TROY – Attorney General Eric T. Schneiderman today announced the arrest of Troy Police Officer Brian Gross for purposefully revealing to at least one suspect that law-enforcement agencies conducting a joint investigation into a Capitol Region drug ring planned to execute search warrants, according to a felony complaint. Officer Gross is charged with Tampering with Physical Evidence, a felony, as well as two counts of Official Misconduct and one count of Obstructing Governmental Administration. Officer Gross is scheduled to appear in Troy city court on Wednesday.

“Revealing confidential information threatens the safety of law-enforcement agents and jeopardizes criminal investigations,” said Attorney General Schneiderman. “It’s particularly troubling to see an officer accused of abusing his position while violating the very laws that he’s sworn to protect.”

"The actions of this officer not only interfered with highly sensitive intelligence gathering on drug activity, it put the lives of our law enforcement officers in jeopardy," New York State Police SuperintendentD’Amico said. "The success of these types of narcotics investigations could not be achieved without the hard work and dedication of our members working closely with our partners in law enforcement. It is unfortunate that this officer chose to breach that trust, abuse his authority and undermine a criminal investigation."

Since 2013, the NYSP’s Community Narcotics Enforcement Team (CNET) had been investigating a specific criminal narcotics ring in Rensselear County. Officer Gross was assigned to assist CNET with the operation and thus had knowledge of and access to investigative intelligence, suspect information and details concerning the timing and location of search warrants. 

Investigators became suspicious when, upon executing search warrants in February at five locations where extensive evidence of drug activity had already been observed, there was no discernible evidence of the drug enterprise. One of the residences searched was that of a suspect identified in the criminal complaint as “Person #2.” This person subsequently informed NYSP investigators that he’d been told by “Person #1” of CNET’s investigation into “Person #2” for drug trafficking and that a search warrant would be executed in the next few days. According to the complaint, “Person #1” admitted receiving this information directly from Officer Gross, who arranged in-person meetings via text message. 

Further investigation by the Attorney General’s Office revealed that Officer Gross allegedly warned that “Person #2” had better “watch [his] back” because he had come to the attention of the State Police. According to the felony complaint filed today, in the week prior to the execution of search warrants, Officer Gross again warned that there better not be any drugs inside the home of “Person #2” because “there was a good chance the police would be getting a warrant.” In interviews with investigators, “Person #1” acknowledged warning “Person #2” to remove any drugs from his residence, based on the information from Officer Gross.

The arrest is the result of a 5-month long joint investigation between the Attorney General’s Office and the New York State Police. 

Attorney General Schneiderman has aggressively prosecuted public corruption since taking office. He has prosecuted 40 politicians, government employees and nonprofit officials in less than four years in office.

Prosecuting the case is Assistant Attorney General Bridget Holohan-Scally of the Attorney General’s Public Integrity Bureau, which is led by Deputy Bureau Chief Stacy Aronowitz, Bureau Chief Daniel Cort and Executive Deputy Attorney General for Criminal Justice Kelly Donovan. The investigation was handled by Deputy Chief Antoine Karam and Investigator Dennis Churns of the Attorney General's Investigations Bureau, which is led by Chief Dominick Zarrella.

SCHENECTADY -- Attorney General Eric T. Schneiderman today announced the arrest and indictment of Jacqueline Gentile,  chief operating officer of 820 River Street, Inc. and The Altamont Program Inc., which are subsidiaries of the Peter Young Housing, Industries and Treatment (PYHIT). The indictment, which was voted by a Schenectady County grand jury earlier this week, charges Gentile with 15 felony counts, including Grand Larceny, for allegedly stealing over $1 million in state funds by directing that state contracts intended to help needy New Yorkers instead be used to alleviate organizational deficits and pay employee salaries. Gentile also falsified business records by completing false timesheets for former New York State Senator William F. Boyland, Sr., who was purportedly a full-time employee but, according to documents filed in court, had what amounted to a no-show job. 

“This indictment sends the message that there has to be one set of rules for everyone and that those who use a charity to rip off New Yorkers will be prosecuted,” said Attorney General Schneiderman. “New York has the greatest nonprofit sector in the country, and this case reminds us that we must vigilantly protect it. I am committed to using every tool at my disposal to prevent people from abusing the public trust and cheating charities out of the funds they need to perform vital services.”

PYHIT is an umbrella organization operating through five nonprofit subsidiaries in New York:  820 River Street, Inc.; The Altamont Program, Inc.; VESTA Community Housing Development Board, Inc.; Peter Young Shelter Services, Inc., and The Father Peter G. Young, Jr. Foundation, Inc. The Attorney General’s Office has been investigating PYHIT for more than a year and that investigation is still active and ongoing  Gentile is the fifth high-ranking PYHIT employee to be charged with felonies in connection with that investigation. According to documents filed in court, several witnesses have described to investigators a “culture of corruption” within PYHIT.  Gentile has held a leadership role with PYHIT for over a decade.

Four other current or former PYHIT employees have already pleaded guilty to crimes including Grand Larceny and Falsifying Business Records. Most notably, Dennis Bassat and Dawn LaCarte, formerly the COO and executive director of 820 River Street, Inc,, respectively, admitted stealing approximately $200,000 from the company. 

According to court papers filed today, the investigation revealed that from 2005 to 2009, The Altamont Program, Inc. received approximately $1.5 million in state funds that were sponsored by former New York State Assemblyman William Boyland, Jr.  During this time, five contract proposals for approximately $300,000 each were submitted by Altamont and approved by the State. The stated purpose of each proposal, as well as the accompanying vouchers and fiscal reports, was to support substance abuse or training programs based in Brooklyn.

However, according to today’s indictment and other court papers, the majority of grant funds  were not allocated to those programs.  Rather than using the state monies for the intended contract purposes, the defendant is alleged to have directed or permitted the funds to be used to alleviate organizational deficits and to pay employees’ salaries, including her own. Several witnesses have provided statements to the Attorney General’s Office and FBI supporting these charges. Numerous business records and government documents further support the charges. The Attorney General’s investigation also indicated that, since at least 2006, the company’s financial picture was in continuous decline.  

Additionally, from approximately August 2009 through January 2010, Gentile allegedly completed false 820 River Street, Inc. timesheets for William Frank Boyland, Sr., the father of former New York State Assemblyman William Boyland, Jr. While employment records of 820 River Street Inc., listed Boyland Sr. as a full-time employee, the investigation revealed that he did not work the hours claimed and Gentile allegedly knew the records she filed were false. Government funding accounted for over 90 percent of 820 River Street, Inc.’s revenue and paid for approximately 90 percent of Boyland Sr.’s $50,000 salary.

The indictment, which was unsealed today in Schenectady County Court, charges Gentile with one count of Grand Larceny in the First Degree; two counts of Offering a False Instrument for Filing in the First Degree, and 12 counts of Falsifying Business Records in the First Degree. The top count of the indictment carries a maximum sentence of 8 1/3 to 25 years in state prison.  

The Attorney General thanks Special Agents Timothy Coll and Michelle Pherson of the FBI’s Albany office and auditors John Rybaltowski, Richard Cicero, James Newell and Michael Kester of the NYS Justice Center for the Protection of People with Special Needs for their invaluable cooperation and assistance in this investigation.  

Prosecuting the case are Assistant Attorneys General Darren Miller, Colleen Glavin and YuJin Hong of the Attorney General’s Public Integrity Bureau, which is led by Chief Daniel Cort, Deputy Bureau Chief Stacy Aronowitz, and Executive Deputy Attorney General for Criminal Justice Kelly Donovan. The investigation was handled by Mark Spencer and Antoine Karam of the Attorney General's Investigations Bureau, which is led by Chief Dominick Zarrella, with assistance provided by forensic auditor Jason Blair. 

The charges are merely accusations and all defendants are presumed innocent unless and until proven guilty in a court of law.

Anyone with additional information on this matter is asked to call the Attorney General’s Office at 518-474-8686.

NEW YORK - Attorney General Eric T. Schneiderman today announced that New York State and the federal government have entered into a $600,000 settlement agreement with Brooklyn Plaza Medical Center to resolve allegations that the diagnostic and treatment center ran a satellite facility, the Whitman Ingersoll Farragut Health Center, without an operating certificate. The settlement also resolves allegations that Brooklyn Plaza Medical Center disguised the satellite facility’s Medicaid billings to make them appear as if the services were rendered at the Brooklyn Plaza Medical Center, not the satellite center. Those fraudulent billings caused the Medicaid program to offer inflated reimbursements for services rendered. The settlement money will go to reimburse the State of New York and the federal government for their contributions to the New York State Medicaid Program.

“My office will find those who skirt safeguards built into our healthcare system, including for key programs that provide critical services to our neediest neighbors. Stopping the abuse and misuse of Medicaid and taxpayer dollars is a priority for my office,” Attorney General Schneiderman said. “We will enforce New York laws against fraud to help ensure that all New Yorkers, including the sick among us, are protected.”

The agreement resolves allegations that Brooklyn Plaza Medical Center, in violation of New York State and federal false claims acts, submitted thousands of fraudulent claims for services rendered at the Whitman Ingersoll Farragut Health Center to the New York Medicaid program from January 1, 2001, through January 9, 2013.  The claims were false because they were filed as if they had been rendered at Brooklyn Plaza Medical Center and were billed at the higher rate provided to BPMC, which the uncertified Whitman Ingersoll Farragut Health Center was not entitled to receive.

As outlined in the settlement papers, Brooklyn Plaza Medical Center operated the Whitman Ingersoll Farragut Health Center as if it were a fully certified satellite office, despite the fact that Brooklyn Plaza Medical Center never obtained an operating certificate for the satellite facility. Without an operating certificate issued by the New York State Department of Health, the Whitman Ingersoll Farragut Health Center could not bill Medicaid at the rate that had been negotiated between Brooklyn Plaza Medical Center and the State of New York.  

Brooklyn Plaza Medical Center provides family medicine services to an underserved population and operates two satellite facilities. One of them is the Whitman Ingersoll Farragut Health Center, located at 297 Myrtle Avenue, which provides primary care services to people living in local housing developments.

