NEW YORK    Attorney General Eric T. Schneiderman today announced the guilty plea of Hyun Ok Yoon Ung, the lead defendant charged in connection with a criminal ring which sold so-called “party packs,” involving cocaine and prostitutes, and laundering the illegal proceeds through front businesses that included a clothing wholesaler, a wig wholesaler, a limousine service and a beauty supply wholesaler. A joint undercover investigation by the Attorney General’s Organized Crime Task Force and the New York Police Department busted 18 individuals, including Hyun Ok Yoon Ung, in January, at a time when the gang was marketing its services to a high-end clientele coming to the New York metropolitan area for the Super Bowl.

Hyun Ok Yoon Ung, 41, of Woodbury, New York, pled guilty in Manhattan Supreme Court today to Promoting Prostitution in the Third Degree, a “D” felony. She faces a prison term of 1 to 3 years when she is sentenced on October 24.  She has also agreed to forfeit more than $700,000, proceeds from her criminal business. 

“Those who poison our communities with drugs and exploit women by promoting prostitution will be held accountable,” Attorney General Schneiderman said. “My office will continue to work with our partners in law enforcement on multi-agency investigations like this one to keep our communities safe.”

Hyun Ok Yoon Ung was arrested as part of “Operation Out of Bounds,” an 11-month investigation utilizing undercover investigators, physical and electronic surveillance and analysis of business records.  The Attorney General’s Organized Crime Task Force and the New York Police Department determined that the defendant and her co-conspirators, targeted wealthy out-of-town customers as prospective clients, especially before and during large events in the tri-state area. For example, just 10 days before this year’s the Super Bowl, a text message was blasted to frequent customers noting that “new sexy & beautiful girls R in town waiting for u.” The criminal ring also promoted its prostitution business with numerous advertisements on the internet and public access television. In addition to selling sex, the ring sold cocaine to the same customers. Transcripts of conversations that were intercepted by electronic surveillance revealed that the ring used various code names for cocaine, including “party,” “powder,” “maek” or “Maekjoo,” a Korean term for beer and “Soojaebi,” a Korean noodle and vegetable soup. Intercepted conversations also revealed that prostitutes would bring cocaine with them to meetings with johns who had ordered the drugs in advance. This is what they referred to as “party.” 

A copy of the Attorney General’s January press release on the case is here.

Cases against the other defendants are pending.

The investigation was directed by OCTF Senior Investigator Joel Poccia, OCTF Supervising Investigator Paul Grzegorski and Downstate OCTF Deputy Chief Christopher Vasta. Dominick Zarrella is chief of the Attorney General’s Investigations Bureau. New York Police Department Detective Walter Harkins, Sergeant Sunghoon Kim and Lieutenant Michael Morales of the Vice Enforcement Major Case Team worked on the case, as did Homeland Security Investigations Special Agent Jeffrey Bashara, Group Supervisor Michael Conlon and Deputy Special Agent In Charge Anthony Scandiffio.

The case was prosecuted by OCTF Assistant Deputy Attorney General Howard Feldberg and Deputy Bureau Chief Tarek Rahman, with assistance from Deputy Attorney General Peri Alyse Kadanoff. The Executive Deputy Attorney General for Criminal Justice is Kelly Donovan. 

NEW YORK – Attorney General Eric T. Schneiderman today filed a lawsuit in New York County Supreme Court against four interrelated companies and their principals for operating a fraudulent loan modification scam. The lawsuits were filed against Home Affordable Direct, Inc. (Farmingdale, NY), Home Affordable Solutions, Inc. (Farmingdale, NY), JR Holding Group Corp (Babylon, NY), Clear Solutions and Settlements, Inc. (Tampa, FL) and their principals, Javier Gutierrez and Shadi Soumekh.  The companies and their principals are alleged to prey upon financially vulnerable consumers by claiming they can provide substantial relief from unaffordable mortgage payments through loan modifications and other forms of foreclosure prevention.  The firms allegedly collect illegal advance fees and routinely fail to deliver on their promises. The lawsuit seeks to stop the illegal practices, provide restitution and damages to consumers, obtain disgorgement of profits, as well as penalties and costs.   

“There has to be one set of rules for everyone, no matter how rich or powerful, and that is why our office has aggressively cracked down on those who prey upon vulnerable consumers at risk of losing their home,” said Attorney General Schneiderman. “I am proud to stand up for middle class New Yorkers against predatory scammers seeking to exploit those still reeling from the housing crisis.”

Earlier today the Attorney General’s office secured a temporary restraining order barring the companies from collecting illegal advance fees from homeowners before they accept and execute a loan modification agreement and advertising and operating their business without providing the disclosures required by the federal Mortgage Assistance Relief Services (MARS) Rule.  The court also placed a freeze on company bank accounts.  

Attorney General Schneiderman’s lawsuit alleges that the companies engaged in fraudulent and illegal practices in the marketing and operation of their foreclosure rescue and loan modification business involving consumers from New York and outside the state. Through frequent radio advertisements and their website, they falsely represent that they are affiliated with the United States Treasury Department’s Home Affordable Modification Program (HAMP), that they have the ability to “pre-qualify” homeowners for a modification under HAMP and can determine whether a homeowner qualifies for HAMP during a single phone call. These advertisements lacked critical disclosures required by law that are designed to protect consumers, such as informing the consumer that Home Affordable Direct is not associated with the government, that their services are not approved by the government or the consumer’s lender, and that the consumer’s lender may not agree to modify the consumer’s mortgage loan even if the consumer uses Home Affordable Direct.  

Company salespersons furthered the fraud by falsely representing to homeowners that they could get their mortgage servicing company to reduce the principal balance of their mortgage loan to the value of their home or that they would be able to obtain a specific reduction in their monthly mortgage payment. The companies failed to provide required disclosures that would have alerted consumers to be wary of these misleading claims, particularly the disclosure that the consumer can stop doing business with the companies at any time and that they do not have to pay anything to the company if they reject the offer of mortgage assistance obtained from the consumer’s lender or servicer. The companies collected hefty upfront fees from homeowners, ranging from $1,500 to over $11,000, in violation of the law. The companies usually refused to refund the illegal advance fees once consumers realized they were victims of a scam.

If you were a victim of Home Affordable Direct or any of its affiliated companies or if you believe you were a victim of another mortgage fraud, please file a complaint with the Attorney General’s Office.  Complaint forms are available here.  You may also call the Attorney General’s Consumer Hotline at 1-800-771-7755.

Free help to homeowners is available through the Home Owner Protection Program (“HOPP”), which uses funds from the National Mortgage Settlement to fund legal services and housing counseling across New York to provide foreclosure prevention services.  Consumers can call 855-HOME-456 for help. Attorney General Schneiderman’s program funds roughly 90 organizations across the state, and HOPP has served a combined total of nearly 30,000 families since its launch in October of 2012.

This case is being handled by Assistant Attorney General Adam H. Cohen, Deputy Bureau Chief Laura J. Levine, and Bureau Chief Jane M. Azia in the Bureau of Consumers Frauds and Protection, and Executive Deputy Attorney General for Economic Justice is Karla G. Sanchez.

This case is part of a joint federal-state sweep by the Consumer Financial Protection Bureau, the Federal Trade Commission and 15 states targeting scam operations that prey on financially struggling homeowners and those facing foreclosure. Along with the FTC and CFPB, attorneys general from the following states participated in the sweep: Arizona, Delaware, Florida, Indiana, Illinois, Kansas, Louisiana, Maryland, Michigan, New Mexico, New York, North Carolina, Ohio, Washington and Wisconsin. Also participating is the Maryland Commissioner of Financial Regulation and Washington Department of Financial Institutions.

