NEW YORK – Attorney General Eric T. Schneiderman today announced an agreement with Barnes & Noble, Inc. that will protect the rights of nursing mothers seeking to breastfeed at its stores in New York. The Attorney General’s Civil Rights Bureau opened an investigation into the national chain following a March 16 incident in which a woman was asked to cover up or leave the company’s Nanuet, New York, store while breastfeeding her infant son. Under New York State law, a mother may breastfeed her baby in any location, so long as she otherwise has the right to be there, regardless of whether she is covered while nursing. This year marks the 20th anniversary of the law's passage.

“All New York residents, including breastfeeding mothers, must be afforded equal protection under the law,” Attorney General Schneiderman said.  “No mother should endure harassment for breastfeeding her baby in public. There is one set of rules for everyone in New York, and I applaud Barnes & Noble for taking steps to ensure that moms are not harassed or discriminated against.”

Under the agreement, Barnes & Noble will strengthen its customer complaint resolution procedures with respect to the handling of complaints received from breastfeeding mothers, train all New York store employees and managers on its breastfeeding policy, which prohibits employees from interfering with a mother’s right to breastfeed at its stores, and display the international symbol for breastfeeding at the entrances to its New York stores. In addition, the company will pay $10,000 to Rockland County to support the activities of its Breastfeeding Promotion and Support Program. 

Barnes & Noble operates 42 stores in New York State: 13 in New York City, eight in the Mid-Hudson region; seven on Long Island; six in Western New York; three in the Southern Tier region; two in the Capital Region; two in Central New York, and one in the Mohawk Valley.

Dr. Susan Vierczhalek, chairperson of the New York Statewide Breastfeeding Coalition, said, “Mothers who choose to breastfeed their children must not be discouraged from doing so when in public. We applaud Attorney General Eric Schneiderman for bringing attention to this very important issue and for working to remove barriers to breastfeeding.”

Donna Lieberman, executive director of the New York Civil Liberties Union, said, “Health care providers and the law make clear that families who choose to breastfeed their children should be able to do so whenever and wherever necessary. We thank the Attorney General’s Office for taking steps to ensure that women seeking to exercise their right to breastfeed in New York State are able to do so.” 

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

This matter is being handled by Assistant Attorney General Dariely Rodriguez of the Attorney General’s Civil Rights Bureau, which is led by Bureau Chief Kristen Clarke. The Executive Deputy Attorney General for Social Justice is Alvin Bragg.

NEW YORK – During remarks to the New York State Association of Police Benevolent Associations conference, Attorney General Eric T. Schneiderman announced today that more than 110 police departments across New York State have applied to receive funds under the inVEST Partnership, a $3.5 million program dedicated to assisting New York State law enforcement agencies with the purchase of vital and lifesaving bulletproof vests. Attorney General Schneiderman also encouraged more departments to apply, noting the deadline for applications is Tuesday, July 15. 

“The brave men and women who put their lives on the line to keep us safe deserve our every effort to protect them in return,” Attorney General Schneiderman said. “Reducing the cost of lifesaving bulletproof vests is consistent with our commitment to ensuring the safety of these officers and showing gratitude for the sacrifices they make on our behalf every day. The inVEST Partnership will arm officers across our state with life-saving vests they might not otherwise have, adding a critical layer of safety to one of the most dangerous jobs in the world.”

In June, Attorney General Schneiderman established the inVEST Partnership. As part of the program, the Office of the Attorney General will provide selected law enforcement agencies with up to 50 percent matching funds to purchase new vests. Law enforcement agencies in New York State in need of new or replacement bulletproof vests are encouraged to apply to the inVEST Partnership.

In 1998, recognizing the need to outfit police officers across the country with bulletproof vests, the U.S. Congress passed the Bulletproof Vest Partnership. The program has since provided New York State with over $25 million to help purchase more than 212,000 vests. However, since 2010, funding from the federal program has dropped by over 80 percent in New York State, while the demand for this lifesaving equipment has not decreased.

In response, Attorney General Schneiderman has allocated $3.5 million in funds seized as proceeds from joint federal and state criminal investigations in order to provide financial relief to New York State law enforcement agencies seeking to purchase bulletproof vests.

In the past thirty years, 71 police officers in New York State have died as a result of injuries sustained from gunfire in the line of duty, according to the Officer Down Memorial Page. While no vest offers absolute protection, the National Institute of Justice has reported that more than 3,000 law enforcement officers have been saved by ballistic body armor in in the past thirty years. 

In order to apply, a law enforcement agency must be a member of the United States Department of Justice Asset Forfeiture and Money Laundering Equitable Sharing Program. Approved departments will be required to submit receipts for reimbursement by the end of this year. 

NEW YORK – Attorney General Eric T. Schneiderman today addressed a conference of the New York State Association of Police Benevolent Associations, and detailed his record on public safety and cooperation with the law enforcement community.  Following are excerpts from his remarks as prepared for delivery:

ON A TOUGH, SMART APPROACH TO CRIME
 

“What it takes is an approach to crime that is both tough and smart. As the state’s chief law enforcement officer, I understand the challenges you face every day. And it is my job  to help my colleagues in law enforcement protect their members and the people we all serve.”

ON A TOUGH AND SMART APPROACH TO ILLEGAL DRUGS

“My office also takes a tough and smart approach when it comes to the crisis of illegal drugs that have flooded our streets and ruined so many lives... Since 2011 we have broken up 17 major drugs rings, recovered $1.3 million from drug dealers, confiscated 79 kilos of cocaine, more than 500 grams of crack and more than 2,500 grams of heroin, and made 345 felony arrests of drug dealers and kingpins  statewide.”

ON THE COMMUNITY OVERDOSE PREVENTION (COP) PROGRAM
 

“We are also giving police officers  the ability to save lives when there is an overdose by paying to give naloxone – a proven antidote to heroin overdose – to any police department in the state that wants it. So far, 135 law enforcement agencies around the state  have been approved to receive  more than 27,000 naloxone kits  under my Community Overdose Prevention, or COP, Program. These include 16 of your member departments, including the Nassau County Police Department, the MTA Police, the Suffolk County Police Department  and the Lynbrook Police Department.”

ON THE inVEST BULLETPROOF VEST PROGRAM

“Because of cuts in federal funding, many departments  can’t afford  vests for new recruits or to replace vests  for veteran officers.

“That’s just wrong. So we stepped up, and my office created the inVEST Partnership. Through this partnership, we are devoting $3.5 million in forfeiture funds to help law enforcement agencies all over the state buy bulletproof vests for every police officer who needs one. As of yesterday,  more than 110 agencies statewide, including more than 10 of the police departments that belong to the New York State Association of PBAs, had applied for inVEST funding.”

ON ILLEGAL GUNS

“We sent undercover investigators into gun shows around the state,add comma and it didn’t matter what story they told the sellers – that their wives had gotten orders of protection against them, that the police had come and taken their guns away – they were still able to buy guns  without a background check.”
 

“We arrested the sellers, but then, instead of going on the attack and grandstanding, we sat down with the operators of six major gun shows and together drew up a set of  Attorney General model protocols to close the gun show loophole in New York.”
 

“Responsible gun owners are not the enemy. The only way  to make this country safe from illegal guns is to end the poisonous rhetoric about gun ownership and instead  get law enforcement and responsible gun owners working together. That’s being tough and smart, and that’s what we are doing.”

The full speech can be read here.

Op-Ed Published on the Huffington Post

By Eric T. Schneiderman

Yesterday, I had the privilege of speaking to the New York State Association of Police Benevolent Associations.  Every day, in every city and town across the country, police officers are performing vital services that help make their communities safer.  PBAs are a vital voice defending the people who defend our safety, so I was honored to have the opportunity to thank them for their work.

But more than that, I was honored to have the opportunity to thank them for being strong partners in a quiet revolution that has helped make New York a safer place to raise our families, build our homes, or start our businesses.

In the last three years, crime has decreased across the board in New York.  Murder and burglary are down by double digits. At the same time, the state’s prison population has declined 4 percent.

That is in large part thanks to our shared efforts to tackle crime in a way that is both tough and smart. While some folks are still pushing to bring back the draconian drug laws from a bygone era – policies that flooded our prisons but did nothing to make our streets safer – we have chosen a path that actually works.

