Edel Family Management Corporation, located at 2207 Coney Island Avenue in Brooklyn – that DEC found at the properties. Among other violations, the properties were cited for failing to accurately register storage tanks with the state, failing to properly label tanks, gauges, and fill ports, failing to maintain spill prevention equipment and records of monthly tank inspections. These requirements individually, and in combination, are important to preventing spills related to the handling and storage of oil. 

According to the complaint, DEC investigators uncovered a pattern of PBS violations at Edelstein’s buildings in April and May of 2013. When Edelstein rejected the agency’s offer to resolve the violations by settlement, DEC brought an administrative enforcement action which resulted in a July 18 order by the DEC Commissioner. The agency assessed a civil penalty of $113,500 and ordered her to correct all 90 violations, both within 30 days. Although Edelstein did not challenge the DEC order, she has failed to pay the penalty or correct the PBS violations as ordered.  

In the suit, Attorney General Schneiderman asks the court to order Edelstein to: 

• correct all 90 PBS violations, as directed by DEC;
• pay the penalty assessed by DEC; and
• pay additional penalties, as determined by the court for flouting the DEC administrative order. 

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

The suit was filed in the Manhattan Supreme Court Tuesday. The court papers can be found here. 

This case is being handled by Assistant Attorney General Andrew J. Gershon. The Attorney General’s Environmental Protection Bureau is led by Lemuel M. Srolovic. The bureau is overseen by Executive Deputy Attorney General for Social Justice Alvin Bragg and First Deputy for Affirmative Litigation Janet Sabel. DEC Assistant Regional Attorney John Urda assisted in the case.