consumer protection report - january 2015
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NATIONAL STATE ATTORNEYS GENERAL PROGRAM: CONSUMER PROTECTION REPORT
JANUARY 2015
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CONSUMER PROTECTION REPORT: January 1-31, 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
ARKANSAS ..................................................................................................................... 4
COLORADO .................................................................................................................... 4
GEORGIA ....................................................................................................................... 5
INDIANA ......................................................................................................................... 6
IOWA ............................................................................................................................. 6
KANSAS ......................................................................................................................... 7
MARYLAND .................................................................................................................... 8
MASSACHUSETTS .......................................................................................................... 8
MISSOURI .................................................................................................................... 11
NEVADA ....................................................................................................................... 15
NEW HAMPSHIRE ........................................................................................................ 16
NEW JERSEY ............................................................................................................... 16
NEW YORK ................................................................................................................... 19
NORTH CAROLINA ....................................................................................................... 24
OHIO ............................................................................................................................ 26
OKLAHOMA ................................................................................................................. 28
VERMONT .................................................................................................................... 28
MULTISTATE CASES AND SETTLEMENTS ............................................. 29
MEDICAID FRAUD CASES AND SETTLEMENTS ..................................... 31
ALABAMA..................................................................................................................... 31
FLORIDA ...................................................................................................................... 31
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MASSACHUSETTS ........................................................................................................ 32
MISSOURI .................................................................................................................... 33
NEW JERSEY ............................................................................................................... 36
NEW YORK ................................................................................................................... 36
VIRGINIA ..................................................................................................................... 37
CONSUMER ADVOCACY ........................................................................ 38
COLORADO .................................................................................................................. 38
CONNECTICUT ............................................................................................................. 39
KANSAS ....................................................................................................................... 40
MAINE ......................................................................................................................... 41
NEW YORK ................................................................................................................... 42
OKLAHOMA ................................................................................................................. 44
WASHINGTON .............................................................................................................. 44
WEST VIRGINIA ........................................................................................................... 46
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CONSUMER PROTECTION CASES, SETTLEMENTS AND
ADVOCACY STATEMENTS
ARKANSAS
January 30, 2015
Arkansas Attorney General Leslie Rutledge Announces Judge Orders
Credit-Repair Agency to Cease Operation
Arkansas Attorney General Leslie Rutledge announced today that Pulaski
County Circuit Judge Chris Piazza has granted the Attorney General’s Office
petition to enforce a civil investigative demand against a Texas company,
known as CMCS Services, operating in Arkansas.
CMCS Services was involved in credit repair services in violation of the
Arkansas Deceptive Trade Practices Act and the federal Credit Repair
Organizations Act. Judge Piazza granted an injunction and the business is
prohibited from doing business in Arkansas until the company complies with
the court order.
http://arkansasag.gov/news-and-consumer-alerts/details/judge-sides-with-
the-state-orders-credit-repair-agency-to-cease-operation
COLORADO
January 21, 2015
Attorney General Cynthia Coffman Announces Boobies Rock! Founder
Receives Six-Month Jail Sentence
Adam Shryock, the founder of the fake charity fundraiser Boobies Rock!, Inc.
will serve an additional six months in jail for contempt of court. On Friday
afternoon, Shryock was immediately handcuffed and taken to jail after Denver
District Court Judge Shelley Gilman found there was “overwhelming” evidence
that he violated her July 2013 Order.
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COLORADO CON’T
http://www.coloradoattorneygeneral.gov/press/news/2015/01/21/boobies_r
ock_founder_receives_six_month_jail_sentence
January 2, 2015
Attorney General John Suthers Reaches $2 Million Settlement With Dish
Network Over Deceptive Sales Practices
DISH Accused of Misleading Customers over Price for Satellite Service
The Colorado Attorney General’s Office announced today a $2 million
settlement agreement with DISH Network L.L.C., a wholly owned subsidiary of
DISH Network Corporation (NASDAQ: DISH), regarding the companies’ sales
practices. The Attorney General began investigating DISH’s sales practices in
2011, after a DISH price increase triggered numerous consumer complaints.
Per terms of the settlement, DISH will now revise its sales disclosures
nationwide to more accurately reflect that the company reserves the right to
raise prices at any time.
http://www.coloradoattorneygeneral.gov/press/news/2015/01/02/colorado_
attorney_general%E2%80%99s_offfice_reaches_2_million_settlement_dish_net
work
GEORGIA
January 30, 2015
Attorney General Samuel Olens Announces Former Head of West Georgia
Technical College Foundation Pleads Guilty to Stealing $25K from the
Foundation
On Thursday, Jan. 29, 2015, Dawn Cook, the former head of the West
Georgia Technical College Foundation (foundation), pled guilty to four counts
of Theft by Taking (O.C.G.A. §16-8-2) in Carroll County Superior Court.