Those of us in law enforcement cannot and will not tolerate violent predators or gangs that flood our streets with illegal drugs. That is why my office’s Organized Crime Task Force has worked with police departments across the state to break up some of the largest gangs and drug trafficking rings in New York.  Since 2011, we have taken down 17 of the largest drug rings, busting at least 345 dealers.

But we also have developed innovative new strategies that are making a real difference.  

Take, for example, abuse of prescription drugs.  I partnered with leaders in the public health and law enforcement communities to pass the Internet System for Tracking Overprescribing – I-STOP– which requires doctors and pharmacists to check a real-time database to see if a patient has one prescription for pain pills – or 20.

By flagging addicts who are doctor-shopping to get their pain pills before they make the move to cheaper, more dangerous drugs like heroin, we are severing a key link in the chain of addiction and steering addicted patients into treatment.

Being tough and smart on crime means partnering with responsible gun owners and our local colleagues law enforcement to keep dangerous weapons out of our communities. That is why I have worked with police departments across the state to host gun buybacks. Together, we have taken more than 800 guns off the streets.  That is also why I partnered with gun show operators to develop an innovative set of procedures that guarantee a background check is performed for every firearm sold at a gun show in New York.

The fastest growing property crime in the United States has been smartphone theft. In 2013, more than 3 million mobile devices were stolen in the United States, and many of these theft included violence – even deaths.  To stop this problem, my office started a national network of law enforcement officials to pressure the mobile communications industry to take common-sense steps to prevent smartphone theft. 

We figured out that this epidemic would end if we could force the industry to install kill switches into every smart phone, so they can be shut off the way you cancel your credit card. Initially, the industry resisted. But in just one year, the Secure Our Smartphones Initiative has pressured some major smartphone makers into installing kill switches. And it is working. Preliminary statistics suggest crimes targeting products with theft-deterrent features fell, even as crimes targeting smartphones from manufacturers that refused to install those features rose. 

Finally, no approach to crime – no matter how tough or smart – can work if we don’t protect the people protecting us.  When I learned that Congress had gutted a federal program to help local police departments buy bulletproof vests for their officers, I created the inVEST Partnership. This $3.5 million program uses funds seized from criminals to help police departments buy body armor for their officers. 

These tough, smart, creative approaches are reducing crime across the state. I look forward to continuing to serve the people of New York and making our state a safer place to live, work and raise families for many years to come.

NEW YORK – Attorney General Eric T. Schneiderman today announced that his office has reached a settlement with The Varas Group for conducting a misleading advertising and social media campaign for its Chicha Limeña soft drinks. The beverage, marketed mostly to Hispanic communities in metropolitan New York, New Jersey, and Connecticut, was advertised as containing an ingredient that fights cancer and diabetes. The Varas Group has agreed to cease the use of health-related claims in all marketing materials and agreed to pay the State of New York penalties, costs, and fees. 

“There has to be one set of rules for everyone, including those who would make dubious health claims about their products,” said Attorney General Schneiderman. “While soft drink companies may market the advantages of their products, they may not make unsubstantiated claims that their products have the potential to prevent or cure serious health problems.”

The Varas Group has been marketing its products in the U.S. since 2006, mostly to Hispanic communities. Chicha Limeña is a non-carbonated beverage containing water, sugar cane, purple maize extract, pineapple, lemon, cinnamon and cloves.  Chicha Limeña is made with ingredients native to Central and South America and is modeled on traditional Peruvian (Limeña or “of Lima”) soft drinks; “Chicha” is a maize- or corn-based beverage. These beverages often appeal to consumers with a fondness for foods and beverages that represent their heritage and are familiar to their tastes. 

Purple corn, touted as containing high levels of antioxidants, is enjoying popularity as a healthful ingredient. However, neither the precise health benefits nor required consumption levels to achieve a benefit have been established in scientific literature.  In an effort to expand its sales and capitalize on the popularity of purple corn-based products, Chicha Limeña was advertised on its webpage and in social media as “a nutritional powerhouse packed with antioxidants  … [that] may help prevent obesity and diabetes.”  Other marketing touted unsubstantiated health claims including purple maize’s purported ability to fight cancer and provide “tons of health benefits.” Obesity and diabetes are serious health problems in Latino communities. As part of the settlement, the company will pay $5,000 in penalties, costs, and fees.

The case was handled by Assistant Attorney General Ellen J. Fried, Deputy Bureau Chief Laura J. Levine and Bureau Chief Jane M. Azia, all of the Consumer Frauds Bureau, and Executive Deputy Attorney General of Economic Justice Karla G. Sanchez. 

NEW YORK – Attorney General Eric T. Schneiderman today announced agreements ending unlawful discrimination and predatory business practices directed at immigrant job seekers by five employment agencies in New York City. The agreements reached with Excellent Employment Agency, United Employment Agency, Patricia Employment Agency, Rivera Employment Agency, and Sunset Employment Services require the businesses to cease engaging in unlawful discrimination when making job referrals, referring applicants to jobs paying below minimum wage, charging excessive fees and refusing to refund advance fees.

These five agencies targeted Spanish-speaking job seekers in two neighborhoods of Queens and Brooklyn. Four of them are located in Jackson Heights and one is in Brooklyn’s Sunset Park neighborhood. An 18-month investigation by the Attorney General’s Civil Rights Bureau found that the agencies collected national origin, gender, and age information from job seekers to unlawfully steer them, in accordance with employers’ discriminatory preferences, away from jobs such as “Mexican pasta man,” “European-looking sales girl,” “delivery, looking for a guy,” “construction 2-3 guys,” and “sales 20-25 years.” In addition, the employment agencies unlawfully referred applicants to jobs paying as little as $3.75 per hour, far below the applicable minimum wage in New York State.  Finally, the employment agencies charged job seekers excessive referral fees and failed to provide refunds of advance fees as required by New York law.

“Employment discrimination against vulnerable populations is an increasing and disturbing trend, and we need to do everything we can to protect job applicants across our state,” Attorney General Schneiderman said. “These agreements will send a strong message: Employment discrimination and exploitation of job seekers – including among our hard-working immigrant communities – are unacceptable. We will continue to fight for a level playing field for New York workers and our law-abiding businesses.”

In addition to requiring compliance with the law, the agreements reached with these five employment agencies require the agencies to report to the Office of the Attorney General any employers that make discriminatory requests for job applicants or seek applicants for jobs paying below minimum wage. These provisions will aid the Attorney General in stopping businesses from using employment agencies to advance discriminatory and other unlawful hiring practices. The agreements also require the employment agencies to revise their policies and procedures, obtain training, and pay a total of $20,000 in penalties, fees, and costs to New York State.

There are over 450 licensed employment agencies in New York State, and more than 360 of them are located in New York City. These agencies are often small, family-run businesses, staffed by a small number of employees, which can serve an important function and have a large impact on their communities.  The five agencies with which the Attorney General has secured agreements have themselves referred hundreds of job seekers to employment each year, advertising in Spanish-language phone books and distributing Spanish-language flyers or business cards.

The agencies located in Jackson Heights are Excellent Employment Agency, located at 88-14 Roosevelt Avenue; the United Employment Agency, at 89-04 Roosevelt Avenue; the Patricia Employment Agency Corp. at 89-18 Roosevelt Avenue; and the Rivera Employment Agency at 82-07 Roosevelt Avenue.  Sunset Employment Services, Inc., operates out of 4905 4th Avenue in Brooklyn.

Julie Menin, Commissioner of the New York City Department of Consumer Affairs, said, “Protecting the rights of immigrants is a top priority for the City, and we commend the New York State Attorney General's office for its continued commitment to protecting consumers from discrimination and unlawful business practices by employment agencies. Many of the bad actors in this industry prey on the most vulnerable and take advantage of their efforts to find a job and provide for their families. We look forward to continuing to work with the Attorney General in our efforts to close down employment agencies that are taking job seekers’ last dollars and leave them with nothing.”

Valeria Treves of New Immigrant Community Empowerment (NICE) said, “For years, the Queens community has been complaining about the predatory, fraudulent and substandard practices of local employment agencies. After conducting and releasing an in-depth study on this issue and shining a spotlight on the problem, we uncovered that this kind of fraud is very widespread. New York City’s new immigrants, many of whom rely on employment agencies to connect them to the job market, are particularly at risk of exploitation by employment agencies. We applaud Attorney General Eric Schneiderman for taking action against this kind of fraud and securing agreements that will help ensure that job seekers will be protected and the law will be enforced against unscrupulous employment agencies.” 

