NEW YORK – Attorney General Eric T. Schneiderman announced today that his office has secured settlement agreements with three real estate brokerage firms in New York City and two landlords in Buffalo ensuring that tenants are not denied their right to use government assistance. Both Buffalo and New York City regulations prohibit discrimination in housing on the basis of lawful source of income, a category that includes government vouchers as well any legitimate occupation. Attorney General Schneiderman’s office is committed to upholding these regulations to ensure that all New Yorkers have equal access to housing. 

“Discrimination comes in many forms, but denying a home to someone because they receive government assistance is one of the most insidious, having a disproportionate effect on black and Hispanic individuals. No one should be turned away from an apartment based on a lawful income source, and we will continue to fight to ensure that everyone is treated equally under the law, regardless of race, ethnicity, or income,” Attorney General Schneiderman said. “Today’s settlements will ensure that many more aspiring homeowners – from Buffalo to New York City – will have a fair shot at a home and that their rights will be protected.”

Buffalo’s ordinance went into effect in 2006.  New York City’s regulation went into effect in 2008, following efforts by Mayor Bill DeBlasio and Public Advocate Letitia James when they were members of the New York City Council.  

New York City Public Advocate Letitia Jamessaid, “All renters deserve equal access to housing opportunities in our city regardless of their source of income. While on the City Council, I helped secure passage of the Source of Income Discrimination Law, and I look forward to working with Attorney General Eric Schneiderman to eliminate this kind of discrimination.”

"Housing remains one of the most important issues for New Yorkers struggling to make ends meet, and no one should be turned away from a potential home simply because they are receiving government assistance," said Council Speaker Melissa Mark-Viverito. "I thank Attorney General Schneiderman for fighting on behalf of a vulnerable population who may otherwise face unjust housing discrimination in New York City and all across the state."

City of Buffalo Council President Darius G. Pridgensaid, “Source of income discrimination has a disparate impact on the most vulnerable members of our community. I thank the Attorney General for working to eradicate this discrimination to ensure that all residents in Buffalo enjoy equal access to housing opportunities.” 

Council Member Jumaane D. Williams (D-Brooklyn), Deputy Leader, Chair of the City Council’s Housing and Buildings Committee,said, “Too often, source-of-income has proven to be a pretext for race discrimination, and I have been a vocal advocate to end this disparity. We cannot turn a blind eye to the barriers that people face when seeking affordable housing in our City.  I want to applaud Attorney General Schneiderman for his leadership in fighting on behalf of some of our city’s most vulnerable communities while using New York City’s Source of Income Discrimination Law to ensure equal access to rental opportunities.”

Last year, after receiving complaints from the public of systemic discrimination against voucher holders, Attorney General Schneiderman’s Civil Rights Bureau launched an investigation to determine whether landlords and real estate brokers across New York were complying with regulations prohibiting discrimination based on source of income. The investigation, which is ongoing, has so far resulted in these five settlements.The New York City-based brokerage firms that have settled with the Attorney General’s Civil Rights Bureau are Absolute Properties, Destination Real Estate and Brownstone Real Estate. Brokers at each of these firms regularly told prospective renters that landlords would not accept the subsidies as payment for rent. 

The Buffalo landlords are Patrick Guidice, who owns and manages five apartments, and Francis Pleto, who owns and manages eight apartments.

Source-of-income discrimination often dovetails with other forms of housing discrimination. Studies have shown that discrimination against Section 8 – the federal voucher program that provides rental housing subsidies to private landlords on behalf of millions of low-income households across the country – voucher holders increases if the recipient is African-American or Latino. Women are particularly affected, and, as of last year, female-headed households accounted for 76% of all government vouchers issued in New York. Examples of lawful source of income include Section 8 Rental Assistance, Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI) or earnings from seasonal employment.

The investigation found that in at least one undercover test, Mr. Guidice informed an undercover investigator seeking to rent an apartment that he would not accept government subsidies.  Several Craigslist advertisements Mr. Guidice posted in April 2012 stated: “Sorry do not except (sic) government assisted rental,” or “Sorry but at this time government assisted rental organizations are not excepted (sic).” From May 2012 through May 2013, Mr. Guidice posted at least 11 advertisements on Craigslist that said, “Private pay only;” “Private Pay only, no Government Assistance;” or “Private Personal Pay Only, Do Not Except (sic) Public Funds for Rent.”  The Attorney General’s investigation found that Mr. Guidice had not rented to any individuals using government subsidies in the last three years.

The second Buffalo-area settlement is with Francis Pleto. The Attorney General’s investigation found that Mr. Pleto informed an undercover tester that he would not accept Section 8 vouchers as payment for rent at any of his units. Advertisements posted online by Mr. Pleto asserted that he did not accept government subsidies. Specifically, at least one Craigslist advertisement, posted in August 2013, stated, “Don’t except (sic) Belmont,” referring to Section 8 vouchers issued by Belmont Housing Resources for WNY. Attorney General Schneiderman’s investigation found that Mr. Pleto had not rented to any individuals using government subsidies over the last three years.

Fred Freiberg, Executive Director of the Fair Housing Justice Center in New York City, said, “Unfortunately, discrimination in housing based on source of income happens all too often in our City.  Not only is it unlawful, but it harms some of the most vulnerable populations that are at risk of homelessness and in need of affordable rental housing.  We commend the Attorney General’s Civil Rights Bureau for taking action to seek compliance with the law and ensure that housing opportunities are available on an equal basis to renters with public subsidies.”

Scott W. Gehl, Executive Director of Housing Opportunities Made Equal, said, “People receiving government assistance have as much right to rent a home or apartment as any other equally qualified tenant.  Unlawful source of income discrimination deprives law-abiding citizens the right to find a decent home.  HOME appreciates that the Attorney General has taken vigorous action to combat the most frequently reported type of housing bias in Western New York.”

In New York City, undercover investigators from the Attorney General’s office also sought to determine whether government-issued vouchers were being accepted. Absolute Properties is a real estate brokerage firm in Manhattan that lists numerous properties for rent in the city. In one test, an employee of Absolute Properties informed an undercover investigator that “they don’t do Section 8.” Documents reviewed by the Attorney General’s Office revealed that Absolute Properties had, on multiple occasions, informed prospective tenants that government subsidies were not accepted at their listed properties. 

Brownstone Real Estate is a brokerage with three locations in Brooklyn. The investigation revealed that real estate agents at Brownstone told potential renters that vouchers were not accepted at their listed properties.  In addition, documents revealed that real estate agents at Brownstone failed to respond to multiple inquiries by prospective tenants who inquired about using government vouchers to rent their listed apartments.

Destination Real Estate is a brokerage firm in Brooklyn. It is owned and operated by Lawrence Roberts, Sr. The investigation revealed that Destination Real advertised an apartment as “Income Only,” and an employee of Destination Real Estate subsequently confirmed that this meant earned income and excluded government assistance.

Absolute Properties operates out of 1677 Amsterdam Ave. in Manhattan. Brownstone Real Estate’s three Brooklyn locations are at 268 Court Street; 372 7th Avenue; and 179 Atlantic Ave. Destination Real Estate is located at 540 Court St, in Brooklyn. 

Pursuant to the settlements and the requirements of local law, these brokerage firms and landlords will:

• modify their policies to ensure that all rental applicants are provided equal access to housing opportunities;
• conduct training for employees around these new anti-discrimination policies;
• preserve records of any complaints related to source-of-income discrimination;
• inform landlords that refuse to accept government vouchers of their obligations under the law;
• provide periodic reports to the Attorney General’s Office to ensure compliance with the law; and
• pay monetary penalties ranging from $5,000 for the individual landlords to $6,000 for the smallest brokerage firm, Destination Real Estate; $15,000 for Absolute Properties; and $18,000 Brownstone Real Estate, the largest of the three firm.  

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

The Civil Rights Bureau of the Attorney General’s Office is committed to promoting fair housing policies and combating discrimination faced by all New Yorkers. 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.   

Further information on fair housing laws can be found here.

POUGHKEEPSIE – Attorney General Eric T. Schneiderman today announced awards to law enforcement agencies in the Hudson Valley and Westchester 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 $80,000 to support the purchase of 200 vests for the Rockland County Sheriff’s Office, $33,300 to purchase 74 vests for the Kingston Police Department, $34,592 to purchase 84 vests for the Yonkers Police Department, receiving, $30,720 to purchase 80 vests for the City of White Plains Department of Public Safety, and $5,000 to purchase 10 vests for the City of Poughkeepsie. In total, the Attorney General announced $382,192.58 in grants today to support the purchase of 971 bulletproof vests. This is the third round of awards. Previously, Attorney General Schneiderman announced more than $2 million to support the purchase of more than 6,000 bulletproof vests for law enforcement agencies in Western New York, the Capital Region, the North Country, New York City, and Long Island.

“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 hundreds of brave officers throughout the Hudson Valley and Westchester 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, including four in the Hudson Valley, 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.

State Senator Terry Gipsonsaid, “I thank Attorney General Schneiderman for his shared commitment to keeping our officers safe. We must do everything we can as a state to ensure that our police departments have the equipment they need in order to most effectively and safely combat crime in our community. These inVEST Partnership grants will help equip our bravest with state-of-the-art life-saving vests, and I'm proud to support this important and needed program.”

Assemblyman Frank Skartadossaid, “We have examples right in my district where police vests have saved the lives of officers in the line of duty. The high cost of vests can become an issue to a municipality as they must be replaced periodically before they lose effectiveness. The funding opportunity being offered by Attorney General Eric Schneiderman will go a long way to ensure that our police officers are protected while they protect us.”

City of Poughkeepsie Police Chief Ronald Knappsaid, “On behalf of the City of Poughkeepsie community I would like to thank Attorney General Schneiderman for his efforts in the grant award. Already this year we have seized 30 handguns, many of them from officer initiated actions. The large volume of guns that are available on the street puts our officers and our residents at risk. This grant will ensure that we are able to properly equip our officers with the life-saving vests as they perform their duties. It is important that the department replace aging or worn out vests, and this award will allow us to move forward with the purchases regardless of our own budget concerns or shortfalls.”