As head of the foundation, Cook collected and handled cash during
fundraisers for the foundation and purchased advertising for the foundation.
Cook used her position to funnel money from both the foundation and the
college to herself through several local girls’ softball teams by claiming that
the foundation was buying advertising. She also kept money raised at a
fundraiser for herself. She ultimately stole over $25,000.
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http://law.ga.gov/press-releases/2015-01-30/former-head-west-georgia-
technical-college-foundation-pleads-guilty
INDIANA
January 9, 2015
Attorney General Greg Zoeller Settles With Former Dentist Accused Of
Dumping Patient Files
The state has reached a settlement with former Kokomo-area dentist, Dr.
Joseph Beck, for mishandling medical records containing sensitive
information of more than 5,600 patients.
The Attorney General’s Office sued Beck for failing to protect personal
information and for improperly disposing of records containing personal
information of Indiana residents, which violates state privacy laws as well as
the federal Health Insurance Portability and Accountability Act (HIPAA). This
is the first time Indiana has sued for a violation of HIPAA.
More than 60 boxes of patient records from Beck’s former Comfort Dental
clinic in Kokomo were found discarded in an Indianapolis dumpster in March
of 2013. The files contained records from 2002-2007.
Beck agreed to a consent judgment with the state, in which he will pay a
$12,000 penalty for these violations. The order was signed this week in
Marion County court.
http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventid
n=203146&information_id=210192&type=&syndicate=syndicate
IOWA
January 13, 2015
Attorney General Tom Miller Announces Injunction against Deed
Documents Solicitor
California-based “Record Transfer Services” owner previously agreed not to
solicit deed records to Iowans
A Polk County judge has ordered a California company behind government
look-alike property record mailings to temporarily cease soliciting Iowa
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IOWA CON’T
residents, following a consumer fraud lawsuit filed by Attorney General Tom
Miller.
District Court Judge Karen A. Romano ordered today that Record Transfer
Services LLC, of Westlake Village, and company owner Neil L. Camenker, 56,
of Camarillo, California, cease soliciting Iowa residents for payment for
property deed records or any other government records.
Also today, Miller filed a consumer fraud lawsuit against Camenker and his
company, alleging that the company solicited Iowans for $83 copies of
property records that owners do not generally need. Iowa property owners
can obtain many land records, including deeds, for free or for a small charge,
from a local county recorder’s website or office. Property owners can also
obtain assessment information from a local county assessor’s website or office
for free or for a small charge.
http://www.state.ia.us/government/ag/latest_news/releases/jan_2015/rts.h
tml
KANSAS
January 14, 2015
Attorney General Derek Schmidt Announces California Direct Marketing
Company Banned From Operating In Kansas
A California-based direct marketing company has been banned from doing
business in Kansas and from contacting Kansas consumers until it
cooperates with the attorney general’s investigation into its business
practices, Kansas Attorney General Derek Schmidt said today.
In a lawsuit filed in Shawnee County District Court last month, Schmidt
accused Peter B. Tolman II, d/b/a Leads Direct Marketing of Oakley, Calif., of
violating the Kansas No Call Act. The lawsuit alleges the defendant violated
the Kansas No Call Act by calling Kansas consumers registered on the Do-
Not-Call list, failing to consult the National Do Not Call Registry and failing to
promptly and accurately identify themselves when calling Kansas consumers.
http://ag.ks.gov/media-center/news-releases/2015/01/14/california-direct-
marketing-company-banned-from-operating-in-kansas
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MARYLAND
January 9, 2015
Attorney General Brian E. Frosh Announces Settlement Against Do Not
Call Registry Violator
HomeFix Corporation alleged to have repeatedly made illegal sales calls
Attorney General Brian E. Frosh announced today that his Consumer
Protection Division entered into a settlement with Prince George's County-
based home improvement contractor HomeFix Corporation ("HomeFix") and
its owner, Tope Lala. The settlement resolves allegations that HomeFix placed
telemarketing calls to consumers who asked to not be called on their home
telephones or whose numbers were on the Federal Trade Commission's
National Do Not Call Registry.
http://www.oag.state.md.us/Press/2015/010915.html
MASSACHUSETTS
January 14, 2015
Attorney General Martha Coakley Announces Maine Woman Arrested for
Allegedly Defrauding the One Fund Boston
Woman Allegedly Collected $8,000 and Attempted to Collect Additional
$12,500; Claimed to Have Undergone Foot and Hip Operations Due to Boston
Marathon Bombing Injury
A Maine woman has been arrested and charged with collecting a fraudulent
$8,000 claim from The One Fund Boston and attempting to collect another
$12,500, Attorney General Martha Coakley announced today. The woman
claimed she received foot and hip surgery as a result of an injury she
sustained at the Boston Marathon bombing.
