NEW YORK – New York State Attorney General Eric T. Schneiderman today announced the felony conviction of Yolanda Gonzalez, the former Executive Director of We Stay-Nos Quedamos, Inc., for embezzling nearly $900,000 from the long-standing South Bronx-based nonprofit community development corporation. The Attorney General's investigation revealed that Yolanda Gonzalez, 46, of the Bronx, stole the money from Nos Quedamos by making withdrawals from the organization's bank accounts to pay her personal expenses, including a new car. Her former business partner, Joseph Ingenito, was also convicted for helping Gonzalez attempt to cover-up the thefts.

“New York’s not-for-profit sector will only remain the strongest in the nation if we continue to root out despicable, corrupt behavior like this,” Attorney General Schneiderman said. “This case started with Nos Quedamos board members alerting my office to suspicious activity. I encourage the good actors in any organization to stay vigilant and come forward if they suspect wrongdoing. It’s the best and most effective way to keep our nonprofit sector healthy and honest.” 

“In addition to theft, this individual’s conviction reflects guilt of a range of tax-related felonies – revenue crimes that deprive state and local governments of resources needed to provide critical services,” said New York State Commissioner of Taxation and Finance Thomas H. Mattox. “We will continue to work with Attorney General Schneiderman and other law enforcement partners to prosecute those who would attempt to evade taxes.”

A community development organization focused on health, environment, sustainability, affordable housing, and jobs, Nos Quedamos receives grants from several government agencies, including the state Division of Housing and Community Renewal, the New York State Energy Research and Development Authority, and the New York City Department of Housing Preservation and Development. Gonzalez became Executive Director after her mother, Yolanda Garcia, who was a founding member of the organization, passed away in February 2005. Gonzalez served as the Executive Director of Nos Quedamos until early 2011, when she was suspended by the Board of Directors. 

The Attorney General’s investigation commenced in early 2011 with a complaint from Nos Quedamos board members to the Attorney General's Charities Bureau about possible missing or misappropriated funds from Nos Quedamos bank accounts. The bureau uncovered evidence that hundreds of thousands of dollars had been embezzled from the nonprofit. 

Gonzalez embezzled funds from Nos Quedamos and two related entities, NQ Development, LLC, and NQ Management, Inc.  In addition to her salary of more than $70,000 per year, Gonzalez brazenly stole hundreds of thousands of dollars from the nonprofit's bank accounts by writing checks to herself or to cash, making ATM withdrawals, and paying for personal expenses on corporate credit cards, including purchases at department stores, nail salons, jewelry stores, and movie theaters. She also purchased a new 2009 Toyota Sienna with stolen funds, at a cost of more than $29,000. To conceal the thefts, Gonzalez and Ingenito falsified Annual Financial Reports, balance sheets, and financial statements for Nos Quedamos and submitted them to the Board of Directors and the New York State Attorney General's Office.  Gonzalez also failed to file taxes on her illicit income, resulting in tax liability totaling over $64,948.

Gonzalez pleaded guilty yesterday evening before the Honorable Judge Steven Barrett in Bronx County Supreme Court to Grand Larceny in the Second Degree, a Class C felony, and Criminal Tax Fraud in the Third Degree, a Class D felony.  She will be sentenced on January 13, 2015 to 1 ½ to 4 ½ years in prison on the Grand Larceny charge and 1 to 3 years in prison on the Tax Fraud charge.  As a condition of her plea, she must also sign confessions of judgment in favor of We Stay-Nos Quedamos in the amount of $886,613.24 and the New York State Department of Taxation and Finance in the amount of $64,948.

Joseph Ingenito, the former Chief Financial Officer of Nos Quedamos, was convicted of two counts of Falsifying Business Records in the First Degree, a Class E felony, for misrepresenting information in financial documents to help cover up the thefts.   He will be sentenced on February 6, 2015 to 6 months of house arrest and five years probation.

The Attorney General thanks the New York State Department of Taxation and Finance and the New York State Division of Housing and Community Renewal for their assistance in this case.

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

The investigation was handled by Investigator Sylvia Rivera, Supervising Investigator Michael Ward and Deputy Chief of Investigations John McManus. Supervising Forensic Auditor Edward J. Keegan also assisted in the investigation. The Investigations Division is led by Chief Dominick Zarrella. 

BUFFALO – Attorney General Eric T. Schneiderman today announced that Michael Rodriguez, convicted last month of the brutal murder of his estranged wife, Patricia Scinta Rodriguez, was sentenced to 25 years to life in prison in Erie County Supreme Court. Ms. Rodriguez’s body was found in a deserted section of Lackawanna’s Holy Cross Cemetery in the early morning hours of April 13, 1979 (Good Friday); she had been stabbed 108 times.  

“After 35 years, the family and friends of Patti Rodriguez finally have a small measure of comfort and closure,” said Attorney General Schneiderman. “This conviction and sentence, so many years after this heinous crime was committed, sends a very clear message: my office will never stop working to bring criminals to justice.”

In June 2013, the New York State Police brought the case to the Attorney General's Office.  The decision was made to retest the clothing the victim had been wearing on the night she was killed.  Testing revealed male DNA on an intimate area of the victim's clothing, and a court-ordered sample from Michael Rodriguez confirmed that the DNA belonged to the defendant.  In November 2013, the defendant was indicted by the Attorney General’s Office on the charge of Murder in the Second Degree.

In October 2014, the case went to trial in Erie County Supreme Court.  The two-week jury trial involved the testimony of over 25 witnesses and the introduction of over 100 exhibits into evidence, and included a key witness who recanted her alibi 30 years after the murder.  The jury convicted the defendant after deliberating for just three hours.

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

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

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

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

Op-Ed Published OnThe Huffington Post

By Eric T. Schneiderman

Every day struggling New Yorkers who are behind on their mortgages—facing foreclosure, and desperate to keep their heads above water—are bombarded with TV and radio ads promising lower interest rates or a reduction in their mortgage principal if they “call now!” Too many New Yorkers who make that call end up even deeper in debt—victimized by a mortgage rescue scam instead of getting the help they need.

Since I took office as Attorney General almost four years ago, I have made it a top priority to help New York families hurt by the crash of the housing market in 2008 to avoid foreclosure and get back on their feet. We have been able to provide housing counseling, legal assistance, and even small loans for thousands of New York families—all paid for by the banks whose misconduct caused the crash. As a result, New Yorkers have gotten more than $2 billion in mortgage principle write-downs, lower interest rates, and other relief—real help to keep families in their homes.

This week, we launch an innovative new way for New Yorkers to get help to identify and avoid mortgage rescue scams. It’s a web based app: AGScamHelp.com. Easily accessible from smartphones, tablets and other devices, AGScamHelp allows users to quickly search the name of any organization offering mortgage modification assistance.

The app will show that an organization is “Trusted” if it is part of the Attorney General’s Homeowner Protection Program, or has been approved by the U.S. Department of Housing and Urban Development. 

Searching an organization that has not been approved by HUD or my office will produce a “Caution!” message advising that the group is not government-vetted.  It will also warn consumers of some of the hallmarks of mortgage rescue scams, including guaranteeing a positive result, asking for an upfront fee or telling a homeowner to stop paying your mortgage and pay them instead.

The app also includes an interactive map to help consumers find their nearest trusted housing counselor or legal services organization closest to them, tips on avoiding scams, and an easy-to-use tool to report potential scammers to my office, so that we can investigate.

My office recently secured a judgment against a network of Long Island- and Florida-based companies that were found to be preying on vulnerable families. They were ordered to pay $2.5 million in penalties and costs, provide full restitution to their victims, and cease their illegal conduct. We have other cases ongoing, and with the help of tips from consumers using the app, we can stop many more scammers.

With the AGScamHelp app, we can make New York the safest state to avoid mortgage rescue scams, and the easiest state to access free foreclosure prevention help from trusted sources. But we have to make sure we get this message out to vulnerable homeowners before the hucksters do. That’s why we will be mailing out tens of thousands of postcards on an ongoing basis to every household that receives a 90-day foreclosure notice letting them know how to avoid getting conned, and how to get real help.

My office has committed $100 million over five years to fund a network of roughly 90 housing counseling and legal services agencies in every region of New York State through the Homeowner Protection Program. In just over two years, the HOPP network has provided free, high quality housing counseling and legal services to roughly 35,000 families statewide. More than 11,000 families already have mortgage modifications pending or approved.

New Yorkers who were hurt by the crash of the housing bubble of 2008 still need someone on their side. Whether it’s taking on the big banks that caused the crisis, or cracking down on scammers that are still preying on the victims of the crash, we are committed to working creatively and aggressively until every New York community that was knocked down by the foreclosure crisis is back on its feet and thriving.

NEW YORK – Attorney General Eric T. Schneiderman today was joined by a broad coalition of elected officials in outlining an immediate first step toward restoring public trust and confidence in the fairness of reviews of cases involving unarmed civilians killed by law enforcement officers.  In a letter sent to Governor Cuomo, Attorney General Schneiderman formally requested that the Governor immediately issue an interim executive order now directing the Office of the Attorney General to investigate and, if necessary, prosecute cases involving unarmed civilians killed by police officers. 

While several proposals for reforming the criminal justice system are expected to be considered when the State Legislature reconvenes, the Attorney General noted the urgent need for immediate action to restore public trust in the outcome of  cases involving unarmed civilians killed by law enforcement officers by ensuring these cases receive a thorough, impartial and independent review. The proposed order would be drafted to expire when the Legislature acts to permanently address this problem. 

Attorney General Schneiderman announced his proposal at a news conference in Manhattan, where he was joined by a broad coalition of elected officials, including New York City Public Advocate Letitia James and City Comptroller Scott Stringer.

“The horrible events surrounding the death of Eric Garner have revealed a deep crisis of confidence in some of the fundamental elements of our criminal justice system,” said Attorney General Schneiderman. “Nothing could be more critical for both the public and the police officers who work tirelessly to keep our communities safe than acting immediately to restore trust and confidence in the  independence of reviews in any case involving an unarmed civilian killed by a law enforcement officer. While several worthy legislative reforms have been proposed, the Governor has the power to act today to solve this problem. I strongly encourage him to take action now.”  

In his letter to the Governor, Attorney General Schneiderman wrote, "This crisis of confidence is long in the making and has deep roots. But it is not a problem without a solution.  A common thread in many of these cases is the belief of the victim’s family and others that the investigation of the death, and the decision whether to prosecute, have been improperly and unfairly influenced by the close working relationship between the county District Attorney and the police officers he or she works with and depends on every day. It is understandable that many New Yorkers feel that it is unfair to charge a local District Attorney with the task of investigating and prosecuting those officers when they are accused of a serious crime committed in the course of their duties."