Village of Fishkill Police Commissioner Glenn Scofield, Jr.said, “I wish to thank the Attorney General and the inVEST Partnership for providing funding to off-set the cost of vital officer safety equipment such as body armor. Small law enforcement agencies such as ours often depend on funding such as this to enable us to obtain essential equipment for the safety and well-being of our officers.”

Rhinebeck Police Officer in Charge, Sergeant Pete Dunnsaid, “We would like to thank the Attorney General's office for awarding the Rhinebeck Police Department the funds necessary to purchase 12 bulletproof vests. Programs, like InVest, make all the difference to small agencies with limited resources.”

Town of Poughkeepsie Police Chief Thomas Mauro said, “Bulletproof vests have saved many officers’ lives throughout the years. The importance of replacing the officers’ body armor, which updates the protective material and ensures a proper fit, cannot be overstated. These vests can reduce the risk of injury and death to our officers that protect and serve the public daily. The Town of Poughkeepsie Police Department would like to thank New York State Attorney General Eric T. Schneiderman for the funding to purchase these vests and help keep our officers safe.”

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 third 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 following law enforcement agencies received awards today:

The first round awards for Western New York, the Capital Region and the North Country can be found here. The second round awards for New York City and Long Island can be found here.

NEW YORK – Attorney General Eric T. Schneiderman and leading media company IAC today announced a groundbreaking agreement aimed at curbing cyberbullying and harassment to protect members of Ask.fm, a mobile-optimized social networking website just acquired by IAC operating business Ask.com, which has exploded in popularity among teenagers.  

Under the terms of the agreement, Ask.fm will revamp its safety policies and procedures, including creating a new online Safety Center, hiring a trust and safety officer to act as a primary safety contact, and establishing a Safety Advisory Board to oversee all safety issues. Ask.fm will also review user complaints within 24 hours and remove users that have been the subject of multiple complaints. An independent safety and security examiner will be appointed to examine the changes and report on compliance to the Attorney General’s Office for three years. 

“Today’s agreement shows once again that regulators can work with technology companies both to encourage innovation and protect consumers, including our youngest digital citizens,” saidAttorney General Schneiderman. “I applaud IAC’s leadership in working with our office to design a program that protects Ask.fm users from cyberbullying and other harmful content. We would hope that this collaboration serves as a useful model for other companies in the digital space.” 

“Our acquisition of Ask.fm was predicated on the belief that with the right mix of technology, talent and investment, we could make this site a materially safer place,” said Doug Leeds, CEO of Ask.com, the IAC subsidiary now responsible for Ask.fm. “In A.G. Schneiderman, we found a like-minded partner with a similar vision, and together we’re focused on instilling the right policies and procedures to ensure a safer and more enjoyable experience for millions of users." 

Launched in 2010, Ask.fm has over 180 million monthly active users around the world, 42% of whom are under age 18. The website has become popular because its engaging question-and-answer format allows users to express their identity through the lens of what others want to know about them. Users can anonymously ask questions of other registered users, obscuring their own identity in hopes of getting the most honest answer with the least judgment. While most teenage users trade harmless chatter, some have used the website to anonymously harass and insult classmates and neighbors. 

As part of today’s safety agreement, Ask.fm will: 

• Maintain a user-initiated reporting mechanism on the site for reporting concerns about (i) misuse of the site, (ii) harassment, (iii) use under the age of 13, and (iv) inappropriate content;
   
• Remove users who have been the subject of three (3) complaints and take reasonable steps to block those users from creating new accounts under different names. Such steps may include using persistent cookies to identify banned users and blocking users with certain banned email addresses from re-registering;
   
• Work with an accredited 501(c)(3) suicide prevention organization to address suicide prevention issues, train Ask.fm’s moderation and risk management staff, and provide guidance to resources for Ask.fm users;
   
• Register with the National Center for Missing and Exploited Children and comply with all reporting requirements of sexual exploitation images;
   
• Maintain user abilities to (i) review a question before it is posted on that user’s pages, (ii) remove a posted question at any time from that user’s pages, (iii) block another user from submitting questions, and (iv) require that all questions submitted from another user identify the questioner’s user name;
   
• Create a global law enforcement liaison position stationed in the U.S. to respond to law enforcement investigations of crimes against children;
   
• Promptly delete existing accounts and block future accounts associated with users who have self-identified as being under the age of 13; and
   
• Adopt a tool for third parties or parents to report that a child had created an account or posted to Ask.fm, and to request deletion of the account. 

Ask.fm will also hire an independent safety and security examiner to report for three years on continuing safety issues arising from the site, Ask.fm's compliance with the agreement, the volume and nature of any user complaints, the employees and third-party professionals who advise Ask.fm on safety and compliance issues, and confirmation of compliance with the Children’s Online Privacy and Protection Act, 5 U.S.C. §§ 6501–6505. 

“I applaud IAC and the Attorney General Schneiderman for working together to adopt immediate and meaningful procedures to protect young people online,” said Parry Aftab, Executive Director of WiredSafety.org. “The policies and procedures established by this agreement provide a new model for protecting children in anonymous online forums and helps address cyberbullying.” 

“We are committed to implementing enhanced safety solutions at Ask.fm that range from technology to policy to process,” said Catherine Teitelbaum, Ask.fm’s new chief trust and safety officer and an online safety expert, who brings more than 17 years of experience in governance alliance and process improvement to her role at Ask.fm. "Online safety is an industrywide challenge, and we believe that companies, non-profits, and government can all work together to create safer digital experiences for all.” 

Under IAC’s leadership, Ask.fm has entered into a similar agreement with the Maryland Attorney General’s Office. 

Attorney General Schneiderman also recommends that parents remain aware of their children’s activity online – and especially on social networking sites – to ensure their safety as well as the safety of other users. Parents can follow these tips: 

• Check your child’s browser history. Although most major social networking websites require that users be 13, research indicates that children often become members by misrepresenting their age. If you see a social networking site listed among the visited sites on your computer, assume your child has an account. 
   
• Review your child’s privacy settings, and show him or her how to activate the highest level of security.Most sites have customizable privacy settings that allow users to control what content is revealed and to whom. Take the time to learn how these privacy settings work on the sites your child plans to use. 
   
• Educate yourself about the sites.Make sure both you and your child understand the site’s privacy policy and code of conduct. Find out if the site monitors content that users post, and learn how to report abuse. Consider joining the social network and connecting with your child’s profile as a way to monitor activity.
   
• Set strict rules for what is and is not appropriate for your child to post online.These rules should include whether your child can use social media and websites, how they can be used to communicate and play, with whom your child can interact (e.g., real-life friends only), and for how much of the day. 
   
• Instruct your child to think before posting. Your child should not put something up on a social networking site unless he or she is comfortable with everyone in the world seeing it. It’s better to assume that everything posted can be viewed by everyone. Know that even if your child deletes content later, someone may have printed, downloaded, or shared it online with a broader – or unintended – audience. 
   
• Be smart about the details your child reveals.Never post location or personal information.  Explain to your child that even photographs can reveal a lot of personal information -- for example if they include clearly identifiable details such as street signs, license plates, personalized accessories, or school or team names on clothing. 
   
• Remind your child that anything created or communicated can be re-distributed and used to hurt your child or someone else. Photos and text can be cut, altered, or taken out of context and used to embarrass or manipulate children, or to damage their reputations or future prospects. This includes unkind or angry messages, compromising photos or videos, and posts about sex, weapons, drugs, and alcohol. Make sure your child is mindful of what he or she posts, since oversharing online can lead to consequences in the real world. 
   
• Be aware of “anonymous” apps and social websites.Some services, like Ask.fm, allow users to post anonymously, which can lead to a proliferation of inappropriate and harmful content. Most sites provide a variety of settings or mitigation techniques, such as blocking rude posts or posters, or requiring the user to accept the anonymous post. Take full advantage of these settings and report abuse immediately. 
   
• Teach your child about cyberbullying.It's important to encourage young users to communicate with others online in the same way they would face to face: behaving civilly and respectfully, and sharing positive information about themselves on social media. 
   
• Talk to your child about the persistence of online content.Your child’s social media presence is just the beginning of his or her digital footprint and should be managed carefully. Content posted today can affect his or her reputation long term and potentially cause later impact when he or she is applying for college and employment. 

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

BINGHAMTON – Attorney General Eric T. Schneiderman today announced the arrest and four-count indictment of attorney John D. Cadore on charges of Larceny and Scheme to Defraud. Cadore is accused of overbilling the New York State Supreme Court’s Attorneys for Children program and the Broome County Assigned Counsel program by nearly $11,000. Cadore, who was one of the highest billers to the Attorneys for Children program in the Third Judicial Department, submitted invoices totaling $747,139 for the two programs between January 1, 2009, and September 30, 2011. An audit conducted by the Office of Court Administration (OCA) Inspector General revealed approximately 36 days on which Cadore billed more than 24 hours in a single day between the two programs. 

“Individuals who steal hard-earned taxpayer dollars undermine trust in government and must be held accountable,” said Attorney General Schneiderman. “No one is above the law, no matter how powerful or well connected, which is why my office has prosecuted more than 50 people in public corruption cases. When an individual illegally obtains funds for  personal enrichment, it deprives people in need and all taxpayers of precious public resources.” 

Cadore was arraigned before the Honorable Martin Smith today in Broome County Court. The four-count indictment charges Cadore with two counts of Grand Larceny in the Third Degree, one count of Grand Larceny in the Fourth Degree, and one count of Scheme to Defraud in the First Degree. The defendant faces a maximum sentence of 2 1/3 to 7 years in prison.  

In addition to overbilling hours, Cadore double-billed travel expenses to court on approximately 187 occasions, court papers allege. OCA rules require an attorney who appears in court on more than one case at a time to bill for travel on one case or divide the time between two or more cases.  