BINGHAMTON – Attorney General Eric T. Schneiderman today announced awards to law enforcement agencies in the Finger Lakes and Southern Tier, 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 $16,817 to support the purchase of 71 vests for the Steuben County Sheriff’s Office, $10,465 to support the purchase of 26 vests for the City of Binghamton Police Department, $4,847.94 to support the purchase of 12 bulletproof vests for the Village of Watkins Glen Police Department, and $4,387.50 to support the purchase of 9 vests for the Horseheads Police Department, among others.

In total, the Attorney General announced $60,535.95 in grants today to support the purchase of 175 bulletproof vests. This is the fifth round of awards. Previously, Attorney General Schneiderman announced more than $2.6 million to support the purchase of over 7,500 bulletproof vests for law enforcement agencies in the Southern Tier, Western New York, the Capital Region, Central New York, 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 brave officers at 14 law enforcement agencies in the Finger Lakes and Southern Tier regions 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: between 1984-2014, 71 officers in New York State have been shot and killed in the line of duty. 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.

Binghamton Mayor Richard C. Davidsaid, “Bulletproof vests are critical tools in keeping our police officers safe while protecting our neighborhoods. I thank Attorney General Schneiderman for recognizing the importance of public safety in our community and sharing in the City’s commitment to protect those who put their lives on the line every day.”

Binghamton Police Chief Joseph Zikuski said, “I thank Attorney General Eric Schneiderman for demonstrating his commitment to the safety of our law enforcement officers. With recent cuts in federal funding for bulletproof vests, the funding his office is providing will help save lives and keep our officers safe.”

“Each day our law enforcement officers go to work to protect us, and we need to do all we can to protect them,” said Assemblywoman Donna Lupardo. “The inVEST Partnership will equip more officers in our community with life-saving vests, and I thank Attorney General Eric Schneiderman for his efforts to provide this critical funding.”

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 fifth 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. The fourth round of awards for Central New York can be found here.

NEW YORK – Attorney General Eric T. Schneiderman today announced the arrests of four individuals for allegedly practicing dentistry without a license at two Brooklyn dental clinics, which are separately owned by a father and his son who are licensed dentists. The men, arrested on felony charges, are Konstantin Shtrambrand, Ilya Zolotar, Sergey Tolokolnikov, and Hakob Gahnapetyan. If convicted, they face up to four years in prison. 

“New Yorkers deserve to have confidence that the people providing them healthcare are licensed professionals,” Attorney General Schneiderman said. “Plain and simple: there is one set of rules for everyone and my office will not tolerate those who seek to skirt the rules, including in the medical profession.”

In court filings, the Attorney General’s Office charged that Shtrambrand, 43, Zolotar, 48, and Tolokolnikov, 54, held themselves out to be dentists and were practicing dentistry at J.S. Atlantic Dental, P.C., located at 1707 Avenue P, Brooklyn. Gahnapetyan, 44, held himself out as a dentist and practiced dentistry at the dental office of Grigory Shyknevsky, D.D.S., at 2523 Ocean Avenue in Brooklyn.  J.S. Atlantic Dental is owned by Joseph Grigory Shyknevsky, DDS, the son of Grigory Shyknevsky.  At the time of the arrests, search warrants were executed at their practice locations; the investigation is continuing.

The unlicensed defendants were arrested yesterday following an undercover investigation by the Attorney General’s Medicaid Fraud Control Unit (MFCU). During the undercover operation, undercover investigators allegedly observed each of the defendants examining patients inside the dental offices. The defendants wore medical clothing, plastic gloves and performed dental work. The investigators also witnessed a defendant performing dental procedures on another patient.

During each observed examination, each defendant allegedly placed their hands in a patient’s mouth. Shtrambrand, Gahnapetyan, Tolokolnikov gave medical advice – something that only a licensed dentist can do.  In one instance, Zolotar was seen drilling a patient’s tooth, an invasive and potentially dangerous procedure that only a licensed dentist can perform. The defendants’ alleged actions routinely placed patients at risk because they received dental care from an unqualified person. 

Under the New York State Education Law, only a person licensed to practice dentistry can practice dentistry in New York or use the title “dentist.” Anyone who practices, offers to practice or holds himself out as being able to practice dentistry without a New York State license is committing a crime.

Following their arrest by investigators from MFCU, the defendants were arraigned in New York City Criminal Court, Brooklyn before Criminal Court Judge Matthew Sciarrino. They each face one felony count of Unlawful Practice of a Profession (Dentistry), a class E Felony.  MFCU’s investigation into defendants’ employers continues.  

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

The investigation was conducted by MFCU Special Investigator Alex Kats and Special Auditor Investigator Robyn Irby-Organ with the assistance of Senior Special Investigator Al Maiorano, Deputy Chief Investigator Kenneth Morgan, Senior Special Auditor Investigator Cristina Marin and Regional Chief Auditor Thomasina Smith.  

The Attorney General thanked the US Department of Health and Human Services, Office of Inspector General, Office of Investigations (Region II) for referring this matter to his office.

The criminal case is being prosecuted by Special Assistant Attorney General Herman Wun with the assistance of Deputy Regional Director Larissa Payne and Regional Director Christopher M. Shaw.  Thomas O’Hanlon is MFCU’s Chief of Criminal Investigations – Downstate.  MFCU is led by Acting Special Deputy Attorney General Amy Held.  The Criminal Justice Division is led by Executive Deputy Attorney General Kelly Donovan.

Op-Ed Published in the Ithaca Journal, the Press & Sun-Bulletin and the Elmira Star-Gazette

By Eric T. Schneiderman

The historic settlement with Bank of America is welcome news for families still struggling to recover from the mortgage crisis. B of A will pay a record $16.65 billion for its reckless misconduct — and $800 million 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 JPMorgan Chase deal — and is another major victory in the fight to hold accountable the major banks that caused the mortgage crisis and nearly crashed the U.S. economy.

As the state's chief law enforcement officer — and as co-chair of President Barack 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 rules. Bank of America bent the rules for its own financial gain, and millions of Americans paid the price.

As acknowledged in the settlement's statement of facts, Bank of America, Countrywide Financial and Merrill Lynch — which B of A acquired in 2008 — 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.

When I took office in 2011, the federal government and other state attorneys general were about to sign an agreement releasing those banks 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 negotiated deals totaling about $37 billion — including roughly $2 billion to help struggling New York families. With the 2012 National Mortgage Settlement, the total tops $60 billion — more than $4 billion of that for New York.

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 Federal Housing Administration-insured mortgages, which make up about 23 percent of New York's distressed home loans. Previous settlements excluded these types of loans, 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 – On behalf of New York State’s workforce and in recognition of Labor Day, Attorney General Eric T. Schneiderman today issued a Labor Day report containing highlights of his office’s labor enforcement work over the past three years. The Labor Day report, Standing Up For Working New Yorkers, features the results of an ongoing effort to pursue both criminal and civil cases against unscrupulous business owners and bring fairness to workplaces across the State of New York.  Schneiderman announced the report during a press conference with labor leaders before marching in the Buffalo Labor Day Parade.

As the report reveals, since Attorney General Schneiderman took office in January 2011, his Labor Bureau has successfully brought cases against employers that cheated their workers out of wages and otherwise violated state labor laws, returning over $17 million in restitution to almost 14,000 workers and recovering more than $2 million in restitution and penalties for the state.