The settlement is based on a whistleblower lawsuit brought in 2010 pursuant to the New York State and federal false claims acts and filed in the Eastern District of New York. Attorney General Schneiderman thanks the whistleblower and the U.S. Attorney’s Office of the Eastern District of New York for their assistance and cooperation throughout this investigation.   

The investigation was conducted by Special Auditor Investigator Deowattie Persaud.   

The case was handled by Special Assistant Attorney General Jacob Bergman of the Medicaid Fraud Control Unit. The unit is led by Acting Director Amy Held. The Criminal Justice Division is led by Executive Deputy Attorney General Kelly Donovan.

BUFFALO – Attorney General Eric T. Schneiderman and the New York State Police, the Jamestown Police Department, the Department of Homeland Security and the U.S. Border Patrol today announced that narcotics possession and sale, conspiracy to distribute and other charges have been filed against 47 individuals accused of taking part in a drug distribution network that funneled heroin from Philadelphia and New York City to Jamestown.

As part of a multi-agency investigation code-named Operation Horseback, state, federal and local law enforcement agents led by Attorney General Schneiderman’s Organized Crime Task Force (OCTF), New York State Police’s CNET and the Jamestown Police Department conducted a year-long investigation that included undercover operations, hundreds of hours of covert surveillance, and wiretaps. The investigation led to the seizure of more than 3,000 baggies of heroin with an estimated street value of $60,000, all for distribution in Jamestown. 

“Today’s arrests are another step in our tough, continued battle against illegal drugs that have flooded our streets and ruined so many lives,” said Attorney General Schneiderman. “As we have alleged, these traffickers not only wreaked havoc on local neighborhoods—they even sold to prison inmates and rehab patients who should be benefitting from treatment, not caving to the temptations of their addiction. We will keep fighting to put drug traffickers behind bars, clean up our streets, and keep our communities safe.”

Since 2011, the attorney general’s office has broken up 17 major drugs rings, recovered $1.3 million from drug dealers, confiscated 79 kilos of cocaine, more than 500 grams of crack, more than 2,500 grams of heroin, and made 345 felony arrests of drug dealers and kingpins  statewide.

According to the indictment, members of the narcotics distribution organization would transport the heroin to Jamestown from New York City in a canister located underneath a 1999 Chevy Astro Van. Wiretaps caught the defendants discussing their drug transactions in a cryptic and coded manner in the hope of avoiding detection by law enforcement. Neftali Cintron, known as Pucho, and his son-in-law Luis DeJesus, known as Papito, would allegedly travel to Philadelphia to obtain heroin, which their minions distributed for them in Jamestown. When they did not like the quality of the narcotics from that source, they would obtain drugs from other dealers in the area. 

One of those distributors, Luis Lozada-Berberena, known as Wiso, allegedly operated his heroin business during regular business hours – sometimes telling customers he was “closed for the day” – and had a number of regular customers who would line up to meet and follow him to out-of-the-way locations to make a deal. He allegedly got his heroin from Carlos Encarnacion, who regularly drove to New York City and returned with heroin hidden in the specially outfitted Astro Van. Wiso also purchased suboxone strips from one heroin customer and sold them to another heroin customer, Leslie Rodriguez. She then allegedly smuggled them into Gowanda Correctional Facility in Erie County where her boyfriend was incarcerated there. He then allegedly sold the suboxone, making over $300 per strip.

Defendant Edwin Velasquez allegedly sold to individuals in his drug rehabilitation group. Carlos Echiaverria, known as Boobie, was a dealer who obtained heroin from all of the above sources, and sold cocaine and firearms during the course of this investigation as detailed in the indictment. Boobie enlisted his father-in-law to travel to Buffalo on a bus to bring heroin from New York City for sale in Jamestown. 

“This was a significant drug operation that distributed thousands of bags of heroin onto the streets of Jamestown and neighboring communities,” said New York State Police Superintendent Joseph D’Amico.“The demand for this powerful, dangerous and often deadly drug was incredibly high. This speaks volumes as to how widespread the abuse of heroin has become. It is through the combined efforts of federal, state and local law enforcement that has once again resulted in preventing a significant amount of heroin from getting into our neighborhoods. Today’s events send a strong message to dealers throughout the region that we will not tolerate drugs being brought into our communities.”

The 159-count indictment unsealed in Chautauqua County Court today charges 47 people with crimes including Criminal Possession of a Controlled Substance in the Second Degree and Conspiracy (class A and B felonies), and various counts of Criminal Sale and Criminal Possession of a Controlled Substance (class B felonies).

The indictment is the culmination of a major investigation that is part of Attorney General Schneiderman’s initiative combating large-scale narcotics trafficking and related crimes across the state. While criminal enforcement actions like this are essential to choking off the supply of heroin to our communities, it is also important to combat the epidemic on the treatment side as well. Recently, Attorney General Schneiderman launched the Community Overdose Prevention (COP) Program, which provides funding for every law-enforcement agency in New York to equip its officers with naloxone, a life-saving heroin antidote.

Charged in the Chautauqua County indictment are:

Alberto Alicea; age 54, Brooklyn, NY
Neftali Benitez, a/k/a “Tego”; age 33, Jamestown, NY
Bryan Bobe; age 25, Jamestown, NY
Charles Brown, a/k/a “Choco Loco”; age 42, Falconer, NY 
Stephen Bush; age 33, Jamestown, NY
Hector Cameron, a/k/a “Loco”; age 31, Jamestown, NY
Javier Carasquillo, a/k/a “Oreja”; age 43, Jamestown, NY
Neftali Cintron, a/k/a “Pucho”; age 51, Jamestown, NY
Hector Colon Rodriguez , a/k/a “Chino”; age 40, Jamestown, NY
Ivan DeJesus Pena; age 45, Jamestown, NY
Luis DeJesus, a/k/a “Papito”; age 29, Jamestown, NY
Alfredo Diaz, a/k/a “Ding Dong”; age 51, Jamestown, NY 
Samantha DiLallo; age 26, Randolph, NY
Carlos Echiaverria, a/k/a “Boobie”; age 31, Jamestown, NY
Carlos Encarnacion; age 59, Jamestown, NY
Roberto Figueredo, a/k/a “Bost”; age 25
Joseph Fontanez; age 24, Jamestown, NY
Christopher Freeney; age 43, Jamestown, NY
Luis Garcia, a/k/a “Wichie”; age 42, Jamestown, NY
Rolando Garcia; age 50, Jamestown, NY
John Grilla; age 28, Jamestown, NY
Jose Guevara, a/k/a “Pun”; age 29, Jamestown, NY
Angelita Guzman, a/k/a “Michelle”; age 28, Jamestown, NY
Francisco Guzman Gonzalez; age 46, Jamestown, NY 
Michael Lisciandro, a/k/a “Dougie”; age 23, Jamestown, NY
Moises Lopez-Encarnacion, a/k/a “Junito”; age 22, Mayville, NY
Luis Lozada Berberena, a/k/a “Wiso”; age 40, Jamestown, NY
Eric M. Lundsten; age 29, Ellington, NY
Roberto Morales-Sanchez, a/k/a “Pichulin”; age 45, Jamestown, NY
Jean Noriega, a/k/a “John”; age 43
Frank Orazio; age 24, Cassadaga, NY
LaShawn Paige; age 42, Binghamton, NY
Doris Ramos; age 25, Jamestown, NY
Ricardo Ramos; age 27, Jamestown, NY
Jonathan Ribbing; age 27, Lakewood, NY
Eddie Robles, a/k/a “Nelson”; age 49, Jamestown, NY
Leslie Rodriguez; age 28, Jamestown, NY
Randall Rolison; age 51, Jamestown, NY
Olga Santiago; age 49, Jamestown, NY
Jesus Javier Suarez; age 44, Jamestown, NY
Enrique Torres-Baez, a/k/a “Quique”; age 43, Jamestown, NY
James Torres, a/k/a “BK”; age 42, Jamestown, NY
Damaris Urena; age 35, Jamestown, NY
Francis Vega, a/k/a “Pollo”; age 37
Edwin Velasquez; age 53, Falconer, NY
Joshua Van Ord; age 20, Lakewood, NY and
Walter Westerdahl age 33, Jamestown, NY

The investigation was conducted by OCTF Investigator Pedro Pabon, Supervising Investigator Peter J. Talty, and Deputy Chief Eugene Black, and New York State Police Investigator Daniel Burns, Senior Investigator Charles Torres, and Lt. Martin Mckee, as well as Jamestown Police Detective Stephen Promber and Lt. Paul Abbott, and Homeland Security S.A. Justin Burnham and Supervisory Agent Kevin Ryan.

The case is being prosecuted by OCTF Assistant Deputy Attorney General Patricia I. Carrington, Deputy Attorney General Peri Alyse Kadanoff and Executive Deputy Attorney General for Criminal Prosecutions Kelly Donovan. 

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

NEW YORK -- Attorney General Eric T. Schneiderman and New York State Department of Environmental Conservation (DEC) Commissioner Joseph Martens today announced an agreement with New York City that will direct $960,000 to improving water quality in the upper East River and Long Island Sound.   The City’s funding is in partial resolution of penalties assessed against it by the State for falling behind schedule in upgrading nitrogen pollution controls at its Tallman Island wastewater treatment plant in Queens. The schedule is included in a legal agreement between the State and City that requires the City to upgrade nitrogen controls at eight of its 14 wastewater treatment plants.  

“New Yorkers place a tremendous value on clean water,” said Attorney General Schneiderman. “Through this agreement, we are working with New York City to continue to reduce pollution discharges and to improve the health of the East River and Long Island Sound.  By committing to these investments today, we are enriching the public’s use and enjoyment of these waters for generations to come.”   

“The upgrade of the Tallman Island wastewater treatment plant, along with the other three City wastewater treatment plants that discharge to the Upper East River, represents the single largest investment to reduce nitrogen in the Long Island Sound,” DEC Commissioner Joe Martens said. “This upgrade, along with the upgrade of the City’s Hunts Point, Wards Island and Bowery Bay wastewater treatment plants, concludes the first Phase of the nitrogen removal required under the judgment.  DEC is pleased to report that the City’s treatment plants are already meeting the next step-down nitrogen limit that takes effect on August 1, 2014.  The judgment also requires the completion of the second Phase nitrogen removal projects by July 1, 2016 which will ensure that the final total maximum daily load limits by January 1, 2017.”