The Attorney General thanks Auditor Aric Andrejko, Senior Auditor George Danyluk, and Inspector General Sherrill Spatz of the Office of Court Administration Inspector General’s Office for their invaluable cooperation and assistance in this investigation.

Assistant Attorney General Bridget Holohan Scally and Assistant Attorney General Colleen Glavin, both of the Public Integrity Bureau, are prosecuting the case. The Public Integrity Bureau is led by Bureau Chief Daniel Cort and Deputy Bureau Chief Stacy Aronowitz. The Public Integrity Bureau is part of the Criminal Justice Division led by Executive Deputy Attorney General for Criminal Justice Kelly Donovan. The prosecutors were assisted by Investigations Bureau Investigator David Buske, with support from Deputy Bureau Chief Antoine Karam and Bureau Chief Dominick Zarrella of the Investigations Bureau.

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

COMMACK – Attorney General Eric T. Schneiderman today announced that his office reached a settlement with Forster & Garbus, one of the largest debt collection firms in New York State, to ensure that it does not file actions against New Yorkers to collect on payday loans. A payday loan is a type of short-term borrowing – sometimes due in two weeks, which accounts for the name – in which the consumer borrows a small amount at interest rates that can range from 100 percent to 650 percent or more.  Payday loans are illegal because the interest rates far exceed the maximum of 16 percent allowed under New York law for most lenders not licensed by the State. This settlement is part of an ongoing crackdown by Attorney General Schneiderman on payday loans.

“Payday loans take money away from hardworking New Yorkers who are forced to pay illegal and outrageous interest rates,” Attorney General Schneiderman said. “Debt collection firms must make certain that the underlying loan is not a payday loan before filing a lawsuit, and they will be held responsible if they fail to do so. Ignorance is no excuse.”

The Attorney General’s investigation showed that a company called NCEP, LLC placed consumer debts with Forster & Garbus, located in Commack, for collection. These included payday loans, and on five occasions it attempted to collect on payday loans from New Yorkers. Forster & Garbus represented to the Office of the Attorney General (OAG) that it was had not been aware that the loans were payday loans, and after notification from the OAG, Forster & Garbus stopped its collection efforts. 

Under the agreement, Forster & Garbus may not file an action against a New Yorker  over a consumer credit transaction unless it first obtains a copy of the loan document and determines in writing that it is not a payday loan.  When it receives a written complaint from a consumer that an existing judgment or settlement may have involved a payday loan, Forster & Garbus is required to obtain a copy of the loan document and, if the loan was a payday loan, vacate the judgment and pay restitution to the consumer for any amounts paid on the judgment. Forster & Garbus was also required to pay $10,000 in costs and penalties.  

Attorney General Schneiderman has been tough on payday loans, sending a clear message that these predatory transactions will not be tolerated. Since January 1, 2011, as a result of his no-nonsense approach:

• Five debt collection firms that collected on payday loans were required to pay a total of $279,605.98 in restitution and $29,605.98 in penalties; 
   
• A debt-buying company was required to reverse 8,550 negative  reports it had made to credit reporting bureaus on New Yorkers and was prohibited from collecting on $3.2 million in payday loans taken out by New Yorkers; 
   
• 12 companies agreed to refuse requests to repossess the vehicles of New Yorkers when the underlying loan is a payday loan; and
   
• Three companies and their owners were stopped from collecting interest on outstanding payday loans and required to provide refunds to New York borrowers who had paid back more than the principal of their loan plus the legal interest rate of 16%, and to pay $1.5 million in penalties.

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

KINGSTON – Attorney General Eric T. Schneiderman announced today that his office has reached a settlement with Kingston auto dealer Prestige Automobiles, Inc., doing business as Prestige Toyota, which was adding an improper $650 “processing fee” to the purchase price of leased vehicles bought by customers at the end of their leases.  No additional services were provided for payment of this fee, which was not properly disclosed.

“The law is clear: auto dealers must treat consumers fairly and honestly, and not cheat them by charging bogus fees,” Attorney General Schneiderman said.  “This is one more step in our work to stop deceptive marketing practices in New York State and ensure that victims can recover their hard-earned dollars. There must be one set of rules for all New Yorkers, and that includes auto dealers.”

Pursuant to the settlement, Prestige Toyota will pay $17,250.47 in restitution to 27 customers who were charged the bogus processing fee. The dealership, located at 753 East Chester Street Bypass, will also reform its practices and pay $10,000 in penalties to New York State.

In 2012 and 2013, Prestige Toyota entered into leases with customers that set a price for purchase of the vehicle at the end of the lease. However, when the leases expired, Prestige Toyota added $650 to the purchase price  without disclosing it had done so. In addition, the fee was added to the price tag despite the fact that nothing had happened during the course of the lease to increase the cost to the dealership. When one customer caught the dealer doing this, he was told the $650 was a “processing fee.”  After the consumer was given only a partial refund, he complained to Attorney General Schneiderman’s Poughkeepsie Regional Office, which investigated the matter.

The Attorney General’s investigation found 27 consumers who are entitled to refunds – most of them for $650 – with 9% interest starting from the date of purchase. If more consumers come forward to the Attorney General’s office with proof they also were charged the illegal fee, they will be entitled to restitution. Consumers have until December 6 to contact the Attorney General’s office.

The case was handled by Assistant Attorney General Nick Garin with the assistance of Senior Consumer Frauds Representative Stephanie Brideau and Senior Investigator Mark Hoops. Vincent Bradley is the Assistant Attorney General-in-Charge of the Attorney General’s Poughkeepsie Regional Office, and Marty Mack is Executive Deputy Attorney General for the Attorney General’s 13 Regional Offices.

NEW YORK – Attorney General Eric T. Schneiderman today announced that 46 thrift shops across New York have been sent cease and desist letters ordering them to stop selling children’s clothing with drawstrings. The letters were sent after a survey by the Attorney General’s 13 Regional Offices found that despite state and federal prohibitions against the sale of children’s drawstring clothing, many thrift shops continue to offer these dangerous items for sale.

“The sale of children’s clothing with drawstrings has been illegal in New York for more than a decade – and that includes the sale of these items by thrift stores,” Attorney General Schneiderman said. “No child should be put at risk simply because of the clothing that he or she is wearing. With these warning letters, we are sending a clear signal that thrift shops, like all retailers, must comply with the law – that they cannot sell clothing that puts children at risk of injury, strangulation and death. Beyond that, my office also hopes to also raise parents’ awareness of the serious dangers posed by children’s drawstring clothing.”

As part of the Attorney General's effort to curb the resale of banned consumer products at hundreds of thrift stores across New York State, inspectors from the office visited 51 thrift shops in regions across the state in late July. Of these, 46 shops -- including 13 operated by The Salvation Army and 10 operated by Goodwill Industries -- were found to be selling one or more items of illegal children’s drawstring clothing. The items included shirts, sweatshirts, pants, shorts and skirts, all of which had drawstrings that exceeded the permitted length. In response to the cease and desist letters, sent earlier this month, the thrift stores have acted quickly to remove the offending products from their shelves.

Drawstrings on children’s garments at the neck and waist are considered a safety hazard. The drawstrings can catch on cribs, playground equipment and vehicle doors-- including school bus doors-- and have caused injuries and death by strangulation. From January 1985 through April 2011, the U.S. Consumer Product Safety Commission received reports of 26 deaths and 58 non-fatal incidents involving drawstrings on children’s clothing. New York has banned the sale of children’s drawstring clothing since 2003, and federal rules also ban their sale. 

The thrift shops that received letters were ordered to immediately stop selling illegal drawstring clothing, and to immediately remove all offending items from their shops. The Attorney General’s office will continue to monitor thrift shops, and take enforcement action as appropriate, to ensure compliance going forward. 

Under New York law, it is illegal to sell any item of children’s clothing, up to and including size 12, with a drawstring at the neck. Drawstrings are permissible at the top of a bottom garment (i.e., at the waist of sweatpants), or at the bottom of an upper garment (i.e., at the waist of a jacket) in children’s clothing sized from 2T to 16, if the following conditions are met:

• The drawstring is attached to the garment at its midpoint, so it cannot be fully pulled to one side, thus making it a hazard.
• The ends of the drawstring measure no more than three inches from the point where the drawstring exits the garment to the tip of the drawstring, measured while the garment is expanded to its fullest width.
• No toggles, knots, or attachments can be placed at the ends of the drawstrings other than a standard metal or plastic sheath covering on the end to prevent fraying.

The following is a list of the thrift shops in New York that were found to be selling children’s clothing with hazardous, illegal drawstrings:

Broome County:
Ladies of Charity Nearly New Shop, Binghamton
Salvation Army Thrift Store, Binghamton
The Urban Star, Johnson City

Clinton County: 
St. Vincent de Paul Thrift Store, Peru
Our Lady of Victory Thrift Shop, Plattsburgh
Salvation Army, Plattsburgh

Dutchess County: 
Goodwill Industries, Wappingers Falls

Erie County:
A King’s Ransom Thrift Shop, Blasdell
Once Upon A Child, Blasdell
Savers Thrift Store, Hamburg
Finders Keepers, Williamsville
Goodwill Store, Williamsville

Jefferson County: 
The Thrift Shop, Inc., Fort Drum
Classy Kids, Watertown
Impossible Dream Thrift Store, Watertown

Long Island: 
Salvation Army, Babylon 
Glory Beez, Baldwin
Goodwill Industries, Bellmore
Salvation Army, Hempstead
Savers, Holbrook
Marshmellow Kids Fashion, Mineola

Monroe County: 
ABVI-Clinton Goodwill, Rochester
Matthew’s Closet, Rochester
Salvation Army, Rochester (East Ridge Road)
Salvation Army, Rochester (Elmridge Center Drive)
Volunteers of America, Rochester

New York City: 
Goodwill Industries, Bronx
Salvation Army, Bronx
Thrift Land USA, Inc., Bronx
Yankee Wiping Cloth Corp., Bronx
Goodwill Industries, Brooklyn (Livingston Street)
Goodwill Retail Store, Brooklyn (Fulton Street)
Goodwill Industries, Manhattan (Fifth Avenue)
Salvation Army, Manhattan (West 96th St.)
Salvation Army, Queens (Steinway Street)

Niagara County: 
Kids Corner Clothing, Niagara Falls
Salvation Army Family Thrift Store, Niagara Falls

Onondaga County:
Liverpool Thrifty Shopper, Liverpool
East Syracuse Thrifty Shopper, East Syracuse
Goodwill of the Finger Lakes, Syracuse
Salvation Army, Syracuse

Orange County: 
Goodwill Industries, Vails Gate

Ulster County: 
Salvation Army, New Paltz

Westchester County: 
Elmsford Goodwill Store, Elmsford
Salvation Army Thrift Store, Mount Vernon
Thrift Store of White Plains, White Plains

The initiative is being coordinated by Assistant Attorney General-in-Charge Gary Brown of the Westchester Regional Office. The Executive Deputy Attorney General for Regional Affairs is Marty Mack. 