Council Member Julissa Ferreras (21st Council District) said, “As the representative of the district that encompasses Jackson Heights and serves as home to thousands of hardworking immigrants, I know that predatory and abusive employment agencies exploit some the most vulnerable communities among us. Low-wage workers in Jackson Heights deserve meaningful access to employment opportunities.  I applaud Attorney General Eric Schneiderman for going after fraudulent agencies that prey upon vulnerable communities and thank his office for making this issue a civil rights priority.”

State Senator Jose Peralta (13th Senate District) said, “I applaud the Attorney General for this important work. These agreements will serve to protect the most vulnerable members of the labor force, many of them immigrants, who are all too often the targets of predators seeking to profit from their struggles to make ends meet.”

Assemblyman Francisco Moya (39th Assembly District) said, "I want to thank the Attorney General for continuing to protect vulnerable New Yorkers, many of whom are in my district.  Hard working individuals should not be victimized trying to make a living for themselves and their families, and this settlement will go further to ensure fairness."

Assemblyman Felix Ortiz (51st Assembly District) said, “At a time when many New Yorkers are continuing to feel the impact of the Great Recession and the job market has still not recovered, it is important that we protect job seekers and end the exploitative practices at some employment agencies that take advantage of immigrant workers.  I was proud to sponsor legislation this year that sought to crack down on labor sharks and I applaud Attorney General Eric Schneiderman for taking steps to end this predatory behavior."

This matter is being handled by Assistant Attorney General Mayur Saxena and Volunteer Assistant Attorney General Matthew Lemle Amsterdam of the Attorney General’s Civil Rights Bureau, which is led by Bureau Chief Kristen Clarke. Assistant Attorney General Donya Fernandez of the Labor Bureau and Legal Assistant Shamika Rosario also assisted with the investigation. Executive Deputy Attorney General for Social Justice is Alvin Bragg.

The Attorney General's Office is committed to protecting all New Yorkers from unlawful discrimination. To file a civil rights complaint, contact the Attorney General’s Office at (212) 416-8250, civil.rights@ag.ny.gov or visit www.ag.ny.gov.

PEARL RIVER – Attorney General Eric T. Schneiderman today announced the arrest of Kurien Palliankal, the owner of New Rochelle-based transportation company Carewell Ambulette, Inc., on felony charges for allegedly stealing more than $200,000 from the Medicaid program. The individual and his company are charged with altering transportation requests sent to them by medical facilities authorizing taxi pickups and dropoffs for Medicaid patients. The defendants are charged with doctoring the requests during a four year period to claim requests for ambulette service, which is paid by Medicaid at a rate four times higher than for taxis. The corporation and Palliankal, 48, of Yonkers, are charged with top counts of Second Degree Grand Larceny. Palliankal faces a maximum sentence of 5 to 15 years in prison. 

“New York’s important Medicaid program ensures our neediest citizens have access to medical care and that they can get to their doctor,” said Attorney General Schneiderman. “Every dollar stolen from Medicaid impacts our state’s ability to provide this care to those most in need. My office will pursue individuals and companies who steal from the Medicaid program and deprive our citizens of health care.”

Transportation of Medicaid patients to medical facilities requires a request from the medical provider and a prior approval from Medicaid. The provider must request only the level of service which is medically necessary based upon the patient’s medical condition: ambulance, ambulette or taxi. These requests are forwarded to a transportation company, and the transportation company uses them to secure an approval and payment from Medicaid. 

From July 2006 through March 2010, Palliankal and Carewell received over 4,000 request forms from medical providers authorizing taxi transportation. Palliankal changed these request forms from “taxi” to “ambulette,” causing Medicaid to pay a much higher rate for transportation – $31 per ride for ambulette service, compared to the reimbursement rate of $7.50 per ride for taxi service. By falsifying these records, Palliankal and Carewell were able to defraud Medicaid. 

Palliankal and Carewell are each charged with one count of Grand Larceny in the Second Degree, a class C felony; and five counts of Criminal Possession of a Forged Instrument in the Second Degree, a class D felony; Offering a False Instrument for Filing in the First Degree, a class E felony; and Falsifying Business Records in the First Degree, a class E felony. 

Palliankal and the Corporation were arraigned today before the Honorable Susan Kettner in New Rochelle City Court. Palliankal was released on his own recognizance. The charges against the defendants are accusations and the defendants are presumed innocent unless and until proven guilty. 

The Attorney General would like to thank the Westchester County Department of Social Services for its assistance in conducting the investigation.  

The investigation was led by Senior Investigator Frank Bluszcz, Supervising Investigator Peter Markiewicz, Supervising Auditor Investigator Lora Pomponio and Associate Auditor Investigator Melissa Stoebling. 

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

NEW YORK – Attorney General Eric T. Schneiderman today issued an open letter to law enforcement agencies around the state clarifying New York’s clinic protection laws and regulations in the wake of a U.S. Supreme Court’s decision last month that struck down a buffer zone law in the Massachusetts.  While activists in some communities have sought to use the ruling to create confusion about which legal protections remain in place in New York, Attorney General Schneiderman noted that the ruling has no impact on buffer zone requirements already covering 22 counties in New York State. 

“I am committed to protecting the right of every patient in New York to full and safe access to reproductive health care services,” said Attorney General Schneiderman. “We will not allow activists to use a narrowly targeted Supreme Court decision as an opportunity to create confusion about the critical protections here in New York.  Not only do New York State’s clinic protection laws remain completely in place, I am committed to working with our partners in law enforcement to ensure they are fully enforced.”

After receiving reports of protestors allegedly disregarding buffer zones provided for under state law, the Office of the Attorney General sent a formal notice to law enforcement agencies detailing New York’s existing clinic protection laws and regulations.

New York City law establishes a 15 foot buffer zone in front of clinics to prevent harassment and intimidation.  In addition, the United States District Court for the Western District of New York granted a permanent injunction in 2005  requiring a group of 63 individuals and organizations to maintain a 15 foot buffer zone at reproductive health care facilities in the 17 counties in western New York.

Last month, in its decision in McCullen v. Coakley, the Supreme Court struck down a specific 35-foot buffer zone law in Massachusetts.  But the Court also affirmed that states may protect their strong interest in ensuring that citizens have full and safe access to reproductive health services.

In at least one case in Western New York, protestors wrongfully asserted that McCullen v. Coakley allowed protesters to disregard all buffer zone requirements.  In response, Attorney General Schneiderman’s Office issued an open letter clarifying that existing protections remain in place.  

In addition to today’s letter, Attorney General Schneiderman has dispatched investigators to ensure safe and lawful access to reproductive health clinics.

Those who are aware of violations of the state’s clinic protection laws are encouraged to contact local law enforcement agencies and to contact the Civil Rights Bureau in Attorney General Schneiderman’s Office by calling (212) 416-8250 or emailing civil.rights@ag.ny.gov.

Attorney General Schneiderman led a coalition of thirteen states and the territory of the U.S. Virgin Islands in filing a brief with the U.S. Supreme Court in the McCullen v. Coakley case. The brief argued that states require latitude to craft appropriate responses to the unique factual circumstances their citizens face, and that the Massachusetts law was a reasonable restriction on the time, place and manner of speech. In addition to New York, the states joining in the filing with the Supreme Court were California, Connecticut, Hawaii, Illinois, Iowa, Maine, Maryland, Nevada, New Mexico, Oregon, Vermont, Washington, and the territory of the U.S. Virgin Islands.

Memorandum

To:      Law Enforcement Agencies in New York State
From:  Attorney General Eric T. Schneiderman
Date:  July 10, 2014
Re:      Protecting Access to Women’s Health Services.

Last month the Supreme Court issued a ruling in McCullen v. Coakley striking down a Massachusetts state law intended to  protect access to women’s health services. In the wake of that decision, we have received reports of activist groups in parts of New York suggesting to service providers that the Supreme Court invalidated all buffer zones and other protections.  That is not true. 

I am committed to protecting the right of every patient in New York to full and safe access to reproductive health care services.  Not only do New York State’s clinic protection laws remain intact, I am committed to working with your offices to ensure they are fully enforced.

Enclosed please find a pamphlet prepared by my office that details the protections afforded under State law. If you have any questions or would like assistance, please contact my Civil Rights Bureau by calling (212) 416-8250 or emailing civil.rights@ag.ny.gov. (Read the pamphlet here.)