Attorney General Schneiderman's letter continued, "The question in these difficult cases is not whether a local prosecutor, including one with understandably close ties to his or her fellow local law enforcement officers, is capable of setting aside any personal biases in deciding whether, or how vigorously, to pursue the case.  As the State’s chief law enforcement officer, I know that I and the overwhelming majority of my fellow prosecutors are not only capable of doing so, but are conscientious about our ethical duty to see that justice is done in every case.  Rather, the question is whether there is public confidence that justice has been served, especially in cases where homicide or other serious charges against the accused officer are not pursued or are dismissed prior to a trial by jury."

The Attorney General wrote, “Subdivision two of Executive Law section 63 currently authorizes you to supersede any local District Attorney on any criminal matter as you deem appropriate by appointing the Attorney General to investigate and prosecute the case.”

In addition, Executive Law section 63 (3) authorizes the Governor to direct the Attorney General to “investigate the alleged commission of any indictable offense or offenses,” and to “prosecute the person or persons believed to have committed the same and any crime or offense arising out of such investigation or prosecution or both, including but not limited to appearing before and presenting all such matters to a grand jury.”  

Consistent with this legal authority, Attorney General Schneiderman stated in his letter that he is requesting that the Governor “immediately issue a temporary standing order, pursuant to subdivisions two and three of Executive Law section 63, authorizing me to: (1) investigate the circumstances surrounding the commission or alleged commission by any police officer or peace officer in the State of any act or acts, committed while the officer is engaged in the performance of his or her official duties, that result in the death of any unarmed person other than a fellow law enforcement officer so engaged; and (2) where warranted, criminally prosecute the officer for such acts as provided in those subdivisions.”

In addition, Attorney General Schneiderman wrote, “I would further respectfully request that, to avoid the possibility of compromising any local, state or federal investigations already in progress, the order apply only to incidents occurring on or after the date the order is signed” and that “the order state that it will expire when the Legislature acts to permanently address this issue in such manner as it deems appropriate.”

New York City Public Advocate Letitia James said, "Recent national events have raised serious questions about the ability of local prosecutors to bring charges against police officers. It is unrealistic to expect district attorneys who regularly rely on local police to make cases to be absolutely impartial when investigating police misconduct. In order to remove conflict of interest or bias, it is imperative that a separate prosecutor - with no connection to the local police department - pursue police misconduct cases. I'm proud to work with Attorney General Schneiderman in advancing common-sense solutions and restoring faith in our justice system."

New York City Comptroller Scott M. Stringer said, "A central pillar of American Justice is the public's belief that all people, regardless of background, status, or rank, be subject to equal justice under law. This means having confidence in the criminal process and the police, prosecutors, judges, and others who serve to protect and defend communities every day. Attorney General Schneiderman's proposal would affirm this high principle by assuring New Yorkers that law enforcement will engage in an independent, thorough investigation of these highly-sensitive cases and, where appropriate, prosecute wrongdoers to the fullest extent of the law." 

Sherrilyn Ifill, President and Director-Counsel of the NAACP Legal Defense & Educational Fund, Inc., said, "We wholeheartedly support Attorney General Eric Schneiderman's request to be appointed as a special prosecutor in police-involved deaths and his call for changes in the law that will institutionalize this practice.  In fact, we believe special prosecutors should be appointed in all cases where police misconduct is at issue.  Placing the authority for investigating and prosecuting cases involving police abuse with an independent and impartial prosecutor will help to ensure that biases, conflicts of interest and politics do not infect systemic efforts to hold police accountable for their conduct and [to] ensure the integrity of the process for all."

U.S. Congressman Jerrold Nadler (NY-10) said, "The failure of the Grand Jury to indict in the Eric Garner case, in which there was no question of ample probable cause for an indictment, demonstrates unequivocally the need for an independent investigator with prosecutorial authority in all cases where someone is killed at the hands of the police. The district attorney has an inherent conflict of interest because of his necessarily close day to day working relationship with the police. The Governor can, and should, deputize the Attorney General for this purpose, pending definitive action by the legislature. I commend Attorney General Schneiderman's on his proposal." 

U.S. Congressman Charles B. Rangel (NY-13) said, "I'm proud of our Attorney General for leading the nation in taking action to ensure trust in the criminal justice system. His latest effort is a constructive step towards revamping the relationship between the police and the people. Whether in New York or elsewhere in America, law enforcement exists to protect the public and we must do everything to prevent wrongful deaths such as Eric Garner's."

Brooklyn Borough President Eric Adams said, “I am pleased that Attorney General Schneiderman is advancing the call for his office to be appointed to the investigations of incidences involving the deaths of unarmed individuals that are related to police activity. A broad coalition of New Yorkers, including elected officials, members of law enforcement, legal scholars and concerned residents, share in the belief that the handling of police shootings should be wholly separated from local grand juries. These bodies cannot effectively handle cases involving local police officers on whom they rely every day. Immediate action is necessary to restore the public's trust in our criminal justice system, a trust that is essential to the order of our democracy."

Manhattan Borough President Gale A. Brewer said, "New York clearly needs a reliable method of dealing with deaths from police actions against unarmed civilians such as Eric Garner. A standing executive order from the Governor directing the State Attorney General to act as a special prosecutor in such instances – just as is now done in cases of Medicaid  fraud – is just such a method, until the legislature decides to act."

Donna Lieberman, executive director of the New York Civil Liberties Union, said, “The failure to secure an indictment in the killing of Eric Garner leaves New Yorkers with an inescapable question: how can we hold police officers accountable for the death of unarmed civilians. The designation of a special prosecutor to handle these cases going forward is an important first step to help restore public faith in our justice system. A special prosecutor along with other criminal justice reforms are needed to help promote police accountability and to ensure protection of civil rights and liberties.” 

Wade Henderson, president and CEO of The Leadership Conference on Civil and Human Rights, said, “Local prosecutors must rely on police departments as partners in law enforcement. These close relationships make it difficult for even the most fair-minded and talented local prosecutor to impartially prosecute his or her own colleagues in the police force. The appointment of a special prosecutor will help ensure that, moving forward, cases of police brutality are thoroughly and fairly reviewed, investigated and prosecuted. Honoring Attorney General Schneiderman’s request would be an important step forward in promoting police accountability and restoring faith in our justice system.”

Joo-Hyun Kang, director of Communities United for Police Reform, said, "Given the historic lack of systemic accountability in police brutality cases, we applaud the NYS Attorney General's move to seek to establish the office's authority to investigate and criminally prosecute police officers in cases where deadly force is used against unarmed people. For over two decades, there has been a call for independent prosecution in light of District Attorneys' consistent failure to secure indictments and prosecute in case after case where officers have unjustly used excessive and deadly force. This is a significant step forward in addressing the double standard that has for too long treated officers who brutalize and kill as if they are above the law."

New York State Democratic Conference Leader Andrea Stewart-Cousins said, "The sad reality is many New Yorkers currently do not believe that all state residents are treated equally within our criminal justice system. We must take immediate steps to address these concerns and I believe the appointment of a special prosecutor to oversee these types of cases would be a smart and positive step forward. I look forward to working with the Attorney General and all my colleagues in State Government to reform the criminal justice system and to enhance New Yorkers’ trust in this system."

New York Senate Deputy Democratic Leader Michael Gianaris said, "Our criminal justice system must have the full confidence of the public it serves, yet at this moment in history it does not. Attorney General Schneiderman's proposal is a good step forward while we continue to advance legislative solutions to permanently address this issue. I look forward to working with the Governor and the Attorney General to achieve systemic reforms to ensure our justice system works for everyone." 

New York State Senator Adriano Espaillat said, "With our criminal justice system failing Black and Latino communities nationwide, immediate action is needed. New Yorkers are experiencing heartbreak and anger in the wake of the Eric Garner grand jury decision, and it is clear we need a better system for assessing police misconduct. The Attorney General's proposal will bring tougher oversight on this issue and ensure all lives matter."

New York State Senator Brad Hoylman said, “A local grand jury’s failure to bring an indictment after the tragic death of Eric Garner has highlighted serious flaws in our judicial process. An executive order appointing Attorney General Schneiderman as a special prosecutor in future criminal proceedings brought against police officers would help ensure independence and integrity in our criminal justice system.  I wholeheartedly support it.”

New York State Senator Velmanette Montgomery said, "I am tremendously relieved that Attorney General Eric Schneiderman has proposed to Governor Cuomo that the State Attorney General be appointed special prosecutor when local district attorneys may face conflicts of interest in cases involving local law enforcement. The application of the law must not vary from county to county, or reflect political concerns of prosecutors. I sincerely hope that Governor Cuomo will see the necessity of AG Schneiderman's proposal while my colleagues in the State Senate and Assembly and I pursue longer term legislative remedies." 

New York State Senator Jose Peralta said, “Public confidence in our justice system has been badly shaken by the events of the past few weeks and fundamental changes are desperately. When a police officer kills an unarmed civilian, we need to know that we can expect a just, fair and unbiased legal process." 

New York State Senator Bill Perkins said, "The events unfolding across this nation--from Ferguson to Staten Island--have made a number of things compellingly clear: including the fact that the investigation and prosecution of police officers who kill unarmed and innocent human beings must be truly independent, detached and without local bias. As such, I wholeheartedly support the proposal of Attorney General Schneiderman for an Executive Order that will empower his office to conduct essential investigations and prosecutions in these important matters with the transparency, diligence and forthrightness that such cases deserve. This is one small and necessary step towards ensuring true justice for those who have been senselessly killed at the hands of police officers while concurrently assuring all residents of our City that everyone has an equal right to live, breathe and make their life matter."

New York State Senator Daniel Squadron said, "Restoring faith in its fairness requires reforming each aspect of our criminal justice system, and ensuring that the most difficult investigations for local prosecutors are in the hands of the Attorney General is a very important step. I commend  Attorney General Schneiderman, Public Advocate James and my colleagues for this important proposal and urge my colleagues in the legislature to quickly consider and act on a broad reform agenda." 

New York State Assemblymember Michael Blake said, “I absolutely applaud the leadership of AG Schneiderman displaying immediate action in the face of injustice and pushing for a much fairer process.  We cannot allow for decisions around addressing police misconduct to be up to a local District Attorney where it appears relationships are taking precedence to justice, especially when someone loses their life.  This leadership along with the call of Sen. Rivera and Assemblyman Wright is demonstrating that we won't stand quietly in the face of needed and longstanding justice.”