A link to the U.S. Consumer Product Safety Commission Final Rule report can be found here.

NEW YORK – Attorney General Eric T. Schneiderman and New York State Commissioner of Taxation and Finance Thomas H. Mattox today announced the  unsealing of an indictment of a large-scale cigar distributor, Aamir Sulaiman, of Delta Distribution Services Corp. Sulaiman, a licensed tobacco distributor, and his Brooklyn-based corporation were charged with felony Criminal Tax Fraud, Offering a False Instrument for Filing, and Falsifying Business Records after an investigation showed that Aamir, who owns and operates Delta, imported millions of cigars from Pennsylvania-based wholesalers and resold them in New York without paying New York taxes on the products. Sulaiman was arraigned in Brooklyn Supreme Court in front of Judge Chun. If convicted, the 45-year-old faces up to 25 years in prison. 

The investigation, conducted by the Attorney General’s Organized Crime Task Force and the Department of Taxation and Finance, revealed that between March and November 2013, Aamir allegedly failed to pay at least $6.1 million in state tobacco taxes. A review of seized records revealed that Sulaiman and Delta Distribution Services Corp. owed over $6 million in tobacco taxes to New York State and remitted only $100,000. 

“On behalf of responsible businesses, taxpayers, and local governments, we must take aggressive action against tax cheats — especially those who have stolen millions of dollars from the people of New York State,” said Attorney General Schneiderman. “Operations like these undermine law-abiding mom-and-pop shops and other businesses in New York by putting them at a competitive disadvantage, not to mention damaging our public health efforts to discourage smoking. I thank the Department of Taxation and Finance for partnering with us on this important case.”

“In his effort to steal from the State, it appears the defendant filed multiple false tobacco tax returns, and also falsified his business documents,” said New York State Commissioner of Taxation and Finance Thomas H. Mattox. “This is a serious crime, and I thank Attorney General Schneiderman for moving ahead with prosecution.”    

Between March and November 2013, licensed tobacco distributors were required by law to remit a 75% tax on the wholesale price of all cigars sold, shipped, imported, manufactured, or delivered in New York. That payment must be made to the state Tax Department by the 20th of every month, along with a completed NYS tax form called the MT-203. Aamir’s MT-203’s for the nine-month span falsely reported and remitted $100,188 in tobacco taxes, as opposed to the $6.9 million that he owed. 

On March 12, 2014, Aamir, of Staten Island, and his corporation were arraigned on a felony complaint in Brooklyn Criminal Court, and Aamir was held on $100,000 bail. Today, Aamir and his corporation were arraigned on the 28-count indictment, and Aamir’s bail was continued.  

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

The investigation was directed by the Attorney General’s Organized Crime Task Force Senior Investigators Mark MacConnell and John Flood. OCTF’s Supervising Investigator is Cheryl Munoz, and Christopher Vasta is the bureau’s Deputy Chief. The chief is Dominick Zarrella. The investigation by the NYS Department of Taxation and Finance was directed by Senior Tax Investigator Kevin Barbitsch with the assistance of Forensic Tax Auditor Robert Bergeson and Investigator Brian Norris.

The case is being prosecuted by Assistant Deputy Attorney General Brandi Kligman of the Attorney General’s Organized Crime Task Force, which is led by Deputy Attorney General Peri Alyse Kadanoff. OCTF is part of the Attorney General’s Criminal Justice Bureau, headed by Executive Deputy Attorney General Kelly Donovan.

NEW YORK -- Attorney General Eric T. Schneiderman today announced an agreement with Macy’s Retail Holdings, Inc., addressing more than a dozen recent complaints of profiling and false detentions at Macy’s flagship store in Manhattan’s Herald Square. The agreement will help ensure that all customers, regardless of their race or ethnicity, are treated equally at the retail giant’s 42 New York State stores. The settlement, which requires that Macy’s pay $650,000, is the second agreement reached this month by the Attorney General’s Civil Rights Bureau with a retail establishment in New York City -- and comes on the heels of the 50th anniversary of the Civil Rights Act of 1964. The half-century-old federal law prohibits discrimination on the basis of race, color, religion, sex or national origin in public accommodations.  

“It is absolutely unacceptable -- and it’s illegal -- for anyone in New York to be treated like a criminal simply because of the color of their skin,” Attorney General Schneidermansaid. “Recent allegations of racial profiling at some of New York’s most famous stores stand as a stark reminder that the protections afforded by the Civil Rights Act of 1964 are still needed today – and that equal justice under law remains an American ideal we are striving to attain. This agreement will help ensure that no one is unfairly singled out as a suspected criminal when they shop in New York and that all New Yorkers enjoy full and equal access to our retail establishments.”

The Civil Rights Bureau opened an investigation into Macy’s in February 2013, when it received several complaints regarding minority customers. The office has received complaints from close to two dozen African-American, Latino and other customers who are members of ethnic minority groups who claimed that they had been apprehended and detained at Macy’s, despite not having stolen or having attempted to steal any Macy’s merchandise. The consumers alleged they were racially profiled; that officials at the store, located at 151 West 34th Street, detained and falsely accused minorities at far greater rates than white customers of committing crimes, and that Macy’s was engaging in improper apprehensions and detentions.  

The complaints alleged, among other things, that minority customers were wrongly stopped and detained by loss prevention employees of the store after traveling between floors by escalator with unconcealed merchandise, despite having no intention of shoplifting, and that customers with limited English proficiency suspected of shoplifting or credit card fraud were not permitted to make phone calls, were denied access to an interpreter, and were required to sign trespass notices even though they could not understand the notices in English.  

In addition to reviewing complaints by customers, the Attorney General’s Office met with former Macy’s sales representatives for the Herald Square department store who alleged that loss prevention employees at the store tracked and followed African -American, Latino, and other minority customers much more frequently than white customers.  Finally, the Attorney General’s review of data produced by Macy’s showed that Macy’s investigated and detained minorities for allegedly shoplifting at significantly higher rates than whites.  

In January 2005, Macy’s entered into a consent decree with the Attorney General’s Office to resolve allegations that its asset protection policies and practices, including its handcuffing policies, violated various anti-discrimination laws. The terms of that agreement ended in 2008.  Despite improvements in some areas and the continuation of certain consent decree reforms, the Attorney General’s investigation found that Macy’s was continuing to stop and detain a higher percentage of its minority shoppers than non-minority shoppers. 

As a result of the current investigation, the Attorney General concluded that Macy’s has failed to take appropriate steps to adequately and quickly address profiling issues at its New York stores, that Macy’s failed to provide loss prevention employees with sufficient guidance or training on when to make proper detentions, and that Macy’s lacked comprehensive data collection and recordkeeping on its employees’ interactions with customers suspected of theft or credit card fraud.

Under the terms of the agreement, Macy’s will:

• Designate an independent expert on anti-discrimination laws and prevention of racial profiling in retail loss prevention who will report to the Attorney General’s Office on compliance by Macy’s with the agreement for three years; 
   
• Employ an internal full-time security monitor who will report to an executive outside of Macy’s Loss Prevention Department, monitor Macy’s loss prevention policies and practices, and be responsible for ensuring compliance with the terms of this settlement; 
   
• Post its Customers’ Bill of Rights, in English and Spanish, in a prominent location, accessible to the public, in each of its stores in the State of New York and on the Macy’s, Inc. website;
   
• Establish new recordkeeping requirements on apprehensions, non-productive detentions, and customer interactions conducted by loss prevention employees throughout all New York stores, as well as on reports and tips made by sales employees at the Herald Square store; 
   
• Adopt new policies regarding anti-profiling, loss prevention detention, and access to Macy’s closed-circuit television rooms by external law enforcement officers;
   
• Train employees on topics such as anti-profiling, proper loss prevention investigatory and interview tactics, and best practices with respect to the treatment of detainees in custody;
   
• Investigate customer complaints alleging unreasonable detentions, racial profiling or racial discrimination; and 
   
• Pay $650,000 in costs, fees, and penalties to New York State.

This matter is part of the Attorney General’s Civil Rights Bureau’s ongoing initiative to combat profiling at retail establishments across New York State.  The initiative recently resulted in an agreement with Barneys New York. That agreement required Barneys to, among other things, retain an anti-profiling consultant, establish new recordkeeping requirements, adopt new loss prevention policies and procedures, and pay $525,000 in costs, fees and penalties.

Further information about the Barney’s agreement is available here.

Council Member Jumaane D. Williams (D-Brooklyn), deputy leader and chair of the New York City Council’s Housing & Buildings Committee,said, “I want to applaud Attorney General Schneiderman for his leadership and continuous work to end the bias-based profiling that occurred at Macy’s. My office is also working to legislatively address these practices. Today’s announcement will go a long way towards ending profiling in Macy’s, and sends a powerful anti-discriminatory message to the business community throughout the city.” 