“Vigorously enforcing our labor laws to protect workers’ rights is an essential component of our commitment to enforcing one set of rules for everyone,” said Attorney General Schneiderman. “Depriving workers of their wages or other lawful benefits hurts families and communities, and creates an unfair advantage for employers that disregard the laws. This report demonstrates my office’s aggressive enforcement to protect workers’ rights; it shows that my office will use every tool at its disposal to do so.”  

The Labor Day report contains highlights of cases involving many different industries, affecting a many different types of workers, and resolving a variety of labor law violations --from wage theft to retaliation.

“I want to thank Attorney General Eric Schneiderman for releasing this report in Buffalo at our annual Labor Day parade,” said Richard Lipsitz, President of the Western New York Area Labor Federation. “Time and time again, the Attorney General has demonstrated his commitment to hardworking men and women. He has also sent a message that depriving workers of fair wages and equal employment opportunities will not be tolerated in New York State.”

Liz Smith, the Worker Center Project Organizer with the Western New York Council on Occupational Safety & Health,said, "We commend the great leadership of NY state Attorney General Eric Schneiderman and the work he has done to protect workers from wage theft, retaliation and to ensure that staffing agencies and businesses comply with the law and treat workers fairly and with dignity."

The report describes the Attorney General’s actions:

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

Attorney General Eric T. Schneiderman believes that in New York, there must be equal justice under law and one set of rules for everyone.  He encourages every worker who feels that his/her rights have been violated to contact the Office of the Attorney General’s Labor Bureau by calling (212) 416-8700 or visiting the Office of the Attorney General's website here.

BUFFALO – Attorney General Eric T. Schneiderman announced the filing of a lawsuit today against Evans Bank, N.A. and Evans Bancorp, Inc. (together, “Evans”) alleging that the regional bank engaged in unlawful discrimination by “redlining,” or denying access to mortgage loans to predominantly African-American neighborhoods in the City of Buffalo because of the racial composition of those neighborhoods.

The lawsuit, filed in the U.S. District Court for the Western District of New York, alleges that Evans has systematically denied its mortgages and services to African-Americans in the Buffalo metro area. From at least 2009 to the present, Evans has redlined the predominantly African-American neighborhoods, intentionally excluding these neighborhoods from its lending area; developing mortgage products that it made unavailable to these neighborhoods, notwithstanding the creditworthiness of the applicants; and refusing to solicit customers, market mortgages, or provide banking facilities in those predominantly African-American neighborhoods.

“Redlining is illegal, discriminatory, and must be made a thing of the past, once and for all,” Attorney General Schneiderman said. “It is crucial that all New Yorkers, regardless of the color of their skin or the racial composition of their neighborhood, be afforded an equal opportunity to obtain credit. This is especially true as families continue to recover from the mortgage crisis--and as we work to achieve a fairer, and more just, New York State. My office will continue to do all it can to restore the health of our economy and ensure that all New Yorkers are treated equally, regardless of race or ethnicity.”

The lawsuit alleges that Evans created a map defining its lending area that included most of the City of Buffalo and its surroundings, but excluding the predominantly African-American neighborhoods on Buffalo’s Eastside. Evans called the included areas on its map its Trade Area. By excluding certain neighborhoods from its Trade Area, Evans automatically disqualified Eastside residents—regardless of their creditworthiness—from obtaining certain mortgage products. Evans designed these mortgage products to be available only to borrowers in certain limited geographic areas, none of which included the Eastside.

This action is part of an ongoing, wider investigation by Attorney General Schneiderman’s Civil Rights Bureau into mortgage redlining by banks operating in New York, and it was prompted by concerns that banks had stopped lending to minority communities in the wake of the mortgage crisis and financial collapse of 2008. Historically, banks have engaged in redlining in racially segregated areas, and according to U.S. Census Data from 2005 to 2009, New York ranks as the most highly segregated state in the United States. According to U.S. Census data, the Buffalo metro area was among the most highly segregated large metro areas in the nation in 1980, 1990, 2000, and as recently as 2010, when it was the sixth most highly segregated large metro area in the United States.

The lawsuit further alleges that Evans refused to solicit customers and market its loan products outside its Trade Area, including in the Eastside neighborhoods.  Evans further avoided locating its branch offices and other facilities in the Eastside neighborhoods, instead locating them so as to form an exclusionary ring around those neighborhoods.

The court papers allege that, by redlining the Eastside neighborhoods, which are home to more than 85,000 people, Evans has excluded an area that is home to over 75% of Buffalo’s African-American population from the marketing and sales of its mortgage products and services.  The lawsuit alleges that a statistical analysis shows the racially discriminatory effects of the bank’s practices, demonstrating that Evans failed to draw mortgage applications from and make mortgage loans to African-American borrowers and Eastside residents at the rates expected based on the performance of comparable banks operating in the same area during the same period as Evans.

The complaint alleges, for example, that Evans received 1,114 residential mortgage applications in the Buffalo metro area from 2009 to 2012, only four of which were reported as from African-American applicants.  Similarly, of these 1,114 residential mortgage applications, the lawsuit alleges that only eight came from the Eastside neighborhoods, only one of which was reported as from an African-American applicant.  The lawsuit alleges that Evans’s rates of attracting loan applications from and originating loans to African-American borrowers and Eastside residents lag far behind comparable banks and that these discriminatory effects are the result of Evans’s racially discriminatory policy of redlining the Eastside neighborhoods.

Marc Morial, president and CEO of the National Urban League, said, "It is imperative that we work to close the wealth chasm that exists between African Americans and white Americans.  Today's redlining lawsuit is an important part of the economic empowerment discussion happening nationally and in our communities.  When banks open their doors for business, they should provide equal and open access to all individuals, regardless of race.  I thank the Attorney General's Civil Rights Bureau for confronting ongoing redlining of minority communities."

Joseph Kelemen, executive director of Western New York Law Center, said, "Buffalo and Erie County are still suffering from the mortgage crisis. Redlining compounds the effects of that crisis by denying individuals access to homes, jobs, and economic opportunity, and the result is that entire neighborhoods are prevented from recovering and developing.  The Western New York Law Center applauds Attorney General Schneiderman for addressing this problem."

The lawsuit alleges violations of the Fair Housing Act, 42 U.S.C. § 3601 et seq., the New York State Human Rights Law, N.Y. Exec. L. § 290 et seq., and Chapter 154 of the Code of the City of Buffalo, § 154-1 et seq.

This matter is being handled by Assistant Attorney General Mayur Saxena and Special Counsel Jessica Attie of the Attorney General’s Civil Rights Bureau, which is led by Bureau Chief Kristen Clarke. Executive Deputy Attorney General for Social Justice is Alvin Bragg.

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

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

NEW YORK – Leading a coalition of 11 states, the City of New York, and the District of Columbia, New York State Attorney General Eric T. Schneiderman today announced that his office is filing a motion to intervene in a court challenge to a 2010 settlement agreement with the federal Environmental Protection Agency (EPA) that committed the agency to adopt greenhouse gas emissions standards for new and existing fossil-fuel electric generating power plants. The 2010 settlement agreement is being challenged by a coalition of 12 states, led by West Virginia, many of which are in coal-producing regions. The EPA has undertaken the rulemaking process for two rules to establish greenhouse gas emissions standards for power plants, in accordance with the settlement agreement.

“From extreme droughts to extreme storms, we’re already seeing impacts associated with uncontrolled climate change across the country – and we must rise to meet its challenge with all the urgency it demands,” said Attorney General Schneiderman. “Effectively combating climate change requires every state to play by the same set of rules and to do their fair share. I am proud to lead this coalition of states and to put New York at the forefront of this effort.”