According to the agreement announced today, the City will spend no less than $960,000 on one or more environmental benefit projects to improve water quality in and around the upper East River and Long Island Sound. Although the court-ordered agreement does not specify particular projects, the State and City have agreed in principle that the City will use the money to restore an area of tidal wetland in Alley Pond Park in Queens, which is near the Tallman Island plant. Saltwater wetlands absorb nitrogen, while providing habitat, recreational opportunities and other environmental benefits. 

In 2006, the DEC and New York City Department of Environmental Protection entered into a court-ordered agreement – known as the Nitrogen Consent Judgment – for reducing the discharge of nitrogen pollution from City’s four upper East River wastewater treatment plants and plants located on Jamaica Bay. Excessive nitrogen in discharges can cause algae blooms that deplete oxygen in receiving waters, harming fish and other aquatic life. The Nitrogen Consent Judgment requires the City to upgrade its upper East River wastewater treatment plants with improved technologies to remove nitrogen, in accordance with a schedule that includes specified milestones.   

Today’s agreement modifies the Nitrogen Consent Judgment, as amended in 2011, with regard to its schedule for upgrading the Tallman Island wastewater treatment plant with improved nitrogen removal technologies. The City fell behind on meeting its construction completion milestone at the Tallman Island plant, subjecting it to penalties. To resolve the issue, the State agreed – with the court’s approval – to grant the City’s request to move the deadline for completing this project from January 31, 2014, to July 31, 2014 (the City met this deadline).    

In exchange for the schedule modification, the City agreed to pay $1,200,000 for missing the deadline, consisting of a penalty of $240,000 to be placed in the State’s Marine Resources Account to support New York’s coast fisheries, as well as the $960,000 to fund environmental improvement projects in the upper East River and Long Island Sound.

This matter was handled for Attorney General Schneiderman by Assistant Attorney General Andrew Gershon of the Environmental Protection Bureau. The Environmental Protection Bureau is led by Bureau Chief Lemuel M. Srolovic. The Environmental Protection Bureau is part of the Division of Social Justice led by Executive Deputy Attorney General for Social Justice Alvin Bragg. First Deputy for Affirmative Litigation Janet Sabel also helped lead this case. 

The DEC Counsels Scott Crisafulli and Mary Wojcik also assisted in the matter.

ROCHESTER – Attorney General Eric T. Schneiderman today announced that his office filed legal action in Monroe County Supreme Court seeking a permanent injunction against a Rochester-based home improvement contractor who sold and contracted to install granite and marble countertops and tile to consumers throughout Western and Central New York. Ismail Cakir, president of Metropolitan Granite & Marble LLC, is alleged to have repeatedly and persistently defrauded consumers in Buffalo, Rochester and Syracuse by receiving full or partial payments for home improvement projects and either failing to perform the work or performing shoddy and unprofessional work.  

“Making home improvements is often a costly and stressful experience for many New Yorkers trying to invest in their homes,” said Attorney General Schneiderman. “Unscrupulous contractors who take advantage of working families by performing shoddy work or failing to perform work at all will be held accountable.”

The Attorney General’s Office began receiving complaints about Metropolitan and Cakir in 2010. Initially, the Attorney General’s Office attempted to mediate the complaints. Numerous customers were promised refunds that never arrived, and at least 13 complainants sought and received small claims judgments against Metropolitan. Other complainants were informed that Metropolitan Granite & Marble, Inc. had been dissolved in 2011 and was no longer in business. While the company was dissolved for failure to pay state sales taxes, Cakir registered his business under another name, Metropolitan Granite & Marble, LLC, and resumed operations without paying promised refunds. 

Of the 13 consumers who sought and were awarded relief in Small Claims Courts in Rochester and Syracuse, none received payment from Cakir. Failure to pay a small claims judgment is a violation of Article 18 of the Uniform City Court Act.

The Attorney General is seeking a permanent injunction against Cakir that will bar him from ever operating a home improvement business in New York, as well as $10,641 in restitution for defrauded consumers, $32,200 in unpaid small claims judgments for consumers, and $117,000 in costs and penalties. If the Court grants the injunction, Metropolitan and Cakir will be stopped from defrauding consumers through the home improvement business in New York.

When planning to use a home improvement contractor, consumers should consider the following tips:

• Never agree to have work done on the spot, especially when potential contractors are marketing door to door
• Determine exactly what you want done, then look for a qualified contractor 
• Shop around and 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 to be done 
• Do not pay unreasonable advance sums; negotiate a payment schedule tied to the completion of specific stages of the job 
• Never pay the full price up front 
• Remember that you have three days to cancel after signing a home improvement contract, but all cancellations must be in writing 

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

Consumers who believe they may have been defrauded by or have unresolved disputes with a home improvement contractor are urged to call the Attorney General’s Consumer Help Line at (800) 771-7755.The case is being handled by Assistant Attorney General Benjamin Bruce and Volunteer Assistant Attorney General Shannon O. Pozzuolo. The investigation is being handed by Senior Investigator Christopher Holland with the assistance of Senior Consumer Frauds Representative Emily Brightman.

The case and investigation are being managed by the Rochester Regional Office, which is led by Assistant Attorney General-in-Charge Debra Martin.  The Rochester Regional Office is a part of the Division of Regional Offices, led by Executive Deputy Attorney General for Regional Offices Marty Mack.

Op-Ed published in the Home Reporter and the Brooklyn Spectator

By Eric T. Schneiderman

As attorney general, I am New York’s chief law enforcement officer. It is my job to prosecute major frauds, like the wrongdoing by big banks that caused the mortgage crisis and the Great Recession. But it is also my job to pursue local businesses that defraud hardworking New Yorkers.

In the last three years, I have investigated many companies for engaging in deceptive and fraudulent business practices, stopping their predatory behavior, punishing the perpetrators and getting victims their money back.

One egregious case occurred during Hurricane Sandy.  Thousands of New Yorkers, including many in Brooklyn, had to flee their homes, and hotel rooms were scarce.

My office warned against price-gouging in this time of emergency – yet, the operators of the Holiday Inn Express on Butler Street in Park Slope charged $400 to $519 a night for rooms that ordinarily cost an average of $155.

We settled with the hotel  and obtained refunds for 38 guests who had been overcharged.

In another case, we settled with the owner of the ReBar restaurant in DUMBO, who took $1.8 million in payment for wedding-related events from approximately 150 couples – including residents of Dyker Heights and Park Slope – then abruptly shut his doors.

Acting on complaints from victims, we sought restitution – and last month, a judge granted our request for a judgment against owner Jason Stevens for more than $1 million.

So far, 73 customers are eligible for restitution under the settlement, and there’s still time to file a complaint with my office. If you booked an event at ReBar, you have until Oct. 31 to contact my Consumer Helpline at the number below.

My office is most effective when you help us help you. If you know of a business that is ripping off the public, call us at 800-771-7755.

I am proud to be your partner in seeking justice for the people of New York, and I look forward to doing so as your attorney general for a long time to come.

NEWBURGH – Attorney General Eric Schneiderman joined with elected officials and staff from the Newburgh Community Land Bank (NCLB) to announce a new, competitive round of funding for New York State land banks that are working to rebuild and restore neighborhoods hit hard by the housing crisis. The event also highlighted the release of the Lander Street Community Revitalization plan, an ambitious redevelopment effort that the NCLB is undertaking to rehabilitate a highly distressed row of vacant and abandoned homes along Lander Street in the City of Newburgh.

The Attorney General’s Land Bank Community Revitalization Initiative is making a new allocation of up to $20 million to eligible land banks in addition to the $13 million allocated through a competitive application process last year, bringing the total to $33 million. Funding for this new round will be drawn from the $25 billion settlement with the nation’s largest banks that the Attorney General helped negotiate in 2012.

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

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

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

The Newburgh Community Land Bank received $2.4 million in the last funding round and has used those funds to acquire a number of highly distressed parcels along Lander Street. The redevelopment will have a mix of uses, including green space, affordable rental and single-family housing, and the land bank is utilizing innovative technologies that will advance sustainable and green building options for residential development. 

“When I travel to our office on Grand Street in Newburgh, I see too many abandoned properties, but I also see hope for our community,” said Rep. Sean Patrick Maloney. “The Newburgh Community Land Bank is revitalizing our neighborhoods, building by building, in order to increase property values, reduce tax burdens and boost the local economy. I applaud Attorney General Schneiderman for his investment in communities like Newburgh.” 

Newburgh Mayor Judy Kennedysaid, "Newburgh is proud to partner with AG Schneiderman to create a stronger, healthier community. Through the NCLB, the City of Newburgh is demonstrating a successful partnership between municipalities and non-profits and the possibility of what can be developed if we work collaboratively towards a common goal."

“One of the biggest challenges that faces Newburgh are its abandoned homes and buildings,” said Assemblyman Frank Skartados.  “Here in Newburgh, the creative solution is the land bank, which fosters new and active ownership. The impact is a reduction of crime, a renewed economy and a sense of pride in the neighborhood. Today, that goal will be made more attainable by the efforts and additional funds provided by Attorney General Schneiderman.” 

Currently, there are nine land banks in New York State that will be eligible to compete in the next round of funding, including those that received funding in the first round. The nine land banks are located in:

• Newburgh
• Schenectady-Amsterdam
• Albany County
• Suffolk County
• Buffalo-Erie County-Niagara County
• Chautauqua County
• Broome County
• Syracuse-Onondaga County
• Rochester 

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

“This funding is a step in the right direction for the City of Newburgh. The land bank is an innovative approach to helping cities such as Newburgh deal with the overwhelming blight and urban decay that accompany large numbers of abandoned houses. This funding will allow the city to begin the revitalization process and bring Newburgh back to the glory of its past,” Sen. Bill Larkin said.

Madeline Fletcher, Executive Director of the Newburgh Community Land Bank,said, “The funding from the Office of the Attorney General is critical to our collaborative effort to revitalize Newburgh. In just a few years, it will enable us to renovate and preserve more than 60 units of housing for existing and new city residents, expand meaningful job opportunities, and enhance commercial and community development in a key five-block neighborhood in the Newburgh East End Historic District.”

