consumer protection report – february 2015
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NATIONAL STATE ATTORNEYS GENERAL PROGRAM: CONSUMER PROTECTION REPORT
FEBRUARY 2015
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CONSUMER PROTECTION REPORT: February 1-28, 2015
This newsletter is a monthly circulation that describes consumer protection activity announced by state attorneys general. This information was gathered solely from attorney general press releases. It makes no effort to prioritize or
analyze the impact of any of these cases and initiatives.
The following press releases are organized by state and multistate activity. In addition, certain Medicaid fraud cases that touch on consumer protection and advocacy initiatives have been included.
If an office would like their activity to be included in subsequent newsletters, please notify [email protected].
To sign up for the monthly consumer protection report, please click on the
link below and enter your contact information. Newsletter sign up: http://stateag.us4.list-
manage.com/subscribe?u=9c3bb47bb6aba00473adb0c58&id=fdba3bae7b
The National State Attorneys General Program at Columbia Law School is a legal research, education, and policy center that examines the implications of the jurisprudence of state attorneys general. Working closely with attorneys general, academics, and other members of the legal community, the program is active in the development and dissemination of legal information used by state prosecutors in carrying out their civil and criminal responsibilities. For more information about the National State Attorneys General Program
and resources, please visit our website www.stateag.org.
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TABLE OF CONTENTS
CONSUMER PROTECTION CASES, SETTLEMENTS AND ADVOCACY
STATEMENTS ......................................................................................... 4
ALABAMA....................................................................................................................... 4
ARIZONA ........................................................................................................................ 4
FLORIDA ........................................................................................................................ 6
IDAHO ........................................................................................................................... 7
IOWA ............................................................................................................................. 7
MICHIGAN ..................................................................................................................... 9
MISSOURI ...................................................................................................................... 9
NEW JERSEY ............................................................................................................... 11
NEW YORK ................................................................................................................... 12
NORTH CAROLINA ....................................................................................................... 20
OHIO ............................................................................................................................ 20
WASHINGTON .............................................................................................................. 24
WEST VIRGINIA ........................................................................................................... 24
MULTISTATE CASES AND SETTLEMENTS ............................................. 26
MEDICAID FRAUD CASES AND SETTLEMENTS ..................................... 27
ALABAMA..................................................................................................................... 27
FLORIDA ...................................................................................................................... 27
MARYLAND .................................................................................................................. 28
MISSOURI .................................................................................................................... 29
NEVADA ....................................................................................................................... 29
NEW JERSEY ............................................................................................................... 29
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NEW YORK ................................................................................................................... 30
OKLAHOMA ................................................................................................................. 30
PENNSYLVANIA ............................................................................................................ 31
VIRGINIA ..................................................................................................................... 32
CONSUMER ADVOCACY ........................................................................ 33
ALABAMA..................................................................................................................... 33
CALIFORNIA ................................................................................................................ 34
COLORADO .................................................................................................................. 34
CONNECTICUT ............................................................................................................. 35
FLORIDA ...................................................................................................................... 36
ILLINOIS ...................................................................................................................... 36
INDIANA ....................................................................................................................... 37
MASSACHUSETTS ........................................................................................................ 37
MISSOURI .................................................................................................................... 38
NEVADA ....................................................................................................................... 39
NEW HAMPSHIRE ........................................................................................................ 39
NEW YORK ................................................................................................................... 40
OHIO ............................................................................................................................ 42
SOUTH DAKOTA .......................................................................................................... 42
WEST VIRGINIA ........................................................................................................... 43
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CONSUMER PROTECTION CASES, SETTLEMENTS AND
ADVOCACY STATEMENTS
ALABAMA
February 26, 2015
Attorney General Luther Strange Stops Elmore County Used Car Dealer
From Continuing To Defraud Customers
Attorney General Luther Strange has obtained a court order to stop an Elmore
County used car dealer from continuing to defraud Alabama consumers and
businesses.
Elmore County Circuit Judge Sibley G. Reynolds granted the Attorney
General’s request for a temporary restraining order and to seize the property
of Quality Used Cars and its associate Preowned Automotive, operated by
Claton (or Clayton) and Connie Reeves since 2009. Also named in the
Attorney General’s lawsuit are Monecia Brown, daughter of Claton and Connie
Reeves, and Brown’s husband Christopher Robinson, for their actions as
employees or agents of the dealer, which is located at 6155 Elmore Road in
Elmore, Alabama. A preliminary injunction hearing is set for March 5.
http://www.ago.state.al.us/News-599
ARIZONA
February 2015
Attorney General Brnovich Settles Lawsuit Against Solar Company
Arizona Attorney General Mark Brnovich announced the resolution of a
consumer fraud lawsuit filed against Stealth Solar LLC (Stealth) and owners
Fred and Sandra Richie. Stealth Solar sold photovoltaic (“PV” or “solar”)
systems and energy products. According to the lawsuit filed in 2014, Stealth
obtained most of its business by making thousands of telemarketing calls that
convinced customers to let Stealth employees make sales pitches at their
homes. The company operated in Arizona, California and Hawaii from 2010 to
2014.
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ARIZONA CONT’D
The Consent Judgment finds that Stealth violated the Arizona Consumer
Fraud Act (ACFA) by making illegal statements and omissions in both
telemarketing calls and in-home sales presentations. Customers heard
pitches that turned out to be false, deceptive, and misleading. Some examples
of those statements include: “cannot even add one cent to your personal
budget,” its customers can “save tons of money every single month,” and that
“utility bills will rise 8-14% per year if you don’t get a PV System”.
https://www.azag.gov/press-release/attorney-general-brnovich-settles-
lawsuit-against-solar-company
February 2015
Attorney General Brnovich Announces Foreclosure Consultant Restricted
After Misleading Spanish-Speaking Customers
On January 15, 2015, the Maricopa County Superior Court approved a
Stipulated Consent Judgment obtained by Attorney General Mark Brnovich
against Phoenix- based Brother’s Help Solutions (BHS) and its owner Nelson
Molano. The company located at 2720 East Thomas Road Suite C259
Phoenix, AZ 85016, provides foreclosure consulting and loan modification
assistance.
The Consent Judgment found that BHS and Molano deceitfully required
Spanish- speaking customers to sign a contract drafted entirely in English.
The contract misrepresented the difficulty of loan modification application
submissions, omitted facts related to the application process, and required
up-front payment in violation of Arizona’s Foreclosure Consultant Stature.
The company also altered and cashed checks that were supposed to be paid to
client’s lenders.
https://www.azag.gov/press-release/foreclosure-consultant-restricted-after-
misleading-spanish-speaking-customers
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FLORIDA
February 13, 2015
Attorney General Pam Bondi Announces Nationwide Pools’ Owner Found
Individually Liable for Deceptive and Unfair Business Practices
Attorney General Pam Bondi today announced that the 17th Judicial Circuit,
in and for Broward County, has found Nationwide Pools’ owner, Keith Stuart,
individually liable for the company’s deceptive and unfair business practices.