New York State Assemblymember Karim Camara said, "The outrageous grand jury decision last week made it clearer than ever that local District Attorneys should be removed from grand jury proceedings involving the death of an unarmed person by a police officer.  While the Assembly has passed, and will continue to pass, legislation making this State law, it’s vital that the Governor steps in now.  Too many New Yorkers are losing faith in our criminal justice system. This Executive Order will be a step in the right direction of reversing that trend."

New York State Assemblymember Herman Farrell said, “I wish to thank The Attorney General for working to make sure this moment does not occur again.”

New York State Assemblymember Francisco Moya said, "As the Eric Garner case has shown us, District Attorney-led prosecutions of police officers can create a conflict of interests. We must find better ways to police our police. The death of Eric Garner and the subsequent failure of the grand jury to indict the police officer responsible for his death, on any charge, has made that plain. Until we can agree upon a permanent legislative remedy for this problem, putting such prosecutions in the hands of the Attorney General makes sense. I commend Attorney General Eric Schneiderman for identifying and offering a remedy for a serious problem in our criminal justice system." 

New York State Assemblymember Felix Ortiz said, "Action is needed now. The Governor should provide the Attorney General with investigatory powers. We must strengthen the public's trust in the justice system.”

New York State Assemblymember N. Nick Perry said, “There was so much widespread concern expressed that the Staten Island District Attorney's close working relationship with the police would make it difficult for him to fairly prosecute this case, that there should have been no surprise about the findings of the grand jury he impaneled. The real surprise is that no special prosecutor was appointed.  Making the appointment of a special prosecutor in police cases standard procedure, as Attorney General Schneiderman is proposing today, would enhance the chances of a fair and impartial investigation in cases involving the police, and relieve local prosecutors of the tremendous pressure they face to bring indictments.”

New York State Assemblymember Michaelle Solages said, “In order for our criminal justice system to function, it requires that local prosecutors and the police department have a solid working relationship. However, when the police are the subject of an investigation in which an unarmed civilian has been killed, an independent prosecutor must be appointed to eliminate the appearance of bias and ensure a fair and impartial investigation.  It is essential that we immediately restore New York's confidence in the judicial system.  I commend the Attorney General for taking on this issue.

New York State Assemblymember Keith L. T. Wright said, "I have been pushing the State Legislature to afford the Attorney General jurisdiction over cases of police misconduct since 1999. I am saddened by the death of yet another black man at the hands of the police but gladdened by Attorney General Schneiderman's proactive stance today. The employ of an unbiased arbiter is desperately needed in this instance. I urge Governor Cuomo to use his executive authority to bring a sense of hope to communities of color in New York State.” 

New York City Councilmember Daniel Garodnick (District 4) said, "The current crisis of confidence in our justice system as it relates to police misconduct calls for immediate and unequivocal action.  Particularly in light of recent high profile killings by the police of unarmed people of color -- in New York and beyond --  the public should have further assurance that prosecutorial authorities have sufficient independence.  This is a sensible interim measure until the legislature develops a more comprehensive plan, and I support granting this authority to the Attorney General." 

New York City Councilmember Andy King (District 12), co-chair of the City Council's Black, Latino & Asian Caucus,said, "We have witnessed hundreds of cases across our city, state and country in which outside special prosecutors and grand juries are appointed that do not reflect the interest of the local communities. To authorize Attorney General Schneiderman to investigate circumstances surrounding the acts of police officers resulting in the death of unarmed civilians until legislation is passed makes perfect sense. I urge Gov. Cuomo to take executive action to fix our state criminal justice system. I commend Attorney General Schneiderman for taking on this proactive stance.” 

New York City Councilmember Brad Lander (District 39) said, "As has become painfully clear from Ferguson to Staten Island and far beyond, there is a structural contradiction when local district attorneys prosecute alleged police misconduct in cases involving the deaths of unarmed civilians. DAs must work closely with local police every single day; they simply cannot be fair and objective prosecutors of those very same police. Attorney General Schneiderman's proposal is a good one, that will help restore the accountability and objectivity that justice demands. I urge Governor Cuomo to support it." 

New York City Councilmember Mark Levine (District 7) said, "The results in the case of Eric Garner--and many others--have shaken the public's confidence in our legal system.  We need a fair and independent prosecutor in charge when police officers kill unarmed civilians.  I urge Governor Cuomo to grant this power to the Attorney General until a permanent legislative solution can be worked out." 

New York City Councilmember Ydanis Rodriguez (District 10) said, "The public's confidence must be restored in our criminal justice system's ability to fairly investigate and prosecute deadly incidents involving the police. I applaud Attorney General Schneiderman for his leadership on this important issue, and urge the Governor to use his authority to appoint the Attorney General's office as a special prosecutor in these types of cases as the Legislature considers a comprehensive package of reform."

New York City Councilmember Debi Rose (District 49) said, “I fully support New York State Attorney General Eric Schneiderman’s call for executive action so that the Attorney General’s office would have the option of investigating and prosecuting crimes committed by police officers. Local district attorneys have a symbiotic relationship with their local police departments – such a close working relationship creates an inherent conflict of interest to effectively prosecute police officers involved in criminal matters. I am working with and supporting our city state elected who are feverishly working to pass legislative solutions to this situation. In the meantime, the executive action proposed by Attorney General Schneiderman should be signed immediately by Governor Cuomo to restore confidence in a fair, impartial criminal justice system.”

New York City Councilmember Helen Rosenthal (District 6) said, "The Eric Gardner case suggests that the existing grand jury process does not always produce a just outcome. It's unpredictable to rely upon local District Attorneys to rectify this situation. A more appropriate remedy is to appoint a special prosecutor in these types of cases. I want to thank the Attorney General for seeking the authority to prosecute cases where local law enforcement may not - for whatever reason - adequately dispense justice." 

New York City Councilmember Jumaane D. Williams (District 45), Deputy Leader and co-chair of the Council’s Taskforce to Combat Gun Violence,said, “As an elected official who has fought for better police practices, I am appalled the Staten Island grand jury failed our community on the heels of such an epic, unjust tragedy in Ferguson. Police officers must be held accountable for their actions. Change must happen to fix our broken criminal justice system, so I call on Governor Cuomo to take immediate action by appointing Attorney General Eric Schneiderman to cases where police kill unarmed civilians. Until our state legislature creates the reform needed so that these decisions do not rest on District Attorneys, it’s crucial our Attorney General step in before our criminal justice system fails us again.”

A copy of the letter can read here. 

For the last week, demonstrators across the country have used Eric Garner’s last words as a rallying cry for reform. Night after night, in city after city, demonstrators took to the streets chanting “I can’t breathe” and “it stops here.”

As powerful as those words are, the words most troubling for those of us in law enforcement and those of us who make public policy were one simple statement from a grieving widow.

After learning a grand jury declined to indict anyone involved in her husband’s death, Esaw Garner was quoted as saying: “Oh my God, are you serious?” 

Her words reflected more than just her own deeply personal pain. They reflect the sense of many New Yorkers and many Americans that our justice system does not provide equal justice to everyone –specifically to people of color killed during encounters with law enforcement. 

While some Republican presidential wannabes are exploiting this tragedy to push their radical anti-tax agendas or blaming the victim for being too overweight to survive the encounter, here in New York we are taking this very serious. We know the erosion of trust and confidence must be addressed, and must be addressed now.

Many have suggested there is an inherent conflict when local district attorneys who work with police departments every day are asked to investigate members of those departments.  

I have the highest possible regard for the district attorneys in the State of New York. But as prosecutors, it is time to acknowledge that the public has lost confidence in this part of our criminal justice system.  

Some have already proposed legislation that would address this apparent conflict.  I look forward to working with everyone here to pass meaningful reforms that move us closer to the basic promise of equal justice under the law for everyone.

But the fact is, we cannot afford to wait until the legislature returns to Albany, conducts its debates and passes a bill.  

The crisis of confidence in our communities is real. It is powerful. It is happening now. And it carries an imminent risk of danger. 

When the trust between the police and the communities they serve breaks down, everyone is at risk. New Yorkers must be able to trust the men and women of the NYPD. They must come forward to report crimes.  And they must come forward as witnesses.

We cannot wait months for the legislature to act. We can, and must, act now.

That is why I have written to Governor Cuomo calling on him to act under the authority granted him under existing law to issue an interim executive order directing me to investigate the circumstances surrounding the use of force by law enforcement officers that result in the death of unarmed civilians.

Existing state law authorizes the governor to supersede any local district attorney on any criminal matter by appointing the attorney general to investigate and prosecute the case. This broad grant of authority is based in Article IV, Section 3 of the state constitution and has been invoked many times in the past. 

In addition, executive law section 63 (3) authorizes the governor to direct the attorney general to “investigate the alleged commission of any indictable offense or offenses,” and to prosecute the person or persons believed to have committed any such offenses.  

Consistent with this legal authority, the governor should to immediately issue a temporary standing order authorizing my office to investigate the circumstances surrounding cases in which unarmed civilians are killed as a result of the actions of a police officer who is engaged in the performance of his or her official duties.  

In order to avoid the possibility of compromising any local, state or federal investigations already in progress, the order I am proposing should apply only to incidents occurring on or after the date the order is signed.

And the order should explicitly state that it expires when the legislature acts to permanently address this issue in such manner as it deems appropriate.

It is a simple, immediate and effective solution. It is something we can do today to once again show the leadership of New York state on an issue of national importance.

SYRACUSE – Attorney General Eric T. Schneiderman today announced that his office has reached a settlement with The Inn at Menorah Park, located at 4101 East Genesee Street in Syracuse. The settlement resolves an investigation which found that The Inn had been operating as an unlicensed adult care facility. Adult care facilities may not operate without first obtaining an operating certificate from the New York State Department of Health.

The settlement calls for The Inn at Menorah Park to immediately retain a monitor to assist in evaluating and assessing The Inn’s compliance with its responsibilities as a residential adult care facility. The Inn must also restructure its Board of Directors. The new board will be made up of at least five members, the majority of whom have not previously served on the board. The inn must also pay a $20,000 fine to the State of New York. In addition, The Inn is required to create a new fund to assist individuals who otherwise would not financially qualify for admission to The Inn. The assistance fund will be initially capitalized with no less than $110,000.