New York State Senator Gustavo Rivera (D-Bronx) said, “Discrimination is wrong. Period. And it is unacceptable that every day thousands of New Yorkers are forced to endure racial discrimination in their daily lives. Hopefully, today's agreement will send a strong message to anyone who would discriminate that their actions have consequences, and they will be held accountable. I commend Attorney General Eric Schneiderman for reaching this settlement that not only brings justice to victims of past discrimination, but also strives to prevent future ones from taking place.” 

Assemblyman Walter T. Mosley (D-Brooklyn) said, “Retailers have a responsibility to the community it serves to treat every customer with the same high level of respect and dignity.  When they engage in retail profiling, they are engaging in racism.  This is why I introduced legislation in the State Assembly to ban this reprehensible practice.  Today, I applaud Attorney General Eric Schneiderman and his office for not only coming down hard on retailers who engage in profiling, but also ensuring there is a set of protocols certain to bring about a level of accountability and transparency in the future.”

Actor Rob Brown and Douglas Wigdor said, "It is our hope that based on this agreement, as well as our individual agreement, that retailers will treat their customers with dignity and respect regardless of the color of their skin or ethnicity."

Barbara R. Arnwine, president & executive director of the national Lawyers' Committee for Civil Rights Under Law, said, “The Civil Rights Act of 1964 is one of our nation’s most important and powerful federal civil rights statutes.  Title II of that law ensures that public accommodations, including retailers, make their doors open equally to all consumers regardless of race. Everyone deserves the right to shop at retail stores without being subjected to unlawful harassment and discrimination and today’s agreement underscores these important rights."

“Racial profiling is a form of discrimination that usually draws attention only when the results turn tragic. But the degradation and humiliation of profiling is reinforced daily in interactions on the street, in airports, and in retail stores. The Civil Rights Act of 1964 outlaws discrimination in public accommodations under the fundamental principle that underscores our nation's long civil rights struggle -- equal opportunity for all. I thank the Attorney General’s Civil Rights Bureau for enforcing the guarantees of this important law and the rights of all people to live, work, and enjoy public accommodation free of the burden of profiling,” said Wade Henderson, president and CEO of The Leadership Conference on Civil and Human Rights.

This case was handled by Assistant Attorney General Dariely Rodriguez and Kristen Clarke, chief of the Attorney General Schneiderman’s Civil Rights Bureau. 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.govor visit www.ag.ny.gov.

PURCHASE – Attorney General Eric T. Schneiderman joined Purchase College President Thomas Schwarz in announcing that 12 State University of New York (SUNY) campuses would be joining the Attorney General’s Community Overdose Prevention (COP) Program. Attorney General Schneiderman announced that his office would provide funding to equip 258 campus police officers with naloxone, the extremely effective heroin antidote that can instantly reverse the effects of an opioid or heroin overdose. The Attorney General’s COP Program uses funds seized from drug dealers and other criminals to reimburse local police departments for the cost of naloxone kits. The SUNY campuses that applied and will be receiving funding are: Purchase, Potsdam, Buffalo, Cortland, Oswego, Albany, Geneseo, Adirondack, Canton, Utica/Rome, Farmingdale, and New Paltz.

“The COP Program is an essential part of our effort to combat the epidemic of heroin overdoses plaguing communities here in New York State and across the country,” said Attorney General Schneiderman. “In just the past year, we’ve seen multiple students overdose on SUNY campuses—a tragic reminder that the crisis we’ve seen in the news is not so far from our students’ dorm rooms. By providing SUNY campus officers with naloxone, we are making this stunningly effective overdose antidote available to institutions that educate and care for our students.”

The COP program will provide SUNY Police with almost $27,000 to purchase 258 naloxone kits for the SUNY campuses at Purchase, Potsdam, Buffalo, Cortland, Oswego, Albany, Geneseo, Adirondack, Canton, Utica/Rome, Farmingdale, and New Paltz. That means nearly half of SUNY’s sworn officers will have access to naloxone. Since the COP Program was launched on April 3rd, more than 200 law-enforcement agencies have applied to the COP Program. Several dozen more are completing the necessary steps to become eligible. The COP Program has now approved the distribution of nearly 28,000 kits to 164 police departments across the state.

In 2012, Westchester was among the top 10 counties in the state for opioid-related hospitalizations. The Hudson Valley had the highest per capita heroin hospital admission rate in the state in 2012, with an average of 1.912 opioid-related admissions per 1,000 residents. 

In May, a SUNY Oswego student died on campus from a heroin overdose and two suffered near-fatal overdoses off campus. In April, an Oswego student died in his home off campus from a heroin overdose. Last year, a graduate student died from a heroin overdose on campus at Binghamton.

Each naloxone kit consists of a zip bag or pouch containing two prefilled syringes of naloxone,  two atomizers for nasal administration, sterile gloves and a booklet on the use of the drug. The cost of a naloxone kit is approximately $60, and the shelf life of each kit is approximately two years.  

The success of naloxone in combatting opioid overdoses cannot be overstated. Since the fall of 2010, the police department of Quincy, Massachusetts, the first department in the nation to require its officers to carry naloxone, has used the drug 221 times and successfully reversed 211 overdoses (as of February), a success rate of over 95%. In New York’s Suffolk County, State Police saved more than 170 people.

Purchase College President Thomas J. Schwarz said, “The Community Overdose Prevention program is a powerful weapon in battling heroin and prescription pain pill abuse and the tragic deaths that result. With the heroin antidote, first responders have been able to prevent thousands of deaths each year around the country—saving individuals, families, and communities from devastation. Providing that proven life-saver to our police will have a profound impact throughout the state of New York, as well as in our local communities.” 

Michael Bailey, Chief of Police at Purchase College, said, “Very often, governmental initiatives don’t come with the funding to back them up. But in the case of the Community Overdose Prevention Program, Attorney General Schneiderman is providing funds to purchase naloxone not only for the NYS University Police, but for many law enforcement agencies across the state. That money will no doubt help us protect a particularly vulnerable population throughout our university system, even saving the lives of some students who either made a poor decision or who are gripped by the disease of drug addiction.”

Since taking office, Attorney General Schneiderman has been aggressive in combatting the scourge of heroin in New York. He led the effort to rein in prescription opioid abuse by passing unanimous legislation to create I-STOP – the Internet System for Tracking Over-Prescribing. Initial figures indicate that I-STOP has reduced doctor-shopping – the practice of going from doctor to doctor to accumulate prescriptions – by 75% in just the first year. On the criminal side, I-STOP has led to the prosecution of several doctors who willingly participate in doctor-shopping. Separately, the Attorney General’s Organized Crime Task Force has successfully dismantled a number of heroin rings around the state. 

ROCHESTER – Attorney General Eric T. Schneiderman today announced that his office has filed felony charges against Alicia Santiago, a home health care aide from Rochester, who allegedly submitted phony time sheets to Innovative Care, LLC, which, relying on Santiago’s false time sheets, billed Medicaid for work Santiago had not performed. The defendant was arrested last night and arraigned in the Town of Gates Justice Court before the Honorable Peter P. Pupatelli. 

“There has to be one set of rules for everyone, and that is why our office aggressively prosecutes cases of Medicaid fraud that deprive honest New Yorkers of the rightful care they deserve and squander taxpayer dollars,” said Attorney General Schneiderman. “We want to send a clear message that Medicaid fraud will not be tolerated and that unscrupulous caregivers will be held accountable.”

The felony complaint accuses Alicia Santiago, 54, of 50 Worcester Street, Rochester, of submitting time sheets to Innovative Care LLC indicating she provided home care services to a family member for approximately 186 hours on night shifts from November 2012 to April 2013, when she was actually working as a certified nurse aide at the Brighton Manor Nursing Home during those hours. Based upon these time sheets, Innovative Care billed the Medicaid Program $3,958.23, and Santiago received approximately $1,800 in pay for the hours of alleged falsely reported services.  

Judge Pupatelli arraigned Santiago on one count each of Grand Larceny in the Third Degree, a class “D” felony, and Grand Larceny in the Fourth Degree, a class “E” felony. Santiago faces a maximum penalty of 2 1/3 to 7 years in prison.  Judge Pupatelli adjourned the matter until September 10, 2014. 

Special Assistant Attorney General Timothy McFarland of the Medicaid Fraud Control Unit’s Rochester Regional Office is prosecuting this case. The investigation was handled by Special Investigator Jason Rice, along with Special Auditor/Investigator Jennifer Harrison.  The Medicaid Fraud Control Unit is led by Acting Director Amy Held. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

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

BROOKLYN - Attorney General Eric T. Schneiderman and U.S. Attorney Loretta Lynch today announced that they have entered into settlement agreements with a New Rochelle nursing home resolving allegations that the facility and its owner submitted tens of thousands of inflated claims to the New York State Medicaid Program. The claims sought reimbursement for services provided, but at artificially high rates. Under the agreements, Ralex Services, Inc., doing business as Glen Island Center for Nursing and Rehabilitation, and its owner, Leah Friedman, will return $2.2 million to Medicaid, a program jointly funded by the state and federal governments. New York will receive $1,320,000 of the total restitution funds.

“Safeguarding public health care dollars is of critical concern, and my office will investigate—and prosecute—all allegations of impropriety by health care providers who obtain Medicaid funds to which they have no right,” Attorney General Schneiderman said. “We must care for our most vulnerable New Yorkers and at the same time protect our taxpayer dollars. Today we are saying: There is one set of rules for all nursing home providers-- and my office is here to make sure those rules are followed.” 

According to allegations made by the state and federal governments, the 182-bed Glen Island facility, located at 490 Pelham Road in New Rochelle, submitted more than 62,000 false claims to New York’s Department of Health from April 2002 to November 2006. The false claims used Medicaid reimbursement rates based, in part, on up-coded Patient Review Instruments (PRIs), which falsely represented the degree of care required by many Glen Island residents during the mandatory quarterly assessment periods covered by these submissions. The defendants exaggerated residents’ diagnoses, conditions and required treatments in the reports. They routinely stated that residents were receiving treatments, including for oxygen and suctioning, when such treatments were neither required nor given. 