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

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

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

SCHENECTADY – Attorney General Eric Schneiderman joined with elected officials and staff from the Capital Region Land Bank to announce a new, competitive round of funding for New York State land banks that are working to rebuild and restore neighborhoods hit hard by the housing crisis. The event also celebrated the long-awaited demolition of a highly distressed property at 722 Eastern Avenue in Schenectady, which the land bank recently acquired as part of its comprehensive redevelopment effort along that corridor.

The Attorney General’s Land Bank Community Revitalization Initiative is making a new allocation of up to $20 million to eligible land banks in addition to the $13 million allocated through a competitive application process last year, bringing the total to $33 million. Funding for this new round will be drawn from the $25 billion settlement with the nation’s largest banks that the Attorney General helped negotiate in 2012.

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

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

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

The Capital Region Land Bank was newly formed at the time of the first competitive round of OAG funding. Creating the land bank was both ambitious and challenging because its geographic scope includes the Cities of Schenectady and Amsterdam, as well as the larger County of Schenectady. The OAG provided the Capital Region Land Bank with a capacity building grant of $150,000 in the last round of funding, which has enabled it to complete the planning phase of its redevelopment efforts, including hiring consultants and legal support. By all accounts, the land bank is well ahead of schedule, as evidenced by the fact that it has already acquired title to several distressed properties—including 722 Eastern Avenue—and is ready to begin demolition and redevelopment of several sites.

“Today's announcement will help to reduce blight, develop our communities, and make Schenectady families safer. The property at 722 Eastern Avenue has been vacant for years, and I look forward to seeing it redeveloped and the immediate area revitalized with community input. I thank Attorney General Schneiderman and the Capital Region Land Bank for their tireless work to develop our communities in Schenectady and Montgomery counties -- which is particularly important in the wake of the recent foreclosure crisis,” said Rep. Paul Tonko.

“Land banks are effective tools for redevelopment,” said City of Amsterdam Mayor Ann Thane.“That’s why the New York Conference of Mayors has always been a big proponent of land banking and helped bring it to New York State. Today’s announcement by Attorney General Eric Schneiderman demonstrates his commitment to our communities, and we’re thankful for his efforts to fund land banks across the state.”  

Schenectady Mayor Gary McCarthysaid, “Our land bank is already helping to improve neighborhoods throughout Schenectady, and across the State of New York, other land banks are producing similar results. I commend Attorney General Eric Schneiderman for his commitment to neighborhood revitalization and for putting the financial resources behind such an important initiative.”

“To attract new families and businesses, and keep those who have already put down roots in our region, we need to make sure our communities put their best face forward,” said Assemblyman Angelo Santabarbara (D-Rotterdam).“Identifying and demolishing vacant and abandoned properties shows that Schenectady is making a comeback. The Capital Region Land Bank, with help from the Attorney General’s Office, is turning these eyesores into something positive, benefiting our neighborhoods and the city as a whole.”

Currently, there are nine land banks in New York State that will be eligible to compete in the next round of funding, including those that received funding in the first round of applications. The nine land banks are located in:

• Newburgh
• Schenectady-Amsterdam
• Albany County
• Suffolk County
• Buffalo-Erie County-Niagara County
• Chautauqua County
• Broome County
• Syracuse-Onondaga County
• Rochester 

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

“We thank Attorney General Schneiderman for the $150,000 grant provided to the Capital Region Land Bank. This funding was instrumental in helping the land bank identify properties for demolition and renovation in critical areas that will help spark additional investment, new jobs and new opportunities in Schenectady and Amsterdam,” Steve Strichtman, Executive Director of the Capital Region Land Bank, said. “Thanks to this investment by the Attorney General, we now have work underway that will help to stabilize key areas served by the land bank. With the potential for additional funding announced today, there will be the opportunity to scale up revitalization efforts that were started by the initial grant. “

“We thank Attorney General Schneiderman for supporting our neighborhood revitalization and rehabilitation efforts,” said Anthony Jasenski, Chair of the Schenectady County Legislature.  “His support of our land bank is critical to our efforts to improve challenged neighborhoods in the city and throughout Schenectady County.”

“The Capital Region Land Bank is grateful to the Attorney General's Office for all the support it has given to land bank efforts in New York,” said Robert W. Hoffman, Chair of the Land Reutilization Corporation of the Capital Region. “Friday's demolition signals a great beginning to a concerted effort to fight blight in our cities and eliminate from our neighborhoods run-down and dangerous buildings. With the Attorney General's continued generous support, we look forward to working with our local partners, Metroplex, City & County of Schenectady, City of Amsterdam and various non-profits, to improve the livability of all our neighborhoods.”

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

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

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

ROCHESTER – Attorney General Eric T. Schneiderman today announced the first round of awards to law enforcement agencies in New York State through the Attorney General’s inVEST Partnership, a statewide program that offers law enforcement agencies the opportunity to purchase bulletproof vests for sworn officers. Awards were announced for law enforcement agencies in 23 counties in Western New York, the Capital Region, and the North Country, including $156,738.30 to support the purchase of 375 vests in Erie County, $90,504.48 for 234 vests in Monroe County and $160,368.50 for 272 vests in Albany County. In total, the first round of funding will provide $579,034.39 to support the purchase of 1,293 bulletproof vests.

“Every day in communities all across New York, the brave men and women serving in our police departments put their lives on the line to keep our communities safe,” said Attorney General Schneiderman. “We have an obligation to do everything in our power to protect those who are sworn to protect us, and we are. The inVEST Partnership grants we are announcing today will arm brave officers 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 1998, the federal government passed the Bulletproof Vest Partnership (BVP) Grant Act, which established a competitive grant program to provide up to 50 percent matching funds for state, county and local law enforcement organizations to purchase bulletproof vests. Unfortunately, because of partisan gridlock in Washington, BVP grants to departments in New York State have dropped precipitously in recent years.  In fact, since peaking in 2010, grants awarded to law enforcement agencies in New York State decreased by 81 percent, or approximately $3.27 million. In June, Attorney General Schneiderman announced the inVEST Partnership to replace funds cut from the BVP program.

The danger that law enforcement officers face on a daily basis cannot be overstated: Since 1984, 71 officers in New York State have been shot and killed in the line of duty and 29 different law-enforcement agencies have experienced gunfire fatalities. The National Institute of Justice (NIJ) estimates that bulletproof vests have saved more than 3,000 police officers’ lives nationwide during the same time period. On July 28th, New York Police Department Detective Mario Muniz was shot multiple times, including once in the chest, while attempting to execute an arrest warrant on a suspected sex offender. The round that struck his chest was stopped by his bulletproof vest, likely saving his life, according to NYPD Commissioner William Bratton.

“In 2009, Rochester Police Officer Luca Martini was shot during a home invasion, and the bulletproof vest he was wearing helped save his life,” said Rochester Mayor Lovely Warren.“Rochester’s police officers put their lives on the line every day to protect our citizens. These vests are another tool to protect them, and I would like to thank Attorney General Eric Schneiderman for not only recognizing the importance of keeping our police officers safe on the job, but for selecting Rochester as a community to participate in the inVEST Partnership.”

“We need to do everything in our power to protect our police officers and these new bulletproof vests are yet another critical layer of safety that will help us further reduce crime in Buffalo,” said Mayor Byron Brown, noting that overall crime in Buffalo has been reduced nearly 25% since 2005. “My administration takes the safety and security of both our citizens and officers very seriously. I thank Attorney General Eric Schneiderman for helping us further protect our officers in a continued effort to improve the safety of our neighborhoods.”

Erie County Executive Mark Poloncarzsaid, “Attorney General Schneiderman is once again showing his commitment to WNY, this time with enhanced protection for members of the Erie County Sheriff’s office. His past efforts have led to greater protections for consumers, homeowners, and our environment, and with this grant the Attorney General demonstrates his understanding of and compassion for the needs of law enforcement in our community. Thanks to Attorney General Schneiderman, our Sheriff’s deputies will be better protected themselves as they protect the residents of Erie County.”

“Our law enforcement officials risk their lives on a daily basis in order to protect us,”Senator Ted O’Brien said. “The least we can do is to protect them when they are in the line of duty. I commend Attorney General Schneiderman for making the safety of our police officers a top priority. Using funds seized in criminal investigations to provide officers with bulletproof vests will save lives and make our state safer for these brave men and women, and all New Yorkers. I am pleased to work with the Attorney General in implementing this important program.”

Senator Tim Kennedysaid, “Every day, Western New York's finest leave their loved ones behind with no idea what dangers they may encounter and no guarantee they'll make it back home safe. They proudly take an oath to serve and protect  and willingly place themselves in harm's way in order to keep our families and communities safe. Nothing we do in state government is more important than providing our brave men and women in uniform with every protection available to ensure they return home to their loved ones at the end of their shift. That's why I'm proud to join Attorney General Schneiderman today to deliver this critical funding which will help outfit our local police force with the newest technology in lifesaving bulletproof vests, and I want to thank the Attorney General for his relentless work to protect Western New Yorkers.”

Assembly Member Sean Ryan said, “I thank Attorney General Schneiderman for creating this innovative program, which will help to protect the lives of the brave men and women who serve our communities each and every day. The inVEST Partnership will provide the critical funding necessary to get life-saving vests into the hands of police officers in Western New York and throughout the state. I’m thankful that the Attorney General and the State of New York are stepping up to the plate to support our police agencies and uniformed officers.”

Assemblyman David Ganttsaid, “Thank you to Attorney General Eric Schneiderman and the Office of the Attorney General for establishing the inVEST Partnership.  Ensuring the safety of the men and women dedicated to keeping our streets safe is a huge step toward building better communities. I commend the Attorney General for the good work he is doing not only in Rochester, but across the entire state.”

“Our police officers protect and serve residents of the Queen City, and we have to protect them as well," said Assemblywoman Crystal Peoples-Stokes. “Securing $3.5 million for new bulletproof vests is great news for the safety and well-being of our law enforcement agencies in Buffalo and Western New York. I applaud Attorney General Schneiderman for starting the inNVEST program and securing the funding. I also want to thank our law enforcement for their continued service, as they risk their lives every day.”