Attorney General Bondi’s office sued Nationwide Pools in 2013 for using a
variety of false and deceptive marketing practices related to the sale and
construction of pools, including: failing to pay subcontractors which caused
liens to be placed on consumers' homes, making misrepresentations relating
to pool financing, charging illegal credit card fees, making misrepresentations
regarding manufacturer rebates and warranties, and failing to complete
construction of pools.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/4B4D1665B97A9F
0D85257DEB0072BF0F
February 3, 2015
Attorney General Bondi Sues Scuba Diving Company for Selling
Counterfeit Diving Certification Cards
Attorney General Pam Bondi filed a complaint this week against Ocean
Hunters, Inc., located in Doral, Fla., and the owner, Abdiel Falcon, for
allegedly misleading and deceiving Florida consumers who purchased the
company’s open water scuba diving certification courses. According to the
investigation by Attorney General Bondi’s Consumer Protection Division, the
defendants allegedly charged more than 300 consumers $149 to $399 for
counterfeit and/or fraudulent Professional Association of Diving Instructors
certification cards, among other things.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/DD7D09048438E
E7A85257DE1006F756E
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IDAHO
February 26, 2015
Attorney General Lawrence Wasden Announces Judgment Entered
Against Former Fitness Clubs
Attorney General Lawrence Wasden obtained a $394,900 judgment against
Body Renew Fitness, LLC, which operated several Treasure Valley fitness and
tanning facilities before they abruptly closed last summer. The judgment ends
Wasden’s lawsuit against the company and its owner for taking customers’
money, but failing to provide the services the customers purchased.
http://www.ag.idaho.gov/media/newsReleases/2015/nr_02262015.html
IOWA
February 24, 2015
Attorney General Tom Miller Announces Judge Orders Moulton
Contractor to Pay $102,000 in Restitution, Conditions for Future Work
A Polk County judge today ordered an Appanoose County contractor to pay
more than $100,000 in restitution and set court-ordered conditions for future
contracting or home repair work.
Through a consent judgment filed in Polk County District Court, District
Court Judge Douglas F. Staskal ordered Jeremey Lawson, 39, of Moulton, to
pay $102,000 in restitution to 25 consumers.
The Consumer Protection Division reviewed 40 complaints against Lawson
and his Moulton and Bloomfield-based businesses, including 24 filed with the
division. Lawson's current and former business names include Sturdy
Buildings, Strong Structures, Lawson Building Components and J&C
Buildings. Of those complaints, a majority alleged that Lawson did no work
after collecting substantial or partial up-front payments for home
construction or renovation projects. In other cases, consumers alleged that
Lawson failed to finish projects or did substandard work.
https://www.iowaattorneygeneral.gov/newsroom/judge-orders-moulton-
contractor-to-pay-102000-in-restitution-conditions-for-future-work/
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IOWA CONT’D
February 24, 2015
Attorney General Tom Miller Announces Minnesota Professional
Fundraiser Agrees to Reform Telephone Solicitation Practices
Strategic Fundraising Inc. solicitation to undercover phone line leads to
company changes, $10,000 payment for consumer protection enforcement
A St. Paul professional fundraiser will increase transparency and better
inform would-be Iowa donors who receive telephone solicitations, through an
agreement with Attorney General Tom Miller.
The agreement, called an Assurance of Voluntary Compliance, settles a
dispute over Strategic Fundraising Inc.’s telephone fundraising disclosure
practices.
In May of 2014 a Strategic Fundraising representative called a Consumer
Protection Division undercover phone line to solicit a charitable
donation. The telemarketer did not identify his status as a professional
fundraiser.
When the recipient of the call asked how much of a donation goes to the
charitable mission, the telemarketer responded that 84% of funds received by
the charity would go to the cause.
But the claimed 84% is the proportion of all funds raised that go toward the
underlying mission. The Strategic Fundraising telemarketer did not further
explain that the company's fees could be as high as 90 to 100 percent of the
proceeds of the specific telephone fundraising campaign that generated the
call to the Iowan.
https://www.iowaattorneygeneral.gov/newsroom/minnesota-professional-
fundraiser-agrees-to-reform-telephone-solicitation-practices/
February 11, 2015
Attorney General Tom Miller Files Consumer Fraud Lawsuit against New
York-Based “International Astrology Foundation”
Miller obtains injunction barring International Astrology Foundation and Joseph
Meisels from
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An Iowa judge today issued a temporary injunction against a New York-based
self-described astrology foundation and the Brooklyn man believed behind it,
after Attorney General Tom Miller filed a consumer fraud lawsuit alleging the
defendants used “a string of fabrications and falsehoods” to extract money
from a 91-year-old Iowa widow.
https://www.iowaattorneygeneral.gov/newsroom/miller-files-consumer-
fraud-lawsuit-against-new-york-based-international-astrology-foundation/
MICHIGAN
February 10, 2015
Attorney General Bill Schuette Files Lawsuit to Permanently Dissolve
The Mandatory Poster Agency, Inc.
Michigan Attorney General Bill Schuette today filed a lawsuit to permanently
dissolve The Mandatory Poster Agency, Inc. of Lansing, Michigan and enjoin
its principals, brothers Thomas Fata, Steven Fata, and Joseph Fata, based on
allegations they engaged in unlawful conduct meant to deceive businesses.
The lawsuit alleges the Fata brothers have been sending misleading and
deceptive mailings to businesses in Michigan and across the country since
1999. The complaint alleges the defendants used the name "Corporate
Records Service" to send mailings that were designed to look like "official"
governmental forms that businesses had to fill out in order to comply with
corporate filing requirements. Schuette received hundreds of complaints
about the company and these mailings.
http://www.michigan.gov/ag/0,4534,7-164-46849_47203-347280--,00.html
MISSOURI
February 11, 2015
Attorney General Chris Koster Reaches Agreement With Ticketmaster
Attorney General Chris Koster announced today that he has negotiated an
agreement with Ticketmaster to better inform consumers of limitations and
restrictions associated with paperless ticketing for major live events.
Consumer advocates have complained that consumers purchasing paperless
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MISSOURI CONT’D
tickets through Ticketmaster's website often did so without a full
understanding of restrictions limiting transfer of the tickets.
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
reaches-agreement-with-ticketmaster
February 4, 2015
Attorney General Chris Koster Criminally Charges Owners Of Roofing
Company With Stealing From Kansas City-Area Consumers
Attorney General Chris Koster announced today that he has joined with
Jackson County Prosecuting Attorney Jean Peters Baker and Clay County
Prosecuting Attorney Dan White in the filing of criminal charges against three
former owners of American Shingle, LLC. The former CEO, Carlton DeWayne
Dunko of Florida, COO Frank Pureber of Florida, and Chief Information
Officer Richard Steffy of Georgia, face multiple felony counts of stealing and
deceptive business practices in Jackson and Clay Counties.
Koster alleges American Shingle operated in the Kansas City area throughout
the spring and summer of 2010, sending employees door-to-door after storms
to solicit residential roofing repair jobs. More than 170 consumers complained
they paid American Shingle, some from insurance payments, but the
company kept the money without making the promised repairs.
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
criminally-charges-owners-of-roofing-company-with-stealing-from-kansas-
city-area-consumers
February 2, 2015
Attorney General Chris Koster Obtains Additional $45,492 In Restitution
For Missouri Consumers Swindled By U.S. Fidelis
Attorney General Koster announced today that beginning this week Missouri
consumers who filed claims and received restitution from his 2013 settlement
with U.S. Fidelis will receive an additional $95 in restitution, totaling
$45,492.17. The new settlement was reached in a separate lawsuit brought by
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MISSOURI CONT’D
the state of Missouri against several former high-level managers at U.S.
Fidelis.
US Fidelis, a Wentzville-based auto service contract seller, sent misleading
solicitations telling consumers their auto warranties had expired or would
soon expire and offering to extend their service coverage. Consumers were
also routinely misled into believing that the contracts they were buying
covered far more repairs than they actually covered.
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
obtains-additional-in-restitution-for-missouri-consumers-swindled-by-u.s.-
fidelis
NEW JERSEY
February 26, 2015
Acting Attorney General John J. Hoffman Announces New Jersey
Division of Consumer Affairs Reaches $360,000 Settlement with Fair
Lawn Based Moving Company
Under the terms of the Final Consent Judgment that concluded a lawsuit filed
in State Superior Court in Bergen County, the owner of Moving Max, Inc., a
moving and storage company based in Fair Lawn, and the owner’s father, are
permanently barred from owning or working in such businesses in New
Jersey. In addition, as part of the settlement, 18 consumers who complained
that their possessions were held until they paid substantially higher moving
costs than agreed to, will be reimbursed for their losses.
Consumers who filed complaints with the Division alleged that Moving Max,
Inc., offered artificially low moving estimates, and then once in possession of consumers’ personal property, threatened to hold those items unless a higher payment -- at times double the price agreed to -- was paid immediately and in
cash or by money order.