SYRACUSE – Attorney General Eric T. Schneiderman announced today that his office reached an agreement with the Syracuse City School District that will help reduce the high use of exclusionary discipline in the district. The agreement will further the commitment of both the Attorney General and the Syracuse City School District to protect school safety, while ensuring that every student in Syracuse has access to a quality educational environment.

“It is critical that every child in our state has access to a quality education, and the use of zero-tolerance policies by school districts deprives them of that basic right,” Attorney General Eric T. Schneiderman said. “My office is committed to protecting New York’s students by ensuring that districts adopt proven disciplinary policies conducive to a safe and effective learning environment. I applaud the Syracuse School District School Board and Superintendent Sharon L. Contreras for taking steps that will help eliminate the school-to-prison pipeline and expand the pathway to opportunity.”

Last year, the Attorney General’s Civil Rights Bureau began investigating the disciplinary policies and practices of the Syracuse City School District.  Specifically, the bureau reviewed the district’s practices for compliance with Title VI of the Civil Rights Act of 1964, which prohibits state and local government entities receiving federal funding, such as school districts, from discriminating against their students on the basis of race or national origin. Discrimination includes the use of school discipline in a manner that treats similarly situated individuals differently on the basis of race. The bureau also investigated the district’s compliance with the Individuals with Disabilities Education Act (IDEA) and state education law, which provides students facing discipline with certain procedural rights that must be respected.  

The Attorney General’s investigation revealed that the district suspended 30% of its students during the 2012-13 school year, giving it one of the highest rates of suspension in the state and nation. A significant proportion of those suspensions were for non-violent conduct. The Attorney General’s office also found that the district had a record of suspending black students at twice the rate of white students. These disparities persisted even when the conduct at issue was non-violent. The investigation revealed serious procedural deficiencies in the district’s implementation of discipline. The district often failed to provide adequate notice or convene adequate hearings for students facing discipline. Finally, the Attorney General found that students with disabilities were often disciplined for behavior that was directly related to their disability, in violation of federal law. 

Research has shown that suspensions have negative consequences for students, decreasing student achievement and increasing the likelihood that a student will drop out of school or enter the juvenile justice system, often called the school-to-prison pipeline. Moreover, studies have shown that, contrary to popular belief, removing a student from a classroom for disruptive conduct does not improve the performance of the remaining students.  Disciplinary alternatives to suspensions exist that better address student misconduct and do so without the negative effects of suspensions. Given the efficacy of these alternatives, most experts in the field agree that suspension should only be utilized as a measure of last resort.

New York State Education Commissioner John B. King, Jr. said, "What happened in Syracuse schools was deeply harmful to students and completely unacceptable.  But today, the Syracuse City School District is beginning the work to end the harm, address racial inequalities and protect the rights of all students. The agreement today sets an important precedent for districts across the state. The Board of Regents and the Department will continue to work closely with Attorney General Schneiderman to protect students' civil rights in every classroom in every school in New York State." 

“Today, we have come together to ensure that all of our students are provided with a safe and supportive learning environment,” said Syracuse City School District Superintendent Sharon Contreras. “We still have difficult work ahead in order to implement appropriate disciplinary policies and practices. I look forward to working with Attorney General Eric Schneiderman, his Civil Rights Bureau, our dedicated staff and the entire community to provide our children with the highest quality educational opportunities and schools of which we can all be proud.”

“Today’s announcement of the results of the Attorney General’s investigation help bring closure to a difficult chapter for the Syracuse City School District. While challenges continue, we are now able to move forward with a substantive plan for addressing exclusionary discipline practices,” said Mayor Stephanie A. Miner. “I will continue to work closely with the Superintendent, the Syracuse Teachers Association, parents, and community leaders to foster an environment where teachers are treated respectfully and students are treated fairly. I appreciate how everyone has worked together to help address these issues and develop a plan to move forward. I extend my thanks to Attorney General Schneiderman for his leadership and involvement.” 

“As a community we must work together if we truly value education and value our children. We must identify and implement better ways to support our students and our teachers,” said Board of Education President Michelle Mignano. “The Board of Education is committed to providing the best possible education for each of our students.  Our collaboration with the New York State Attorney General’s Office will help us to strengthen our school discipline policies, promote safe schools and most importantly, keep kids in school.” 

Under the terms of the agreement, the District will commit itself to reducing its use of exclusionary discipline against students.  The district will:

• retain an independent monitor to provide oversight during the agreement and audit the district’s compliance with the agreement and with state and federal laws periodically and report his or her findings to the Attorney General’s Office; 
• create plans for the adoption and implementation of preventative techniques at its schools that will be aimed at encouraging students to avoid misbehavior; 
• amend its Code of Conduct to adopt or encourage the use of disciplinary strategies that do not rely on exclusion as a form of discipline, except as a last resort; 
• train its staff on these new preventative strategies, and on the new provisions of the Code of Conduct;
• designate an Ombudsman to help the district and individual schools comply with the new Code of Conduct, and address school-level issues; 
• upgrade its data-keeping and analysis capabilities to ensure that it has the tools necessary to identify issues in its discipline practices and act accordingly;
• enter into a memorandum of understanding with any entity that supplies the District with school safety officers that will provide policies governing officer’s conduct and training for officers on interacting with children in a school environment; and
• implement new measures aimed at informing teachers, parents and students of their rights, and protecting their voices in the formulation of the discipline process. 

This matter was handled by Assistant Attorney Generals Ajay Saini and Sandra Pullman, and Civil Rights Bureau Chief Kristen Clarke. The Executive Deputy Attorney General of Social Justice is Alvin Bragg.

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

NEW YORK – Attorney General Eric T. Schneiderman and New York State Superintendent of Financial Services Benjamin M. Lawsky today released the following statement regarding their motion for a temporary restraining order against the scheduled New York City launch of ridesharing service Lyft:

“After Lyft rejected a reasonable request by the State to delay its launch, we filed a motion for a temporary restraining order in State Supreme Court this morning. As a result of that action, the court has granted the State a temporary restraining order preventing Lyft from launching this evening in New York City. We will return to court on Monday, to address issues pertaining to Buffalo and Rochester in addition to New York City.

"We pursued this action only after repeatedly offering to work with Lyft in order to ensure that its business practices complied with the law. Instead of collaborating with the State to help square innovation with statute and protect the public, as other technology companies have done as recently as this week, Lyft decided to move ahead and simply ignore state and local laws. Lyft’s arguments are a disingenuous attempt to disguise old-fashioned law-breaking that jeopardizes public safety.

"We are pro-innovation and pro-competition, but allowing Lyft to flout dozens of different laws would, in addition to putting the safety of New Yorkers at risk, put law-abiding competitors at a substantial disadvantage -- and discourage innovators from innovating in a place where the regulatory environment is unevenly applied. We are committed to fostering a competitive marketplace where each participant is treated fairly.

"We are hopeful that Lyft will now recognize that it has to play by the same set of rules as everyone else."

MINEOLA – Attorney General Eric T. Schneiderman and Nassau County District Attorney Kathleen Rice today announced that the ringleader of a child modeling scam and the corporation of which he is president were sentenced today for scamming 100 clients of more than $236,000 with promises of lucrative modeling and acting jobs that did not exist.

James Muniz, 45, of Smithtown, and New Faces Development Center, Inc. (also known as Model Talent Development Corp.), were sentenced today to two and a half to five years in prison by Nassau County Court Judge William Donnino. Muniz pleaded guilty to two counts of Grand Larceny in the 3rd Degree (a D felony), one count of Scheme to Defraud in the 1st Degree (an E felony), and one count of Conspiracy in the 5th Degree (an A misdemeanor).

Muniz admitted to the court that he committed these crimes acting in concert with his co-defendants, Michelle Alperin-Smith, 43, of Nesconset; Jennifer Diaz-Domenech, 31, of Brooklyn; and Jennifer Santiago, 26, of Jamaica. Some of the cases against those defendants are pending.

“James Muniz used his business to prey upon proud, loving New York parents, even after the company was prosecuted civilly for committing similar offenses years earlier,” Attorney General Eric T. Schneiderman said. “His sentence sends the message that those who take advantage of unsuspecting New Yorkers will be held accountable. My office will continue working diligently to prosecute fraud, and seek restitution for those who have been victimized.”