“These vests save lives,” said Rochester Police Chief Michael Ciminelli.“We are very grateful to the Attorney General for helping to ensure that every RPD officer has a vest.”

The Attorney General’s office committed $3.5 million from criminal and civil forfeiture funds to create the inVEST Partnership. The office began accepting applications for the inVEST Partnership on June 9th. The awards announced today represent the first round of funding. Subsequent rounds will be announced in the coming weeks. For those departments that receive awards, matching funds will cover up to 50 percent of the total costs of vests, vest carriers, attachments, inserts, fitting, shipping and applicable taxes. Funding is available to equip newly hired officers or to replace expiring vests for veteran officers. Vests must conform with the performance standards delineated by NIJ in its most recent testing report. 

The inVEST Partnership will provide matching funds for between 6,000 and 10,000 vests. Although the initial priority application deadline for the inVEST Partnership has passed, law enforcement agencies still in need of funding for protective vests are encouraged to apply. Late applicants will be reviewed based on funding availability, on a first-come, first-serve basis. In order to apply, an agency must be a member of or join 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. 

The first round of awards is as follows:

A full breakdown of the first round of awards, including the name of each police department, can be viewed here.

NEW YORK – Attorney General Eric T. Schneiderman today issued an alert to consumers following a reported massive online security breach in which hackers stole over 1 billion unique user names and passwords and half a billion e-mail addresses. Attorney General Schneiderman offered tips to consumers for safeguarding sensitive personal information online.

“As more of our personal data is being exchanged and stored online, the risks posed to consumers by major security breaches has become all the more critical,” said Attorney General Schneiderman.“As law enforcement pursues those who are responsible for these breaches, it is important that consumers remain vigilant. Taking a few key precautions can help keep you a step ahead of cybercriminals.”

This latest breach, perhaps the largest ever of its kind, targeted websites of both large and small companies as well as individuals. It is believed that individuals suspected of being responsible for such breaches sell stolen data to third parties on the black market and use the information to send spam advertisements to consumers. 

If you believe that you are a victim of this or any other security breach, Attorney General Schneiderman offers the following tips:

• Create an identity theft fraud report. To do this, file a complaint with the Federal Trade Commission and print your Identity Theft Affidavit. You can call the FTC at 1-877-438-4338 or click here. 
   
• Use that 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. 
   
• Put a freeze on your credit report by notifying each of the credit reporting agencies (Equifax, TransUnion or Experian). This will block someone from obtaining credit using your name or personal information. You won’t be able to apply for any new credit cards or loans while the freeze is in effect, but you can continue to use your existing cards. To freeze your credit file, you must notify each of the three major credit bureaus. You can remove the freeze temporarily or permanently by contacting each of the three agencies. There is no fee if you have been the victim of identity theft. The freeze can be removed only by you.  
   
• Get a copy of your credit report from each of the three agencies. You are entitled to free reports once you post a fraud alert (see below) or put a freeze on your account. Read the reports carefully to see whether other fraudulent transactions or accounts are listed, and then take steps to correct those errors. 
   
• Check your credit card account frequently to look for any irregular activity.
   
• Change any 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.  

If you might be a victim:

• Report to any of the three credit reporting agencies (Equifax, Transunion or Experian) that you may have been a victim of identity theft. Make sure the credit reporting agency has your current contact information so it can get in contact with you.  
   
• Ask the credit reporting agencies to put a fraud alert on your credit file. This will still allow you to use your credit card. If you put a fraud alert on your file, you may ask for a free credit report from each of the credit reporting agencies. Contacting any one of the three credit reporting agencies listed above is enough to file a credit alert with all of them. A credit alert must be renewed every 90 days. 
   
• You also have a right to put a credit freeze on your file. You may be charged a fee of up to $5 if you have not been a victim of identity theft. 
   
• You should also check your credit activity regularly with each credit issuer. You don’t need to wait for your monthly statement, though you should check that as well. Many banks provide online information to account holders about recent activity.

The contact information for the credit reporting agencies:

Equifax
1-800-525-6285 

Experian
1-888-397-3742 

TransUnion
1-800-680-7289

The Attorney General’s Office also suggests that consumers guard against future 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.  

Last month, Attorney General Eric Schneiderman’s office issued a report titled “Information Exposed: Historical Examination of Data Breaches in New York State” that can be viewed here.

MINEOLA – Attorney General Eric T. Schneiderman today announced the first round of awards to law enforcement agencies in the New York City metropolitan area through the Attorney General’s inVEST Partnership, a statewide program that helps law enforcement agencies purchase bulletproof vests for sworn officers. The funding awarded today includes $671,359.00 for 2,402 vests for the New York Police Department (NYPD), $498,729.00 for 1,397 vests for the Nassau County Police Department, $138,210.00 for 425 vests for the Suffolk County Police Department and financial assistance for 19 additional area police departments. In total, the Attorney General announced $1,481,785.90 in grants today to support the purchase of 4,728 bulletproof vests. On Monday Attorney General Schneiderman announced an initial round of funding to 60 law enforcement agencies in Western New York, the Capital Region and the North Country.

“When our brave law enforcement officers go to work to keep our communities safe, we owe it to them to do everything we can to keep them safe,” said Attorney General Schneiderman. “The inVEST Partnership grants we are announcing today will arm thousands of brave officers across New York City and Long Island 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 1998, the federal government passed the Bulletproof Vest Partnership (BVP) Grant Act, which established a competitive grant program to provide up to 50 percent matching funds for state, county and local law enforcement organizations to purchase bulletproof vests. Unfortunately, because of partisan gridlock in Washington, BVP grants to departments in New York State have dropped precipitously in recent years.  In fact, since peaking in 2010, grants awarded to law enforcement agencies in New York State decreased by 81 percent, or approximately $3.27 million. In June, Attorney General Schneiderman announced the inVEST Partnership to replace funds cut from the BVP program.

The danger that law enforcement officers face on a daily basis cannot be overstated: Since 1984, 71 officers in New York State have been shot and killed in the line of duty and 29 different law-enforcement agencies have experienced gunfire fatalities. The National Institute of Justice (NIJ) estimates that bulletproof vests have saved more than 3,000 police officers’ lives nationwide during the same time period. 

On July 28th, New York Police Department Detective Mario Muniz was shot multiple times, including once in the chest, while attempting to execute an arrest warrant on a suspected sex offender. The round that struck his chest was stopped by his bulletproof vest, likely saving his life, according to NYPD Commissioner William Bratton.

"It's very simple: bulletproof vests save lives. We saw it again last month when Det. Mario Muniz survived a gunshot wound because of his bulletproof vest," said NYPD Commissioner William J. Bratton. "Attorney General Schneiderman's inVEST Partnership is a creative, life-saving way to use money seized from drug dealers to help us protect the officers that protect New York City."

Acting Nassau County Police Commissioner Thomas C. Krumptersaid, “I thank Attorney General Schneiderman for starting the inVEST program and for selecting the Nassau County Police Department to participate. A bulletproof vest is one of the most important pieces of equipment that a police officer can have. Vests save lives, and the funding from this program is critical to ensure that our officers are outfitted in the newest, safest, and most state-of-the-art technology available.”

Suffolk County Police Commissioner Edward Webbersaid, “The Suffolk County Police Department would like to thank Attorney General Eric Schneiderman for his efforts in securing the necessary money to outfit officers across the state with bulletproof vests. The bullet-resistant body armor is an essential tool in protecting our officers and this funding will go a long way in keeping our officers safe.”

New York City PBA President Patrick J. Lynchsaid, “A bullet-resistant vest stands second only in importance to strategic, tactical training that professional police officers receive.  Thanks to Attorney General Schneiderman’s inVEST partnership program, 2,400 of our members of the NYPD will be supplied to help keep our members safe on the streets.  There is a shelf life to the effectiveness of bullet-resistant vests, and this generous donation will help keep some of our members in the latest, most effective vests available.”

“MTA Police officers need to be prepared for any type of hazard on the job, and equipping them with state-of-the-art bulletproof vests is a commitment to keep them safe,” said MTA Police Chief Michael Coan.“By providing 50 new vests to our officers, this program will make every effort to ensure their safety while they try to ensure the safety of others.”

Jim Carver, President of the Nassau Police Benevolent Association, said, “The Nassau PBA thanks AG Schneiderman for providing funds to purchase these life-saving bullet proof vests. This year has seen a 71% increase over last year in police officer fatalities due to firearms nationwide. The funding provided by the AG for new upgraded vests will provide my members the much-needed protection against the ever-present dangers that our police officers encounter while risking their lives each day protecting the residents of Nassau County.”

Noel DiGeralomo, President of the Suffolk County PBA, said, “I thank Attorney General Eric Schneiderman for his effort to protect our officers with his bulletproof vest program. The safety of our officers in Suffolk County is paramount, and we applaud any and all assistance to ensure this.”

Michael J. Palladino, President of the Detectives' Endowment Association and the New York State Association of PBA's,said, “Last week we learned once again the significance of a bullet-resistant vest. Our detective was shot at point-blank range in the chest, and his vest defeated the round and saved his life.  The Attorney General is focused on providing every officer in the State the same protection.”

The Attorney General’s office committed $3.5 million from criminal and civil forfeiture funds to create the inVEST Partnership. The office began accepting applications for the inVEST Partnership on June 9th. The awards announced today represent the second round of funding. Subsequent rounds will be announced in the coming weeks. For those departments that receive awards, matching funds will cover up to 50 percent of the total costs of vests, vest carriers, attachments, inserts, fitting, shipping and applicable taxes. Funding is available to equip newly hired officers or to replace expiring vests for veteran officers. Vests must conform with the performance standards delineated by NIJ in its most recent testing report. 

The inVEST Partnership will provide matching funds for between 6,000 and 10,000 vests. Although the initial priority application deadline for the inVEST Partnership has passed, law enforcement agencies still in need of funding for protective vests are encouraged to apply. Late applicants will be reviewed based on funding availability, on a first-come, first-served basis. In order to apply, an agency must be a member of or join 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.