View Final Consent Judgment
http://nj.gov/oag/newsreleases15/pr20150226b.html
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NEW JERSEY CONT’D
February 11, 2015
Acting Attorney General John J. Hoffman Announces Maplewood Man
Indicted For Allegedly Defrauding Numerous Clients of His Debt
Adjustment Firm, TGC Movement, Out of More Than $250,000
Acting Attorney General John J. Hoffman announced that the operator of a
Maplewood debt adjustment firm was indicted today for allegedly defrauding
customers by promising them big reductions in their monthly bills and then
stealing their money in a Ponzi scheme.
The Division of Criminal Justice Financial & Computer Crimes Bureau today
obtained a state grand jury indictment charging Germain Theodore, 34, of
Maplewood, with second-degree theft by failure to make required disposition
of property received. It is alleged that Theodore recruited customers for his
purported bill payment and debt consolidation business, TGC Movement, Inc.,
by claiming that he could reduce their monthly bills by 35 percent. Theodore
allegedly told clients that if they paid 65 percent of their bills to TGC, plus a
fee, TGC would arrange for their bills to be paid in full. It is alleged that, in
fact, Theodore quickly stopped paying bills for the clients and instead stole
their payments.
http://nj.gov/oag/newsreleases15/pr20150211b.html
NEW YORK
February 26, 2015
A.G. Schneiderman Secures Over $500,000 In Restitution And Title
Certificates For Consumers Against Dominican Republic Real Estate
Developer
The Consent Order And Judgment Permanently Prohibits The Respondents
From Promoting, Advertising Or Otherwise Engaging In The Sale, Transfer Or
Conveyance Of Residential Properties In The Dominican Republic To New York
Consumers.
Attorney General Eric T. Schneiderman today announced a settlement in his
lawsuit against the Dominican real estate development company Consorcio
Empresarial Emproy-Divisa, S.A; Danilo Diaz, the company’s president; Julio
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NEW YORK CONT’D
Balbuena, the company’s sales manager; Rivas Travel and Multiservice, Inc., a
New York corporation; and David Rivas, the owner of Rivas Travel, for their
involvement in the sale of residential properties at a development in the
Dominican Republic known as Pueblo Bavaro. The Attorney General has
secured $540,499.00 for consumers who paid a down payment or in full for a
residence at Pueblo Bavaro but never received it, and title certificates for
dozens of defrauded consumers. A Consent Order and Judgment signed by
Manhattan Supreme Court Justice Joan Kenney requires financial restitution
payments to new complainants who paid a down payment or in full for a
residence but never received one within 30 days of the complaint being
received by the development company, and title certificates to be provided
within 60 days of the complaint being received. The Consent Order and
Judgment also prohibits the respondents from promoting, advertising or
engaging in the sale, transfer or conveyance of properties in Dominican
Republic to New York consumers.
http://www.ag.ny.gov/press-release/ag-schneiderman-secures-over-500000-
restitution-and-title-certificates-consumers
February 19, 2015
A.G. Schneiderman Secures Agreements With Twenty School Districts To
Ensure Equal Educational Opportunities For Students Regardless Of
Immigration Status
Agreements Remove Barriers Impacting Unaccompanied Minors And Other
Undocumented Youth Seeking To Enroll In Public Schools
Attorney General Eric T. Schneiderman today announced agreements with
twenty school districts to ensure educational access for students regardless of
their immigration status or that of their parents or guardians. The districts
agreed to remove inquiries into citizenship/immigration status from their
enrollment materials, as well as to develop new enrollment procedures and
provide training to responsible personnel to ensure that students do not face
such barriers when seeking to enroll. The districts, which span fourteen
different counties across the state, include the Amherst, Carthage,
Cheektowaga, Cuba Rushford, Dryden, Gates Chili, Greenville, Hilton, Homer,
Lyme, Manchester-Shortsville, Penfield, Pittsford, Spencerport, Sullivan West,
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NEW YORK CONT’D
Vestal, and Williamson Central School Districts; and the Oneida, Port Jervis,
and Watertown City School Districts.
http://www.ag.ny.gov/press-release/ag-schneiderman-secures-agreements-
twenty-school-districts-ensure-equal-educational
February 18, 2015
A.G. Schneiderman Settlement Ends Rochester Area Company’s
Deceptive ‘Going Out Of Business’ Sale
HQ Home, A Local Furniture Store, Made False Statements In Advertisements
For Going-Out-Of-Business Sale
Attorney General Eric T. Schneiderman today announced a settlement with
HQ Home, a Henrietta-based furniture company, for engaging in deceptive
acts and making false statements in its advertisements. The business
advertised that they were holding a going out of business sale while
continuing to receive shipments of new furniture, which is a violation of New
York State law. As a result of Attorney General Schneiderman's investigation,
HQ Home has paid $10,000 in civil penalties to the state and forfeited $500 to
the Town of Henrietta for the application it was required to obtain to conduct
a going out of business sale.
http://www.ag.ny.gov/press-release/ag-schneiderman-settlement-ends-
rochester-area-company%E2%80%99s-deceptive-%E2%80%98going-out-
business
February 17, 2015
A.G. Schneiderman Announces Conviction Of Manhattan Restaurateur
For Underpaying Workers $100,000
Paul Hurley, Owner Of Desmond's Steakhouse & Grill Was Convicted Of Failing
To Pay Workers At Famed 7th Avenue Eatery And Was Sentenced To Pay
Restitution
Attorney General Eric T. Schneiderman today announced the conviction and
sentencing of Paul D. Hurley and Portmarnock Restaurant Corp., d/b/a
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NEW YORK CONT’D
Desmond's Steakhouse & Grill, for failing to pay wages to workers who were
hired at various stages during the opening of the 7th Avenue restaurant.
Hurley and the corporation were each convicted of Failing to Pay Wages as an
unclassified misdemeanor under Section 198-a(1) of the New York State Labor
Law. At the time of his plea, Hurley admitted to shortchanging 54 workers out
of $100,000 by falsely promising them that they would be paid in the future
to induce them to continue working without wages during the opening nights
of the posh eatery.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
conviction-manhattan-restaurateur-underpaying-workers-100000
February 11, 2015
A.G. Schneiderman Announces Settlement With Six Syracuse Area
Apartment Complexes Over Failing To Return Security Deposits To
Tenants
Attorney General Eric T. Schneiderman today announced a settlement
agreement with six Syracuse-area apartment complexes that repeatedly failed
to return tenants’ security deposits at lease-end and, when applicable, to pay
interest to tenants on their initial deposits. The settlement will return deposits
to dozens of former tenants and resolve complaints against Abraham
Mendlowitz, President of AIM Properties Corp. and AIM Properties
Management Corp. Under the agreement, $13,983.50 in restitution has been
refunded to former tenants by the apartment complexes and $15,000 has
been paid in investigative costs to the state. The complaints involved
apartment buildings formerly under Mendlowitz’ management in Syracuse
and Liverpool.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
settlement-six-syracuse-area-apartment-complexes-over
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NEW YORK CONT’D
February 9, 2015
A.G. Schneiderman Announces Arrest And Indictment Of New Jersey
Broker In $1 Million Securities Fraud Case
Khawaja Saud Masud Charged With Grand Larceny And Securities Fraud For
Fraudulently Soliciting Investment In His Purported Hedge Fund
Masud Promised To Conservatively Invest The Victims’ Retirement Monies, But
Instead Incurred Losses Of Almost $1 Million In Just Three Months
Attorney General Eric T. Schneiderman announced today felony charges
against Khawaja Saud Masud, 37, of Jersey City, NJ, for stealing over $1
million from a retired pediatrician and his wife by fraudulently soliciting them
to invest in his purported hedge fund, RKS Capital, LP. The defendant is
charged with Grand Larceny in the First Degree (a Class B felony) and
Securities Fraud under the Martin Act (a Class E felony) and faces up to 25
years in prison.