“It is important that families who entrust adult care facilities with the welfare of their loved ones have every assurance that such facilities are safe and compliant with state law,” said Attorney General Schneiderman. “Today’s settlement will bring this facility into compliance with the law and help ensure the quality of care families and patients expect.” 

This settlement resolves a multi-year investigation by the New York State Department of Health and the Attorney General’s Medicaid Fraud Control Unit of allegations that The Inn was operating as an unlicensed adult-care facility at a time when its application to become a certified adult-care facility had been rejected. The investigation found that the management of The Inn continued to operate with home health aides in a form consistent with the operation of an adult-care facility; however, it did so without the approval and oversight of the Department of Health.  

Before becoming a certified adult-care facility, an applicant must first meet numerous requirements for the safety and well-being of the residents, not only in the physical location but in the planned, appropriate medical care offered to the residents. The significant delay between the time The Inn first began to operate and the time at which The Inn met the requirements and qualifications for becoming a certified adult-care facility gave rise to the investigation and justifies the significant fine. The Inn received its certification in October 2014. 

Throughout this investigation, the Attorney General’s office has worked closely with, and would like to thank, the New York State Department of Health. The coordinated effort between the Attorney General’s Office and the Department of Health was critical to ensuring that The Inn’s residents received the continuity of care that all such individuals are entitled to. 

The investigation was conducted by Senior Special Investigator Thaddeus Kaczor and Special Assistant Attorneys General Paul Berry and David Abrams of the Attorney General’s Medicaid Fraud Control Unit (“MFCU”), and Kathleen A. Crissey and Paula Williams from the Department of Health. The matter was assisted by Syracuse Regional Director Ralph D. Tortora and Assistant Deputy Attorney General Paul J. Mahoney. The Medicaid Fraud Control Unit is led by Acting Director Amy Held. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

PEARL RIVER – Attorney General Eric T. Schneiderman today announced the arrest of Maria Fernandez, a licensed practical nurse, for allegedly slapping an 83-year-old, wheelchair-bound resident in the dining hall of Victory Lake Nursing Center in the Town of Hyde Park. Fernandez, who no longer works at the facility, faces a felony endangerment charge, and up to four years in prison, after the interaction was caught on a surveillance camera. The resident, whose identity is being kept confidential, suffers from dementia and other ailments that rendered her totally dependent on others for care. 

“Our healthcare workers have a basic legal duty to provide a safe and secure living environment for all patients, and especially for those who cannot care for themselves,” Attorney General Schneiderman said. “Abuse of our most vulnerable citizens cannot and will not be tolerated -- and my office will pursue criminal charges where appropriate.” 

A felony complaint filed in the Hyde Park Town Justice Court by the Attorney General’s Office charges Fernandez, 53, of Poughkeepsie, with one count of Endangering the Welfare of an Incompetent or Physically Disabled Person in the First Degree, a class E Felony, and one count of Wilful Violation of the Health Laws, a Misdemeanor.   

The complaint alleges that Fernandez struck the resident on the afternoon of September 3, 2013, inside the facility, located at 419 North Quaker Lane. At Fernandez’s arraignment, prosecutors stated that evidence shows that Fernandez struck the resident after the resident argued with an aide who was attempting to clear the resident’s meal tray.     

Fernandez , who pleaded not guilty, was arraigned yesterday before Hyde Park Town Justice John M. Kennedy and released on her own recognizance.  

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

The case was investigated by Medicaid Fraud Control Unit (MFCU) Senior Investigator Frank Bluszcz, Senior Investigator Frank DiChiaro and Supervising Investigator Peter Markiewicz.   

The case is being prosecuted by Special Assistant Attorney General Todd Pettigrew of the MFCU Pearl River Regional Office with the assistance of Regional Director Anne Jardine. Thomas O’Hanlon is the Chief of Criminal Investigations-Downstate. The Medicaid Fraud Control Unit is led by Acting Director Amy Held. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.  

MASSENA – Attorney General Eric T. Schneiderman today announced the conviction and sentencing of Violi’s Inc., its owner Ross Violi and its manager Dominick Violi, for violating New York State Child Labor Laws, by instructing a minor employed by the restaurant to clean an industrial machine. While cleaning the machine, the victim’s right arm was severed at the elbow. 

“Child Labor Laws were enacted over a century ago in New York to protect our children and prevent this very type of tragic accident by prohibiting employers from placing them in dangerous situations,” said Attorney General Schneiderman. “The defendants in this case showed unconscionable disregard for the safety of the victim. We will continue to stand up for our youngest workers by vigorously enforcing our state’s labor law, including by bringing criminal charges where appropriate.”

Court proceedings revealed that on April 24 of this year, a 17-year-old minor employed at the defendants’ restaurant was directed to clean an industrial pasta making machine. While cleaning the machine, the victim’s right arm was severed. Ultimately, he was airlifted to Massachusetts General Hospital in Boston for surgery to reattach the severed limb and to repair nerve damage. Initially the teenager underwent four surgeries and was placed in a medically induced coma for several days following the surgery. The victim has made numerous trips back to Massachusetts General for follow up medical treatment and he continues today to face future numerous medical procedures to insure that he regains use of his right arm. 

Ross and Dominick Violi entered guilty pleas to employing a minor and requiring the minor to clean an industrial machine as part of his duties, in violation of Labor Laws 145 and 133(2)(e). The corporation Violi’s Inc. entered a guilty plea to employing a minor without having an employment certificate, commonly referred to as working papers, on file with the business, in violation of Labor Laws 145 and 132(1).

As a condition of the pleas, the defendants were required to pay $13,262.65 in restitution, fines to the New York State Department of Labor for violations of the State Child Labor Laws, and unpaid wages to the victim. This restitution includes reimbursement for out-of-pocket expenses incurred by the victim’s family for trips to Boston taken for the victim’s medical treatments, which are not covered by insurance.

A civil case is currently being pursued against the defendants by the victim, the victim’s family and a private attorney.

The United States Department of Labor’s Occupational Safety and Health Administration (OSHA) also found that the restaurant had committed serious violations.

New York’s child labor laws set forth certain absolute prohibitions on minors working in particularly hazardous circumstances or performing hazardous tasks; in this way, the child labor laws help to avoid the occurrence of preventable workplace accidents affecting children. For example, New York’s child labor laws prohibit minors from cleaning machinery, as in this case; the law also prohibits anyone under the age of 18 from working on any construction job involving demolition, roofing, excavating operations or the painting or exterior cleaning of a building from an elevated surface, as well as prohibits minors from operating any power-driven woodworking, metal-forming, metal-punching, metal-shearing, bakery or paper products machines.  In addition, child labor laws seek to ensure that burdensome working hours do not interfere with a child’s education, by limiting the number of hours and actual work times when school is in session.  Finally, with some limited exceptions, the law prohibits employers from hiring a minor unless the child has an employment certificate, also known as working papers. 

The case was investigated by Attorney General Investigator Joel Cordone and Deputy Chief Investigator Antoine Karan. The case was prosecuted by Assistant Attorney General In Charge of the Watertown Regional Office Deanna Nelson and Labor Bureau Criminal Section Chief is Richard Balletta. Terri Gerstein is the Labor Bureau Chief; Alvin Bragg is the Executive Deputy Attorney General for Social Justice; and Martin J. Mack is the Executive Deputy Attorney General for Regional Offices.

NEW YORK - Attorney General Schneiderman today announced an agreement with PATH Medical, P.C., that requires the Manhattan-based business to ensure patients receive accurate information about their financial responsibility before undergoing medical testing and other services. The settlement with PATH Medical, located at 304 Park Avenue South and owned by Dr. Eric Braverman, the host of a weekly radio program that often promotes his business, concludes an investigation by the Attorney General’s Health Care Bureau that alleged PATH Medical misrepresented to patients how much of the cost a health insurer was likely to cover, including for the extensive testing PATH Medical routinely conducted on new patients.

“Patients cannot make informed decisions about their medical care if their health provider misleads them about the cost of that care, including the reimbursement they can expect from their insurance plans,” Attorney General Schneiderman said.  “My office is committed to pursuing transparency in health care pricing so patients can make medical decisions without inadvertently placing themselves in a precarious financial position. We will take action when providers mislead patients about the cost of care.”

As part of its focus on early detection and treatment of disease, PATH Medical conducted extensive and expensive diagnostic tests during a patient’s initial visit. Those tests include echocardiograms, costing $1,900, “brain electrical activity mapping” tests, for $2,000 collectively, multiple ultrasounds, ranging from $450 to $750, as well as psychological and cognitive assessments. PATH also sold packages of tests and services to patients that ranged in cost from $10,000 to $100,000. While the business, does not participate (i.e., is not “in-network”) in any health insurance plans, it led some consumers to believe that a significant percentage of the charges -- sometimes up to 80% --  would be covered by their health plans’ out-of-network benefit. However, patients’ health plans were not typically covering a significant percentage of the total charges for PATH Medical’s services. Indeed, some plans were routinely denying the claims submitted by the practice. These alleged inaccurate representations by PATH Medical resulted in some patients facing thousands of dollars in unexpected costs for a single visit.

The Attorney General’s Health Care Bureau is concerned about medical price transparency across the health care industry, including by insurance companies, hospitals and individual providers. Consumer protection laws bar providers from misleading consumers about health plan reimbursement, among other issues. The Health Care Bureau encourages all consumers to demand price transparency from their medical providers and to contact their health insurance companies before seeing a provider who does not participate in their health plan to understand their out-of-network benefits and coverage, if any.

The bureau launched an investigation into PATH Medical in mid-2013 after receiving repeated complaints about the medical practice, including complaints from patients faced with unexpected out-of-pocket costs because insurance did not cover as much as they were led to believe. When their insurance either denied the claims in full or did not cover as much as they expected, the patients were suddenly responsible for the balance, sometimes totaling thousands of dollars. 

The complainants included one consumer who said she was told by PATH Medical’s billing representative that the recommended testing for her first visit would cost approximately $8,000.  When she expressed concerns about the cost, she was advised that her insurance would cover 80 percent, and she would receive a 50 percent discount. Based on that, the consumer reported paying approximately $4,000, and believed a portion of that would be reimbursed by her health insurance. Her health plan ultimately denied her submitted claims and PATH then advised her she was responsible for the full $8,000.

The Attorney General’s investigation into PATH Medical revealed that the practice did not routinely provide patients with any documentation reflecting what tests and services were purchased, the charges for those tests and services, and what discounts were applied. Some patients also expressed difficulty and frustration with obtaining the results of their extensive testing, and patients sometimes incurred unexpected charges for discussing the results of that testing. 