Joining Attorney General Schneiderman in the motion filed today are the states of California, Connecticut, Delaware, Maine, New Mexico, Oregon, Rhode Island, Vermont and Washington, the Commonwealth of Massachusetts, the District of Columbia, and the City of New York.

In 2006, this coalition and others challenged the EPA’s then-refusal to curb greenhouse gas emissions from power plants under the federal Clean Air Act in the case New York v. EPA.  After the U.S. Supreme Court ruled in its landmark 2007 decision Massachusetts v. EPA that carbon dioxide is an air pollutant subject to regulation under that federal law, the EPA was legally compelled to address greenhouse gas emissions from power plants. In 2010, in response to the coalition lawsuit, the EPA agreed to a schedule for proposing and taking final action on regulating greenhouse gas emissions from both new and existing power plants.

The EPA has since commenced the rulemaking process to limit climate change-causing pollution from power plants, including a January 2014 proposal to limit emissions from new power plants and a recent June proposal to limit emissions from existing power plants. The EPA’s June proposal on existing power plants seeks to establish a partnership between the EPA and the states—with EPA setting an emissions-reduction goal and the states deciding on the best cost-effective means of achieving those goals within each state. The EPA has been conducting hearings across the country on the rulemakings. The EPA estimates that between $55 billion and $93 billion in public health and climate benefits would result from implementing the power plant rules by 2030.

The lawsuit challenging the EPA’s commitments to limiting greenhouse gas emissions from power plants under the New York v. EPA settlement agreement was filed by the States of West Virginia, Alabama, Indiana, Kansas, Kentucky, Louisiana, Nebraska, Ohio, Oklahoma, South Carolina, South Dakota and Wyoming.

The motion filed today by Schneiderman’s coalition in the U.S.  Court of Appeals for the District of Columbia disputes the West Virginia claim that invalidating the 2010 agreement would block the ongoing EPA rulemaking and seeks, among other things, to ensure that the EPA encounters no further delays in finalizing the rules.

Power plants that generate electricity from coal, oil, and natural gas are the largest source of greenhouse gas emissions in the United States, contributing almost one-third of all greenhouse gas emissions in the country.  Left unchecked, climate change – spurred by greenhouse gas emissions from power plants and other sources – threatens public health, safety, the environment, and our economy by increasing the spread of disease and heat-related illness, increasing the frequency and severity of extreme rainfall in some areas and drought in other areas, damaging coastal areas through rising sea levels, disrupting natural ecosystems, and reducing the availability of drinking water in many areas.

The case is being handled by Assistant Attorneys General Michael J. Myers, Morgan Costello, and Brian Lusignan of the Environmental Protection Bureau, with support from Deputy Bureau Chief Lisa M. Burianek, Bureau Chief Lemuel M. Srolovic, Executive Deputy Attorney General for Social Justice Alvin Bragg, and First Deputy for Affirmative Litigation Janet Sabel.  

NEW YORK – In remarks delivered during a forum titled “Beyond Gridlock: State Leadership on Energy and Environmental Issues” at Pace University School of Law, Attorney General Eric T. Schneiderman today released a report that, for the first time, details the increasing frequency and intensity of extreme rainfall events across New York State and outlined the unique approach his office has taken on environmental issues in the last 3 ½ years.  The report, “Current And Future Trends In Extreme Rainfall Across New York State,” highlights this disturbing weather trend in recent years in virtually every part of the state, including Long Island, the Southern Tier, the Capital Region, the North Country and Western New York.   

According to data from a recent United States National Climate Assessment, there have been dramatic increases in the frequency and intensity of extreme rain storms across New York. Just last month, a record 13.57 inches of rain fell in a single microburst in Islip – an amount equal to an entire summer’s worth of rain for Long Island – causing massive damage and disruptions in the area. 

While no individual storm can be tied to climate change, the trends in extreme rainfall already being felt across New York State are consistent with scientists’ predictions of new weather patterns attributable to climate change. Those extreme rainfall trends are causing untold damage to our communities and to our environment. The report highlights the need to focus on greater resiliency planning and response measures for our infrastructure, neighborhoods and landscape in order to promote a safer and more sustainable New York. In his remarks at Pace University, Attorney General Schneiderman also highlighted the unique efforts his office has taken over the last three years to combat climate change, to make our air and water cleaner and our communities healthier and more sustainable.

“The extreme weather events that have been overwhelming our communities, damaging critical infrastructure and harming our homes, are the latest evidence of the need to take immediate action to protect our climate and our environment,” said Attorney General Schneiderman. “While Washington seems to be unwilling to take on the tough fights required to protect our environment, our homes and our communities, we in New York have chosen to act. No single storm can be attributed to climate change, yet scientists tell us climate change ‘loads the dice,’ making extreme weather events more likely.  That is why I am committed to fighting to ensure that New York’s communities – and the critical services they rely upon – are protected, and that every New Yorker has access to clean air and water. That is why I have pushed for legislation that would require utilities to improve resiliency planning, and why my Environmental Protection Bureau has been aggressive and creative in cracking down on polluters.”

The report issued today by the Attorney General includes a historical analysis of 2-inch rainfall events in New York, which was conducted by the National Oceanographic and Atmospheric Administration (NOAA) Northeast Regional Climate Center at Cornell University.  That research shows a marked increase in the occurrences of two2-inch rainfalls beginning in the mid-1990s.  Research from the Center also found that intervals between extreme “100-year” rainfall events shortened dramatically for the years 1978 to 2007, to a frequency of only 60 years.  

The report also finds that the best-available scientific projections of precipitation trends suggest that we can expect the frequency of extreme rainfall events to increase in the future. According to the recent United States National Climate Assessment report, if current trends in greenhouse gas emissions remain as high as they are today for the remainder of this century, the frequency of extreme rainfall as measured by the 20-year daily storm may increase by up to 300% to 400% before the end of the 21st century.

The extreme weather affecting New York has put the real and present dangers of climate change into sharp focus.  In many cases, tens of thousands of New Yorkers are affected, with recovery efforts costing hundreds of millions of dollars.  With New York businesses, governments, and institutions challenged to minimize these risks, the report highlights the need for a response to these challenges that includes reducing emissions of heat-trapping greenhouse gases that contribute to a changing climate; increasing the resiliency of our communities by requiring consideration of current and projected trends in extreme rainfall and climate change in construction projects and building codes, and expanding New York State’s engagement in national and international efforts to limit emissions of climate change pollution.

Under Attorney General Schneiderman’s leadership, the office’s Environmental Protection Bureau has worked aggressively and creatively to reduce greenhouse gases, fight for greater resiliency in our critical infrastructure, and ensure clean air and water for every community in New York.  Among his office’s accomplishments:

            Addressing Climate Change and Resiliency Planning

• Successfully defending the Regional Greenhouse Gas Initiative, a multi-state agreement that puts a price on carbon pollution in order to reduce emissions.  
• Introducing first-in-the-nation legislation requiring the state’s electric and gas utilities to assess their vulnerability to climate change, and to document how they intend to protect vital public services from climate impacts.
• Intervening in the Con Edison storm-hardening proceeding before the state Public Service Commission in order to focus attention on the real and increasing threat that climate change posed to Con Edison’s infrastructure and, ultimately, its customers, and to ensure that any proposal by Con Ed to harden its system accommodated future climate impacts such as an increase in sea level. As a result of expert testimony submitted by Attorney General Schneiderman’s office and others on potential climate impacts, the PSC required Con Ed to ensure that any new infrastructure it builds can withstand a future with more extreme coastal storms and rising sea levels.
• Leading a coalition of seven states in filing a notice of intent to sue the EPA for violating provisions of the Clean Air Act by failing to address methane emissions from the oil and gas industry, including those from fracking. As a heat-trapping gas, methane is more than 20 times as potent as carbon dioxide, and the oil and gas industry is the single largest source of man-made methane emissions in the United States.  
• On Tuesday, September 2, 2014, leading a coalition of 10 states, the District of Columbia and New York City to intervene in a lawsuit to defend a 2010 settlement between New York and the federal Environmental Protection Agency (EPA) that requires the EPA to establish emissions standards for fossil-fuel fired electric generating facilities.  The settlement is being challenged by a coalition of 12 states, many of which are located in coal-producing regions.