“With one broken promise after another, James Muniz and his accomplices turned the hopes and dreams of parents for a better life for their children into a money-making enterprise based entirely on taking advantage of others for a quick buck,” Nassau County District Attorney Kathleen Rice said. “It is my hope that with this sentence, these families will receive solace knowing that the man who deflated those hopes will be spending significant time behind bars.”

Between Jan. 1, 2011 and Nov. 30, 2012, Muniz, along with his co-defendants, approached adults with children and unaccompanied teenagers in Roosevelt Field Mall, Queens Center, Smithtown Mall and other public places and told them that the children or teenagers had modeling or talent potential.

Based on these representations of modeling or talent potential, Muniz and other New Faces employees would persuade clients into purchasing services such as photographs, discs of photographs, and placement of photographs on a website known as Gigacomps.

Muniz and his co-defendants then induced some of their clients to enter into multi-year agreements with New Faces by making false representations that the company had agreements with major retailers such as The Children’s Place, Target, Toys R Us, and Macy’s, and falsely representing that the clients’ children had been selected for multi-year contracts with said major retailers. The defendants also told clients that if immediate payments were not made, the clients would lose those opportunities.

The losses incurred by victims in this case ranged from $500 to $5,100. Victims were also promised refunds that Muniz and his employees never processed.

Muniz and his subordinates were charged in September 2013 after a five-month joint investigation between DA Rice’s office and  the New York State Attorney General’s office, and the AG’s Nassau Regional Office. The investigation identified approximately 100 victims of the scheme.

DA investigators arrested Muniz in October 2013 in Florida, where he fled after being charged in the case. He later waived extradition and returned to New York to face charges. A Nassau County grand jury subsequently indicted Muniz and his co-defendants.

Muniz was also sentenced to six months in jail by Judge Donnino in May after pleading guilty in an unrelated case to Criminal Contempt in the 2nd Degree (an A misdemeanor) for violating an order of protection for his then-wife in 2011.

Diane Peress, chief of DA Rice’s Economic Crimes Bureau, Marshall Trager, chief of DA Rice’s Government and Consumer Fraud Bureau, ADA April Montgomery of DA Rice’s Economic Crimes Bureau, and former Assistant Attorney General Victoria Safran and Senior Investigator Paul Matthews investigated and prosecuted the New Faces case. Safran was cross-designated as an Assistant District Attorney for the purposes of this prosecution for the Attorney General’s Office.

Assistant District Attorney D.J. Rosenbaum of DA Rice’s Special Victims Bureau is prosecuting the criminal contempt case.

Muniz is represented by Joshua Ketover, Esq.

The charges against any of the remaining defendants are merely accusations and the remaining defendants are presumed innocent until and unless found guilty. 

NEW YORK – Attorney General Eric T. Schneiderman and New York State Superintendent of Financial Services Benjamin M. Lawsky today released the following statement regarding their motion for a temporary restraining order against the scheduled New York City launch of ridesharing service Lyft:

“After Lyft rejected a reasonable request by the State to delay its launch, we filed a motion for a temporary restraining order in State Supreme Court this morning. As a result of that action, the court has granted an injunction preventing Lyft from launching this evening in New York City. We will return to court on Monday, to address issues pertaining to Buffalo and Rochester in addition to New York City.

"We pursued this action only after repeatedly offering to work with Lyft in order to ensure that its business practices complied with the law. Instead of collaborating with the State to help square innovation with statute and protect the public, as other technology companies have done as recently as this week, Lyft decided to move ahead and simply ignore state and local laws. Lyft’s arguments are a disingenuous attempt to disguise old-fashioned law-breaking that jeopardizes public safety.

"We are pro-innovation and pro-competition, but allowing Lyft to flout dozens of different laws would, in addition to putting the safety of New Yorkers at risk, put law-abiding competitors at a substantial disadvantage -- and discourage innovators from innovating in a place where the regulatory environment is unevenly applied. We are committed to fostering a competitive marketplace where each participant is treated fairly.

"We are hopeful that Lyft will now recognize that it has to play by the same set of rules as everyone else."

NEW YORK – Attorney General Eric T. Schneiderman today announced a settlement with a waste hauling firm, Casella Waste Systems, Inc., resolving concerns that Casella’s restrictive contracting practices, combined with its market dominance and pattern of acquisitions of smaller competitors, unlawfully restrained competition in the North Country and Southern Tier. The settlement requires Casella to change its contracts to reduce the legal and financial obstacles faced by customers that wish to switch to competing providers. These changes are expected to rejuvenate competition by reducing customers’ switching costs and facilitating new market entry. The settlement also requires Casella to report certain future acquisitions of competitors to the Attorney General’s office, and to make a monetary payment to the State. 

“There must be one set of rules for everyone, especially companies that provide essential services. By fighting for a level playing field in our state’s waste hauling industry, we can ensure New Yorkers receive the benefits of vigorous competition,” said Attorney General Schneiderman. “We will continue to act aggressively to ensure that companies in all areas of the state achieve success by offering customers the best products and services – not through business strategies that artificially entrench their positions.”

The Casella contracts in question involved the collection and disposal of solid waste from Dumpsters. The Attorney General’s Office found that Casella’s contracts with its customers required that Casella serve as the exclusive provider of all customers’ waste hauling services for as long as five years. Customers faced severe consequences for early cancellation of their contracts, due to provisions requiring that they pay Casella an amount equal to six times their monthly bill upon early termination. The contracts also granted Casella the right to match competing offers, further discouraging competitors from bidding on the business. 

In the waste hauling business, fixed costs are sufficiently high that a would-be competitor must achieve a minimum efficient scale and route density in order to offer competitive service and pricing to customers. When most potential customers are locked up in long-term contracts, it is very difficult for a new firm (or a smaller existing firm) to find sufficient business in the short-to-medium term to achieve levels of scale and route density that will allow it to compete effectively with a dominant incumbent. As a result, long term, restrictive contracts can raise the costs and risks associated with new entry or expansion in a market, and tend to entrench the market position of the dominant firm. In this case, Casella’s market position was also strengthened by its pattern of acquiring smaller competitors in its key markets. 

Under the settlement, Casella has agreed not to enroll customers in contracts with an initial term of more than two years. Casella also agreed to reduce its penalty for early termination to three months’ service for the first year of a contract, and to only one month’s service after the first year. In addition, Casella agreed to notify the Attorney General if it acquires a competitor of a minimum size in certain key upstate counties. The settlement applies to the counties where Casella has the strongest market presence: St. Lawrence, Franklin, Clinton, Chautauqua, Cattaraugus, Allegany, Steuben, Schuyler, Chemung and Tompkins. Casella also agreed to make a monetary payment to New York State in the amount of $100,000. 

Casella entered into similar settlements with the Vermont Attorney General’s office in 2002 and 2011.

This matter was handled by Antitrust Bureau Chief Eric J. Stock; Assistant Attorneys General Zachary W. Biesanz, Amy McFarlane, and Joseph Antel; and Executive Deputy Attorney General Karla G. Sanchez.

A copy of today's agreement can be viewed here.

NEW YORK – Attorney General Eric T. Schneiderman today joined members of a state and federal working group he co-chairs to announce that $182 million – $92 million in cash, and at least $90 in consumer relief – would be allocated to New York State as part of a $7 billion settlement with Citigroup. As part of the settlement, Citigroup acknowledged it made serious misrepresentations to the public – including the investing public – arising out of the packaging, marketing, sale and issuance of residential mortgage-backed securities (RMBS) by Citigroup. The resolution also requires Citigroup to provide relief to underwater homeowners, distressed borrowers, and affected communities through a variety of means including financing affordable rental housing developments for low-income families in high-cost areas. 

The settlement requires Citi to pay $4.5 billion in hard dollars and provide $2.5 billion in consumer relief. New York State will receive at least $182 million: $92 million in cash and a minimum of $90 million in consumer relief for struggling New Yorkers. The settlement was negotiated through the Residential Mortgage-Backed Securities Working Group, a joint state and federal working group formed in 2012 to share resources and continue investigating wrongdoing in the mortgage-backed securities market prior to the financial crisis. Attorney General Schneiderman co-chairs the RMBS working group.