The settlement requires PATH Medical to reform its practices to ensure patients are provided with accurate information about their financial responsibility beforethey agree to undergo any testing or other services. In addition to reforms aimed at improving price transparency, the settlement requires PATH Medical to discontinue and modify other business practices that the Attorney General’s Office identified during the course of its investigation.  For example, the Attorney General’s Office found that PATH Medical staff used personal e-mail accounts to communicate patients’ medical information.

Under the terms of the agreement, PATH Medical will:

• Not represent that insurance may cover the cost of the testing conducted and services provided;
• Revise its consent forms to clearly explain that it does not participate in any health insurance plans, that it does not represent that patients’ claims will be reimbursed, and that it orders tests that are often not covered by health plans;
• Revise its consent forms to explain the various charges patients may incur for obtaining and reviewing their tests results; and the process for obtaining medical records;
• Provide patients with itemized invoices before paymentshowing what testing and services the patient agreed to purchase, the cost of those services, and any discounts provided;
• Send patients monthly statements for as long as there is a balance on their account, including a balance owed to the patient due to prepayment or overpayment;
• Develop a systematic process for providing patients with timely refunds;
• Develop a financial hardship policy to formalize the process of providing discounts based on patients’ financial inability to pay for the testing and services purchased;
• Prohibit staff from using personal e-mail accounts to communicate patients’ medical information.

These reforms will result in improved price transparency for patients so they can accurately determine their financial responsibility for the testing and services provided at PATH Medical and make informed decisions about their medical treatment.

This investigation was conducted by Assistant Attorney General Elizabeth R. Chesler. The Health Care Bureau is led by Lisa Landau and the Executive Deputy Attorney General for Social Justice is Alvin Bragg. Janet Sabel is the First Deputy for Affirmative Litigation.

NEW YORK – Attorney General Eric T. Schneiderman announced today that New York has entered into a $750,000 multistate settlement with digital advertising company PointRoll, Inc. The agreement resolves an investigation concerning whether the company violated consumers’ privacy by unlawfully circumventing the privacy settings in Apple Inc.’s Safari Web browsers.

“When it comes to the privacy of consumers on the Internet, every company is expected to play by the same set of rules: No one should have to fear a business is violating their privacy by bypassing personal settings on their computers or mobile devices,"Attorney General Schneiderman said. “Today's settlement with PointRoll should serve as a reminder that we will protect New Yorkers when they’re surfing the web, and we will not tolerate any abuses of consumers’ trust.” 

PointRoll is a digital ad and technical services company owned by the Gannett Company. New York and five other states allege that PointRoll unlawfully deployed a browser circumvention technique that allowed it to place browser cookies on consumers’ Safari Web browsers despite privacy settings configured to block cookies from third-parties and advertisers between December 13, 2011 and February 15, 2012. Cookies are small files set in Internet users’ Web browsers that allow advertisers to gather information about those users including, depending on the type of cookie, their Web surfing habits. 

In addition to the monetary terms, the settlement agreement also requires PointRoll to:  

• Not take action to override an Internet browser’s cookie-blocking settings configured by user choice or by default.
   
• Not misrepresent or omit material facts concerning the purposes for which it collects and uses consumer information, or the extent to which consumers may exercise control over the collection, disclosure or use of such information.
   
• Provide, on any Web site owned or operated by PointRoll, a clearly and conspicuously displayed and titled section within PointRoll’s Privacy Policy that includes an explanation as to what cookies are and how they are used, the general purposes for which PointRoll uses information derived from cookies, etc.
   
• Implement a Privacy Program within six months that includes employee training on the importance of user privacy, as well as the duty of PointRoll employees to help maintain it. The Privacy Program is also to include annual internal assessments of the effectiveness of the Privacy Program’s controls, and updates to those controls when the internal assessments identify a need.
   
• Ensure that its servers are configured to instruct Safari Web browsers to expire any cookie placed by PointRoll using its browser circumvention technique, if those systems encounter such a cookie, for a period of two years. 
   
• Cooperate with compliance monitoring by the participating states, including providing a written report that describes PointRoll’s compliance with the Privacy Program requirement, and allowing the inspection and copying of all records that may be required to verify compliance. 

New York’s share of the settlement announced today is approximately $110,000. Connecticut, Florida, Maryland and Illinois also joined in the multi-state settlement, which was led by New Jersey. 

New York was represented by Internet Deputy Bureau Chief Clark Russell. The Internet Bureau Chief is Kathleen McGee and the Executive Deputy Attorney General of Economic Justice is Karla G. Sanchez. 

NEW YORK – Attorney General Eric T. Schneiderman released the following statement on today’s decision by the United States District Court for the Southern District of New York, which granted New York’s motion for a preliminary injunction against Defendants Actavis plc and Forest Laboratories LLC.  

"Today’s decision prevents Actavis from pursuing its scheme to block competition and maintain its high drug prices.  Our lawsuit against Actavis sends a clear message: drug companies cannot illegally prioritize profits over patients. We will continue to protect New Yorkers from anticompetitive practices by drug manufacturers.”

NEW YORK - Attorney General Schneiderman today announced an agreement with PATH Medical, P.C., that requires the Manhattan-based business to ensure patients receive accurate information about their financial responsibility before undergoing medical testing and other services. The settlement with PATH Medical, located at 304 Park Avenue South and owned by Dr. Eric Braverman, the host of a weekly radio program that often promotes his business, concludes an investigation by the Attorney General’s Health Care Bureau that alleged PATH Medical misrepresented to patients how much of the cost a health insurer was likely to cover, including for the extensive testing PATH Medical routinely conducted on new patients.

“Patients cannot make informed decisions about their medical care if their health provider misleads them about the cost of that care, including the reimbursement they can expect from their insurance plans,” Attorney General Schneiderman said.  “My office is committed to pursuing transparency in health care pricing so patients can make medical decisions without inadvertently placing themselves in a precarious financial position. We will take action when providers mislead patients about the cost of care.”

As part of its focus on early detection and treatment of disease, PATH Medical conducted extensive and expensive diagnostic tests during a patient’s initial visit. Those tests include echocardiograms, costing $1,900, “brain electrical activity mapping” tests, for $2,000 collectively, multiple ultrasounds, ranging from $450 to $750, as well as psychological and cognitive assessments. PATH also sold packages of tests and services to patients that ranged in cost from $10,000 to $100,000. While the business, does not participate (i.e., is not “in-network”) in any health insurance plans, it led some consumers to believe that a significant percentage of the charges -- sometimes up to 80% --  would be covered by their health plans’ out-of-network benefit. However, patients’ health plans were not typically covering a significant percentage of the total charges for PATH Medical’s services. Indeed, some plans were routinely denying the claims submitted by the practice. These alleged inaccurate representations by PATH Medical resulted in some patients facing thousands of dollars in unexpected costs for a single visit.

The Attorney General’s Health Care Bureau is concerned about medical price transparency across the health care industry, including by insurance companies, hospitals and individual providers. Consumer protection laws bar providers from misleading consumers about health plan reimbursement, among other issues. The Health Care Bureau encourages all consumers to demand price transparency from their medical providers and to contact their health insurance companies before seeing a provider who does not participate in their health plan to understand their out-of-network benefits and coverage, if any.

The bureau launched an investigation into PATH Medical in mid-2013 after receiving repeated complaints about the medical practice, including complaints from patients faced with unexpected out-of-pocket costs because insurance did not cover as much as they were led to believe. When their insurance either denied the claims in full or did not cover as much as they expected, the patients were suddenly responsible for the balance, sometimes totaling thousands of dollars.

The complainants included one consumer who said she was told by PATH Medical’s billing representative that the recommended testing for her first visit would cost approximately $8,000.  When she expressed concerns about the cost, she was advised that her insurance would cover 80 percent, and she would receive a 50 percent discount. Based on that, the consumer reported paying approximately $4,000, and believed a portion of that would be reimbursed by her health insurance. Her health plan ultimately denied her submitted claims and PATH then advised her she was responsible for the full $8,000.

The Attorney General’s investigation into PATH Medical revealed that the practice did not routinely provide patients with any documentation reflecting what tests and services were purchased, the charges for those tests and services, and what discounts were applied. Some patients also expressed difficulty and frustration with obtaining the results of their extensive testing, and patients sometimes incurred unexpected charges for discussing the results of that testing.

The settlement requires PATH Medical to reform its practices to ensure patients are provided with accurate information about their financial responsibility before they agree to undergo any testing or other services. In addition to reforms aimed at improving price transparency, the settlement requires PATH Medical to discontinue and modify other business practices that the Attorney General’s Office identified during the course of its investigation.  For example, the Attorney General’s Office found that PATH Medical staff used personal e-mail accounts to communicate patients’ medical information.

Under the terms of the agreement, PATH Medical will:

• Not represent that insurance may cover the cost of the testing conducted and services provided;
• Revise its consent forms to clearly explain that it does not participate in any health insurance plans, that it does not represent that patients’ claims will be reimbursed, and that it orders tests that are often not covered by health plans;
• Revise its consent forms to explain the various charges patients may incur for obtaining and reviewing their tests results; and the process for obtaining medical records;
• Provide patients with itemized invoices before payment showing what testing and services the patient agreed to purchase, the cost of those services, and any discounts provided;
• Send patients monthly statements for as long as there is a balance on their account, including a balance owed to the patient due to prepayment or overpayment;
• Develop a systematic process for providing patients with timely refunds;
• Develop a financial hardship policy to formalize the process of providing discounts based on patients’ financial inability to pay for the testing and services purchased;
• Prohibit staff from using personal e-mail accounts to communicate patients’ medical information.

These reforms will result in improved price transparency for patients so they can accurately determine their financial responsibility for the testing and services provided at PATH Medical and make informed decisions about their medical treatment.

This investigation was conducted by Assistant Attorney General Elizabeth R. Chesler. The Health Care Bureau is led by Lisa Landau and the Executive Deputy Attorney General for Social Justice is Alvin Bragg. Janet Sabel is the First Deputy for Affirmative Litigation.

NEW YORK – Attorney General Eric Schneiderman and New York City Department of Environmental Protection Commissioner Emily Lloyd today announced a legal agreement with a Putnam County landowner to clean up an illegal landfill that discharged pollution into the Croton Falls Reservoir – a New York City drinking water reservoir that has historically provided 10 percent of the daily water supply for New York City. The agreement requires the landowner, Gary Prato, to clean up the site and pay $245,000 in penalties. The agreement was reached in a consent judgment entered into by the state, city, and Prato and was signed by Putnam County Supreme Court Justice Victor G. Grossman. This agreement follows a July 2014 legal victory by Attorney General Schneiderman and the City of New York that ruled that Prato and his contractor, Anthony “Dirtman” Adinolfi, violated several state environmental laws in creating and operating the landfill on Prato’s estate on the shores of the Croton Falls Reservoir. Water from the Croton Falls Reservoir has not been used in New York City for several years, while a filtration plant has been under construction in the Bronx.