The awards announced Monday can be found here.

NEW YORK -- Attorney General Eric T. Schneiderman today announced that he, along with 40 other state Attorneys General and the District of Columbia, reached a $35 million settlement with Pfizer arising from alleged improper marketing and promotion of the immunosuppressive drug Rapamune.  New York’s share of the settlement is over $1.7 million.  Pfizer, as parent of Wyeth Pharmaceuticals Inc., agrees to be bound by the judgment and to resolve allegations that Wyeth unlawfully promoted Rapamune. Attorney General Schneiderman’s office served on the Executive Committee of this multi-state investigation.  

“There has to be one set of rules for everyone, no matter how rich or powerful, and that includes big pharmaceutical companies that make unapproved and unsubstantiated claims about products in order to boost profits,” said Attorney General Schneiderman.“Patients and consumers need to have confidence in the truthfulness of claims made to them by medical providers without having to worry about drug companies manipulating the doctor-patient relationship. Their health and well-being depend on it.”

Rapamune is an immunosuppressive drug that prevents the body’s immune system from rejecting a transplanted kidney.  Its label, as approved by the Food and Drug Administration (FDA), authorizes its use only immediately after kidney transplants in limited combinations with other specified drugs. 

In the settlement, filed today in New York County Supreme Court, Attorney GeneralSchneiderman alleges that Wyeth engaged in off-label marketing, promoting the drug for uses that were not FDA-approved.  Wyeth improperly promoted Rapamune (1) for liver, heart and lung transplants when the drug was approved only for use after kidney transplants: (2) for conversion use (switching a patient from another drug to Rapamune), which was also unapproved; and (3) in unapproved drug combinations.  The complaint further alleges that Wyeth violated state consumer protection laws by misrepresenting Rapamune’s uses and benefits through an orchestrated campaign of promotional talks by Wyeth-retained doctors, misleading presentations of data, and funding of studies at hospitals and transplant centers designed to encourage off-label uses of Rapamune. 

The settlement prohibits Pfizer from:      

• Promoting any FDA-approved prescription drug or biological product manufactured, distributed, sold, marketed, or promoted by Pfizer in the United States (“Pfizer product”) for off-label uses;
• Making any claim comparing the safety or efficacy of a Pfizer product to another product when that claim is not supported by substantial evidence;
• Providing financial incentives for sales attributable to off-label uses of any Pfizer product;
• Making, or causing to be made, any written or oral claim that is false, misleading, or deceptive regarding any Pfizer product;
• Affirmatively seeking the inclusion of Rapamune in hospital protocols or standing orders for which Rapamune has not been approved by the FDA;
• Disseminating information describing any off-label or unapproved use of Rapamune unless such information and materials complies with applicable FDA regulations; 
• Seeking to influence the prescribing of Rapamune in hospitals or transplant centers in any manner (including through funding clinical trials) that does not comply with the Federal anti-kickback statute.

States participating in the settlement are Alabama, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, South Dakota, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin, as well as the District of Columbia.              

The case was handled by Assistant Attorney General Benjamin J. Lee, Deputy Bureau Chief Laura J. Levine, 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 the arrest of Noucheline Jean, 42, of Brooklyn, for allegedly masquerading as a licensed practical nurse (LPN) at Park Nursing Home, located in Far Rockaway, Queens. From October 15, 2012, to April 29, 2014, the defendant was employed by Park Nursing Home as an LPN, having convinced her employers that she was properly licensed to do so. Because the defendant never obtained a license in New York State, she was unqualified to perform the duties of a nurse. She faces Grand Larceny charges -- and up to 15 years in prison -- for taking $90,000 in salary she was not qualified to earn.

“Families who place their loved ones in nursing facilities should not have to worry about whether their care is being provided by qualified professionals,” said Attorney General Schneiderman. “My office will vigorously prosecute anyone who unlawfully practices a medical profession without a license. We will protect the public, and we will continue to enforce the law.”

As an LPN, the defendant treated patients at Park Nursing Home, physically administering to them, and making entries on their charts—all actions that only a licensed nurse or other medical professional can perform. The defendant’s actions placed the residents of Park Nursing Home in potential danger because they received nursing care from an unqualified person. Believing that the defendant was a licensed practical nurse, Park Nursing Home paid the defendant over $90,000 over 18 months — money she had no right to receive.

Practical nurses must be licensed by the New York State Education Department. In order to qualify for a license as a practical nurse, they must meet various educational criteria and professional standards and pass an exam. The licensing requirement exists to protect patients against receiving substandard, and potentially dangerous, care from unqualified persons. Residents in nursing homes, including those at Park Nursing Home, are often elderly, suffer from many health problems and are among New York State’s most vulnerable populations.

The defendant was arraigned in New York City Criminal Court, Queens County, before Judge Suzanne Melendez, where she was charged with Grand Larceny in the Second Degree, Unauthorized Practice of a Profession, Endangering the Welfare of an Incompetent or Physically Disabled Person in the First Degree, and Wilful Violation of Health Laws in a felony complaint. Grand Larceny in the Second Degree is a class C felony, with a maximum exposure of 15 years in State prison. Both Unauthorized Practice of a Profession and Endangering the Welfare of an Incompetent or Physically Disabled Person in the First Degree are class E felonies, and Wilful Violation of Health Laws Prosecutors is an unclassified misdemeanor.

Attorney General Eric Schneiderman thanks the New York State Department of Health for referring the matter to his office.

The investigation was conducted by Special Investigator Stephanie Buono and Supervising Special Investigator Mitchell Scher, with the assistance of Deputy Chief Investigator Kenneth Morgan.

The case is being prosecuted by Special Assistant Attorney General Jeffrey Winkler of the Attorney General’s Medicaid Fraud Control Unit (MFCU) New York City Office with the assistance of Cassandra Bethel, Chief of the New York City Patient Abuse Protection Unit, and Regional Director Christopher M. Shaw. Thomas O’Hanlon is MFCU’s Chief of Criminal Investigations – Downstate. MFCU is led by Acting Special Deputy Attorney General Amy Held. The Criminal Division is led by Executive Deputy Attorney General Kelly Donovan.

The charges are accusations, and the defendant is presumed innocent until and unless proven guilty in a court of law.

NEW YORK—Attorney General Eric T. Schneiderman, together with the attorneys general of Illinois, Indiana, and Massachussetts, co-sponsored a letter submitted to the Food and Drug Administration today that was signed by 29 state attorneys general. The letter urges the FDA to strengthen its proposed regulation of electronic cigarettes – or e-cigarettes – with the goal of protecting young people from the harms of nicotine addiction. Among other recommendations, the attorneys general pressed the FDA to prohibit flavors in e-cigarettes, and to restrict advertising and marketing for e-cigarettes in the same manner as for cigarettes.

“E-cigarettes have all the addictive qualities of regular, combustible cigarettes, yet they are completely unregulated by the FDA,” said Attorney General Schneiderman.  “While we applaud the FDA’s proposal to start regulating these tobacco products, it falls far short of what is needed to protect our youth.  Each year, electronic cigarette companies spend millions of dollars advertising their product – often on prime-time television -- glamorizing smoking in the same way combustible cigarettes did before those commercials were banned. And each year, more and more youth try electronic cigarettes, exposing themselves to the proven dangers of nicotine.”  

E-cigarettes contain no tobacco but do contain nicotine generally derived from tobacco.  The nicotine is dissolved in a liquid that, when heated, forms a vapor that is inhaled, delivering nicotine to the lungs. While some claim that e-cigarettes may have the potential to help smokers quit using combustible cigarettes, the FDA has not approved them as smoking cessation devices.  Furthermore, the public health implications of these new products are still being researched and there remain concerns that they will be attractive to youth and cause teens to become addicted to nicotine and ultimately to start using cancer-causing combustible products that do contain tobacco. In 2013, e-cigarette advertisements on television reached over 14 million teens, and magazine advertisements reached 9.5 million teens.  In just one year, the five largest e-cigarette companies increased their marketing expenditures by 164%. 

E-cigarettes are a significant and growing part of the cigarette market.  Of greatest concern is research showing an “exponential” increase in e-cigarette use among young people. According to the latest Surgeon General’s report, nicotine exposure during adolescence adversely affects cognitive function and development, potentially resulting in lasting deficits. 

In April 2014, the FDA issued proposed regulations deeming e-cigarettes “tobacco products,” which puts them under the FDA’s regulatory jurisdiction under the Federal Food, Drug, and Cosmetic Act (FD&C Act), as amended by the Family Smoking Prevention and Tobacco Control Act (Tobacco Control Act). Though the FDA’s proposed regulations represent a step in the right direction, the attorneys general argue that they do not go nearly far enough to protect young people from the potential harms of e-cigarettes. Over 7,000 flavors are available for electronic cigarettes, and more are introduced each month.

Over 35 years ago, tobacco companies recognized that flavored cigarettes were for “young people” and “teenagers,” and, consequently, the FDA banned flavored cigarettes.  

“Today, we urge the FDA to do the right thing and protect our youth from yet another tobacco epidemic,” the letter continues. “We don’t need these e-cigarettes aimed at our youth.  What we need are strong FDA regulations that protect the public health and protect our youth from a lifetime of nicotine addiction.  The FDA should ban all flavored electronic cigarettes and should prohibit e-cigarette advertising on television, radio and youth-oriented magazines.” 

In their comments, the states urged the FDA to do more to protect children from the harmful consequences of nicotine. In particular, they called for the FDA to: 

• Prohibit flavors other than tobacco and menthol in e-cigarettes and other tobacco products; 
   
• Restrict the advertising, marketing, and promotion of e-cigarettes in the same ways it has restricted the advertising, marketing, and promotion of cigarettes and smokeless tobacco, as well as strengthening and updating those restrictions;
   
• Strengthen the health warnings for the deemed tobacco products; 
   
• Restrict the advertising, promotion, and sale of all tobacco products over the Internet; 
   
• Define e-cigarette components and parts and apply the proposed restrictions on age verification, vending machine sales, and health warnings regardless of whether such components and parts contain nicotine; 
   
• Include “premium” cigars in the deeming rule; and 
   
• Regulate pipe tobacco to prevent avoidance of regulations applicable to tobacco that is actually used as roll-your-own tobacco. 