“Since my first day in office, I have insisted that there must be accountability for the misconduct that led to the crash of the housing market and the collapse of the American economy,” said Attorney General Schneiderman. “This settlement will build upon our work bringing relief to homeowners around the country and across New York, and is exactly what our working group was created to do. Systemic frauds harmed thousands of New York homeowners and investors, and today's result is a major victory in the fight to hold those who caused the financial crisis accountable.” 

The settlement includes an agreed-upon statement of facts that describes how Citigroup made representations to RMBS investors about the quality of the mortgage loans it securitized and sold to investors.  Contrary to those representations, Citigroup securitized and sold RMBS with underlying mortgage loans that it knew had material defects. As the statement of facts explains, on a number of occasions, Citigroup employees learned that significant percentages of the mortgage loans reviewed in due diligence had material defects.  In one instance, a Citigroup trader stated in an internal email that he “went through the Diligence Reports and think[s] [they] should start praying . . . [he] would not be surprised if half of these loans went down. . . It’s amazing that some of these loans were closed at all.”  Citigroup nevertheless securitized the loan pools containing defective loans and sold the resulting RMBS to investors for billions of dollars.  This conduct, along with similar conduct by other banks that bundled defective and toxic loans into securities and misled investors who purchased those securities, contributed to the financial crisis.

Attorney General Schneiderman was elected in 2010 and took office in 2011, when the five largest mortgage servicing banks, all 50 state attorneys general, and the federal government were on the verge of agreeing to a settlement that would have immunized the banks – including Citigroup – from liability for virtually all misconduct related to the financial crisis. Attorney General Schneiderman refused to agree to such sweeping immunity for the banks. As a result, Attorney General Schneiderman secured a settlement that preserved a wide range of claims for further investigation and prosecution. 

In his 2012 State of the Union address, President Obama announced the formation of the RMBS Working Group. The collaboration brought together the Department of Justice (DOJ), other federal entities, and several state law enforcement officials – co-chaired by Attorney General Schneiderman – to investigate those responsible for misconduct contributing to the financial crisis through the pooling and sale of residential mortgage-backed securities. The negotiations for settlement, which were led by Associate Attorney General Tony West of DOJ, were part of the RMBS Working Group.

Under the settlement, Citi will be required to provide a minimum of $90 million in direct consumer relief to struggling consumers, which will include principal forgiveness on first and second mortgages, mortgage refinancing at lower interest rates and financial assistance for down payments and closing costs for first-time or returning home-buyers.  

The settlement also includes a series of new mandates, which are intended to assist local governments with their community revitalization efforts. These include requirements for Citi to provide direct funding to support land banks and similar community development agencies working to revitalize distressed and underutilized housing, and a program that will create low-cost rental housing for low- and moderate-income families.

The settlement also requires Citi to provide direct funding to support legal services and housing counseling agencies that provide no cost representation to struggling homeowners. In New York, Attorney General Schneiderman has made significant investments in these services under his Homeowner Protection Program (HOPP). Attorney General Schneiderman’s program funds roughly 90 organizations across the state under the HOPP program, and they have served a combined total of nearly 30,000 families since the program launched in October of 2012.

As a result, families in New York have reaped significant benefits from previous Agreements like the National Mortgage Settlement. Where as the Department of Housing and Urban Development (HUD) initially estimated that New York homeowners would receive approximately $600 million in benefits under that settlement, thanks in large measure to the HOPP network and its proactive representation of homeowners, families in New York ultimately received more than $2 billion in mortgage benefits.

Compliance with the settlement will be overseen by a federal monitor who will be responsible for ensuring that targets under the settlement are met and that quarterly reporting requirements which will measure how relief is being allocated at a Census Tract level are made available to the public.

NEW YORK – Attorney General Eric T. Schneiderman today announced an agreement with Labor Ready, which operates offices, across New York and other states, that provide temporary-staffing services to a wide range of employers. The agreement requires Labor Ready to implement a nationwide program to train its job placement employees about laws that require payment of at least the “prevailing wage” rates to workers on public work projects, including construction or maintenance of public buildings. In addition, the agreement requires Labor Ready to pay $10,000 in restitution to two workers, and to pay $10,000 in penalties.  

“Labor Ready is a large corporation that dispatches thousands of workers to a wide range of worksites across the country every year,” said Attorney General Schneiderman. “It’s unacceptable that Labor Ready's job placement employees would be  unaware of basic prevailing wage laws that exist to protect workers on our most important public work projects, such as building schools, hospitals, and other public buildings.” 

In summer 2012, Labor Ready’s Hempstead branch office dispatched two workers to a school construction site in Bellmore, Long Island without identifying the job as a public work project. Instead of paying the required prevailing wage rates, Labor Ready paid the workers $8 per hour. Federal and state prevailing wage laws seek to ensure that contractors on government projects pay wages and benefits that are comparable to the local norms for a given trade, typically well above the minimum wage. 

In addition to the violations related to these two employees, the investigation by the Attorney General’s Labor Bureau revealed that not only were Labor Ready job placement employees at the Hempstead branch office inadequately trained about prevailing wage requirements, but also that Labor Ready overall lacked an effective system to ensure that its job placement staff could appropriately identify prevailing wage jobs. Labor Ready has previously been cited and/or investigated for violations of state and federal prevailing wage laws in, among other locations, Oregon, Missouri, and Illinois. 

Under the Attorney General’s agreement, Labor Ready will implement a nationwide training program that will educate its job placement employees about public work legal requirements on at least an annual basis, and will send regular reports to the Attorney General regarding employee trainings. Labor Ready will also require employers seeking workers in New York State to certify that they will comply with the law, and will not work with employers who Labor Ready knows are subject to an unsatisfied court or agency decision concerning unpaid wages. Also, for prevailing wage jobs, Labor Ready will not place employees at any companies which are on publicly available debarment lists.  In addition, Labor Ready must establish a system for remedying prevailing wage violations in a timely fashion, including through payment of back wages to affected workers, or face considerable fines.  

“This settlement is simply groundbreaking in its scope and will help to ensure that workers across the country are protected from wage theft,” said James W. Versocki of Archer, Byington, Glennon & Levine, LLP, a labor law firm in Melville, N.Y. that represents construction trade unions and referred the case to the Attorney General's office. “We are thankful that the Attorney General and the Labor Bureau saw the merit of this referral and turned a local problem into a national solution; this type of innovative approach to law enforcement is a model that should be emulated.” 

In a joint statement, workers Lance and Lloyd Brown said, “Our family believes in hard work. But no matter how hard you work, it’s difficult to keep up with expenses and take proper care of our family, especially in these tough times. The fact that we got paid just a fraction of the salary of others who did exactly the same work is insulting and unfair. We are very grateful that Attorney General Schneiderman is taking on the tough fights to protect the wages we deserve for our hard work”. 

The case was handled by Assistant Attorney General Haeya Yim, Labor Bureau Section Chief Andrew Elmore, and Bureau Chief Terri Gerstein. The Executive Deputy Attorney General for Social Justice is Alvin Bragg.

NEW YORK – Attorney General Eric T. Schneiderman today issued the following statement on two decisions by New York State Supreme Court Justice Roger McDonough dismissing two lawsuits seeking to force the New York State Department of Environmental Conservation to terminate its ongoing review of the environmental impacts related to high-volume hydrofracking:

“The court’s decision to allow the state review of hydrofracking risks to continue is an important victory in our effort to ensure all New Yorkers have safe water to drink and a clean, healthy environment. New Yorkers are rightly concerned about studies showing the environmental risks associated with hydrofracking. We should not allow hydrofracking to begin in New York until the Department of Health completes its analysis of its impact on public health. Given the risks of contamination to wells and the aquifer that supplies drinking water to many New Yorkers, we need to make sure we can safeguard our water before we move forward.”   

Last year, the trustee of the bankrupt gas development company Norse Energy and the Joint Landowners Coalition of New York brought suit in New York State Supreme Court in Albany County against the New York State Department of Environmental Conservation (DEC), the New York State Department of Health (DOH), and Governor Cuomo.  Both suits asked the Court to compel the DEC to terminate its environmental review of hydrofracking.  

Attorney General Schneiderman’s office represented the State defendants in the cases, asking the Court to dismiss the lawsuits.  In his ruling, Supreme Court Justice McDonough dismissed the two suits in their entirety.

This matter was handled by Assistant Attorneys General Morgan Costello and Stephen Nagle of the Attorney General’s Environmental Protection Bureau. The Environmental Protection Bureau is led by Bureau Chief Lemuel Srolovic and Deputy Bureau Chief Lisa Burianek.   