According to the indictment and statements made by prosecutors at
arraignment, in 2012, Masud allegedly solicited Dr. Kalim Irfani, a 75-year old
retired pediatrician, and his wife, Rehana Irfani, of Westchester, to invest
their retirement monies in his purported hedge fund, RKS Capital, LP, which
Masud had created just two weeks earlier. Based on his promises of a secure
investment opportunity, the Irfanis allegedly gave over $1 million to Masud,
only to have Masud lose nearly their entire investment in a matter of months.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-arrest-
and-indictment-new-jersey-broker-1-million-securities
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NEW YORK CONT’D
February 5, 2015
A.G. Schneiderman Announces Conviction And Sentencing Of Serial
Fraudster Who Preyed On Immigrants
Sonia Vertucci Confessed To Taking Victims’ Cash For A Wide Variety Of
Services That Were Never Delivered
Vertucci Will Serve 1-3 Years In State Prison And Will Pay Restitution To Victims
Attorney General Eric T. Schneiderman today announced the guilty plea of
Sonia Vertucci, who admitted to operating a long-running scheme to steal
from Queens’s residents by falsely promising a wide range of services to her
predominantly immigrant clients in a scheme that involved more than
$100,000 in fraudulent payments for services she never delivered or refunded
victims’ money.
Vertucci, 42, of New Rochelle, pleaded guilty in Supreme Court in Queens
County to one count of Scheme to Defraud in the First Degree (a class “E”
felony). She was sentenced to a term of 1-3 years in state prison, and was
ordered to pay restitution to victims after her release.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
conviction-and-sentencing-serial-fraudster-who-preyed
February 4, 2015
A.G. Schneiderman Announces Prison Sentence For Lawyer Charged With
Stealing Almost $2 Million From Staten Island Nonprofit
Timothy Griffin Stole From Staten Island Cemetery To Hide Theft Of Client
Money and Fund Lavish Lifestyle; Will Be Sentenced To 3 To 9 Years In Prison
Attorney General Eric T. Schneiderman today announced the guilty plea of
Westchester attorney Timothy Griffin, former acting president of United
Hebrew Cemetery, on the charge of Grand Larceny in the First Degree. Griffin
admitted to embezzling nearly $2 million from the not-for-profit, and he will
be sentenced to 3 to 9 years in prison.
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NEW YORK CONT’D
The Attorney General's investigation revealed that Griffin, a Bronxville real
estate attorney, stole nearly $2 million from United Hebrew Cemetery in
Staten Island. In late 2012, Griffin was asked to serve as Acting President of
the Cemetery after the previous president and his wife were found guilty of
embezzling approximately $850,000, as the result of a prior investigation
conducted by the Attorney General’s office. In his capacity as Acting
President, Griffin made six unauthorized wire transfers from the Cemetery’s
account to his own attorney escrow account, totaling $1.9 million.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-prison-
sentence-lawyer-charged-stealing-almost-2-million
February 3, 2015
A.G. Schneiderman Asks Major Retailers To Halt Sales Of Certain Herbal
Supplements As DNA Tests Fail To Detect Plant Materials Listed On
Majority Of Products Tested
Cease And Desist Letters Sent To GNC, Target, Walgreens And Walmart As
Most Store Brand Supplements Were Found To Contain Contaminants Not
Identified On Ingredient Labels; Just 21% Of Supplement Tests Identified DNA
From Plant Species Listed On Labels
Attorney General Eric T. Schneiderman today announced that his office sent
letters to four major retailers, GNC, Target, Walmart, and Walgreens, for
allegedly selling store brand herbal supplement products in New York that
either could not be verified to contain the labeled substance, or which were
found to contain ingredients not listed on the labels. The letters, sent Monday,
call for the retailers to immediately stop the sale of certain popular products,
including Echinacea, Ginseng, St. John’s Wort, and others. Attorney General
Schneiderman requested the companies provide detailed information relating
to the production, processing and testing of herbal supplements sold at their
stores, as well as set forth a thorough explanation of quality control measures
in place.
http://www.ag.ny.gov/press-release/ag-schneiderman-asks-major-retailers-
halt-sales-certain-herbal-supplements-dna-tests
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February 2, 2015
A.G. Schneiderman Obtains Judgments Of Nearly $800,000 Against Papa
John’s Franchisee For Underpaying Employees
Judgment Finds Operator Emmanuel Onuaguluchi Liable For Wages Owed To
Hundreds Of Workers At Six Locations In New York City
Emstar Pizza, Owners And Operators Permanently Enjoined From Selling
Assets To Avoid Paying Back Wages
Attorney General Eric T. Schneiderman announced that his office has
obtained two separate judgments against Emstar Pizza, a Papa John’s
franchisee, and its owner and operator for underpaying employees. The
violations include shaving workers’ pay by under-reporting hours and
rounding down hours worked to the nearest whole hour increment (and
paying nothing for fractions of hours), as well as nonpayment of overtime
premiums—all in violation of New York State Labor Law.
Kings County Supreme Court Justice Johnny Lee Baynes issued a judgment
against Emstar Pizza Inc. operator Emmanuel Onuaguluchi for $789,507.06
in owed wages, uniform maintenance, liquidated damages, and interest to
hundreds of employees who have worked for him over the past six years. In a
separate consent order and judgment, Justice Baynes approved a settlement
agreement that holds Emstar Pizza Inc. and its owner Uchenna Onuaguluchi
jointly responsible for $541,337.61 of this amount in owed wages, liquidated
damages, and interest. Both orders permanently enjoin Emstar Pizza Inc. and
its owners and operators from selling any stores unless proceeds from the sale
are held in escrow by the Attorney General, which the Attorney General may
use to distribute as restitution to underpaid employees.
http://www.ag.ny.gov/press-release/ag-schneiderman-obtains-judgments-
nearly-800000-against-papa-john%E2%80%99s-franchisee
20
NORTH CAROLINA
February 10, 2015
Attorney General Roy Cooper Announces Charlotte Car Dealer Must End
Unfair Loans Based On Race, Pay Consumer Relief
Cooper, US DOJ reach settlement with Auto Fare, Southeastern Auto Corp.
Two Charlotte used car dealerships that targeted consumers with overpriced
vehicles and predatory car loans based on race must repay victims and
change practices, Attorney General Roy Cooper announced Tuesday.
The settlement resolves a lawsuit filed in January 2014 by Cooper, the Civil
Rights Division of the U.S. Department of Justice and the U.S. Attorney for
the Western District of North Carolina against Auto Fare, Inc., Southeastern
Auto Corp. and their owner, Zuhdi A. Saadeh.
http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-
Advisories/Press-Releases/Charlotte-car-dealer-must-end-unfair-loans-bas-
%281%29.aspx
OHIO
February 26, 2015
Attorney General DeWine Seeks Reimbursement From Dealership
Accused of Failing to Deliver Titles
Ohio Attorney General Mike DeWine today announced a lawsuit against the
operators of a Columbus used car dealership accused of failing to provide
vehicle titles to buyers as required by law.
The lawsuit charges Keeonia Davis and Alan Davis, previously operating as
Quality Used Auto Sales at 1232 Sullivant Avenue, with violations of Ohio’s
Consumer Sales Practices Act and Certificate of Motor Vehicle Title Act.
Quality Used Auto Sales, which is now closed, has generated 46 consumer
complaints to the Ohio Attorney General’s Office since 2014. Most involve title
issues.
http://www.ohioattorneygeneral.gov/Media/News-Releases/February-
2015/Attorney-General-DeWine-Seeks-Reimbursement-from-D
21
OHIO CONT’D
February 24, 2015
Attorney General Mike Dewine Announces A Lawsuit Against Landscaper
Accused Of Failing To Deliver Promised Services To Consumers
Ohio Attorney General Mike DeWine today announced a lawsuit against the
owner of a Medina-area landscaping service accused of failing to deliver
promised services to consumers and performing shoddy work.