“Today’s agreement makes it clear that clean, healthy drinking water is a basic right for all New Yorkers,” said Attorney General Schneiderman. “Nobody is above the law, including illegal polluters who would put a drinking water reservoir for over 1 million New Yorkers at risk.”

“I would like to thank Attorney General Eric Schneiderman, the state Department of Environmental Conservation and Corporation Counsel Zachary Carter for pursuing this case and securing a settlement that addresses the illegal landfill,” said DEP Commissioner Emily Lloyd. “Although illegal dumping and regulatory violations are relatively rare in the watersheds that surround New York City’s reservoirs, it is important that we remain vigilant about identifying and pursuing cases like this one in order to protect the drinking water supply that 9.4 million New Yorkers depend on every day.”  

Pollutants at the illegal landfill site included known carcinogens, lead, and other toxins. In the consent judgment, Prato makes a number of legal commitments, including:

• The complete investigation and cleanup of the site, including areas of the Croton Falls Reservoir impacted by the pollutant discharge from the site, according to a detailed and expeditious schedule; and
• Payment of $245,000, including a $225,000 civil penalty to the State and $20,000 to the City.

In 2009, Prato decided to add a pool house and garage to his 27-acre estate on Croton Falls Road in the Town of Carmel in Putnam County. Prato arranged with Adinolfi and his company, Dirtman Enterprises, Inc., to provide material necessary to fill in and grade steeply sloped areas as part of the project. For most of 2010, Adinolfi dumped more than 40,000 cubic yards of fill on the site under Prato’s direction. Adinolfi provided the fill at no cost and did the grading for free.    

The fill dumped at the site consisted of construction and demolition debris containing waste materials, including coal ash and slag. Sampling of the debris by the defendants’ own consultants showed that it contained a variety of likely carcinogens called “polycyclic aromatic hydrocarbons” at levels exceeding State standards for protecting public health and the environment. Some of the fill material eroded and was discharged into the Croton Falls Reservoir. Although currently off-line awaiting next year’s anticipated activation of a filtration plant under Van Cortlandt Park in the Bronx, the Croton Falls Reservoir is part of a the Croton drinking water system that has historically provided 10% of the drinking water consumed daily in New York City.

In his July 28, 2014 decision, Justice Grossman agreed with Attorney General Schneiderman and New York City Corporation Counsel Zachary W. Carter and ruled that Prato and Adinolfi violated multiple state laws and underlying regulations through their activities at the site, including the construction and operation of a solid waste management facility without obtaining a permit from the New York State Department of Environmental Conservation (DEC). Solid waste management facilities are also subject to strict operational and closure requirements to avoid adverse impacts to public health and the environment. The City’s watershed regulations govern certain land use activities within its upstate watershed to protect the water supply and preserve it from degradation.  These regulations do not allow landfills to be located within 1000 feet of a reservoir, prohibit the discharge of solid waste into a reservoir, and allow only uncontaminated construction debris to be used as fill in the watershed.  Justice Grossman found Prato liable for violations of these watershed regulations for his illegal landfill activities.  Justice Grossman also ruled that discharges from the site into the Croton Falls Reservoir violated water pollution laws that require permitting and control of pollutants discharged into state waters.

Attorney General Schneiderman and Commissioner Lloyd thank the New York State Department of Environmental Conservation for its participation in this case.

In 2012, Attorney General Schneiderman obtained a guilty plea in a separate criminal case brought against Adinolfi in the Putnam County Supreme Court. That case involved, in part, Adinolfi’s operation of an illegal solid waste management facility at the Prato property. As a result, Adinolfi was sentenced to four months behind bars and five years of probation.  

This matter was handled by Assistant Attorney General and New York City Watershed Inspector General Philip Bein and Environmental Scientist Mauricio Roma, with support from Environmental Protection Bureau Chief Lemuel M. Srolovic, Executive Deputy Attorney General for Social Justice Alvin Bragg and First Deputy for Affirmative Litigation Janet Sabel.   Assistant Corporation Counsel Linda Geary handled the case on behalf of the New York City Law Department, with support from Hilary Meltzer, Deputy Chief of the Environmental Law Division, and Senior Counsel Carrie Noteboom. DEC Regional Solid Waste Geologist Steven Parisio and Assistant Regional Counsel Carol Krebs also worked on the case.

NEW YORK – Attorney General Eric T. Schneiderman yesterday filed a lawsuit in Brooklyn County Supreme Court against Papa John’s pizza franchisee Emstar Pizza Inc. and its owners, Emmanuel Onuaguluchi and Uchenna Onuaguluchi, alleging that they significantly underpaid employees in violation of State Labor Law.  According to the complaint, the violations include shaving workers’ pay by under-reporting hours and rounding down fractions of hours and compensating them nothing for this work, as well as nonpayment of overtime premiums.  The lawsuit seeks to require that Emstar Pizza, Inc., Emmanuel Onuaguluchi and Uchenna Onuaguluchi pay restitution and damages to hundreds of employees who have worked for Emstar and its owners over the past six years.  The lawsuit also seeks to halt any ongoing illegal business practices that are ongoing.  In addition, the lawsuit seeks an accounting of damages, because flaws and inaccuracies in the company’s records prevented a swift and accurate restitution calculation.  Yesterday afternoon, the Court granted a temporary restraining order in order to prevent dissipation of the employer’s assets.

“Like every other business in New York, fast food employers must follow the law,” Attorney General Schneiderman said. “Employers must pay for all hours worked – without shaving hours and without rounding down.  And when people work long weeks, they are entitled by law to get overtime pay.  My office will combat wage theft whenever and wherever we see it in order to protect the rights of hardworking New Yorkers, including workers who labor at fast-food restaurants.”

The lawsuit stems from an investigation by the Attorney General's Labor Bureau into Emstar’s pay practices, supplemented by information provided by the United States Department of Labor, which is also conducting an investigation.  Some of the affected employees were underpaid by hundreds of dollars in a given pay period.  As alleged in court papers, the evidence gathered over the course of the Attorney General’s investigation, including Mr. Onuaguluchi’s testimony and the company’s time and payroll records, showed that the company:

• Brazenly shaved work hours during most pay periods and did not compensate employees anything for this work (usually in an attempt to get employees’ biweekly hours below 80).  Sometimes as many as 18 hours were shaved from an employee’s reported work hours in a given pay period;
• Routinely rounded down employees’ hours worked to the nearest whole hour increment, and regularly failed to pay any wages at all for fractions of hours worked. 
• Regularly failed to pay proper overtime  by giving certain overtime eligible employees managerial-sounding titles such as “head drivers” and “assistant managers,” in an effort to avoid the overtime requirement;
• Regularly failed to pay proper  overtime by calculating overtime – in the rare instances when overtime was paid – based on employees working over 80 hours in a two-week period (instead of after forty hours in one week), thereby underpaying employees who worked over forty hours in one week and fewer than 40 hours in the next;
• Never paid employees “spread of hours” pay, an additional hour of pay required by the Labor Law for shifts in which the interval between the start and end time was longer than 10 hours;
• Failed to pay employees “uniform maintenance allowance,” required under the Labor Law when employers require employees to wear uniforms at work, and failed to provide laundry services or sufficient numbers of uniforms.
• Failed to keep accurate payroll records.  The company’s documents listed certain hours worked under obviously fictitious or placeholder names, like “Training Driver,” “Emstar3 Joe,” “Emstar Emergency,” “Emstar Pizza,” and  “jjjj kill.”

The lawsuit notes that the majority of evidence in the case arises from the employer’s own admissions and documents.  The lawsuit also alleges that in addition to the corporation, Mr. and Ms. Onuaguluchi are individually liable for damages owed to employees, because they were the employer.  The Attorney General is also seeking injunctive relief, in order to ensure labor law compliance going forward, and obtained a temporary restraining order in order to preserve the company’s assets for restitution purposes in light of recent store closures and imminent sale of its remaining, open store.

The Attorney General thanks the United States Department of Labor for its cooperation on this matter.

The lawsuit is the second to come out of ongoing investigations of numerous fast food employers by the Attorney General’s Labor Bureau for labor law violations.  In October, the Attorney General sued another Papa John’s franchisee, New Majority Holdings LLC, and its owner.   That case is ongoing.

The Attorney General has also reached several settlements with fast-food franchises.  In March 2013, the Attorney General secured a settlement with six Domino’s Pizza franchises, which collectively owned 23 restaurants throughout the state, for unpaid minimum wages, overtime, and vehicle expense reimbursements for delivery drivers.  In a separate matter in March 2013, the Attorney General secured a settlement of almost $500,000 for mostly minimum-wage employees of New York City-based McDonald’s franchises operated by the Cisneros Group and its owner Richard Cisneros.  In December 2013, the Attorney General obtained reinstatement for 25 workers at a Domino’s pizza franchise located in Washington Heights, in New York City. In June 2014, the Attorney General obtained $10,000 in restitution for an employee unlawfully discharged after reporting a gas leak at a McDonald’s franchise located in Lyons, in upstate New York.

Emstar’s Papa John’s pizza restaurants have been located at:

• 11702 Atlantic Avenue, Richmond Hill, New York 11419;
• 2838 Atlantic Avenue, Brooklyn, New York 11207;
• 63110 Woodhaven Boulevard, Rego Park, New York 11374;
• 3114 Farrington Street, Flushing, New York 11354;
• 1011 Broadway, Brooklyn, New York 11221; and
• 9431 Rockaway Boulevard, Ozone Park, New York 11417

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

NEW YORK – Attorney General Eric T. Schneiderman today released the following statement supporting the New York State Board of Regents’ approval of an amendment to the New York State Education Commissioner’s Regulation. The revised regulation will help ensure equal educational opportunity for all students seeking to enroll in New York State schools regardless of immigration status. 

Attorney General Schneiderman said, “Schoolhouse doors must be open to every student in our increasingly diverse state, regardless of their immigration status—and there is simply no excuse for denying children that basic, constitutionally protected right. The Board of Regents’ emergency regulation will help eliminate significant barriers faced by unaccompanied minors across the state.”