NEW YORK – Attorney General Eric T. Schneiderman today issued a new report examining the growing number, complexity, and costs of data breaches in the New York State. Using information provided to the Attorney General’s Office pursuant to the New York State Information Security Breach & Notification Act, the report, titled "Information Exposed: Historical Examination of Data Security in New York State, analyzes eight years of security breach data and how it has impacted New Yorkers. 

The report reveals that the number of reported data security breaches in New York more than tripled between 2006 and 2013. In that same period, 22.8 million personal records of New Yorkers have been exposed in nearly 5,000 data breaches, which have cost the public and private sectors in New York upward of $1.37 billion in 2013. In addition, the report also found that hacking intrusions – in which third parties gain unauthorized access to data stored on a computer system – were the leading cause of data security breaches, accounting for roughly 40 percent of all breaches. Attorney General Schneiderman’s report also presents new recommendations on steps that both organizations and consumers can take to protect themselves from data loss.

“As we increasingly share our personal information with stores, restaurants, health care providers and other organizations, we should be able to enjoy the benefits of new technology without putting ourselves at risk. Unfortunately, our expansive look at data breaches found that millions of New Yorkers have been exposed without their knowledge or consent. It’s clear that a broad, concerted public education campaign must take place to ensure that all of us – from large corporations, to small businesses and families – are better protected,” said Attorney General Schneiderman. “Moving forward, I will advocate for collaboration between industry and security experts to ensure that organizations across the state and country have access to the tools needed to secure our data, so we can best address this complex and growing problem.”

2013 was a record-setting year in data security breaches, during which 7.3 million records of New Yorkers were exposed in more than 900 data security breaches. The massive number of affected New Yorkers in 2013 was largely driven by two retail mega-breaches at Target and Living Social, which have led some to dub 2013 “The Year of the Retailer Breach.” So-called mega-breaches have also becoming increasingly common: Five of the 10 largest breaches reported to the Attorney General’s Office have occurred since 2011.

No organization is exempt from this trend: In the eight-year period analyzed by today’s report, a widely diverse set of organizations ranging from local family businesses to large multinational corporations reported data security breaches to the Attorney General’s Office. While the most recent and widely publicized mega-breaches have involved retailers, data breaches have also impacted the health care and financial services industries.

The demand on secondary markets for stolen information remains robust. Freshly acquired stolen credit card numbers can fetch up to $45 per record, while other types of personal information, such as Social Security numbers and online account information, can command even higher prices. Non-financial information can be even more valuable, as fraudulent use is more difficult to detect and the information can be used for a broader range of purposes. For example, a stolen Facebook account can provide an access point to a wide range of user accounts, or can be used as a vehicle to steal information from others within that individual’s social network.

Despite the risks posed by data security breaches, individuals and organizations can take practical steps to better guard themselves from threats. While it may be impossible to completely prevent data loss, organizations that implement data security plans can greatly reduce the harm caused by a data security breach. In addition, individuals can remain vigilant and take action to protect themselves against breaches.

The Attorney General’s Office recommends that organizations follow these simple steps to help protect sensitive personal information against unauthorized disclosures. 

• Understand Where Your Business Stands:The first step toward an effective data security policy is to understand what information your business requires for its operation, what data have already been collected and stored, how long the data are needed and what steps have been taken to ensure security. Organizations should review how sensitive data are acquired, how sensitive information is being shared with third parties, and what access controls are in place. 
• Identify and Minimize Data Collection Practices:Put simply, data that do not exist cannot be stolen or lost. Collect only information that you need, store it only for the minimum time that you need it, and deploy data minimization tactics wherever possible. For example, if your company uses a point-of-sale system, ensure that expiration dates are not stored with credit card numbers. Reduce the use of highly sensitive data points, such as Social Security numbers, unless absolutely necessary, and minimize the length of retention for such data.  Delete any information you no longer need.
• Create an Information Security Plan That Includes Encryption:Creating a comprehensive Information Security Plan is a complex but necessary endeavor. Studies show that entities with an effective plan will articulate not only technical standards but will incorporate training, awareness, and detailed procedural steps in the event of data breaches. Read more about what a comprehensive security plan should include in the report. 
• Implement an Information Security Plan:Successful implementation of a thoughtfully designed plan can be one of the most effective ways to minimize the risk of a data breach. Elements to consider when implementing a plan include ensuring employees are aware of the plan and conducting regular reviews to ensure the plan continues to conform with evolving best practices.
• Take Immediate Action in the Event of a Breach:Remember to investigate all security incidents immediately and thoroughly. In the event of a breach, the law may require you to notify consumers, law enforcement, state Attorney Generals’ offices, credit bureaus and other businesses.
   
• Offer Mitigation Products in the Event of a Breach:While not required by law, New Yorkers affected by a data breach should be provided with mitigation services for free. These include credit monitoring, which provides alerts, usually by email, whenever an application for new credit is submitted to a consumer credit reporting agency, and a security freeze, which blocks new credit accounts. The cost of clearing up the consequences of identity theft can easily reach into the thousands of dollars and require hundreds of hours attending to administrative burdens.  

The Attorney General’s Office suggests that consumers guard against threats in the following ways:

• Create strong passwords for online accounts and update them frequently. Use different passwords for different accounts, especially for websites where you have disseminated sensitive information, such as credit card or Social Security numbers. 
• Carefully monitor credit card and debit card statements each month.If you find any abnormal transactions, contact your bank or credit card agency immediately. 
• Do not write down or store passwords electronically. If you do, be extremely careful of where you store passwords. Be aware that any passwords stored electronically (such as in a word processing document or cell phone’s notepad) can be easily stolen and provide fraudsters with one-stop shopping for all your sensitive information. If you hand-write passwords, do not store them in plain sight. 
• Do not post any sensitive information on social media.Information such as birthdays, addresses, and phone numbers can be used by fraudsters to authenticate account information. Practice data minimization techniques. Don’t overshare.
• Always be aware of the current threat landscape. Stay up to date on media reports of data security breaches and consumer advisories.  

The Attorney General’s Office recommends taking the following steps if you believe you have been victimized by a data security breach: 

• User Names and Passwords:For user names and passwords, change them immediately on the relevant account  and monitor the account for unusual activity. If you use the same user name or password on other accounts, change those as well.  
• Credit Card Numbers:For breaches involving credit card numbers, Social Security numbers and other sensitive numbers, create an Identity Theft Report by filing a complaint with the Federal Trade Commission and printing your Identity Theft Affidavit. You can call the Federal Trade Commission (FTC) at 1-877-438-4338 or complete the form online here. Use the Identity Theft Affidavit to file a police report and create your Identity Theft Report. An Identity Theft Report will help you deal with credit reporting companies, debt collectors and any fraudulent accounts that the identity thief opened in your name.  You may also want to put a fraud alert and/or security freeze on your credit report by notifying each of the credit reporting agencies (Equifax, TransUnion or Experian).  A security freeze remains on your credit file until you remove it or choose to lift it temporarily when applying for credit services. 

Contact information for the credit reporting agencies: 

Equifax 1-800-525-6285 

Experian 1-888-397-3742 

TransUnion 1-800-680-7289

NEW YORK – New York Attorney General Eric T. Schneiderman and Illinois Attorney General Lisa Madigan today urged the Federal Communications Commission (FCC) to strengthen rules to safeguard democracy on the Internet and preserve net neutrality. In comments submitted to the Commission and a letter to Chairman Tom Wheeler, Attorney General Schneiderman and Attorney General Madigan argue that the FCC must ensure the continued “dynamism of the Internet” by protecting its low barriers to entry and equal treatment for all content providers, which can be upheld only through the principles of an Open Internet, or net neutrality.

“Preserving one set of rules for everyone includes protecting the right of every business or organization seeking to access customers through the web to do so on a level playing field. It also includes ensuring that everyone has free and open access to the Internet and the essential services it provides,” said Attorney General Schneiderman. “With our letter and comments to the FCC, we are standing up for the new makers, thinkers and entrepreneurs who seek to better the online marketplace, who must be allowed to continue to innovate on the same terms as established businesses.”

“The Internet was built upon a simple but powerful concept that ensured equal access to everyone,” Attorney General Madigan said. “That standard must be maintained to ensure that the Internet continues to be a driver of innovation and economic opportunity for businesses and an open marketplace for consumers.” 