The lawsuit accuses John M. Capone, operating as Empire Landscaping &
Irrigation, of violating Ohio’s Consumer Sales Practices Act and Home
Solicitation Sales Act.
In the last two years, nine consumers have filed complaints against the
business with approximately $60,000 in reported losses.
http://www.ohioattorneygeneral.gov/Media/News-Releases/February-
2015/Landscaper-Accused-of-Failing-to-Deliver-Promised
February 18, 2015
Attorney General DeWine Announces New Scholarship Trust Created
from Proceeds of Charitable Fraud Case
Ohio Attorney General Mike DeWine today announced that a new scholarship
trust has been established for graduating student athletes of Mansfield Senior
High School using proceeds from the Mansfield Tyger All-Sports Booster Club
charitable fraud case.
Attorney General DeWine’s office estimates that approximately $300,000 in
scholarship funds ultimately will be made available as a result of civil and
criminal actions against former booster club trustees who were accused of
stealing money meant for students and using the funds for themselves.
http://www.ohioattorneygeneral.gov/Media/News-Releases/February-
2015/Attorney-General-DeWine-Announces-New-Scholarship
22
OHIO CONT’D
February 11, 2015
Attorney General DeWine Files Suit Against New York Debt Collector
Accused of Harassing Ohio Consumers
Ohio Attorney General DeWine today announced a lawsuit against a Buffalo,
New York, debt collector accused of impersonating Ohio government agencies
and threatening consumers with arrest while attempting to collect debts.
The lawsuit accuses Nationwide Recovery Group LLC and its owner, Michael
P. McCarthy, of violating the Ohio Consumer Sales Practices Act and the Fair
Debt Collection Practices Act.
According to the Attorney General’s lawsuit, the business impersonated
various government and law enforcement agencies, including the clerk of
courts’ offices in Greene County, Cuyahoga County, and Montgomery County,
in addition to county sheriff deputies and a court investigator.
http://www.ohioattorneygeneral.gov/Media/News-Releases/February-
2015/Attorney-General-DeWine-Files-Suit-Against-New-Yor
February 11, 2015
Attorney General DeWine Seeks Consumer Restitution from Mobile Home
Mover
Ohio Attorney General DeWine today announced a lawsuit against a Somerset
man accused of failing to deliver promised mobile-home moving services to
Ohio consumers.
The lawsuit accuses David Lee Marsh, Sr., doing business as David’s Mobile
Home Transport and Repair, of violating Ohio’s Consumer Sales Practices
Act.
David Marsh is the owner and operator of David’s Mobile Home Transport and
Repair, which provides mobile home transport, mobile home repair, and site
preparation services in Ohio.
http://www.ohioattorneygeneral.gov/Media/News-Releases/February-
2015/Attorney-General-DeWine-Seeks-Consumer-Restitution
23
OHIO CONT’D
February 10, 2015
Attorney General Mike DeWine Files Lawsuit Against Home Improvement
Contractor Accused of Failing to Deliver Promised Services
Ohio Attorney General Mike DeWine today announced a lawsuit against a
northwest Ohio home improvement contractor accused of failing to deliver
promised services and performing shoddy work.
The lawsuit accuses Joshua Schnabel, operating as Schnabel Construction, of
violating Ohio's Consumer Sales Practices Act and Home Solicitation Sales
Act.
In the last two years, four consumers filed complaints against the business
with reported losses totaling at least $26,000.
http://www.ohioattorneygeneral.gov/Media/News-Releases/February-
2015/Home-Improvement-Contractor-Accused-of-Failing-to
February 9, 2015
Attorney General DeWine Reaches $105,000 Settlement with
Massachusetts Telemarketer over Charity Calls
Ohio Attorney General Mike DeWine today announced a settlement with a
Massachusetts-based business that allegedly solicited Ohioans for charitable
donations while misleading consumers into thinking the calls were coming
from a charity, versus a business.
Integral Resources Inc., a Cambridge, Massachusetts, professional solicitor,
has agreed to pay $105,000 and to comply with Ohio’s charitable laws when
contacting Ohioans for donations.
The settlement, an assurance of discontinuance filed on Friday, concludes a
2013 lawsuit filed by the Ohio Attorney General’s Office in the Franklin
County Court of Common Pleas.
http://www.ohioattorneygeneral.gov/Media/News-Releases/February-
2015/Attorney-General-DeWine-Reaches-$105-000-Settlemen
24
WASHINGTON
February12, 2015
Attorney General Bob Ferguson Files Lawsuit Against Venue Operators
Who Jilted Customers
The Attorney General’s Office Consumer Protection Division has filed a lawsuit against the operators of a Seattle venue who knowingly booked events,
including many weddings, they knew they could not actually hold at the venue.
In a complaint filed in King County Superior Court yesterday, Roland and Amanda Crane are accused of violating the Washington Consumer Protection
Act.
Their business, EM Fine Art, hosted weddings and events at a South Lake
Union location. In two mass emails in June 2014, the Cranes told their customers they would not provide use of the gallery for already scheduled
events and would not be refunding down payments.
The first email falsely claimed the gallery had been destroyed by an electrical
fire. That was the last their customers heard from the Cranes. More than 80
consumers whose events were not accommodated have lost more than $50,000 in unrefunded deposits and other payments.
http://www.atg.wa.gov/news/news-releases?page=1
WEST VIRGINIA
February 6, 2015
Attorney General Patrick Morrisey Announces $1.65 Million Settlement
With Blue World Pools Inc.
Attorney General Patrick Morrisey announced that the West Virginia Attorney
General’s Office recently entered into a nearly $1.65 million Assurance of
Discontinuance with Blue World Pools Inc. to resolve allegations that the
company’s business practices violated the West Virginia Consumer Credit and
Protection Act.
The Assurance stems from an investigation by the Office into whether Atlanta-
based Blue World was engaging in unfair or deceptive practices in connection
with the sale and financing of pools to West Virginia consumers between 2008
and 2012. The Office accused the company of using a national advertising
campaign offering $399 above-ground pools to attract potential customers,
25
then persuading those customers to buy Blue World’s Classic 52-inch wall
pool with an average sales price of more than $14,000.
http://www.ago.wv.gov/pressroom/2015/Pages/Attorney-General-Patrick-
Morrisey-Announces-$1.65-Million-Settlement-With-Blue-World-Pools-
Inc.aspx
26
MULTISTATE CASES AND SETTLEMENTS
February 19, 2015
FTC, California, Illinois, Iowa, Maryland, Minnesota, Nebraska, Ohio,
Virginia, Pennsylvania, Tennessee, and the District of Columbia
Challenges Proposed Merger of Sysco and US Foods
Agency Charges Merger Would Create a National Broadline Foodservice
Distributor With 75 Percent Market Share, And Harm Customers in Numerous
Local Markets
The Federal Trade Commission today filed an administrative complaint
charging that the proposed merger of Sysco and US Foods would violate the
antitrust laws by significantly reducing competition nationwide and in 32
local markets for broadline foodservice distribution services. The FTC alleges
that if the merger goes forward as proposed, foodservice customers, including
restaurants, hospitals, hotels, and schools, would likely face higher prices
and diminished service than would be the case but for the merger.
The FTC also authorized staff to seek in federal court a temporary restraining
order and a preliminary injunction to prevent the parties from consummating
the merger, and to maintain the status quo pending the administrative
proceeding.
https://www.ftc.gov/news-events/press-releases/2015/02/ftc-challenges-
proposed-merger-sysco-us-foods
27
MEDICAID FRAUD CASES AND SETTLEMENTS
ALABAMA
February 4, 2015
Attorney General Luther Strange Announces The Arrest of Ohio Man For
Filing Numerous False Claims For Payment To The Alabama Medicaid
Agency And Identity Theft
Attorney General Luther Strange announced the arrest of Darnell Davon
Nash, 30, of Cleveland, Ohio, on sixty-nine counts of filing false claims with
the Alabama Medicaid Agency and one count of trafficking in stolen identities.