The comments to the FDA can be viewed here.

NEW YORK – The Second Circuit Court of Appeals ruled Friday that Attorney General Schneiderman’s 2012 settlement with J. Ezra Merkin, who invested over $2 billion with Bernard M. Madoff on behalf of hundreds of investors, may proceed. The decision affirms a 2013 U.S. District Court ruling that denied an effort by Irving Picard, the Madoff trustee, to block the Attorney General’s Office from distributing the proceeds of the $410 million settlement directly to Madoff’s victims. Today’s ruling means that these victims should begin receiving the money in the coming months. 

“This ruling is a victory for justice and accountability. Many New Yorkers entrusted their investments to Mr. Merkin, who then steered money to Madoff and received millions of dollars in management and incentive fees,” said Attorney General Schneiderman. “By paving the way for my office to disburse the proceeds of this $410 million settlement to the investors and charities harmed by Mr. Merkin’s actions, this ruling will help bring justice for these people and institutions that lost millions of dollars.”

In April 2009, the Office of Attorney General charged Merkin with violations of the Martin Act, General Business Law § 352; and Executive Law § 63(12) for concealing Madoff’s control of the Merkin Funds and for breaches of his fiduciary duty to manage the funds prudently. The lawsuit sought damages, disgorgement of all fees by Merkin, and injunctive relief. 

In June, 2012, A.G. Schneiderman announced a $410 million settlement with Merkin, who controlled three funds that invested over $2 billion with Bernard M. Madoff on behalf of hundreds of investors, including many New Yorkers and charitable organizations. The institutions had entrusted Merkin with their funds but, because Merkin secretly turned all of these funds over to Madoff, the investors – including the Ariel Fund Ltd., Gabriel Capital L.P., Ascot Fund Ltd. and Ascot Partners L.P. –  lost most of their money as a result of Madoff’s Ponzi scheme. Irving Picard, acting as Madoff trustee, attempted to prevent the AG’s office from returning the money to the victims. Picard contended that under Bankruptcy Laws, he had priority over Merkin’s assets and that the Attorney General should be enjoined from distributing them, pending resolution of Picard’s separate claims against Merkin. The court today rejected that argument.

Under the 2012 agreement secured by Attorney General Schneiderman, Merkin agreed to pay $405 million to compensate investors over a three-year period, and $5 million to the State of New York to cover fees and costs. It was the first settlement resulting from a government action against Merkin.

Depending on the size of their losses, eligible investors will be entitled to receive over 40 percent of their cash losses from the Settlement. Pursuant to a claims process, investors who were not aware of Merkin’s delegation to Madoff will receive a defined percentage of their losses, while those who were aware of Madoff’s role will be eligible to receive a smaller recovery. In addition, all investors may receive additional payments at a future date when the Madoff Estate is able to distribute moneys recovered by Irving Picard, the Securities Investor Protection Corporation Trustee for the liquidation of Madoff’s Estate, who is not involved in Attorney General Schneiderman’s settlement.

This case was handled by Senior Trial Counsel David N. Ellenhorn and Karla G. Sanchez, Executive Deputy Attorney General for Economic Justice. The appeal was handled by former employees Richard Dearing and Brian Sutherland.

NEW YORK – Attorney General Eric T. Schneiderman today announced an agreement with Barneys New York that will help ensure that customers, regardless of their race or ethnicity, have equal access to its stores throughout New York. This agreement follows a nine-month-long investigation by the Attorney General’s Office, which was launched after two African-American customers alleged they were falsely accused of credit card fraud while shopping at Barneys’ flagship store.

“Profiling and racial discrimination remain a problem in our state, but not one we are willing to accept. This agreement will continue our work to ensure there’s one set of rules for everyone in public accommodations, including customers in New York’s retail establishments,” Attorney General Schneiderman said. “This agreement will correct a number of wrongs, both by fixing past policies and by monitoring the actions of Barneys and its employees to make sure that past mistakes are not repeated.”

The Attorney General’s Civil Rights Bureau reviewed several complaints from customers and former Barneys employees. The complaints alleged that:

• Door guards identified minority customers exclusively as warranting surveillance;
• In-store detectives followed minority customers, even when the customers had been identified by sales associates as clients and frequent patrons of the store; 
• In-store detectives disproportionately asked sales associates to reprint receipts after minority customers made purchases in order to confirm the purchases were legitimate; 
• In-store detectives disproportionately called sales associates who handled and completed minority customers’ transactions in order to investigate the customers’ credit card use; and 
• Some sales associates avoided serving minority customers so they would not be contacted by loss-prevention employees seeking to investigate the use of credit cards by minority customers. 

Additionally, the Attorney General found that Barneys maintained inadequate records of stops made by their loss-prevention employees, but despite these lapses, existing records showed a disproportionate number of African-American and Latino customers being detained for alleged shoplifting or credit card fraud.

After its investigation, the Attorney General’s Civil Rights Bureau concluded that Barneys did not have comprehensive written policies regarding racial profiling; use of objective, race-neutral criteria for investigating potential shoplifting and/or credit card fraud; use of excessive force and handcuffs, or treatment of detainees. The Bureau also concluded that Barneys lacked consistent recordkeeping policies with respect to stops and detentions made by its loss-prevention employees or by local law enforcement. 

Under the terms of the agreement, Barneys will:

• Retain an independent anti-profiling consultant with expertise in the prevention of racial profiling in loss prevention and asset protection; 
• Establish new recordkeeping requirements on investigations, detentions and false stops conducted by loss-prevention employees;
• Limit access to its closed-circuit TV areas by local law enforcement officers and maintain records of visits by local law enforcement officers;
• Adopt new loss-prevention detention policies and a new anti-profiling policy;
• Develop and conduct anti-profiling training for loss-prevention and sales employees;
• Investigate customer complaints of profiling; and 
• Pay $525,000 in costs, fees, and penalties.

"As the Public Advocate, an attorney, and former Assistant Attorney General, I appreciate the serious need to protect workers and consumers from abuse and bias. I commend Attorney General Schneiderman and his staff for their diligent work in reaching this settlement.  We must continue to be vigilant and make sure that no business, no matter how large or small, discriminates against customers," said New York City Public Advocate Letitia James. 

Assemblyman Karim Camara said, "Every citizen is entitled to equal protection under the law, plain and simple. This basic fact cannot be forgotten, especially in New York, which so many people from different backgrounds call home. This agreement is an effort to correct past injustices, and I believe it will do just that. Eric Schneiderman and the Office of the Attorney General should be commended for their fine work."

Sherrilyn Ifill, President and Director-Counsel of the NAACP Legal Defense and Educational Fund, Inc.,said, “One of the most significant problems we face today concerns racial profiling of African-Americans and Latinos. The Civil Rights Act of 1964 stands as one of our most important tools for confronting those problems that persist in the public accommodations context. I thank the Attorney General's Civil Rights Bureau for working to ensure that the doors of our public establishments are equally open to all, regardless of race.”

This matter is being handled by Assistant Attorney General Dariely Rodriguez and Volunteer Assistant Attorney General Matthew Lemle Amsterdam of the Attorney General’s Civil Rights Bureau, which is led by Bureau Chief Kristen Clarke. The 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.

NEW YORK – Attorney General Eric T. Schneiderman and Taxi and Limousine Commission (TLC) Commissioner Meera Joshi today announced that Yellow Cab SLS Jet Management Corp. (SLS Jet) has agreed to pay $1,387,500 in restitution to drivers who were illegally charged by the company, as well as $125,000 in penalties. Under a separate agreement with the TLC, SLS Jet will also pay $125,000 plus $25,000 toward cost of monitoring compliance, for a total of $1.6 million in restitution and fines. SLS Jet, located at 22-05 43rd Avenue in Long Island City is one of the fifteen largest medallion leasing agents in New York City, managing approximately 275 medallions.

Today’s announcement marks the second settlement resulting from a joint enforcement initiative of the Attorney General and the TLC to protect the rights of New York City's taxi drivers under the TLC’s “lease cap rules,” which limit the amount of money drivers may be charged for leasing taxicabs and medallions.

“Every worker in New York deserves an honest day's pay for an honest day's work, and taxicab drivers are no exception," said Attorney General Schneiderman. “With most cabbies already struggling to make ends meet, our agreement will put money back in their pockets and prevent this company from cheating drivers out of their hard-earned wages. Working with Commissioner Joshi and the TLC, we will continue to vigorously enforce lease cap rules and ensure that all taxi companies follow the law and respect drivers’ rights." 

“Taxi drivers are among the hardest working New Yorkers,” said TLC Commissioner and Chair Meera Joshi, “and the resolution of this case, including the recouping of over $1.39 million in restitution for victimized drivers and their families, sends a powerful message to anyone considering this kind of abuse that it will not be tolerated.  The Attorney General’s Office and the TLC are fully and jointly-committed to putting an end to this, and other forms of fraud and abuse where monies rightly belonging to drivers are illegally withheld, and drivers can feel confident that we will investigate every credible allegation we see.”

With the cost of a medallion averaging more than a million dollars, most taxicab drivers do not own the medallions associated with the taxis that they drive. Instead, drivers lease medallions, and often vehicles as well, from owners and leasing agents. New York taxicab drivers are generally not employees and are therefore usually not covered by minimum wage, overtime, or many other labor laws. 

The TLC lease cap rules, among the few workplace protections for drivers, limit the dollar amount drivers may be charged for leasing medallions and taxicabs, in order to ensure a baseline level of take-home earnings for drivers.  The rules also strictly limit add-on charges that can be imposed upon drivers and limit the purposes for which charges may be assessed. Overcharges by owners or agents chisel away at drivers’ limited income.

“The drivers who came forward are the heroes who forced cap enforcement practices in the industry,” said Bhairavi Desai, Executive Director of the New York Taxi Workers Alliance.  “They took on retaliation and harassment in the name of justice and today they have triumphed.  Given a driver who overcharges by $10 loses their license and faces prosecution for multiple offenses, the SLS Jet owners should be relieved for not facing criminal charges.  We thank the leadership of AG Schneiderman and the Labor Bureau and TLC Chair Joshi and her prosecutors for staying the course and sending the message that drivers’ economic rights will be protected.” 