In their letter and comments, the attorneys general emphasized the role that net neutrality and non-discrimination principles play in furthering vigorous competition and innovation on the web. Currently, startups are able to provide new content to consumers at the same speed as established providers, a system that empowers consumers to access, on demand, any online application or service that they would like to use. However, the attorneys general noted that, without net neutrality, commercial interests would be permitted to outpace the best interests of the marketplace, with the broadband industry charging content providers for priority treatment, or access to an Internet “fast lane.”

“The Internet is the public square of the 21st Century, and the voices of the digital haves, who can afford to pay for preferential treatment, will drown out the digital have-nots,” the attorneys general wrote. “In effect, the Information Superhighway will become a toll road. Those who pay will rapidly reach their audiences, while newcomers, startups, and others with limited resources will be left behind.”

In the comments submitted to the FCC, the attorneys general encouraged the Commission to change its classification of broadband Internet access from an “information service” to a “telecommunications service.” This would enable the Commission to apply common carrier obligations to broadband providers. The attorneys general argued that such a move would protect net neutrality principles by obligating broadband providers to deliver traffic of all users “indifferently,” without depriving them of the ability to efficiently manage their network operations to accommodate “the different costs, functions, and burdens imposed by various users.”  

The full text of today’s letter is below.

July 15, 2014

Tom Wheeler
Chairman
Federal Communications Commission
445 12th Street NW
Washington, D.C.  20554

Dear Chairman Wheeler:

We have filed a Comment on Proceeding Number 14-28, Protecting and Promoting the Open Internet, to strongly urge the Federal Communications Commission to strengthen rules to safeguard democracy on the Internet and preserve “net neutrality.” An Open Internet has been the foundation for unprecedented innovation and growth over the past two decades and the FCC must ensure this foundation is maintained.

Principles of openness and freedom have propelled the Internet from a tiny government research project into the world’s most important platform for innovation, commerce, and social change. It is the launching pad for new ideas, new industries, and new movements. But the dynamism of the Internet depends on its low barriers to entry. Unlike television and other broadcast media, reaching an Internet audience requires little more than a computer and a broadband connection. This is thanks in no small part to the non-discrimination principle that can only be upheld through net neutrality. The Internet we know today was built upon the notion that all content is created equal—whether provided by an independent blogger or by YouTube—and this content must receive equal treatment from broadband providers. 

On today’s Internet, a startup business has the opportunity to reach its customers at the same speeds as Amazon. A new thinker can compete in the marketplace of ideas on the same terms as an established one. Consumers are ultimately in the driver’s seat, with individual users, not broadband providers, choosing the content they receive on demand.  Under the existing rules, Internet service providers have advanced alongside content providers, with the dial-up service of yesterday yielding to the broadband access of today.

Any move away from net neutrality and from the non-discrimination principle would represent a serious blow to fair competition and innovation on the web. It would hand the keys to this vital platform over to narrow commercial interests, allowing the broadband industry to charge content providers for preferential treatment or “prioritization.” Content providers who agree to pay will receive access to a more reliable Internet “fast lane.” Meanwhile, broadband providers will have no incentive to upgrade or even maintain non-premium service. As they seek to convert more content providers into paying customers, the “slow lane” will only get slower. 

In a world without net neutrality, new Internet ventures will not be able to compete with established companies who can shoulder the added costs to deliver content on demand—regardless of whether they offer a better product. Startups that depend on reliable access to their user base might never be funded, with investors deterred by the extra expense. The Internet is the public square of the 21st Century, and the voices of the digital haves, who can afford to pay for preferential treatment, will drown out the digital have-nots. 

In effect, the Information Superhighway will become a toll road. Those who pay will rapidly reach their audiences, while newcomers, startups, and others with limited resources will be left behind. 

Fortunately, this result is entirely avoidable. In your rulemaking, we urge you to strengthen provisions that protect net neutrality and to preserve the Internet as an open and vibrant platform for innovators, thinkers, and entrepreneurs.

Sincerely,

Eric T. Schneiderman

Lisa Madigan

NEW YORK – Attorney General Eric T. Schneiderman today announced a settlement with Apple Inc. arising out of Apple’s participation in a price-fixing conspiracy that a federal court in New York found raised the prices of E-books sold to consumers in New York and throughout the country. The settlement agreement, which must be approved by the court, has the potential to result in payments to consumers of $400 million, and would resolve claims for consumer damages and civil penalties brought by New York and 32 other states and territories. 

“This settlement proves that even the biggest, most powerful companies in the world must play by the same rules as everyone else,” said Attorney General Schneiderman. “In a major victory, our settlement has the potential to result in Apple paying hundreds of millions of dollars to consumers to compensate them for paying unlawfully inflated E-book prices. We will continue to work with our colleagues in other states to ensure that all companies compete fairly with the knowledge that no one is above the law.”

Under the settlement, the amount that Apple must pay E-book consumers is contingent on what happens in Apple’s appeal of the court’s July 2013 finding that Apple violated antitrust laws by orchestrating a conspiracy with five publishers to artificially raise E-book prices. Consumers nationwide (including those represented by private counsel in a related class action) will receive $400 million if the Court’s ruling that Apple violated antitrust laws is ultimately affirmed. If the Court’s ruling is not affirmed, the settlement provides for a smaller recovery of $50 million if liability must be retried, or no recovery if Apple is determined not to have violated antitrust laws. New York consumers are expected to receive approximately 7 percent, or as much as $28 million, from any amount that Apple is ultimately required to pay. In the event that the Court’s decision is upheld on appeal, Apple will also make payments to the 33 states of $20 million to resolve the states’ claims for costs, fees, and civil penalties. 

Any amount received by consumers pursuant to the settlement with Apple will be in addition to those amounts already recovered from several E-book publishers.  E-book purchasers nationwide have already received compensation from $166 million in settlement funds paid by the five publishers involved in the conspiracy – Penguin Group (USA), Inc. (now part of Penguin Random House); Holtzbrinck Publishers LLC d/b/a Macmillan; Hachette Book Group Inc.; HarperCollins Publishers LLC, and Simon & Schuster Inc.  Many E-Book consumers received these funds through automatic credits sent by Amazon and other E-book retailers.

The E-book antitrust cases involved lawsuits brought by the state attorneys general, a related action by the U.S. Department of Justice, and a related class action brought by private counsel representing consumers in 18 additional states. New York, together with Texas and Connecticut, played a leading role in the state AG cases during the damages phase of the litigation.  Apple has also agreed to make a payment of attorneys’ fees to counsel in the class action in the event that there is a consumer recovery under the settlement.

For New York, this matter was handled by Assistant Attorneys General Bob Hubbard and Linda Gargiulo; Acting Antitrust Deputy Bureau Chief Geralyn Trujillo; Antitrust Bureau Chief Eric Stock, and Executive Deputy Attorney General Karla G. Sanchez.

BUFFALO – Attorney General Eric T. Schneiderman today announced that Justice John F. O’Donnell sentenced George Anna, a Western New York home improvement contractor, to 90 days in jail. In 2012, the Attorney General obtained a court order barring Anna from the home improvement business unless he first posted a $100,000 performance bond. In the 2012 case, the Attorney General proved that, time and time again, Anna took money from consumers and failed to provide the home improvement services for which he had been paid. 

Recently, Attorney General Schneiderman’s office learned that Anna was again holding himself out as a home contractor, despite never having posted the bond. An investigation by the Attorney General showed that, despite the court order, Anna again was taking money for home improvements, but not providing the services – the very conduct that led to the court order in the first place. In addition to imprisonment, the Court further required that Anna pay a fine of $30,000.

“Despite a court order that explicitly barred him from doing so, George Anna chose to blatantly take advantage of hardworking New Yorkers yet again,” Attorney General Eric T. Schneiderman said. “His prison sentence and fine send the message that ignoring a court order and preying upon innocent consumers will not be tolerated.”      

Attorney General Schneiderman offers the following tips for consumers dealing with home contractors:

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

This case was handled by Assistant Attorney General James Morrissey and Karen Davis, Senior Consumer Fraud Representative in the Buffalo Regional Office, which is led by Michael Russo, Assistant Attorney General in Charge. The Buffalo Regional Office is a part of the Division of Regional Offices, led by Marty Mack, Executive Deputy Attorney General for Regional Offices.