In furtherance of this scheme, and in response to the Attorney General’s request for records, the defendants attempted to cover up their fraudulent submissions and false claims by making false entries and forgeries into Glen Island residents’ medical records. These falsified records were later turned over to the New York State Attorney General’s Medicaid Fraud Control Unit. Two former Glen Island nurses, who participated in “tampering parties” at which records were falsified, were also convicted by the Attorney General’s Office. For example, one false score sheet designated a resident as needing daily oropharyngeal suctioning, a treatment which clears secretions from airways of patients, when in fact the resident did not need or receive the treatment. By routinely inflating patient scores, Glen Island received higher Medicaid reimbursement rates.

Today’s settlement follows the 2011 conviction of former Glen Island Administrator Eufemia Fe Salomon-Flores, who pleaded guilty to felony grand larceny and admitted that she had submitted information to DOH that falsified the type of care residents received. She served a 1- to 3-year state prison sentence, lost her Nursing Home Administrator license and has been excluded from participating in the state’s Medicaid program. 

Marlon Legaspi pleaded guilty in December 2011 to a misdemeanor count of attempted tampering with physical evidence. Maria Eufemia Salomon-Rosanes, a niece of Fe Salomon-Flores, pleaded guilty to the same misdemeanor charge in March 2012. Both defendants were excluded from the Medicaid program. 

The agreements – one with the State and one with federal authorities – followed a joint investigation by the Attorney General’s Medicaid Fraud Control Unit and the United States Attorney’s Office for the Eastern District of New York. The investigation came after allegations were lodged by whistleblower Carolyn Hinestroza, a former assistant director of nursing at the facility, alleging violations of the New York False Claims Act. Following the investigation, the offices intervened in the whistleblower case against Glen Island, Friedman and Will-Maur, LLC, the real estate holding company that owns the Glen Island land and premises. Friedman, her husband, Burton Flax, and their two children are the members of Will-Maur.

Attorney General Schneiderman thanks United States Attorney Loretta E. Lynch, Eastern District of New York, and her staff for their cooperation in this case.  The federal case was handled by Assistant United States Attorney Erin Argo. 

The state case was handled by Special Assistant Attorney General Jill D. Brenner and Principal Special Auditor Investigator Ann Winslow and Senior Special Investigator Carlos Miranda. The underlying criminal prosecution of Eufemia Fe Flores-Salomon was handled by Special Assistant Attorney General Susan Bloom of MFCU’s Pearl River Office. The Medicaid Fraud Control Unit is led by Acting Director Amy Held. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan. 

NEW YORK – Attorney General Eric T. Schneiderman today joined members of a state and federal working group he co-chairs to announce a $16.65 billion settlement with Bank of America. The settlement is the largest in U.S. history with a single institution, surpassing the $13 billion settlement with JPMorgan Chase that was secured by the same state and federal working group last November. The settlement includes $800 million – $300 million in cash, and a minimum of $500 million worth of consumer relief – that will be allocated to New York State. As part of today’s settlement, Bank of America acknowledged it made serious misrepresentations to the public – including the investing public – arising out of the packaging, marketing, sale and issuance of residential mortgage-backed securities (RMBS) by Bank of America, as well as by Countrywide Financial and Merrill Lynch, institutions that Bank of America acquired in 2008. The resolution also requires Bank of America to provide relief to underwater homeowners, distressed borrowers, and affected communities through a variety of means, including relief that for the first time will assist certain homeowners with mortgages insured by the Federal Housing Administration (FHA) who were ineligible for relief under previous settlements.

The settlement requires Bank of America to pay $9.65 billion in hard dollars and provide $7 billion in consumer relief. New York State will receive at least $800 million: $300 million in cash and a minimum of $500 million in consumer relief for struggling New Yorkers. The settlement was negotiated through the Residential Mortgage-Backed Securities Working Group, a joint state and federal working group formed in 2012 to share resources and continue investigating wrongdoing in the mortgage-backed securities market prior to the financial crisis. Attorney General Schneiderman co-chairs the RMBS working group.

“Since my first day in office, one of my top priorities has been to pursue accountability for the misconduct that led to the crash of the housing market and the collapse of the American economy,” said Attorney General Schneiderman. “This historic settlement builds upon our work bringing relief to families around the country and across New York who were hurt by the housing crisis, and is exactly what our working group was created to do. The frauds detailed in Bank of America’s statement of facts harmed countless of New York homeowners and investors. Today's result is a major victory in the fight to hold those who caused the financial crisis accountable.”

The settlement includes an agreed-upon statement of facts that describes how Bank of America, Merrill Lynch and Countrywide made representations to RMBS investors about the quality of the mortgage loans they securitized and sold to investors.  Contrary to those representations, the firms securitized and sold RMBS with underlying mortgage loans that they knew had material defects. Bank of America also made representations to the FHA, an agency within the U.S. Department of Housing and Urban Development, about the quality of FHA-insured loans that Bank of America originated and underwrote. Contrary to those representations, Bank of America originated and underwrote FHA-insured mortgages that were not eligible for FHA insurance. Bank of America and Countrywide also made representations and warranties to Fannie Mae and Freddie Mac about mortgages they originated and sold to those Government Sponsored Entities (GSE’s). Contrary to those representations and warranties, many of those mortgages were defective or otherwise ineligible for sale to GSE’s.

As the statement of facts explains, on a number of occasions, Merrill Lynch employees learned that significant percentages of the mortgage loans reviewed by a third party due diligence firm had material defects. Significant numbers of loans—50% in at least one pool—that were found in due diligence not to have been originated in compliance with applicable laws and regulations, not to be in compliance with applicable underwriting guidelines and lacking sufficient offsetting compensating factors, and loans with files missing one or more key pieces of documentation were nevertheless waived into the purchase pool for securitization and sale to investors. In an internal email that discussed due diligence on one particular pool of loans, a consultant in Merrill Lynch’s due diligence department wrote: “[h]ow much time do you want me to spend looking at these [loans] if [the co-head of Merrill Lynch’s RMBS business] is going to keep them regardless of issues? . . . Makes you wonder why we have due diligence performed other than making sure the loan closed.” A report by one of Merrill Lynch’s due diligence vendors found that from the first quarter of 2006 through the second quarter of 2007, 4,009 loans that were part of loan pool samples reviewed by the vendor were not in compliance with underwriting guidelines or applicable laws and regulations, and were waived in to purchase pools by Merrill Lynch. This conduct, along with similar conduct by other banks that bundled defective and toxic loans into securities and misled investors who purchased those securities, contributed to the financial crisis.

Attorney General Schneiderman was elected in 2010 and took office in 2011, when the five largest mortgage servicing banks, 49 state attorneys general, and the federal government were on the verge of agreeing to a settlement that would have released the banks – including Bank of America – from liability for virtually all misconduct related to the financial crisis. Attorney General Schneiderman refused to agree to such sweeping immunity for the banks. As a result, Attorney General Schneiderman secured a settlement that preserved a wide range of claims for further investigation and prosecution.

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

Under the settlement, Bank of America will be required to provide a minimum of $500 million in creditable consumer relief directly to struggling families and communities across the state. The settlement includes a menu of options for consumer relief to be provided, and different categories of relief are credited at different rates toward the bank’s $500 million obligation. The agreement also requires Bank of America to provide minimum amounts of creditable relief under certain priority categories in New York. The Consumer Relief Credit Menu, available here, details the how each category of relief will be credited and the minimum amounts for each category where applicable.

The most significant priority on the Consumer Relief Credit Menu is a change that will allow first lien principal reductions for certain types of FHA-insured mortgages. Borrowers with these types of loans have previously been excluded from getting the benefits of principal reduction under past settlements, despite the fact that a significant number of distressed loans fall into this category. According to data collected by the Office of the Attorney General, roughly 23% of all distressed loans in New York have FHA insurance, and FHA-insured loans represent the largest portion of Bank of America’s remaining distressed loan portfolio in New York.

Attorney General Schneiderman made it a high priority to extend principal forgiveness to FHA-insured mortgages in negotiations with Bank of America, and their inclusion in this settlement represents a huge step forward in Attorney General Schneiderman’s ongoing commitment to helping families move past the foreclosure crisis.

“Empire Justice Center is very pleased that the settlement with Bank of America provides for principal balance reductions on FHA-insured loans,” said Kirsten Keefe, Senior Attorney at the Empire Justice Center. “This is a critical component that has not been included in prior bank settlements. It has left homeowners with FHA loans at a disadvantage when trying to negotiate with their bank to save their homes. We thank Attorney General Schneiderman for making this a priority in the Bank of America Settlement.”

Bank of America will provide a minimum of $60 million in first lien principal reductions in New York, including the FHA-insured portfolio. Other New York-specific minimum requirements for consumer relief under this settlement include:

• A minimum value of $20 million in donations, including cash and contributions of vacant and abandoned properties to land banks, units of local government and other nonprofits. Bank of America estimates that this will help address as many as 300 vacant properties—also known as zombie properties—across the state of New York.
• The bank must also earn at least $35 million in credits for making cash donations to legal service providers, housing counseling agencies, land banks and other community development nonprofits. These relief options are a direct compliment to the investment Attorney General Schneiderman has made to these types of programs over the past three years, including more than $60 million in funding to support a network of housing counseling and legal service provider across the state under the Homeowner Protection Program (HOPP), which has provided free, high-quality services to more than 30,000 homeowners since launching in 2012.
• Bank of America must also provide $125 million in credits to create and preserve hundreds of units of affordable rental housing across New York State. This initiative is particularly critical in New York, where affordable rental housing is scarce and many families are struggling to find decent and affordable alternatives to homeownership following the economic crisis.  