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MASSACHUSETTS CON’T
Amey S. Molloy, age 49, of Portland, Maine, was arrested in Portland this
morning on a Massachusetts fugitive warrant. She was charged with Larceny
over $250 and Attempted Larceny.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
01-14-molloy-arrest.html
January 7, 2015
Attorney General Martha Coakley Announces NSTAR to Refund $44.7
Million to Customers Overcharged for Capital Projects, Pensions, and
Energy Efficiency Programs
AG Resolves 11 Cases Pending Before the DPU in Which Ratepayers Were
Overcharged
NSTAR Gas & Electric Company has agreed to pay $44.7 million to refund its
customers, resolving 11 previously outstanding cases before the Department
of Public Utilities (DPU) that deal with the company’s capital improvements,
pension expenses, and energy efficiency programs, Attorney General Martha
Coakley announced today.
NSTAR’s delivery rates include certain cost components that are updated
annually outside of the base distribution rate cases. These so-called
“reconciliation factors” are supposed to be reviewed and reconciled against
actual costs by the DPU after investigation and hearings. In practice, the DPU
permits the utilities to collect the rates immediately and rarely completes its
review in a timely manner. All of the cases have been outstanding for a
number of years prior to the settlement reached by the AG’s Office and
NSTAR.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
01-07-nstar-44m-refund.html
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MASSACHUSETTS CON’T
January 6, 2015 Attorney General Martha Coakley Announces Electricity Supplier to Pay
$4 Million Over Alleged Deceptive Marketing and Sales That Overcharged Consumers
AG Alleges “Just Energy” Harmed Consumers with Falsely Promised Savings, Unauthorized Switching, and Sizeable Termination Fees; Settlement to Provide Restitution
A competitive retail electricity supplier in Massachusetts has agreed to pay $4
million to settle allegations of deceptive marketing and sales that promised savings but charged significantly higher rates, entered consumers into agreements without their consent, and charged costly termination fees,
Attorney General Martha Coakley announced today. The assurance of discontinuance with Just Energy Group Inc. and its
affiliates was filed in Suffolk Superior Court. The AG’s Office alleges that Just
Energy, through a third-party telemarketing vendor and door-to-door agents,
engaged in deceptive marketing and sales that misled consumers into signing
contracts based on attractive introductory pricing, only to later increase their
electricity supply costs.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
01-06-just-energy.html
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MISSOURI
January 30, 2015
Attorney General Koster Announces St. Charles, And St. Louis Counties
Obtain Criminal Sentence Against Man For Stealing Donations Intended
For Wounded Vets Organization
Missouri Attorney General Chris Koster announced today that William
Harshbarger was sentenced in St. Louis County Circuit Court to seven years
in prison for stealing funds people thought they were donating to the
Wounded Warrior Project, Inc. Harshbarger was sentenced to eight years in
prison on similar charges in January in St. Charles County. The sentences
will run concurrently. Koster’s office assisted the offices of St. Louis County
Prosecutor Bob McCulloch and St. Charles County Prosecutor Tim Lohmar in
the respective criminal cases.
In a civil case filed in St. Charles County Circuit Court in 2013, Judge Daniel
Pelikan signed an order following the conclusion of the criminal cases
permanently prohibiting Harshbarger from making charitable solicitations of
any kind. He was also ordered to pay a $5,000 fine and to turn over all funds
and accounts still in his possessions, which will be turned over to the actual
Wounded Warrior Project.
http://ago.mo.gov/newsreleases/2015/Attorney_General_Koster_St_Charles_
and_St_Louis_counties_obtain_criminal_sentence_against_man_for_stealing_d
onations_intended_for_wounded_vets_organization/
January 28, 2015
Attorney General Chris Koster Reaches Settlement with Rolla Company
For No-Call Violations
Attorney General Chris Koster today announced his office has reached a
settlement with Fawe Enterprise, LLC, which conducted business in the Rolla
area as Air Essentials, for violating Missouri's no-call law. The Attorney
General's Office began an investigation into Air Essentials after receiving a
dozen complaints from consumers about unwanted telemarketing calls from
the company soliciting air purification systems.