            Protecting New York’s Right to Clean Air and Water

• Suing the Environmental Protection Agency (EPA) for violating the Clean Air Act by refusing to effectively limit air pollution from wood heaters, including outdoor wood boilers used in many areas of New York.  In response, the EPA proposed stronger air pollution standards for new wood heaters for the first time in 25 years, and for outdoor wood boilers for the first time ever.
• Leading a coalition of 11 states in securing a settlement with the EPA that compelled the Agency to update national air quality standards for soot pollution.  Soot has been linked to heart attacks, strokes, and aggravated asthma in children.  The new tighter standards for soot pollution could prevent more than 35,000 premature deaths annually, according a report prepared for the American Lung Association, the Clean Air Task Force, and Earthjustice. 
• Taking aggressive action to protect our water by going after polluters, defending our state’s clean water standards and pushing for stronger laws to protect water quality. 
• Securing a unique felony conviction and jail time for the operator of an illegal landfill who was dumping potentially carcinogenic debris within the New York City watershed, which provides drinking water to nearly half the State’s population.  
• Securing a landmark agreement with New York City to significantly reduce discharges of nitrogen from municipal wastewater treatment plants into Long Island Sound and Jamaica Bay. These nitrogen discharges reduce oxygen in coastal waters, harming fish and other marine life, so the city also agreed to fund extensive marshland restoration in the Jamaica Bay.
• Proposing first-in-the-nation legislation to ban microbeads, a form of plastic pollution that presents an emerging threat to our lakes and rivers. Approximately 19 tons of microbeads are washed down the drain in New York State every year, and because they’re so small and buoyant, many of them pass right through wastewater treatment plants into our lakes and rivers.  In our waters, the microbeads act like tiny sponges, accumulating toxic chemicals, before they are eaten by fish. People who eat those fish may be exposed to those harmful chemicals, including some that have been linked to birth defects, cancer, and developmental deficits in children.

Peter Lehner, Executive Director, Natural Resources Defense Council, said: "Attorney General Schneiderman's report underscores the pressing need for improved resiliency planning and concerted effort to reduce climate change pollution.  From Hurricane Sandy to a flooded Long Island Expressway this summer, New Yorkers know more frequent and heavy rainfall is our new reality. Green infrastructure—like porous pavement, green roofs, park space and sidewalk trees—is a cost-effective way to prevent flooding from the start, while also helping to improve local water quality, cool and beautify city neighborhoods. By boosting our natural flood defenses and moving critical infrastructure out of harm’s way—from  hospitals and schools, to roads and our electric supply—we can better weather the next big storm."

Peter Iwanowicz, Executive Director of Environmental Advocates of New Yorksaid, "The latest findings from Attorney General Eric Schneiderman highlight the impacts that New Yorkers are experiencing as our climate changes.  As the findings make clear, New York needs to adopt a climate action plan to lower the pollutants that fuel climate change, to address the impacts in a socially just way, and to harness the tremendous economic potential of clean energy."

Abigail Dillen,Vice President of Litigation, Climate and Energy, Earthjusticesaid: "This important report on our extreme new weather will come as no surprise to New Yorkers. We know climate change is here because we are getting hit with one terribly damaging storm after another. The Attorney General's Office is showing extraordinary leadership in confronting our climate threat. Now, it's time for our leaders in Washington to follow suit."

For a copy of the new report, “Current And Future Trends In Extreme Rainfall Across New York State,” or more information on the Office of the Attorney General’s work to protect New York’s environment, visit www.ag.ny.gov.  

NEW YORK – Attorney General Eric Schneiderman today released the following statement on the decision by CVS Health to stop tobacco sales as of September 3, nearly a month earlier than planned:

“By accelerating its plan to remove tobacco from store shelves, CVS has prioritized public health over corporate profit, and I applaud them for that. CVS clearly recognizes  the contradiction of having these dangerous and devastating tobacco products on the shelves of a retail chain that services consumers’ health care needs.

“I call on other major pharmacy chains across the country – including Wal-Mart, Walgreens, Rite-Aid, Safeway and Kroger – to remove tobacco products from their shelves immediately. As pharmacies increasingly market themselves as a source for community health care, they send a mixed message by continuing to sell deadly tobacco products. The fact that these stores profit from the sale of cigarettes and tobacco must take a backseat to the health of New Yorkers and customers across the country.”

In March, Attorney General Schneiderman and Ohio Attorney General Mike DeWine led  the Attorneys General of 28 other states and territories in a national effort calling on major pharmacies to stop selling tobacco products.

Tobacco-related disease is the leading cause of preventable death in the United States, causing more than 480,000 deaths in the last year alone – more than AIDS, alcohol, illegal drug use, car accidents and firearm-related deaths combined.  Since 1965, more than 20 million Americans have died prematurely as a result of smoking. The devastating health effects of these tobacco products have been well documented for more than 50 years, since the 1964 Surgeon General’s report on the health consequences of smoking.

Furthermore, health care costs and productivity losses attributable to smoking cost the nation at least $289 billion each year. Almost 90% of all adult smokers start smoking by 18 years of age. “Big Tobacco” relies on getting young people addicted to cigarettes and keeping them as life-long smokers.

Attorney General Schneiderman has successfully undertaken a number of efforts to keep tobacco out of the hands of young New Yorkers. Under his leadership, the state’s Tobacco Compliance Bureau has cracked down on websites illegally selling cigarettes, which provide teens with easy access to tobacco, and shut down so-called “roll your own” cigarette shops in New York City, which were popular among teenagers and young adults. The Attorney General’s Criminal Prosecution Bureau has also taken down a cigarette trafficking ring that operated up and down the Eastern Seaboard.

NEW YORK – Attorney General Eric Schneiderman today released the following statement on the decision by the organizers of the New York City St. Patrick’s Day parade to lift the ban on gay groups participating in the march:

“The decision by the organizers of the St. Patrick’s Day Parade to open the parade to LGBT groups is an important step forward in the fight to ensure equal justice and opportunity for all New Yorkers. Next March, by taking the simple step of marching alongside their fellow St. Patrick’s Day celebrants, the members of NBCUniversal.com will be sending a powerful message. I congratulate the organizers of the parade for taking a strong first step forward in the fight for justice and equality. I also want to applaud NBCUniversal.com for standing up for the rights of all New Yorkers.  I look forward to next year’s parade, which will serve as the latest example of New York leading the way in equality.”   

HAUPPAUGE – Attorney General Eric T. Schneiderman today announced the unsealing of a felony indictment charging Vicki Price, a licensed practical nurse, in connection with a morphine overdose of a wheelchair-bound resident at Bayview Nursing and Rehabilitation Center, at 1 Long Beach Road in Island Park. If convicted, Price, 46, faces up to 4 years in prison.