The Attorney General’s Medicaid Fraud Control Unit presented evidence to the
August 2014 term of the Montgomery County grand jury, resulting in an
indictment* charging Nash for his role in the filing of numerous false claims
for payment to the Alabama Medicaid Agency and being in possession of
identifying information of approximately twenty-five Alabama Medicaid
recipients. Nash currently is in federal custody on an unrelated fraud
conviction and is being transported to Alabama by the U.S. Marshal Service. A
trial date is set for March 9, 2015.
http://www.ago.state.al.us/News-593
FLORIDA
February 26, 2015
Attorney General Pam Bondi Announces Three Individuals Arrested for More Than $2.4 million in Medicare and Medicaid Kickbacks
Attorney General Pam Bondi’s Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services Office of Inspector General today
announced the arrest of two individuals in Miami and one individual in Colombia for more than $2.4 million in Medicare and Medicaid fraud. The defendants allegedly defrauded Medicaid and Medicare by paying and
receiving kickbacks in return for providing false and fraudulent home health prescriptions and plans of care to patient recruiters.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/5291FE287B00118A85257DF8005244BE
28
FLORIDA CONT’D
February 12, 2015
Attorney General Pam Bondi Announces Palm Beach County Health Care
Provider Arrested For Submitting False Claims Attorney General Pam Bondi’s Medicaid Fraud Control Unit and the Palm
Beach County Sheriff’s Office today arrested Lakeshia Lashawn Ramsay, 31, for more than $5,000 in Medicaid fraud. While employed as a direct care
contractor at Superior Family Services, located in Delray Beach, Ramsay allegedly submitted fraudulent time sheets and progress reports for respite care services that were never rendered, resulting in false Medicaid claims.
Based on a complaint by the owner of Superior Family Services, the investigation revealed that the defendant claimed 465 hours of respite care service when in reality she performed 13 hours of service.
According to the Agency for Health Care Administration, respite care services
are supportive case and supervision provided to a consumer when the primary caregiver is unable to perform these duties due to a planned brief absence, an emergency absence, or when the caregiver is available but
temporarily physically unable to care for or supervise the consumer for a brief period. http://www.myfloridalegal.com/newsrel.nsf/newsreleases/8F9DC1D4217CE
E2C85257DEA006311E2
MARYLAND
February 9, 2015
Attorney General Brian E. Frosh Announces Randallstown Man Convicted
of Felony Medicaid Fraud
Home health aide was not certified, but still provided care and billed Medicaid
Attorney General Brian E. Frosh announced today that Roy Onyeka 27, of
Randallstown, pleaded guilty on February 4 to Felony Medicaid Fraud.
Baltimore County Circuit Court Judge Kathleen Gallogly Cox sentenced
Onyeka to 18 months in jail, with all but 9 days suspended for time already
served. Judge Cox also placed Onyeka on probation for 3 years, ordered him
to pay restitution of $3,147.29 and civil damages of the same amount to the
Medicaid program. He must also perform 50 hours of community service.
http://www.oag.state.md.us/Press/2015/020915.html
29
MISSOURI
February 18, 2015
Attorney General Chris Koster Announces Medicaid Fraud Settlement
With St. Louis Personal Healthcare Provider For Submitting False Claims.
Attorney General Chris Koster announced today that his office has reached a
settlement with DEW D Services, LLC, of St. Louis, for submitting false claims
to Missouri’s Medicaid program. Under the settlement, the in-home healthcare
provider will pay more than $150,000 in restitution, penalties, and
investigation costs.
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
announces-medicaid-fraud-settlement-with-st.-louis-personal-healthcare-
provider
NEVADA
February 10, 2015
Attorney General Laxalt Announces Sentencing of Medicaid Provider for Submitting False Medicaid Claims
Nevada Attorney General Adam Paul Laxalt announced that Victor Sutton, 41,
of Las Vegas, NV was sentenced today for a felony offense in a Medicaid fraud
case for submitting false Medicaid claims. His sentence also included a gross
misdemeanor offense of intentional failure to maintain adequate records.
http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Announces_Sente
ncing_of_Medicaid_Provider_for_Submitting_False_Medicaid_Claims/
NEW JERSEY
February 17, 2015
Acting Attorney General John J. Hoffman Announces Former Home
Health Aide Pleads Guilty to Charges He Stole More Than $64,000 from
Medicaid by Submitting Phony Claims
Acting Attorney General John J. Hoffman and the Office of the Insurance
Fraud Prosecutor (OIFP) announced that a former employee of a home health agency today pleaded guilty to charges that he caused bills to be submitted to the Medicaid program for services that were never provided.
30
Elhan Gurban, 52, of Fort Lee, pleaded guilty to one count of second-degree health care claims fraud before Bergen County Superior Court Judge Liliana
Deavila-Silebi. The state will recommend a prison sentence of four years and that he pay restitution in the amount of $64,125.
http://nj.gov/oag/newsreleases15/pr20150217b.html
NEW YORK
February 18, 2015
A.G. Schneiderman Announces $6 Million Settlement With Bronx For-
Profit Hospice Provider Following Joint Investigation With U.S. Attorney
Bharara
Medicaid And Medicare Fraud Investigation Revealed Compassionate Care
Hospice Of New York Submitted Reimbursement Claims For Services Not
Rendered Or Inadequately Provided
Attorney General Eric T. Schneiderman today announced that New York State
and the United States have entered into a $6 million settlement agreement
with a hospice agency regarding allegations that it submitted false and
fraudulent claims to the state Medicaid program and Medicare for hospice
services not rendered or inadequately provided by Compassionate Care
Hospice of New York, LLC (CCH-New York). The settlement, approved today in
U.S. District Court by Judge J. Paul Oetken, resolves a joint investigation
between Attorney General Schneiderman and U.S. Attorney Preet Bharara.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-6-million-
settlement-bronx-profit-hospice-provider-following
OKLAHOMA
February 11, 2015
Attorney General Scott Pruitt Charges Individuals For Billing Therapy
Sessions That Never Occurred
Oklahoma Attorney General Scott Pruitt filed charges against Orlando Glenn
Rayfield, of Arlington, Texas and Trevor Allan Gordon, Jr., of Grand Prairie,
Texas for the billing of therapy sessions that never occurred.
31
An investigation by the Attorney General’s Office Medicaid Fraud Control Unit
revealed both Rayfield and Gordon, Jr. generated false claims for payment for
rehab services purportedly provided to Medicaid recipients. Rayfield and
Gordon, Jr. worked as Behavioral Health Rehabilitation Specialists for
Pennington Creek Lifehouse, headquartered in Tishomingo.
Rayfield, 32, submitted electronic claims for payment to the Oklahoma Health
Care Authority, who paid more than $30,000 to Pennington Creek for
Rayfield’s work. Interviews with the parents of the Medicaid recipients and
billing records proved, despite Medicaid paying for 444 therapy sessions, no
such sessions took place. Rayfield billed for both bogus therapies for children
and sessions with client parents that never occurred.
http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258
&article_id=15437
PENNSYLVANIA
February 2, 2015
Attorney General Kathleen G. Kane Charges Home Health Care Agency
With Fraudulently Billing Medicaid For More Than $1 Million
Attorney General Kathleen G. Kane and the Office of Inspector General of the
U.S. Department of Health & Human Services today announced Medicaid
fraud and other charges against Philadelphia-based Infinite Care Inc., sister
company Infinite Care Special Needs Inc., and the companies' vice president
and treasurer.