"I commend Attorney General Schneiderman for his commitment to protecting New York City's workforce," said Vincent Alvarez, President of the New York City Central Labor Council, AFL-CIO. "The working men and women of the taxi industry are an important to our city's transportation infrastructure, and like all workers, they deserve to be treated with dignity and respect. This settlement will help to ensure that taxi workers are protected from unscrupulous employers, seeking to steal workers' hard-earned wages. The New York City Central Labor Council will continue to work with our elected officials to ensure that all workers are have the protections needed to keep the wages they earn, so that working families can continue to grow and thrive in our city.

The Attorney General’s investigation of SLS Jet revealed that the company violated the TLC’s lease cap rules in charging fees to drivers that SLS Jet described as “late fees.” Late fees were commonly understood by drivers and other companies in the industry as fees to be assessed for the late return of a taxi after a driver’s shift ended. In contrast, SLS Jet assessed late fees based on late pre-payment of the lease fee, but the company did not adequately inform drivers about the basis for such charges.  

Many drivers reported that SLS Jet prohibited them from pre-paying for shifts, thereby forcing them to incur SLS Jet's late fees. In addition, when certain drivers asked SLS Jet about late fees incurred, SLS Jet replied that the fees were charged because drivers leased hybrid taxicabs, a fee not permitted under TLC rules.

A review of documents by the Attorney General’s Office also revealed that SLS regularly caused numerous taxi drivers to incur late fees when it cashed out drivers’ credit card accounts – from which lease fees were deducted – before the deduction of the lease fee, thus leaving insufficient funds in credit card accounts to pre-pay lease fees. Finally, documents showed a significant spike in the incidence of late fees being assessed in January 2011, indicating a concerted effort by the company to recover more late fees beginning at that time. The charge of so-called “late fees” under such circumstances violated the TLC rules. 

In addition to the more than $1.6 million owed under the Attorney General’s and TLC’s agreements, SLS Jet must also take steps to ensure future compliance with the law. Specifically, SLS Jet must train managers and other employees, post a notice about lease cap rules, and appoint a compliance officer with responsibility for ensuring the company’s compliance with the agreement and with TLC Rules governing lease caps. SLS Jet will also make quarterly reports to the Attorney General’s Office. Should the company fail to comply with the law going forward, it will be required to retain an independent monitor to monitor and report on the company’s compliance. In addition, SLS Jet will have to notify the TLC when it imposes any type of new fee upon drivers. 

In September 2013, the Attorney General and TLC entered into an ongoing collaboration to enforce lease cap rules. Today’s announcement follows the Attorney General’s December 2013 settlement with Evgeny “Gene” Freidman and four taxicab companies for overcharging drivers in violation of TLC lease cap rules. In resolution of that earlier investigation, Freidman and the companies paid almost $750,000 to the Atto! rney General’s office for restitution to drivers and $500,000 to the TLC for penalties. 

The case was handled by TLC Prosecuting Attorneys David Ross and Jason Gonzalez, who were deputized as Special Assistant Attorneys General; Assistant Attorney General Elizabeth Wagoner; Special Counsel Patricia Kakalec; and Labor Bureau Chief Terri Gerstein. The Executive Deputy Attorney General for Social Justice is Alvin Bragg.

ROCHESTER – Attorney General Eric T. Schneiderman today announced the arrest of Adrian King, a certified nursing assistant (CNA), for hitting a 90-year-old female patient suffering from dementia. King is charged with one count of Endangering the Welfare of a Vulnerable Elderly Person or an Incompetent or Physically Disabled Person in the Second Degree, Wilful Violation of Health Laws, and Harassment in the Second Degree.

According to the misdemeanor complaint, on or about May 16, 2014, defendant Adrian King, while working as a CNA at Wesley Gardens nursing home, a residential health care facility located in the City of Rochester, is alleged to have slapped a 90-year old resident who suffers from dementia in the face. According to an individual who witnessed the incident, the slap was loud and left a red mark on the resident’s forehead.  The resident was startled and upset and immediately said she would report King.

“When a family entrusts a loved one to the care of a nursing home, they expect courtesy, kindness, and professionalism—none of which the resident received in this case, as we allege,” said Attorney General Schneiderman.  “Today’s charges reflect my office’s dedication to protecting our most vulnerable, including the elderly and the disabled, by ensuring that those entrusted to provide care to them will be held accountable when they violate that trust.”

King was arraigned before The Honorable Caroline Morrison in Rochester City Court and pled guilty to the charge of Harassment in the Second Degree. The guilty plea was taken in satisfaction of the charges faced. Sentencing has been scheduled for January 12, 2015.

The Rochester Regional Office of the New York State Attorney General’s Medicaid Fraud Control Unit (MFCU) began investigating this case when it received a referral from the Department of Health alleging that King had struck an elderly and disabled resident for whom she was assigned to provide care.  

The case was investigated by Investigator Jason Rice, with assistance from MFCU Deputy Chief Investigator William Falk. The case is being prosecuted by Special Assistant Attorney General and Chief of Criminal Investigations Catherine Wagner. The Medicaid Fraud Control Unit is led by Bureau Chief 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 that four employees of the Northern Manor Adult Day Health Care Program (Northern Manor ADHC), a health care facility in Brooklyn providing services to the elderly, have been arrested after a long-term investigation. As a condition of the settlement, Attorney General Schneiderman required that the facility be shut down. Furthermore, Northern Manor Multicare Center, Inc., the nursing home that operates the Brooklyn program, has agreed to pay a $6.5 million civil settlement in connection with this case.

The arrests and the civil settlement came after an investigation conducted by the Attorney General’s Medicaid Fraud Control Unit (MFCU) into the adequacy of adult day health care (ADHC) services provided at the Brooklyn facility. 

“Today’s charges detail yet another example of egregious, despicable abuse of public resources for personal gain, sending the message that criminal behavior will be met with the full force of the law,” said Attorney General Schneiderman. “Employees of this program will never again be able to steal from taxpayers and deprive vulnerable New Yorkers of the care they deserve.”

The investigation, which included several undercover visits by a healthy and vibrant senior working on behalf of the Attorney General’s Office, revealed that Northern Manor ADHC in Brooklyn was not providing services as represented in its claims for payment to Medicaid.  The covert portion of the investigation captured on video two medical employees at Northern Manor ADHC, one of whom was a registered nurse, falsifying the healthy senior citizen’s medical admissions forms to ensure he qualified for services that, in actuality, he was too healthy to receive. Further investigation uncovered that, in violation of state law, Northern Manor ADHC hired unqualified individuals to provide social work services, perform initial psycho-social assessments and diagnose the emotional and mental needs of registrants.  State law requires a qualified social worker to perform these services.  

In a separate civil settlement, Nanuet-based Northern Manor Multicare Center, Inc. the operator of the Brooklyn facility , admitted that it operated the medical-model ADHC program in Brooklyn, without a qualified social worker on staff from July 1, 2010 through on or about June 30, 2011, and that on 63 days during that time period Northern Manor Muliticare’s ADHC Program in Brooklyn admitted more registrants than it was certified to take by the New York State Department of Health.  Northern Manor Multicare Center, Inc. agreed to pay to the state $6,500,000 to resolve the Attorney General’s civil claims.  As part of the settlement, Northern Manor Multicare Center, Inc. agreed to close Northern Manor ADHC in Brooklyn and assist its patients in registering for placement in another state-approved ADHC program.

As an authorized ADHC facility, Northern Manor ADHC, located at One Prospect Park West in Brooklyn, is required by New York State to provide medical and psychosocial care to seniors who are unable to care for themselves independently during the day.  Such programs serve as an alternative to nursing home care for individuals needing both medical treatment and socialization during the day.  In return for providing seniors with five hours of supervision, medical care, and the opportunity to socialize outside their homes, nursing homes operating ADHC programs receive from Medicaid approximately 65% of the rate paid to nursing homes that provide room and board and skilled nursing facility services to full-time residents.

An Albany County grand jury returned an indictment against Gelena Deverman, 35, of  Cliffside Park, New Jersey, program director of Northern Manor ADHC, charging her with one count of Grand Larceny in the First Degree for causing Medicaid to pay Northern Manor ADHC over $1 million based on false claims.  Grand Larceny in the First Degree is a class “B” felony, with a maximum sentence of 25 years in state prison. 

Deverman was arraigned in Albany County Court by Judge Andrew G. Ceresia and pled not guilty.  She was released on her own recognizance.

Also arrested, in Kings County, were Larisa Rumynik, 48, of Brooklyn, a registered nurse, for Falsifying Business Records in the First Degree, an “E” felony; Liliya Kostyuk, 58, of Brooklyn, for Unauthorized Practice of a Profession, an “E” felony, and Valentina Shapran, 51, of Brooklyn, for Falsifying Business Records in the First Degree and Unauthorized Practice of a Profession. Rumynik, Kostyuk, and Shapran are expected to be arraigned in New York City Criminal Court, Kings County this afternoon. Each of them faces a maximum of four years in state prison.

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

The investigation was led by Supervising Investigators Michael Casado and Natalie Shifrin, with the assistance of Deputy Chief Investigator Kenneth Morgan.  The audit was conducted by Special Auditor Investigators Ryan Rafferty and Yuriy Cheban, Associate Special Auditor Investigator David Verhey, and Principal Auditor Investigator Paul Erhardt, with the assistance of New York City Regional Chief Auditor Investigator Thomasina Smith.

The cases are being prosecuted by Twan V. Bounds, Deputy Regional Director of the MFCU New York City Office, and Special Assistant Attorney General Paul A. Clyne of the MFCU Albany Regional Office.  Special Assistant Attorney General Jill D. Brenner handled the civil settlement. Thomas O’Hanlon is MFCU’s Chief of Criminal Investigations – Downstate. MFCU is led by Acting Special Deputy Attorney General Amy Held.  The Criminal Division is led by Executive Deputy Attorney General Kelly Donovan. The charges are merely accusations and the defendants are presumed innocent unless and until proven guilty in court.