New York City Mayor Bill DeBlasiosaid, “We’re in the midst of an affordability crisis hitting New Yorkers from the very poor to those once solidly middle class. We are deeply grateful to the Attorney General for securing a historic settlement that will make a real difference for families struggling across the city and state. We are pushing hard to build and preserve an unprecedented amount of affordable housing to meet this crisis, and the Attorney General’s continued advocacy is proving vitally important in supporting that effort.”

“When the federal government bailed out ‘too big to fail’ banks, nearly every New Yorker felt the economic impact that followed. As Chair of the Council’s Housing and Buildings Committee, I am pleased Attorney General Eric Holder has held Bank of America responsible with this settlement, which in part expands income-targeted housing throughout the five boroughs. Individual people—not corporations—should be the only entity considered ‘too big to fail,’ and today’s announcement bring us closer to that goal,” said Council Member Jumaane D. Williams (D-Brooklyn), Deputy Leader and Chair of the Council’s Housing and Buildings Committee.

“We applaud AG Schneiderman’s efforts to hold the too-big-to-fail banks accountable to lower income communities,” said Josh Zinner, Co-Director of New Economy Project. “We are hopeful that this settlement will provide relief to people and communities that have been hardest hit by predatory lending and high rates of foreclosure.”          

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

This matter was led by former Deputy Attorney General for Economic Justice Virginia Chavez Romano, Chief of the Investor Protection Bureau Chad Johnson, Senior Enforcement Counsel for Economic Justice Steven Glassman, and Assistant Attorneys General in the Investor Protection Bureau Hannah Flamenbaum and Melissa Gable.

A copy of today’s global settlement can be viewed here.

ALBANY – Attorney General Eric T. Schneiderman and New York State Comptroller Thomas P. DiNapoli today announced the arrest and unsealing of a one-count indictment charging Graycelia Cizik, 64, a resident of Polk County, Florida, with the crime of Grand Larceny in the Second Degree, a class C felony, in Albany County Court.

Cizik is alleged to have stolen over $50,000 in pension benefits from the New York State and Local Employees Retirement System, payable to her deceased uncle, David Wynn. Wynn was a New York State pensioner who retired from the Port Authority of New York & New Jersey and passed away in 1988.  

“Those who defraud our state pension system are stealing from every individual who is counting on their pension for a secure retirement, and that is why our office will bring these fraudsters to justice,” said Attorney General Schneiderman. “There has to be one set of rules for everyone, and we will hold people accountable when they rip off honest New Yorkers.”

“Graycelia Cizik thought she could stay under the radar and game the state retirement system,” New York State Comptroller DiNapoli said. “Her arrest sends a strong message that we will find those who try and defraud the retirement system, and we will work with law enforcement to prosecute them to the full extent of the law and retrieve the stolen funds.” 

The Comptroller’s office uncovered Cizik’s uncle’s death, determined that Cizik had taken the payments, and referred the matter to the Attorney General’s Office as part of the Comptroller and Attorney General’s Joint Task force on Public Integrity.  According to authorities, Cizik failed to notify the Retirement System of Wynn’s death. Instead, authorities allege, Cizik submitted false information to Wynn’s bank indicating that he was still alive, while she utilized a power of attorney to access his account and withdraw pension benefits paid on his behalf. The indictment alleges that Cizik stole over $50,000 in pension benefits.

Cizik was arrested by agents of the Polk County Sheriff’s Office in Florida and extradited to Albany County to face the charge. She was arraigned on the indictment before Supreme Court Justice Roger McDonough in Albany County Court and entered a plea of not guilty. Cizik was remanded to custody in lieu of a written bail application and will next appear in court on August 27th.

The charges are accusations and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant would face up to 5 to 15 years in state prison.

Attorney General Schneiderman and State Comptroller DiNapoli thank the Polk County, Florida Sheriff’s Office and the Albany County, New York Sheriff’s Office for their assistance.

The case is being handled by Assistant Attorney General Benjamin Clark of the Criminal Enforcement and Financial Crimes Bureau. The Deputy Bureau Chief of the Criminal Enforcement and Financial Crimes Bureau for upstate New York is Stephen J. Maher. The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Gary T. Fishman. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

The investigation was conducted by Investigator Dennis Churns and Deputy Chief Investigator Antoine J. Karam, who were assisted by Investigator Marcia Hinds of the Office of the New York State Comptroller. The Investigations Division is led by Chief Investigator Dominick Zarrella.

Op-ed published on The Huffington Post

By Eric T. Schneiderman

The historic settlement signed yesterday with Bank of America is welcome news for New York families still struggling to recover from the mortgage crisis. B of A, one of the nation’s largest mortgage lenders, will pay a record $16.65 billion for its reckless misconduct – and $800 million of that will go to assist New Yorkers at risk of losing their homes.

This is the largest settlement with a single institution in U.S. history – surpassing the record $13 billion deal with JPMorgan Chase entered into last November. And it is another major victory in the fight to hold accountable the major banks that caused the mortgage crisis and nearly brought down the U.S. economy.

As the state’s chief law enforcement officer – and as co-chair of President Obama’s Residential Mortgage-Backed Securities Working Group – my guiding principle is equal justice under law. There must be one set of rules for everybody, and everybody must play by the same set of rules. What Bank of America did was bend the rules for its own financial gain. Millions of Americans paid the price for that greed.

As Bank of America acknowledged in its own statement of facts, the bank made serious misrepresentations to the public in the packaging, marketing, sale and issuance of residential mortgage-backed securities, both by B of A itself and by Countrywide Financial and Merrill Lynch, which Bank of America acquired in 2008.

B of A, Merrill and Countrywide securitized and sold residential mortgage-backed securities with underlying mortgage loans that they knew were defective, misrepresenting the quality of those loans to investors.  That misconduct, and similar misconduct by other major banks, caused the financial crisis.

But when I took office in 2011,  the federal government and other state attorneys general  were about to sign an agreement releasing the banks – including Bank of America – from much of their liability. I refused to sign, and less than one year later, the President formed the working group and named me co-chair.

Since then, we have continued to investigate those banks and have negotiated deals totaling about $37 billion – roughly $2 billion of which has gone to help struggling New York families. If you include the 2012 National Mortgage Settlement, the total is more than $60 billion – and New York has gotten more than $4 billion.

The $16.65 billion Bank of America deal will funnel $800 million to New York – $300 million in cash and at least $500 million in creditable consumer relief.

That includes, for the first time, principal reductions on mortgages insured by the Federal Housing Administration. About 23 percent of all the distressed home loans in the state are FHA-insured, and these represent the largest portion of Bank of America’s remaining distressed loan portfolio in New York.

Previous settlements excluded families with these types of loans from getting this badly needed relief, which is why I made it a priority to help this neglected segment of New York homeowners. B of A will provide at least $60 million in first lien principal reductions, including for FHA-insured loans.

The bank will also transfer $20 million worth of distressed mortgages and abandoned properties to nonprofits and land banks, which help communities buy derelict homes, rehab them and put them back in the housing market. This includes $20,000 per property to assist with revitalization costs.

And, Bank of America will provide at least $17 million to land banks, housing counseling agencies and legal service providers, so these front-line agencies can expand their vital services.

This settlement sends a strong message that banks that prey on customers and investors will be held accountable. I will continue to investigate financial institutions that bend the rules for their own benefit, and pursue equal justice for all New York families.

NEW YORK -- Attorney General Eric T. Schneiderman announced today that Topline Appliance Center and its principal owner, Michael Moretti, have agreed to pay $1.56 million to settle allegations that they knowingly failed to collect and pay sales taxes and corporate franchise taxes to New York over an almost 10-year period. Topline Appliance Center has multiple locations in New Jersey, and it sells and delivers high-end appliances to New York customers. 

“Topline Appliance Center’s failure to collect and pay sales and corporate taxes is unacceptable,” said Attorney General Schneiderman. “Out-of-state companies that do business in New York without collecting or paying the proper amount of taxes have an unfair advantage over New York businesses that play by the rules. This settlement levels the playing field in the retail appliance industry and sends a message that cheating on taxes will not be tolerated.” 

Attorney General Schneiderman alleges that over the course of almost 10 years, Topline Appliance Center and Moretti sold or delivered high-end appliances to New Yorkers from their New Jersey stores without collecting any New York State and local sales taxes.  Topline also failed to pay proper New York corporate franchise taxes despite doing business in New York.  Failing to collect and pay these taxes gave Topline an improper competitive advantage over appliance stores located in New York.

This action began when a whistleblower filed a complaint in state Supreme Court in Manhattan.  Attorney General Schneiderman’s investigation concluded that Topline and its principal owner evaded approximately $668,000 in taxes. 

This settlement is the latest tax-related recovery resulting from an action filed under the New York False Claims Act. The Act is one of the state's most powerful civil fraud enforcement tools because it allows whistleblowers and prosecutors to take legal action against companies or individuals that defraud the government. Persons found liable under the False Claims Act must pay triple damages, penalties and attorneys’ fees. Under the False Claims Act, whistleblowers may be eligible to receive up to 30 percent of any money recovered by the government as a result of information they provide. The whistleblower in this action will receive $313,984 from the settlement proceeds. 

Raphael Katz of the law firm of Sadowski Fischer, PLLC, which represents the whistleblower, said, “Attorney General Schneiderman and his staff swiftly and effectively investigated the whistleblower’s claims, taking full advantage of the important partnership between law enforcement and whistleblowers.  The Attorney General’s important work prevented a New Jersey company from evading taxes and unfairly competing with New York businesses that pay sales tax.”

Attorney General Schneiderman expresses his appreciation to the New York State Department of Taxation and Finance for its important contributions to resolving this investigation.  Attorney General Schneiderman also expresses his thanks to the whistleblower and his attorneys at Sadowski Fischer, PLLC.