“New York’s health care professionals take an oath to care for their patients – and that care is their first duty,” Attorney General Schneiderman said. “Our most vulnerable patients deserve our care, and my office will pursue justice when our basic tenets of care are not met. There is one set of rules for all caregivers, and those rules must be enforced.”

The overdose was allegedly caused by Price, who administered morphine instead of a prescribed muscle relaxant to a 46-year-old resident on February 16, 2012, and then attempted to cover up her mistake by allegedly falsifying documents. Price did not reveal the mistake even after the resident, who suffers from spina bifida, lost consciousness and was admitted to Long Beach Medical Center.  The resident was released from the hospital five days later, after being treated with Narcan, a medication used to counter the effects of an opiate overdose.   

Price, of Freeport, is charged with one count of endangering the welfare of a vulnerable elderly person, or an incompetent or physically disabled person, in the second degree, a class E felony; one count of endangering the welfare of an incompetent or physically disabled person, a class A misdemeanor; one count of wilful violation of the public health laws, an unclassified misdemeanor; and two counts of falsifying business records in the first degree, a class E felony.  She faces up to 1 1/3 to 4 years in prison if convicted. She is no longer employed at the nursing home.

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

Price was arraigned today in Nassau County Court before Judge Anthony Paradiso.  She was released on her own recognizance and is due back in court on October 16, 2014.

The case was investigated by Special Investigator Christopher Ward and Regional Chief Investigator Greg S. Muroff.  

The case is being prosecuted by Special Assistant Attorney General Megan Gallagher, of the Medicaid Fraud Control Unit’s Hauppauge Regional Office. Jane Zwirn-Turkin is regional director for the Regional 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.

Late last month, a stalled weather front dumped more than 13.5 inches of rain in a few hours on Long Island, flooding over 1,000 homes and businesses, opening massive sinkholes, and forcing hundreds to evacuate. That’s almost as much rain as Long Island typically gets in an entire summer.

In addition to the cleanup costs – which could exceed $30 million – what is disturbing is not the storm’s historic nature. It’s the fact that this kind of extreme weather is becoming all too common across our state.

Today, I released a report, prepared by my office, analyzing historical weather data. It revealed a disturbing increase in the intensity and frequency of storms across New York.  The number of storms that produce the heaviest amounts of rainfall in 24 hours rose so dramatically between 1978 and 2007 that so-called 100-year storms are now happening, on average, every 60 years.

The report also finds that, based on the United States National Climate Assessment, if greenhouse gas emissions follow current trends, the frequency of extreme rainstorms that typically produces 4 to 6.5 inches of rain a day in New York is projected to increase 300% to 400% by century’s end.

The bottom line is clear: Climate change is a reality, and it is having a real impact on New York communities today.

Long Islanders know this all too well.  While no single weather event can be explained by climate change, anyone who has lived here for an extended period knows how our climate is changing and how it affects critical industries like fishing and tourism.

But you don’t have to live near the coast to feel the effect.  The research shows that massive storms are causing devastating floods that take an enormous toll on communities in every part of our State.

In 2011, Hurricane Irene dropped over 11 inches of rain in 24 hours on the Hudson Valley, eastern Adirondacks, Catskills and Champlain Valley, causing catastrophic flooding. Over 1 million people lost power, more than 33,000 had to evacuate, and 10 were killed. Damage estimates totaled $1.3 billion.

One week later, Tropical Storm Lee dumped up to a foot of rain on the Southern Tier, then moved north into areas already reeling from Irene’s devastation.

In 2009, severe thunderstorms dropped nearly 6 inches of rain in less than two hours in Cattaraugus, Chautauqua, and Erie counties, causing extensive flash flooding. Cattaraugus Creek rose from 6 to nearly 13 feet in less than hour, damaging over 400 structures and leaving many families homeless.

Unfortunately, despite the urgency of the situation, gridlock in Washington has forced our state governments to step up when it comes to reducing the emission of greenhouse gases and making our infrastructure more resilient by planning for increased rainfall and flooding in construction projects and building codes.

That is why my office’s Environmental Protection Bureau has worked aggressively and creatively to reduce greenhouse gases, harden our critical infrastructure, and ensure clean air and water for every community in New York.

We successfully defended the Regional Greenhouse Gas Initiative, a multi-state agreement that puts a price on carbon pollution to reduce emissions.

We sued the Environmental Protection Agency for violating the Clean Air Act by refusing to effectively limit air pollution from wood heaters and led a coalition of seven states in filing a notice of intent to sue the EPA for failing to address methane emissions from the oil and gas industry.

And we proposed legislation to require electric and gas utilities to incorporate storm hardening into their planning.  

The pattern and impacts of more frequent and more extreme rainfall are undeniable. To overcome the challenges of climate change, we must act now to ensure a safer and more sustainable New York for the present and the future.

NEW YORK – Attorney General Eric Schneiderman today released the following statement on fast food workers across New York State and the United States going on strike in support of raising the minimum wage and the right to join a union:

“It is time to say unequivocally that nobody who works 40 hours a week should have to live in poverty, and this starts with raising the minimum wage. I applaud the fast food workers across New York State who are standing up for their rights and fighting for a living wage. I stand in solidarity with these workers and support their efforts to raise the minimum wage and their right to join a union.

“Whether fighting cases of wage theft or employer retaliation, the New York State Attorney General’s office will continue to stand up for workers’ rights. From the Square Deal of Teddy Roosevelt and the progressive reforms of Fiorello LaGuardia to Franklin Roosevelt’s New Deal, New York has long been a pioneer in the struggle for workers’ rights. We must continue this legacy and be a national leader in building and protecting the middle class.”

Workers in 150 cities across the United States have organized a nationwide strike. According to the Bureau of Labor Statistics, restaurant workers earn an average hourly wage of $8.74. Annually, this would amount to $18,179.20. The U.S. Census Bureau reports that the poverty level for a family of four is $23,000 a year.

Earlier this week, Attorney General Schneiderman issued a report chronicling the work of his office in protecting New York’s workers. Highlights of the report, titled Standing Up For Working New Yorkers, include:

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

Attorney General Eric T. Schneiderman believes that in New York, there must be equal justice under law and one set of rules for everyone.  He encourages every worker who feels that his/her rights have been violated to contact the Office of the Attorney General’s Labor Bureau by calling (212) 416-8700 or visiting the Office of the Attorney General's website here.

NEW YORK – Attorney General Eric T. Schneiderman will operate a statewide Election Day hotline to help ensure that all eligible voters are able to cast an effective ballot during the primary election on Tuesday, September 9. The Attorney General encourages voters to report issues or problems at polls by calling the office’s hotline at 800-771-7755 or emailing civil.rights@ag.ny.gov at any time between 6 a.m. and 9 p.m. on Election Day.

“The right to vote stands at the cornerstone of our democracy, and my office is committed to protecting the right of all eligible voters to participate fully and meaningfully in our electoral process,” Attorney General Schneiderman said. “We will continue to promote compliance with the requirements of the Voting Rights Act of 1965 while ensuring that no eligible voter encounters obstacles in casting their vote at the ballot box.”

Since launching the statewide hotline in November 2012, Attorney General Schneiderman’s Civil Rights Bureau has fielded hundreds of complaints from voters and worked successfully with local election officials and others to troubleshoot and resolve many issues at polling sites across New York.  The Election Day hotline is part of Attorney General Schneiderman's ongoing work to ensure that voters enjoy full and equal access to the political process regardless of their language ability, disability or other minority status.  