The Board of Regents today adopted a revised version of New York State Education Commissioner’s Regulation 100.2(y). The adoption of the regulation marks a significant development as the Attorney General’s Civil Rights Bureau and the New York State Education Department continue their joint review into enrollment policies and procedures of school districts across New York State. More information about the joint review is available here. 

The emergency regulation was adopted to help bring greater clarity and uniformity to districts across the state with respect to their enrollment and registration processes. Materials presented to the Board of Regents providing a basis for the amended regulation note: “some school districts are refusing to enroll unaccompanied minors and undocumented youths if they, or their families or guardians, are unable to produce documents sufficiently demonstrating guardianship and/or residency in a district. Such enrollment policies, as well as highly restrictive requirements for proof of residency, may impede or prevent unaccompanied minors and undocumented youths from enrolling or attempting to enroll in school districts throughout the State.” The amended regulation expressly prohibits school districts, at the time of or as a condition of enrollment, from inquiring about the citizenship or immigration status of students, or their parents or guardians. The regulation sets forth non-exhaustive lists of permissible documentation—including acceptable proof of residency, age, and guardianship documents—that districts may use to determine a student’s age and residency.  The rule requires that such lists be disclosed to the public in the school district’s enrollment materials.  

A copy of the emergency regulation can be found here. 

This matter is being handled by Assistant Attorneys General Justin Deabler, Ajay Saini, Diane Lucas, Anjana Samant, Dariely Rodriguez, and Bureau Chief Kristen Clarke of the Civil Rights Bureau. Executive Deputy Attorney General for Social Justice is Alvin Bragg.

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

NEW YORK - Attorney General Eric T. Schneiderman today released the following statement in observance of Hanukkah.

“My warmest wishes for a healthy and happy Hanukkah to all those celebrating. This holiday is not only honors resistance to oppression, but also celebrates the place of miracles in our lives. While we will reflect on that spirit over the next eight nights, I hope that all New Yorkers will carry that courage and light throughout this holiday season and year round. Chag Sameach.”

NEW YORK - Attorney General Eric T. Schneiderman and Department of Environmental Conservation Commissioner Joseph Martens today announced $11 million in the latest grant awards by the Greenpoint Community Environmental Fund (GCEF), a $19.5 million environmental improvement fund created from money obtained by the state in a 2011 settlement with ExxonMobil over its massive oil spill in Greenpoint, Brooklyn. In this round, the state awarded grants to six projects that address environmental priorities of the Greenpoint community. The projects – which range from establishing an environmental education center at the Greenpoint library to creating natural habitats along Newtown Creek – were the top vote-getters in recent community voting organized by the GCEF. These grants will be combined with $23.8 million in matching contributions from the recipients, bringing the total investment in improving Greenpoint’s environment to nearly $35 million. The Attorney General’s office and the DEC are jointly overseeing the program’s implementation and, along with community input, selected the winning projects.

“Through the Greenpoint Community Environmental Fund, New York State and Greenpoint residents are working together to lift the cloud of environmental abuse and neglect that has long shadowed this proud community,” Attorney GeneralSchneiderman said. “With these projects, we are investing a total of $35 million in the community’s environmental priorities, priorities that include restoring Greenpoint’s waterfront and fostering a new generation of environmental stewards.”

DEC Commissioner Joe Martenssaid, “The aid from this environmental improvement fund will enable several deserving and beneficial projects to come to fruition. These are projects, like the roof top outdoor classroom for school children, planting trees, and improving waste water management that will have long-term benefits for the community, and a positive impact on its economy while improving and protecting our state’s environment.”

The six projects being funded are:

Greenpoint Environmental Education at Greenpoint Library: The project will remodel the library as a LEED silver certified building (which meets sustainability standards related to energy- and water-efficiency and the use of recyclable and non-toxic materials), create the Greenpoint Environmental Education Center on the library’s second floor, and an outdoor classroom on the roof for Greenpoint schoolchildren.

Project Lead: Brooklyn Public Library

Grant Amount: $5,000,000

Matching Contribution: $5,780,300

Greening Greenpoint: The project will develop and implement a comprehensive urban forest plan in Greenpoint, including planting 500 trees, and funding maintenance for existing street and park trees.

Project Lead: City Parks Foundation

Grant Amount: $1,950,719

Matching Contribution: $1,933,786

West Street Watershed Stormwater Project: By designing and installing infrastructure to capture, store and treat storm water, the project will promote green streets and reduce chronic flooding and sewer backups for over 10,000 Greenpoint residents.

Project Lead: Brooklyn Greenway Initiative, Inc.

Grant Amount: $1,917,717

Matching Contribution: $5,030,000

Greenpoint Eco-Schools: The project will develop and empower a generation of student leaders by funding a comprehensive environmental education program in four Greenpoint schools—PS 31, PS 34, PS 110, and MS 126­—serving1,800 students.

Project Lead: National Wildlife Federation

Grant Amount: $1,434,735

Matching Contribution: $10,732,324

Curb Your Litter: The project will fund an on-the-ground assessment of Greenpoint’s litter problem, targeted anti-litter campaigns, and a collaborative effort with the City of New York to improve waste management infrastructure in the community.

Project Lead: Greenpoint Chamber of Commerce

Grant Amount: $569,145

Matching Contribution: $232,680

Intertidal Wetland Project: The project will foster Greenpoint waterfront restoration by funding an assessment of shoreline sites and eroded bulkheads along Newtown Creek for opportunities to establish natural habitats and expand existing habitats along the creek. 

Project Lead: Research Foundation of CUNY (LaGuardia Community College)

Grant Amount: $130,178

Matching Contribution: 130,911

How the projects were selected:

In July, GCEF received 24 proposals for large grants (between $25,000 and $2 million) and two proposals for legacy grants (greater than $2 million), totaling $25.3 million in requested funding.  These proposals were evaluated and scored by a panel of independent technical experts using criteria presented in the proposal invitation (e.g. environmental results, workplan, budget, and Greenpoint support).  The panel was assembled by GCEF’s co-administrator, the National Fish and Wildlife Foundation (NFWF), according to its established procedures and best practices. The purpose of the independent expert review was to identify the proposals of highest quality, greatest likelihood of success, and most environmental benefit to the community.  

The 13 proposals scoring the highest in the independent expert review where selected by the state to be shared with the Greenpoint community in order to solicit residents’ preferences among the projects. Following extensive community outreach, GCEF held three community “preferencing” events over two days in November.  Greenpoint residents over the age of 16 were invited to review information detailing each of the 13 proposed projects and cast ballots in support of up to six. With 525 residents voting, the six projects selected to receive GCEF grants are the ones that received the most votes.

Applicants that did not receive a grant in this round of funding will be offered one-on-one assistance by NFWF for the purpose of enhancing their proposals’ competitiveness for next year’s GCEF grant funding round.  The state intends to grant the full remaining balance of the Fund – roughly $5.5 million—in 2015.      

U.S. Congresswoman Carolyn B. Maloney (D-NY)said, “I am very pleased that the Greenpoint Community Environmental Fund is listening so attentively to the community, and awarding grants to projects that they have voted as top priorities. For years, Greenpoint has suffered from the environmental fallout of a massive oil spill, and I look forward to the day when the impact of the spill has been entirely negated. With this funding, the community is well on the path to recovery, and the educational efforts being put forth ensure that the future of Greenpoint is indeed green.”

State Senator Daniel Squadronsaid, “North Brooklyn has faced years of environmental damage, and the projects awarded funding today through the Greenpoint Community Environmental Fund take important steps towards correcting that. These grants bring additional green space and environmental education and programming to 11222. Thank you to the Attorney General, DEC, the National Fish and Wildlife Foundation, North Brooklyn Development Corporation, and all of the community members working toward a greener North Brooklyn.”

Assemblyman Joseph R. Lentolsaid, “Reversing the long history of environmental abuse in Greenpoint is no easy task, but I am confident that the projects announced today are a leap in the right direction. The residents of Greenpoint have waited long enough for the positive environmental change they deserve. The variety of these projects illustrates the serious dedication this community has in improving our neighborhood. The Greenpoint Community Environmental Fund has been critical in bringing these projects to fruition, and I am proud to have partnered with everyone involved. I look forward to the success of these projects and the positive environmental impacts they will have on Greenpoint and its residents.”

New York City Councilmember Stephen Levin said, “Greenpoint deserves a clean and healthy future and thanks to these grants, we are one step closer to accomplishing these vital goals. The Greenpoint community made their voices heard and I look forward to seeing the winning grants make a positive impact throughout Greenpoint. Thank you to Attorney General Schneiderman, Department of Environmental Conservation Commissioner Joseph Martens, and everyone who came out to vote.”

GCEF’s Community Advisory Panel (CAP), an advisory group comprised of 17 Greenpoint residents, and representatives of local organizations and elected officials, provides direct, ongoing input to the state on GCEF’s development and implementation. A partnership of NFWF and the Greenpoint-based North Brooklyn Development Corporation, selected through a competitive process, is administering the GCEF for the state.

In March 2014, the state awarded the first grants from the GCEF: $395,135 in small grants (less than $25,000 each) to 18 projects addressing environmental improvement priorities of Greenpoint residents.  The funding has been combined with $196,916 in matching funds, bringing a total of $592,055 to Greenpoint’s environmental priorities.

More information on GCEF, details on the six funded projects, and the community voting results can be found at www.gcefund.org.

The GCEF is being overseen for Attorney General Schneiderman by Environmental Policy Advisor Peter C. Washburn, with the assistance of Environmental Scientist Joseph Hass. The Environmental Protection Bureau is led by Bureau Chief Lemuel Srolovic. Executive Deputy Attorney General for Social Justice is Alvin Bragg. Janet Sabel is the First Deputy Attorney General for Affirmative Litigation. The fund is being overseen for Commissioner Martens by Michelle Moore, DEC Region 2. The state is being assisted in working with the CAP and conducting outreach to the Greenpoint community by Enviro-Sciences Engineering/ARC Engineering & Construction, P.C.

HAUPPAUGE — Attorney General Eric T. Schneiderman today announced the arrest of Claudia Desulme, a certified nurse aide, on charges she endangered the welfare of a 92-year-old, wheelchair-bound resident of Huntington Hills Center for Health and Rehabilitation in Melville, N.Y. Court documents filed in the case allege Desulme illegally moved the resident from her wheelchair to her bed without the assistance of another staff person, as required by the resident’s care plan and that, as a result, the resident sustained a laceration to her right leg. In an attempt to cover up the illegal transfer, Desulme, and another uncharged aide, allegedly bandaged the wound and failed to report the injury. Desulme, who no longer works at the facility, faces multiple felony and misdemeanor charges and up to four years in prison. 