The Attorney General's investigation was conducted by Taxpayer Protection Bureau Senior Counsel Lisa M. White, with the assistance of Legal Support Analyst Rupinder Garcha and Supervising Forensic Auditor Edward J. Keegan.  Former Investigator Erin Wolfe, Investigators Andrew Scala, Bradford Farrell, and Michael Ward, former Supervising Investigator Kenneth Morgan, current Supervising Investigator Luis A. Carter, Deputy Chief John McManus, Deputy Chief Vito Spano and Chief Dominick Zarrella also assisted in the investigation.  

The Taxpayer Protection Bureau is overseen by Bureau Chief Thomas Teige Carroll and Deputy Bureau Chief Scott J. Spiegelman. The Taxpayer Protection Bureau is part of the AG’s Criminal Justice Division, which is led by Executive Deputy Attorney General for Criminal Justice Kelly Donovan.

SYRACUSE – Attorney General Eric T. Schneiderman today announced awards to law enforcement agencies in Central New York, as well as the New York State Police, 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 $91,375 to support the purchase of 215 vests for the Syracuse Police Department, $37,613.16 to purchase 92 vests for the Onondaga County Sheriff’s Office, $19,375 to support the purchase 50 vests for the City of Utica Police Department, and $111,960.50 to support the purchase of 277 vests for the New York State Police. In total, the Attorney General announced $289,852.94 in grants today to support the purchase of 708 bulletproof vests. This is the fourth round of awards. Previously, Attorney General Schneiderman announced more than $2.4 million to support the purchase of almost 7,000 bulletproof vests for law enforcement agencies in Western New York, the Capital Region, the North Country, New York City, Long Island, Westchester, and the Hudson Valley.

“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 hundreds of brave officers in Central New York and troopers across the state with life-saving vests they might not otherwise have, adding a critical layer of safety to one of the most dangerous jobs in the world.”

In 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, including four in the Hudson Valley, 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.

New York State Police Superintendent Joseph D’Amico said, “This grant money will be used to equip our recruit class with bulletproof vests, a vital piece of equipment that not only can prevent injury, but saves officers’ lives. It is critical that our members have the necessary equipment to be able to safely and effectively perform their duties. I want to thank the Attorney General for his commitment to the safety of the members of the New York State Police.”

City of Syracuse Police Chief Frank Fowler said, “On behalf of the Syracuse Police Department, I thank Attorney General Eric Schneiderman for his commitment to the safety of our officers. The financial support couldn’t come at a better time. Yesterday, the department welcomed over 30 new officers. Each officer who was sworn in will be receiving a bulletproof vest courtesy of the Attorney General’s inVEST program.”

“It is imperative that we keep our officers safe so, in turn, they can keep our neighborhoods and families from harm. I'm pleased that the Syracuse Police Department will be receiving significant support from the inVEST program, and I thank the Attorney General for his leadership on this issue,”State Senator David J. Valesky said.

Assembly Member William Magnarellisaid, “Funding through Attorney General Eric Schneiderman’s inVEST program provides needed funding to update police equipment in the form of bulletproof vests that strained local budgets may not allow. It is important to keeping our police safe on the job. The announcement demonstrates the Attorney General’s commitment to our law enforcement officers.”

Assembly Member Albert Stirpesaid, “By supplying our police officers with this protective equipment, we continue to ensure they have full access to the tools needed to continue protecting our citizens and strengthening our community. I thank the Attorney General’s office for sharing my commitment to our officers.”

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 fourth 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 up to 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 breakdown of today's awards is as follows:

The first round awards for Western New York, the Capital Region and the North Country can be found here. The second round awards for New York City and Long Island can be found here. The third round of awards for Westchester and the Hudson Valley can be found here.

$289K In inVEST Partnership Grants Will Support Purchase Of 708 Life-Saving Bulletproof Vests For 13 Law Enforcement Agencies

ROCHESTER – Attorney General Eric T. Schneiderman today announced the guilty plea of Deborah Cleveland, 42, of Rochester, for stealing approximately 650 prescription narcotics from a total of eight elderly patients at the Heather Heights Assisted Living and Memory Care Facility in the Town of Pittsford. Cleveland was previously employed as a medication technician at the facility, where she stole prescription narcotics for personal consumption and attempted to conceal the theft by substituting pills with a similar appearance. Cleveland pled guilty to the misdemeanor crime of Attempted Scheme to Defraud in the 1st Degree before The Honorable John Bernacki in Pittsford Town Court.  

“All New Yorkers expect caregivers to provide appropriate treatment to seniors in our state’s nursing facilities, and our office will hold caregivers accountable when they violate the considerable trust that is placed in them,” said Attorney General Schneiderman. “There has to be one set of rules for everyone, and that is why our office is committed to protecting everyday New Yorkers, including the elderly.” 

Cleveland is expected to receive a sentence of probation and four weekends in the Monroe County Jail when she is sentenced by Judge John Bernacki on October 16th. 

The investigation was conducted by the New York State Attorney General’s Medicaid Fraud Control Unit, in conjunction with the New York State Department of Health’s Bureau of Narcotics Enforcement. Victims include patients ranging in age from 66 to 98. In the case of one victim, identified in court documents as resident “A.G.,” Cleveland stole 230 Oxycodone pills from the victim’s narcotic packs and replaced those pills with similar-looking non-narcotic medications.  

The case was investigated by Investigator Debra Clementi, with assistance from Deputy Chief Investigator William Falk and Bureau of Narcotics Enforcement Investigator Kristine Wiant-Sherman.  The case is being prosecuted by Special Assistant Attorney General Jennifer Sommers.  Catherine Wagner is Director of the Rochester Regional Medicaid Fraud Control Unit Office and the Upstate Chief of Criminal Investigations.  The Medicaid Fraud Control Unit is led by Director Amy Held. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

BALLSTON SPA – Attorney General Eric T. Schneiderman and Comptroller Thomas P. DiNapoli today announced the arrest and indictment of Bruce C. Tanski of Clifton Park, Katina M. Fogarty of Latham, and Nicholas M. DiNova, Jr. of Halfmoon for their roles in an alleged scheme to circumvent campaign finance laws. 

The case, being prosecuted by Attorney General Schneiderman’s office, is the product of a joint investigation with the Federal Bureau of Investigation (FBI) and Comptroller DiNapoli’s Office. The three defendants are accused of evading requirements that donations be in the true name of the donor. Tanski is accused of evading campaign contribution limits. The contributions were allegedly funneled to then-Town of Halfmoon Supervisor Melinda “Mindy” Wormuth, who, in a public corruption case pending in Saratoga County Court, is separately charged with stealing thousands of dollars from campaign accounts.

“The law applies to everyone equally, no matter how rich or how powerful, and that is why my office has aggressively prosecuted over 50 individuals in public corruption cases since 2011, including a sitting state senator, a current member of the New York City Council, and elected officials from both parties across New York State,” said Attorney General Schneiderman. “Public corruption undermines faith in government, and that is why I have made cracking down on public corruption a top priority.”

“These individuals allegedly attempted to secretly funnel money into the town supervisor’s campaign chest, breaking the law and breaking the trust of the public,” said New York State Comptroller DiNapoli. “My office will continue to work with law enforcement across the state to fight corruption and the abuse of taxpayers. The public should be able to put its trust into government, and I’ll do my part to find those who violate that trust.” 

“Individuals who seek to circumvent election laws undermine the entire election process thus denying a level playing field for all candidates,” said Andrew W. Vale, Special Agent in Charge of the Albany Division of the FBI. “The FBI will continue to work closely with our law enforcement partners to see that public corruption is rooted out at all levels.”

Tanski is accused of circumventing election law and campaign contribution limits, with the assistance of six persons who allegedly served as straw donors, including co-defendants Katina Fogarty and Nicholas DiNova, Jr. Tanski, who has several businesses with interests in the Town of Halfmoon, allegedly contributed a total of $6,000 to the campaign of Wormuth through the straw donors, in violation of the $1,000 contribution limit. 

According to court papers, Tanski evaded the $1,000 limit by providing each of six individuals with $1,000, who then issued a personal check for $1,000 to the campaign in his or her own name and from his or her bank account. The indictment charges that these contributions caused the treasurer of the Friends of Mindy Wormuth campaign account to file false financial disclosure reports with the state Board of Elections. The Wormuth Campaign received the $6,000 in donations between March 2013 and July 2013. In 2011, Tanski was admonished by the state Board of Elections for exceeding the $1,000 contribution limit to Wormuth’s campaign in 2007 and 2009.

Tanski is charged in the indictment with Offering a False Instrument for Filing, a class E felony, as well as six counts of violating Election Law § 14-120(1), a class A misdemeanor, titled Campaign Contributions to be Under True Name of Contributor; and one count of violating Election Law § 14-126(4), a class A misdemeanor, for violating the campaign limit established by the Election Law.  Fogarty and DiNova are each separately charged with one count of violating Election Law § 14-120(1).  The case is pending before Saratoga County Court Judge Jerry J. Scarano.

The Attorney General and Comptroller thank Special Agents Timothy Coll and Vinesh Manglavil of the FBI (Albany office) for their cooperation and assistance in this investigation.  

Prosecuting the case are Senior Counsel Darren Miller and Assistant Attorney General Bridget Holohan-Scally of the Public Integrity Bureau of the Attorney General’s Office. The Public Integrity Bureau is led by Bureau Chief Daniel Cort and Deputy Bureau Chief Stacy Aronowitz. The Public Integrity Bureau is part of the Criminal Justice Division led by Executive Deputy Attorney General for Criminal Justice Kelly Donovan. The investigation was handled by Investigator Mitch Paurowski, with support from Antoine Karam and Dominick Zarrella of the Attorney General's Investigations Bureau, with assistance provided by Jason Blair, forensic auditor for the Attorney General’s Office, and legal analyst Sara Pogorzelski. 

The Comptroller’s investigation was handled by the Division of Investigations.

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

The investigation into allegations of corruption in the Town of Halfmoon continues.  Anyone with additional information on this matter should call the Attorney General’s Office at 518-474- 8686.