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MISSOURI CON’T
Under the terms of the agreement filed in Phelps County Circuit Court, Air
Essentials must pay $5,000 in fines and is prohibited from placing any
telemarketing calls to numbers on the no-call list without the consumer's
express consent.
http://ago.mo.gov/newsreleases/2015/AGKoster_reaches_settlement_RollaC
ompany_nocall/
January 27, 2015
Attorney General Chris Koster Sues Owner of Oak Grove Cemetery For
Allowing Derelict And Unsafe Conditions
Attorney General Chris Koster announced today the filing of a civil lawsuit
against Marilyn Stanza and her companies, including the Oak Grove
Cemetery Association and Oak Grove Mausoleum Company. According to
Koster, Stanza owns and operates the Oak Grove Cemetery at 7800 St.
Charles Rock Road and the mausoleum on the west side of the grounds near
Hanley Road. More than 45 Missourians have complained to the Attorney
General's office about the onset of derelict and unsafe conditions throughout
the cemetery grounds and mausoleum, exorbitant fees for moving loved ones
to a more suitable resting place, and excessive delays for delivery of
purchased grave markers.
http://ago.mo.gov/newsreleases/2015/AGKoster_sues_owner_OakGroveCem
etery/
January 26, 2015
Attorney General Chris Koster Negotiates Settlement With Benjamin
Bradley, Owner Of Columbia Party Bus And Whiskey Wild Saloon
Attorney General Chris Koster announced today that he has negotiated a
settlement with Columbia Party Bus, LLC, COMO Entertainment Inc., which
operated Whiskey Wild Saloon, and owner Benjamin Bradley, to provide
restitution to customers who paid for services that were never delivered.
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MISSOURI CON’T
According to Koster, Benjamin Bradley, through Columbia Party Bus and
Whiskey Wild Saloon, took money upfront for parties and transportation that
he failed to provide. Columbia Party Bus contracted with at least 11 Missouri
consumers to provide private transportation services they never received.
COMO Entertainment, Inc. contracted with at least one consumer to provide
event space at Whiskey Wild Saloon in Columbia, and then cancelled the
event. None of the 12 consumers received refunds.
http://ago.mo.gov/newsreleases/2015/AGKoster_negotiates_settlement_part
y_bus_WhiskeyWildSaloon/
January 21, 2015
Attorney General Chris Koster Announces Sentence For Former
Springfield Used Car Dealer
Attorney General Chris Koster today announced the sentence for a Springfield
used car dealer convicted of misrepresenting the true mileage on cars he sold.
Koster said Ashley Bolton was sentenced today in Greene County Circuit
Court to four years in the Department of Corrections, with the execution of
the sentence suspended so long as he meets all other terms of the
sentence. Bolton must serve 30 days' shock-incarceration in the Greene
County jail and five years of supervised probation, and is prohibited from
working as or for a licensed automobile dealer. Bolton also must provide
restitution to consumers. The court scheduled a hearing for March 10 on the
amount of restitution to be paid.
http://ago.mo.gov/newsreleases/2015/AG_Koster_announces_sentence_form
er_Springfield_car_dealer/
January 16, 2015
Attorney General Chris Koster Negotiates Settlements On Behalf Of
Missouri Consumers Misled On Credit-Card Payment-Protection Plans
Attorney General Chris Koster announced today negotiated settlements with
three major credit-card companies over allegations that they misleadingly
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MISSOURI CON’T
marketed payment-protection plans and other add-on products to Missouri
consumers. In total, the three companies will pay $2,235,000 to the state and
agree to cease misleading marketing of these products in Missouri.
According to Koster, consumers were led to believe that for a monthly fee their
credit-card payments could be suspended if they became unemployed or
disabled. However, after making monthly protection plan payments,
consumers who attempted to make claims were often told they did not qualify
for the benefit. Additionally, the monthly protection plan fee was added to the
consumer’s credit-card balance, reducing the amount of the consumer’s
available credit by the amount of the fee. Even when card issuers agreed to
waive minimum payments during a hardship, the consumer’s balance often
increased due to charged interest and fees, including the continued payment-
protection plan fee.
http://ago.mo.gov/newsreleases/2015/AG_Koster_resolves_lawsuits_consum
ers_misled_credit_card_payment_plans/
January 12, 2015
Attorney General Chris Koster Sues Home Construction Firm For
Violating Missouri's No Call Law
Attorney General Chris Koster today announced that his office has filed a
lawsuit against Abelard Construction Missouri, LLC, for violating Missouri’s
No Call law. Abelard Construction Missouri, LLC is a St. Louis County based
franchise of Abelard Construction, a home repair company with franchisees
operating in several states.