The company is accused of fraudulently billing Medicaid for more than $1
million.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pres
s_Release/?pid=1442
32
VIRGINIA
February 18, 2015
Attorney General Mark Herring Announces Portsmouth Woman
Sentenced for Role in Health Care Fraud
Medicaid Overbilled Approximately $2.4 million
Doretha Selby-Diggs, age 41, of Portsmouth, was sentenced today to five years in prison, followed by a three-year term of supervised release for her role in a health care fraud conspiracy. Ms. Selby-Diggs was also ordered to pay
$286,650 in restitution to the Virginia Department of Medical Assistance Services.
http://oag.state.va.us/index.php/media-center/news-releases/445-
portsmouth-woman-sentenced-for-role-in-health-care-fraud
33
CONSUMER ADVOCACY
ALABAMA
February 27, 2015
Attorney General Luther Strange Announces Top Ten Consumer
Complaints Reported To His Office During 2014
In accordance with National Consumer Protection Week, Alabama Attorney
General Luther Strange announces the top ten consumer complaints as
reported to his office by Alabamians during 2014.
The Alabama Attorney General’s Office of Consumer Protection received more
than 4,300 consumer complaints during 2014 with the majority grouped into
the following ten categories:
1. Online Scams
2. Debt Collection
3. Loans/Mortgages
4. Auto (Used)
5. Home Repair
6. Retail Purchases
7. Mail Order/Magazines
8. Satellite/Cable/ISP Service Disputes
9. Auto Repair
10. Landlord/Tenant Disputes
http://www.ago.state.al.us/News-600
34
CALIFORNIA
February 24, 2015
Attorney General Kamala D. Harris and Assemblymember Jacqui Irwin
Announce Legislation to Improve Transparency and Accountability for
Commercial Charitable Fundraisers
Today, Attorney General Kamala D. Harris and Assemblymember Jacqui Irwin
(D-Thousand Oaks) unveiled legislation aimed at maintaining consumer
confidence in charitable giving. The bill would close a loophole in disclosure
requirements for paid commercial fundraising campaigns and include for-
profit fundraising firms and other third parties who engage in misconduct in
the Attorney General’s 10-year statute of limitations.
http://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-
and-assemblymember-jacqui-irwin-announce
COLORADO
February 5, 2015
Colorado Attorney General Cynthia Coffman Warn Consumers About
World Law Entities
The Colorado Supreme Court on Monday ordered a debt settlement company
using the name World Law to cease certain operations in the state.
Hundreds of Colorado consumers paid sizeable amounts to entities using the
trade names World Law Direct, World Law Debt, World Law Group and World
Law Processing. Consumers believed the entities would provide legal
representation while settling their debts at a discount. The entities advertised
through websites such as www.worldlawdebtassistance.com and
www.worldlawdirect.com.
http://www.coloradoattorneygeneral.gov/press/news/2015/02/05/office_att
orney_regulation_counsel_and_colorado_attorney_generals_office_warn_
35
CONNECTICUT
February 11, 2015
Consumer Alert: AG Jepsen, DCP Advise Consumers with RadioShack
Gift Cards to Redeem Unused Balances Immediately
Electronic retailer filed for bankruptcy; consumers should use gift cards,
return unwanted merchandise as soon as possible
Attorney General George Jepsen and state Department of Consumer
Protection Commissioner Jonathan A. Harris are advising Connecticut
residents who may be holding gift cards, certificates or store credits to the
electronic retail establishment RadioShack to use their gift cards as soon as
possible. The company recently filed bankruptcy and has announced plans to
close stores in Connecticut as early as February 17 and as late as March 31 of
this year.
http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=560600
February 5, 2015
Attorney General George Jepsen, DCP Caution Anthem Customers in
Connecticut about Nationwide Data Breach
Attorney General George Jepsen and state Department of Consumer
Protection Commissioner Jonathan A. Harris are asking Anthem Inc. for more
information about a reported data breach that may have compromised
personal information of its customers across the state.
The Indiana-based health insurer has released information on the data
breach indicating that hackers had breached its computer system and the
personal information of tens of millions of current and former enrollees and
employees across the country was possibly at risk.
http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=560424
36
FLORIDA
February 9, 2015
Attorney General Pam Bondi Warns Consumers of Imposter Scam
Attorney General Pam Bondi warns Floridians about an increasingly prevalent
scam involving individuals impersonating employees from the Florida Office of
the Attorney General and other legal authorities. In the past week, the OAG
received 20 complaints of OAG impersonation scammers attempting to obtain
money or personal and financial information from consumers. The scammers
remain anonymous by altering the caller identification, a process known as
spoofing, to display the OAG’s fraud hotline number or another legal
authority, such as 911.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/6DFC1AF1D6C20
54085257DE7006CDF0A
ILLINOIS
February 6, 2015
Attorney General Lisa Madigan Alerts Consumers To Phishing Scams In
Wake Of Anthem Data Breach
Attorney General Lisa Madigan today warned consumers who may be affected
by the massive data breach reported by the health insurance company
Anthem Inc. to be on the lookout for unsolicited phone calls and emails and
begin taking steps to protect themselves against identity theft immediately.
Anthem has reported that phishing email scams targeting its customers have
surfaced in the wake of its disclosure that personal information of customers
and employees were breached by hackers. As many as 80 million records were
potentially compromised in the breach that contain names, Social Security
numbers, birthdates, addresses, email address and employment data.
http://www.illinoisattorneygeneral.gov/pressroom/2015_02/20150206.html
37
INDIANA
February 27, 2015
Attorney General Greg Zoeller Issues Consumer Alert: Sweepstakes
Scammers Impersonating Indiana Attorney General’s Office
Criminals responsible for an international sweepstakes scam are now
impersonating the Indiana Attorney General’s Office in attempt to convince
victims that their scam is legitimate. The scammers are using a forged seal of
the Attorney General’s Office for its letterhead, and have forged the Attorney
General’s signature.
http://www.in.gov/activecalendar/EventList.aspx?fromdate=2/1/2015&todat
e=3/31/2015&display=Month&type=public&eventidn=210618&view=EventDe
tails&information_id=211613
MASSACHUSETTS
February 25, 2015
Attorney General Maura Healey Urges Massachusetts Consumers
Potentially Affected by Anthem Data Breach to Take Action to Protect
Their Credit, Identity
Anthem Reports Nearly One Million People with Massachusetts Ties Potentially
Affected; AG Announced Investigation of Breach Earlier this Month
After health insurer Anthem, Inc. announced that the recent data breach at
Anthem could potentially affect the personal information, including Social
Security numbers, of nearly one million people with Massachusetts ties,
Attorney General Maura Healey is offering advice on how consumers can
protect their personal information against identity theft. Earlier this month,
AG Healey announced that her office is investigating the matter.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
02-25-anthem-data-breach.html
38
MISSOURI
February 4, 2015
Attorney General Chris Koster Announces Top 10 Consumer Complaints
From 2014
Attorney General Koster's Consumer Protection Division processed more than
125,000 consumer complaints in 2014. The Division recovered or courts
ordered more than $57 million for consumers in the form of refunds,
restitution, and penalties from 102 filed lawsuits and more than 23,000
individual mediations.