By way of the hotline, attorneys will address complaints concerning whether voters are subject to different voting qualifications on the basis of race, color, or minority language status; whether jurisdictions are complying with the language requirements of the Voting Rights Act; and issues concerning poll site accessibility faced by voters with disabilities, among other things.  The Attorney General’s Office has worked closely with Boards of Elections across New York State to address language access issues, to dismantle barriers impacting voters with disabilities, and to confront other issues faced by minority voters.

The Office of the Attorney General's hotline, staffed by attorneys in the office’s Civil Rights Bureau, will operate from 6 a.m. to 9 p.m. on Election Day, September 9th.  To submit an Election Day complaint, call 800-771-7755 or email civil.rights@ag.ny.gov.

The Attorney General’s Election Day hotline is being run by Assistant Attorney General Ajay Saini of the Civil Rights Bureau, which is led by Bureau Chief Kristen Clarke.  The Social Justice Division is led by Executive Deputy Attorney General Alvin Bragg.

NEW YORK -- Attorney General Eric T. Schneiderman today announced the conviction and sentencing of Ronald Bartiromo, Raymond D’Auria and R3 Electrical Inc. for failing to pay legally required wages to their workers on two public works projects throughout New York City.  Ronald Bartiromo and R3 Electrical pled guilty to the felony crimes of violation of prevailing wage requirements of the New York State Labor Law and grand larceny in the second degree.  D’Auria pled guilty to the misdemeanor crime of violation of prevailing wage requirements of the New York State Labor Law.  As a condition of the pleas, Bartiromo and R3 Electrical agreed to pay $273,943.66 in restitution to underpaid workers and are prohibited from working on public works projects for five years.  Bartiromo was also sentenced to 5 years’ probation.

“Mr. Bartiromo, Mr. D’Auria and R3 Electrical, Inc. are being held accountable for stealing wages from workers who did electrical work on several public works projects throughout New York City,” Attorney General Schneiderman said. “My office will continue to take strong action, including filing criminal charges, against employers who violate New York’s labor laws, steal taxpayer dollars and violate the public trust.”

Bartiromo is the owner and Chief Executive Officer of R3 Electrical Inc., a Staten Island-based company that performed electrical work.  Ronald D’Auria was the Project Manager for R3 Electrical and supervised the work performed on R3 Electrical’s projects at the worksites.  

The defendants and their company, located at 541 Port Richmond Ave, Staten Island, performed electrical work as a subcontractor between 2008 and 2010 on the construction project known as the Renovation of Five CUNY Science Laboratories based at Hunter College, City College, Lehman College, Brooklyn College and Queens College, as well as a New York Power Authority construction project at the Rutgers Houses, a New York City Housing Authority facility.  Under the CUNY contract for the Science Laboratories project and under state Labor Law, defendants were required to pay employees the prevailing wage for electricians.  New York's prevailing wage law seeks to ensure that government contractors pay wages that are comparable to the local norms for a given trade.  The law requires an hourly rate for construction work performed for public agencies that is much higher than the state minimum wage, as well as higher wages for overtime, weekends or work at night.

Bartiromo was aware that he was required to pay the prevailing wages but, with D’Auria’s assistance as the Project Manager, paid hourly rates that were a fraction of the total required.   In a scheme to avoid detection, Bartiromo filed false certified payroll reports stating he paid his workers the proper prevailing wages.

Bartiromo pled guilty to one count of Failing to Pay the Prevailing Wage, in violation of Labor Law § 220(3)(d)(i)(2), a class "E" felony.

R3 Electrical, Inc. pled guilty to one count of Grand Larceny in the Second Degree, in violation of Penal Law §155.40, a class “C” felony.

Raymond D’Auria pled guilty to one count of Failing to Pay the Prevailing Wage, in violation of Labor Law § 220(3)(d)(i)(1), a class “A” misdemeanor.

Justice Larry Stephen of Manhattan Supreme Court sentenced Bartiromo to 5 years of probation and payment of $273,943.66 in restitution for the workers he underpaid.  Justice Stephen sentenced D’Auria and R3 Electrical, Inc. to conditional discharges.  All defendants were debarred from submitting bids on, or contracting for, any public works projects for the next five years.

The Attorney General thanks the CUNY Office of Facilities Planning, Construction and Management, Department of Vendor Integrity & Investigations for their investigation and assistance in the prosecution of this matter.  The case was investigated by the office’s Deputy Director Joseph P. Piazza, Investigator Avastie Medina, and Director Vincent Green.  Additionally, the Attorney General thanks the New York Power Authority and the New York State Department of Labor for their cooperation.

The case was prosecuted by Assistant Attorney General Matthew Ross.  Richard Balletta is the Chief of the Labor Bureau Criminal Section.  The Labor Bureau Chief is Terri Gerstein, and the Bureau is overseen by Executive Deputy Attorney General for Social Justice Alvin Bragg.   The case was also investigated by New York Office of the Attorney General Senior Investigator Luis Carter and Investigator Sixto Santiago, Supervising Investigator Kenneth Morgan and Deputy Chief Vito Spano.

ALBANY – Attorney General Eric T. Schneiderman and State Comptroller Thomas P. DiNapoli today announced the felony guilty plea of former Department of Health (DOH) contract employee George Dunkel for padding his bills and stealing more than $110,000 from the state.

“The law applies to everyone equally, no matter how rich or how powerful, and that is why we will continue to take aggressive action against anyone who abuses the public trust and rips off taxpayers,” said Attorney General Schneiderman. “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. Public corruption undermines faith in government, and that is why I have made cracking down on public corruption a top priority.”

“Mr. Dunkel stole more than $110,000 in public funds earmarked to promote the immunization of children,” said Comptroller DiNapoli. “This was a coldhearted act to enrich himself at the expense of children and taxpayers.  Working with the Attorney General, our joint investigation has ensured that Mr. Dunkel has been brought to justice and the stolen funds will be returned.  We continue to send this message: Those who cheat the state will be caught and appropriately punished.”

Dunkel, 45, of Latham, the former executive director of the American Academy of Pediatrics, District II (AAP-II), pleaded guilty to one count of offering a false instrument for filing in the first degree, a Class E felony, in Albany County Court.  He will repay the state $110,000 at his sentencing on October 31st, and is expected to receive 30 days in jail, five years’ probation, and community service.

The joint investigation by State Comptroller DiNapoli and Attorney General Schneiderman revealed that Dunkel created false invoices and submitted fraudulent vouchers to inflate AAP-II’s expenses while under contract with DOH to provide training and education on childhood immunization issues.  The Comptroller’s audit is ongoing.

AAP-II received more than $1.5 million from 2006 to 2013 in state funds for immunization grant contracts. 

As a result of the criminal probe, DiNapoli’s office in February rejected a $133,860 contract extension with AAP-II for similar services through June 2014.

The joint investigation was conducted by the Comptroller’s Division of Investigations and Bureau of State Expenditures and the Attorney General’s Investigations Bureau. The prosecution was conducted by the Attorney General’s Public Integrity Bureau.

Prosecuting the case is Senior Counsel Darren Miller, with support from Public Integrity Deputy Bureau Chief Stacy Aronowitz, Bureau Chief Daniel Cort, and Executive Deputy Attorney General for Criminal Justice Kelly Donovan. The prosecutors were assisted by Investigations Bureau Investigator Dennis Churns, with support from Deputy Chief Antoine Karam and Chief Dominick Zarrella of the Investigations Bureau.