“Our healthcare workers have a basic duty to care for their patients, to keep them safe and not to injure them further,” Attorney General Schneiderman said. “My office will bring criminal charges where it’s appropriate against those caregivers who hurt patients, who ignore the law and safety protocols.”  

A felony complaint filed in the Suffolk County First District Court by the Attorney General’s Office charges Desulme, 32, of Westbury, N.Y., with felony Falsifying Business Records in the First Degree, misdemeanor  Endangering the Welfare of an Incompetent or Physically Disabled Person, and misdemeanor Wilful Violation of Health Laws.  

The complaint alleges that on December 18, 2012, Desulme illegally moved the resident—who suffered from dementia and other ailments and who is totally dependent on others for care—from her wheelchair to her bed without the assistance of another staff person as required by the resident’s care plan at the nursing home, located at 400 South Service Road in Melville. As a result, the resident sustained a half-moon shaped laceration, approximately seven centimeters long, on her lower right leg. In an attempt to cover up the illegal transfer, Desulme, and the uncharged second aide, bandaged the wound and failed to report the injury. According to the complaint, when questioned by nursing home staff, Desulme lied multiple times in an attempt to conceal her crimes, claiming that another aide assisted with the transfer and that the patient was not injured.  

The defendant, who pled not guilty, was arraigned today in Suffolk County District Court before the Honorable Judge Paul Hensley and released on her own recognizance. 

Residents in nursing homes are provided with individual care plans to ensure their health and safety. Care plans include specific directions to staff about resident care. For example, when a resident’s mobility is severely limited, the care plan may direct that two staff members must assist when moving the resident from a wheelchair to a bed. 

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

The case was investigated by Special Investigator Regina Hogan, with assistance from Medicaid Fraud Control Unit (“MFCU”) Hauppauge Regional Chief Investigator Greg Muroff.  

The case is being prosecuted by Special Assistant Attorney General Megan Gallagher of the MFCU’s Hauppauge Regional Office. Jane Zwirn-Turkin is the Regional Director of the MFCU’s Hauppauge Region. The MFCU is led by Acting MFCU Director Amy Held. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

NEW YORK – Attorney General Eric T. Schneiderman today announced the felony convictions of two Ulster County men charged as part of the three-county takedown, “Operation Angry Birds,” which resulted in the dismantling of the largest known cockfighting ring in New York history, reaching from Ulster County to Brooklyn and Queens, and one of the biggest in the country. Farm owner Moises Cruz, 71, and farm manager Manuel Cruz, 60, pleaded guilty to the top count felony of violating New York Agriculture and Markets Law, Prohibition of Animal Fighting. The men are among nine defendants who have pleaded guilty in the case. Upon the request of the Attorney General’s office, the guilty pleas include a ban upon the two defendants from owning animals in the future. The men face up to nine months in jail when they are sentenced by Ulster County Court Judge Donald A. Williams on February 26, 2015.

“Cockfighting is a cruel, abusive and barbaric practice. It tortures animals, endangers the health and safety of our communities and is known to facilitate other crimes,” Attorney General Schneiderman said. “We are holding accountable those who raised animals for illegal sport, operated illegal gambling venues and trafficked fighting animals to New York City. My office, along with our partners in law enforcement and animal welfare, are committed to ending this vicious blood sport in New York.”

The two men were arrested in February when Attorney General investigators, officers from the Ulster County Sheriff’s Office, the State Police and other local law enforcement, raided a 90-acre farm at 230 Plattekill Ardonia Road, in Plattekill, operated by the men. Manuel Cruz and his nephew, Jesus Cruz Mendez, 37, were two of approximately 70 arrests made in the three counties in two days. Moises Cruz was later apprehended in Florida. 

Hours before the Upstate arrests, dozens of people were initially detained after a raid at a Queens cockfighting event. Seven of them were charged with felony Prohibition of Animal Fighting. They pleaded guilty in April.

They are:

Elisandy Gonzalez, 45, of Brooklyn
Orlando Bautista, 52, of Queens  
Noel Castillo, 67, of Brooklyn 
Edward Medina, 42, of the Bronx 
Francisco Suriel, 45, of Brooklyn 
Jeremias Nieves, 75, of Brooklyn
Samuel Rodriguez, 46, of Bay Shore, New York

The American Society for the Prevention of Cruelty to Animals® recovered almost 4,000 birds at the farm, which was previously registered as a commercial farm under the name CMC Plattikil, Inc., but had then been unregistered since 2010. The farm had operated under the guise of a live poultry farm and its owners hid thousands of makeshift cages within the center of the property to avoid detection by neighbors and law enforcement. Significantly, well over half of all the chickens seized were roosters, a statistic which is completely inconsistent with the operation of a legal poultry farm. Roosters and chickens were found to be boarded in deplorable conditions.  The owner charged rent to board, feed, and care for roosters that were bred and trained for fighting, with blood sport enthusiasts and rooster owners from NYC, Long Island, New Jersey, Pennsylvania, Connecticut, and Massachusetts boarding, training and sometimes fighting their roosters there. For years, roosters bred and trained at this farm were transported to cockfighting events throughout the region and specifically to the event raided on February 8 in Queens County.  The investigation revealed that roosters were also transported  to the Brooklyn pet shop that was raided as well. 

The Attorney General’s OCTF unit was assisted with the investigation by the ASPCA®, which offered its expertise in evidence collection as well as removal and sheltering of the seized animals, the Ulster County Sheriff’s office, which provided physical surveillance, and the Department of Homeland Security (HSI), which provided local aerial surveillance. The New York State Police also assisted with the raids.

Arrests in the case came as investigators raided the cockfighting event at 74-26 Jamaica Avenue in Queens on February 8. While the 70-person event, including bettors and spectators, was busted up, six individuals who had brought and fought birds were charged. The others were released. The ASPCA took control of 65 fighting birds. The ring had been operating bimonthly events there since at least May 2013, when OCTF first began monitoring cockfighting at this location.  At the same time, OCTF investigators executed a search warrant upon Pet NV, a pet shop owned by Jeremias Nieves, located at 71 Central Avenue in Brooklyn. Dozens of fighting birds were removed from a basement beneath the pet shop. The roosters, found in poor condition, had been kept inside individual metal cages and exhibited all the physical hallmarks of having been bred, trained, and altered for fighting.

Cockfighting contraband and implements were found within the basement, including artificial spurs, candle wax, medical adhesive tape, syringes used to inject performance-enhancing drugs to strengthen the roosters’ fighting ability and other cockfighting implements and paraphernalia. The farm was raided the following morning. The two Cruzes were arrested and the roosters were seized. These roosters were bred, trained, plied with performance-enhancing drugs, had razor-sharp gaffs attached in place of their natural spurs and were locked in a small pen to be wagered upon. The ASPCA®'s Field Investigations and Response team was on hand to remove the animals, and identify and document forensic evidence. 

Cockfighting is a crime in all 50 states. In New York, cockfighting and possession of a fighting bird at a cockfighting location are felonies. In May 2013, the Attorney General announced his Animal Protection Initiative, which included the goal of shutting down underground animal fighting rings across the state. New Yorkers seeking to give anonymous tips about potential animal fighting rings or report animal abuse should call 1-866-697-3444 and alert their local authorities. For more information on Attorney General Schneiderman’s Animal Protection Initiative, visit www.ag.ny.gov/animals. 

The Attorney General thanks the ASPCA®, the Ulster County Sheriff’s Office, the New York State Police and HSI. 

This case was investigated by OCTF Senior Investigator Jose Rojas, with Deputy Chief Christopher Vasta and Chief Dominick Zarrella. The case was prosecuted by OCTF Assistant Deputy Attorney General Diego Hernandez and OCTF Deputy Attorney General Peri Alyse Kadanoff. The Executive Deputy Attorney General for Criminal Justice is Kelly Donovan. 

NEW YORK – Attorney General Eric T. Schneiderman today announced that his office sent cease and desist letters to several major retailers, including Wal-Mart, Amazon, K-Mart, and others for allegedly selling prohibited toy guns online to residents of New York State, and, in at least one case, in a K-Mart store in suburban Rochester. The letters, stemming from an ongoing investigation, call for retailers to immediately stop the in-store and online sale and shipment to New Yorkers of toy guns that violate New York State law pending the resolution of Attorney General Schneiderman’s investigation. 

“When toy guns are mistaken for real guns, there can be tragic consequences,” said Attorney General Schneiderman. “New York State law is clear: retailers cannot put children and law enforcement at risk by selling toy guns that are virtually indistinguishable from the real thing.”

The Attorney General’s investigation is focusing on ensuring compliance with state law to prevent the purchase of prohibited toy guns both in stores and online. State law prohibits the sale of imitation guns in realistic colors such as black, blue, silver, or aluminum, unless it has a non-removable one-inch-wide orange stripe running down both sides of the barrel and the front end of the barrel.

One of the retailers sent a cease and desist letter, Wal-Mart, was the subject of an earlier investigation by the Attorney General’s office into in-store sales of such toys, which resulted in a court order prohibiting them from selling toy guns in New York State. It now appears that those sales have moved to the online marketplace. This new investigation reveals that many prohibited toy guns, priced from less than $10 to as much as several hundred dollars, can be easily purchased online and shipped into the state. The recent investigation also uncovered that at least one retailer is selling illegal toy guns in its stores.

Some of the toy guns discovered during the investigation are advertised as “realistic looking” and “full size.” Since they lack the orange striping down both sides of the barrel as required under state law, these imitation assault rifles, shotguns, and pistols closely resemble dangerous weapons, and could be easily mistaken for real weapons by law enforcement and civilians alike. 

The Attorney General sent cease and desist letters to the following online retailers for selling illegal toy guns:

• Wal-Mart
• Amazon.com
• K-Mart
• Sears
• ToyArsenal.com

Since 1997, at least four individuals have been killed in New York State, and one child was seriously wounded, when law enforcement officers mistook toy guns for real guns. To report the sale of illegal toy guns, consumers are encouraged to contact Attorney General Schneiderman’s consumer help line at (800) 771-7755.

This matter is being handled by Assistant Attorney General Benjamin Bruce in the Rochester Regional Office, which is headed by Assistant Attorney General in Charge Debra Martin and is part of the Division of Regional Affairs, which is led by Executive Deputy Attorney General Marty Mack.