Below are the top 10 complaints filed with the Attorney General's Office in
2014 (including the number of complaints received):
1. No Call & Illegal Telemarketing Complaints (52,514)
2. Debt Collectors (1,217)
3. Mail And Phone Solicitations (1,208)
4. Financial Fraud (1,148)
5. Home Repair And Remodeling (687)
6. Credit And Debit Card (686)
7. Telephone Cramming And Billing (674)
8. Cable/Satellite Services (598)
9. Mortgage/Foreclosure/Loan Modifications (561)
10. Energy And Utility Complaints (552)
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
announces-top-10-consumer-complaints-from-2014
39
NEVADA
February 13, 2015
Attorney General Laxalt Warns Victims of Anthem Inc. Data Breach of
Phishing E-Mail Scam
Nevada Attorney General Adam Paul Laxalt warns Nevadans who may have been impacted by the recent Anthem Inc. data breach of a potential phishing e-mail scam targeting current and former members. Anthem Inc.
representatives are not currently calling or e-mailing present or former members about the data breach, and do not ask for credit card information or social security numbers by phone or e-mail. The phishing e-mail messages
are designed to obtain the recipient’s personal information, and appear to be sent from Anthem Inc. The body of the e-mail contains a link that purports to
offer free credit monitoring services, however, the e-mail has no affiliation with Anthem Inc. http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Warns_Victims_of
_Anthem_Inc__Data_Breach_of_Phishing_E-Mail_Scam/
NEW HAMPSHIRE
February 18, 2015
Attorney General Joseph A. Foster Encourages All Anthem Members to
Sign Up for Credit Protection Services and Provides Advice to Minimize
Identity Theft Risks
Attorney General Joseph A. Foster announces that his office has been
regularly in contact with officials at Anthem related to the recent data breach
and is coordinating with Attorneys General of other states as the investigation
into this breach by federal and state law enforcement officials continues.
http://doj.nh.gov/media-center/press-releases/2015/20150218-anthem-
breach.htm
40
NEW YORK
February 20, 2015
A.G. Schneiderman Announces Commitment By Santander Bank To
Eliminate Barriers That Unfairly Exclude Low-Income Americans From
Mainstream Financial Services
Santander Is Third National Bank To Agree To Expand Access For Previously
Excluded Consumers
Attorney General Eric T. Schneiderman today announced that Santander
Bank, N.A. has agreed to adopt new policies governing its use of
ChexSystems, a consumer-reporting agency that screens people seeking to
open checking or savings accounts. Santander’s new policies are expected to
allow thousands of additional New Yorkers and consumers nationwide to open
bank accounts by September 30, 2015. The change comes amid concerns that
screenings by ChexSystems and other consumer-reporting agencies, which
are used by most of the nation’s banks, adversely affect lower-income
applicants and force them to turn to high-cost alternative financial services
like check-cashing outlets.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
commitment-santander-bank-eliminate-barriers-unfairly
February 13, 2015
A.G. Schneiderman Introduces Payroll Card Act To Create Clear Rules
And Protect Workers From Unfair Fees And Coercion
Attorney General Eric T. Schneiderman today introduced legislation
regulating the use of payroll cards to increase protections for workers, clarify
ambiguities in the law, and ensure that payroll cards offer a convenient and
beneficial method for workers to access their pay. The Attorney General’s
Payroll Card Act, which was sent to the Legislature yesterday, requires clear
disclosure of payroll card fees, and restricts certain fees. The legislation was
first proposed last year, following recommendations made in a report released
by the Attorney General’s Labor Bureau.
http://www.ag.ny.gov/press-release/ag-schneiderman-introduces-payroll-
card-act-create-clear-rules-and-protect-workers
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NEW YORK CONT’D
February 11, 2015
A.G. Schneiderman Warns Consumers That A Scammer Is Posing As
Official From Attorney General's Buffalo Regional Office
Scammer Even Provides Address Of Buffalo Office In Fraudulent Appeal
Attorney General Eric T. Schneiderman today announced that his office has
been alerted to a scam involving individuals posing as representatives of his
Buffalo regional office. At least six consumers contacted the Attorney
General’s Office yesterday to report the fraudulent calls, a spike that suggests
the calls may be active and widespread. The scammer is threatening
consumers with a lawsuit and possible arrest over supposed debts the office
is trying to collect, and even provides the real address of the Attorney
General’s Buffalo Office in the phone appeal. This scam mirrors a similar one
the Attorney General’s Office was alerted to in Syracuse two weeks ago.
http://www.ag.ny.gov/press-release/ag-schneiderman-warns-consumers-
scammer-posing-official-attorney-generals-buffalo
February 4, 2015
A.G. Schneiderman Warns Consumers of Fraudulent NYS Attorney
General’s Office Debt Collection Notices
Scammers Have Posed As A Debt Collection Attorney, Impersonating The NYS
Attorney General’s Office
One Week After Phone Scammer Impersonated NYS Attorney General's Office,
Scammers Using Same Tactic In Bogus Debt Collection Letters
Attorney General Eric T. Schneiderman today issued a consumer alert based
on complaints received by his office from consumers who were recently
contacted by scam artists posing as an attorney from the New York State
Attorney General’s Office. The consumers received a notice, written on
doctored New York State Attorney General letterhead, that claimed to be a
“District Court Final Warning” letter. The notice uses confusing legalese to
give the impression that the Attorney General is investigating the consumer
for the failure to pay a past due debt. These false claims may include
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“Collateral Check Fraud,” “Theft by Deception,” and “Violation of Banking
Regulations.” The letters also threaten criminal action and arrest if the debts
are not paid. This alert comes just one week after consumers reported
receiving unsolicited phone calls from a scammer posing as an attorney from
the New York State Attorney General's Office.
http://www.ag.ny.gov/press-release/ag-schneiderman-warns-consumers-
fraudulent-nys-attorney-general%E2%80%99s-office-debt
OHIO
February 5, 2015
Attorney General DeWine Offers Consumer Tips Following Anthem Data
Breach
Following the announcement of a data breach affecting up to 80 million
current and former customers of Anthem, a large health insurance company,
Ohio Attorney General Mike DeWine is encouraging consumers to take steps
to protect their personal information and watch for signs of identity theft.
http://www.ohioattorneygeneral.gov/Media/News-Releases/February-
2015/Attorney-General-DeWine-Offers-Consumer-Tips-Follo
SOUTH DAKOTA
February 2, 2015
Attorney General Jackley Warns of Influx in Yellow Page Directory Scams
Attorney General Marty Jackley confirms that the Consumer Protection Division has received complaints from several small businesses and schools
across South Dakota who have received solicitations that appear to be invoices from the local Yellow Page Directory. The invoices typically contain the “walking fingers” logo and the name “Yellow Pages”, but these are likely
not the directory that most have grown accustom.
The solicitations are very deceptive. They often include an account representative’s name that tricks the consumer into thinking there is an
established relationship. The words “THIS IS NOT A BILL” may appear on the
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invoice, but returning it may commit the consumer to a future bill. Read the invoice carefully, including the terms and conditions.
http://atg.sd.gov/News/NewsReleases/NewsReleasesView/tabid/441/itemID
/3527/moduleID/597/Default.aspx
WEST VIRGINIA
February 19, 2015
Attorney General Patrick Morrisey Warns Consumers to Be Wary of
Weight Loss Scams
Attorney General Patrick Morrisey today warned citizens to use caution when
considering products that promise to help them lose weight.
Every winter, people set goals to get in shape and lose weight in order to get
healthier or get ready for spring and summer vacations. However, those goals may be met with a bombardment of new products claiming to produce desired results without much effort. While it can be tempting to consider easy ways to
drop the pounds, consumers should be aware that some marketers may just be attempting to prey on them.
http://www.ago.wv.gov/pressroom/2015/Pages/Attorney-General-Patrick-
Morrisey-Warns-Consumers-to-be-Wary-of-Weight-Loss-Scams.aspx
February 18, 2015
Attorney General Patrick Morrisey Cautions Internet Users of Technical
Support Phone Scams
Attorney General Patrick Morrisey warned consumers of a phone scam
circulating in the state in which a caller pretends to represent an Internet service provider and offers technical support to address problems with the
consumer’s service.
Our Office has received multiple inquiries and calls from consumers regarding telephone calls they have received from people purporting to be affiliated with local Internet providers. The caller tells the consumer that they have received
reports about unauthorized users on the subscriber's network and asks questions regarding the speed of the subscriber's Internet. The caller then
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proceeds to request remote access of the subscriber's computer. In certain scenarios, the scammers request a $400 payment for their services.
Most recently, incoming calls have been reported from area codes used by
foreign countries, such as Cambodia (855), as well as from other states, such as Michigan (area code 989), Delaware (area code 302), and Washington (area code 360). Callers also may use numbers that show up as toll-free numbers.
http://www.ago.wv.gov/pressroom/2015/Pages/Attorney-General-Patrick-
Morrisey-Cautions-Internet-Users-of-Technical-Support-Phone-Scams.aspx