NEW YORK – Attorney General Eric T. Schneiderman has joined Massachusetts and 13 other States in filing amicus briefs in support of petitions to the U.S. Supreme Court.  Those petitions seek review of appellate court decisions striking down same-sex marriage bans in Utah, Oklahoma, and Virginia, and argue that the Supreme Court should rule that same-sex marriage bans are constitutional.  The multi-state briefs also ask the Supreme Court to review the cases, but urge the Court to instead confirm that same-sex couples have the constitutional right to marry. 

The multi-state briefs urge the Supreme Court to accept review even though the lower court decisions upheld the rights of same-sex couples because marriage prohibitions are still in place in other States.  Swift, nationwide resolution of the right of same-sex couples to marry is necessary to prevent ongoing harm to same-sex couples and continued violation of their constitutional rights. The filing is consistent with Attorney General Schneiderman’s long commitment to ensuring marriage equality and follows an amicus brief filed with the Supreme Court last year in United States v. Windsor, in which Attorney General Schneiderman successfully argued that the Defense of Marriage Act violated the U.S. Constitution. 

The New York State Attorney General's Office remains committed to combating discrimination based on sexual orientation. To file a complaint, contact the Office's Civil Rights Bureau at 212-416-8250 or Civil.Rights@ag.ny.gov

NEW YORK – Attorney General Eric T. Schneiderman today announced that he is leading a coalition of more than a dozen states in filing a friend-of-the-court brief urging a federal appeals court to maintain strong legal rules preventing dominant firms from improperly excluding their rivals from the market.  The case involves a dominant company in the pipe fittings industry that, when faced with a competitive challenge from a new market entrant, chose to lock the competitor out of the market instead of competing on the merits.  The Federal Trade Commission found that the company’s conduct violated the antitrust laws, and the states’ brief urges the court to affirm that decision.

“Dominant companies cannot be allowed to perpetuate their market positions by preventing smaller competitors from effectively accessing the market,” said Attorney General Schneiderman.  “A lack of competition – due to these sorts of exclusionary practices – leads directly to fewer choices and increased prices for hardworking Americans. We will continue to defend our nation’s antitrust laws, so that they can continue to be strong enough to protect consumers from these types of tactics.”

Attorney General Schneiderman’s brief was filed in the U.S. Court of Appeals for the Eleventh Circuit last Friday in the case of McWane, Inc. v. FTC.  The brief was joined by the states of Arizona, Connecticut, Hawaii, Idaho, Indiana, Iowa, Kentucky, Maryland, Mississippi, Nevada, New Mexico, and the Commonwealth of Puerto Rico.

The brief was prepared by New York Solicitor General Barbara D. Underwood, Deputy Solicitor General Steven C. Wu, and Assistant Solicitor General Judith Vale, in collaboration with Eric J Stock, Antitrust Bureau Chief, and Matthew Siegel, an Assistant Attorney General in the Antitrust Bureau. The Executive Deputy Attorney General for Economic Justice is Karla G. Sanchez.

A copy of the brief can be read here.

NEW YORK - Attorney General Eric T. Schneiderman today announced an agreement with GHI, a subsidiary of EmblemHealth, Inc., New York’s largest health insurer, that requires improved plan disclosures for out-of-network provider benefits to those members who sign up for GHI's Comprehensive Benefits Plan. The settlement also provides that GHI establish a $3.5 million consumer assistance fund to provide financial relief to members, most of them New York City employees, and pay $300,000 in penalties to the Attorney General’s office.

“Because GHI failed to adequately disclose its out-of-network benefits, individuals and families across New York City lost out on millions of dollars in reimbursements. Consumers need to have accurate information in order to make informed decisions when selecting their health plans,” Attorney General Schneiderman said. “By improving communications describing the out-of-network benefit, GHI is committing to helping members and prospective members make important decisions concerning their health care coverage and treatment. Health insurance companies owe it to their members to be transparent about the costs members will incur. Those costs, no matter how big or small, must not be unexpected.”
Attorney General Schneiderman’s Health Care Bureau opened an investigation into GHI in 2013, after receiving numerous consumer complaints. The investigation focused on GHI’s Comprehensive Benefits Plan (CBP), one of several health plans offered to New York City employees and retirees. Historically, the CBP has been offered at no cost to employees. The CPB also appeals to employees because the plan includes an out-of-network benefit, which allows plan members to seek care from doctors who are not in the plan’s provider network. However, the CPB’s reimbursement rate for out-of-network providers is tied to a 1983 fee schedule that has rarely been updated, and thus rarely covers – or comes close to covering – the amount billed. The Attorney General's agreement requires that GHI make the fee reimbursement schedule accessible and transparent to members and prospective members.
The Attorney General’s investigation found that the disclosures regarding the out-of-network benefit were inadequate to apprise members and prospective members about low reimbursement rates and the potential of facing large balance bills from out-of-network providers. For example, the plan did not adequately describe that services at an in-network hospital might be performed by out-of-network providers and the likelihood that the member would incur substantial out-of-pocket expenses for that work. In many instances, GHI’s materials do not accurately set forth the potentially wide gap between the out-of-network reimbursement and out-of-network charges, and potentially substantial out-of-pocket amounts for which GHI Plan members will be responsible. For example, if a CBP member seeks a hip replacement in Queens from an out-of-network provider, the estimated charge is $7,375. Under the plan benefit, the reimbursement rate is $2,732 and the member is responsible for the difference. If a member sees an out-of-network provider for a 25-minute outpatient office visit, the estimated charge in Manhattan for this service is $247. CBP’s hard-to-find reimbursement rate is $36.
The investigation revealed four overall problematic areas for consumers. GHI’s communications did not adequately explain (1) how members can access the reimbursement schedule, (2) the financial consequences of using out-of-network providers, (3) the circumstances by which members may unknowingly encounter out-of-network providers, and (4) the frequency with which the out-of-network reimbursement schedule is updated.
The Attorney General’s agreement requires GHI to modify its communications regarding the CBP so consumers are presented with clear information as to how to obtain out-of-network reimbursement rates from GHI in advance of receiving services; the likelihood plan members will incur substantial out-of-pocket expenses when out-of-network providers are used; that in the context of a hospital admission, services may be provided by out-of-network providers (even if the facility is in-network and some or many of the other providers are in-network) and the member would incur substantial out-of-pocket expenses; and that the out-of-network fee schedule is based on 1983 procedure rates that have not been increased since that time.
The settlement also establishes other protections for consumers, including that GHI will:

• Create a web portal that provides information on how much GHI will reimburse members for services provided by out-of-network providers;
• Assist members who contact GHI prior to receiving pre-scheduled medical procedures in finding participating providers so that the members can stay in-network;
• Assist members who seek help from GHI for balance bills from out-network providers, including collections and legal actions, so members are held harmless for those bills;
• Update its member complaint policies and practices so as to increase functionality that will permit GHI to better log, search, and prepare electronic reports regarding out-of-network services;
• Train its staff and modify its out-of-network services practices, procedures, and policies in order to fully comply with the requirements of the settlement, and to prepare new training materials, together with a specific script for customer service, for approval by the Attorney General’s Office.

The settlement papers are availablehere.
Eligible NYC employees and retirees will receive notifications from GHI regarding the Consumer Assistance Fund in the mail and may apply for financial assistance to help cover some of the costs associated with seeing some out-of-network providers.
Consumers with a complaint regarding health plan practices, or any other health care issue, are encouraged to contact the Attorney General’s Office Health Care Helpline at 800-428-9071.
The investigation was handled by Assistant Attorney General Brant Campbell and Lisa Landau, Chief of the Attorney General’s Health Care Bureau. The Health Care Bureau is a part of the Social Justice Division, which is led by Alvin Bragg.