According to the lawsuit filed in St. Charles County Circuit Court, in July
2013 Abelard Construction Missouri called consumers in St. Charles County
with telephone numbers registered on the Missouri No Call list to solicit home
repair services. When several consumers advised the company their telephone
numbers were registered with the No Call list, the caller disputed the
information.
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http://ago.mo.gov/newsreleases/2015/AG_Koster_sues_home_construction_f
irm_violating_NoCallLaw/
NEVADA
January 27, 2015
Attorney General Laxalt Announces Sentencing of Las Vegas Man Who
Swindled Northern Nevadans in Mortgage Fraud Scheme
Nevada Attorney General Adam Paul Laxalt announced that George Christo
George, 55, of Las Vegas, was sentenced for six to 20 years in prison on a
mortgage fraud case on Jan 26. George pleaded guilty to defrauding several
Northern Nevadans of more than $238,000 through elaborate schemes
including a false business partner posing as a wealthy sheikh to lure victims
into bogus real estate deals and to investments in a luxury downtown Reno
high rise condominium.
http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Announces_Sente
ncing_of_Las_Vegas_Man_Who_Swindled_Northern_Nevadans_in_Mortgage_Fr
aud_Scheme/
January 9, 2015
Attorney General Laxalt Announces Sentencing in Magazine Scam Case
Attorney General Adam Paul Laxalt announced that Craig Walters, 60, of
Sparks, Nev. was sentenced on Wednesday, Jan. 7 for running a scam in
which he sold advertisement space in a magazine that did not exist.
http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Announces_Sente
ncing_in_Magazine_Scam_Case/
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NEW HAMPSHIRE
January 29, 2015
Attorney General Joseph A. Foster Announces Co-Owner of The Meat
House Pleads Guilty to Misapplication of Property For Non-Payment To
Veterans' Charity
Attorney General Joseph A. Foster announces that Justin Rosberg, co-owner
of The Meat House, entered a guilty plea this morning in the 10th Circuit
Court in Seabrook to one count of misapplication of property for violating his
fiduciary duty to pay funds that The Meat House raised for a charitable cause
to benefit veterans. In July, 2013, The Meat House held a charitable event for
the benefit of the Chaplain Emergency Relief Fund. Mr. Rosberg, as co-owner,
failed to pay the charity the funds that had been raised.
http://doj.nh.gov/media-center/press-releases/2015/20150129-justin-
rosberg.htm
NEW JERSEY
January 29, 2015
Acting Attorney General John J. Hoffman Announces Seller of Motor
Vehicle Service Contracts Will Cease Business in New Jersey; Agrees to
$810,000 Settlement and to Reimburse Consumers Up to Nearly
$200,000
Direct Buy Associates, Inc., which does business as Direct Buy Auto Warranty
(“DBAW”), will stop offering motor vehicle service contracts (“MVSCs”) to New
Jersey consumers, shut down its New Jersey office within six months, and
also reimburse consumers who purchased MVSCs but were not provided the
coverage they were promised, under terms of the Final Consent Judgment
that resolves a lawsuit filed by the New Jersey Division of Consumer Affairs
(“Division”).
The Division filed its lawsuit against DBAW in February 2014, alleging that
DBAW had violated the New Jersey Consumer Fraud Act, the Regulations
Governing General Advertising, the Plain Language Act and the Business
Corporations Act through its advertising, offering for sale and sale of MVSCs.
http://nj.gov/oag/newsreleases15/pr20150129a.html
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NEW JERSEY CON’T
January 28, 2015
Acting Attorney General John J. Hoffman Announces New Jersey
Division of Consumer Affairs Obtains Settlement with CVS Pharmacy,
Resolving Incidents in Which Stores Sold Medications Exposed to
Excessive Temperatures
CVS Pharmacy Will Pay $500,000, Change Certain Business Practices to
Prevent, Respond to Future Incidents
Acting Attorney General John J. Hoffman, the New Jersey Division of
Consumer Affairs, and the State Board of Pharmacy today announced a
settlement with CVS Pharmacy Inc. in which the company will pay more than
$500,000 and will take steps to protect New Jersey consumers from
purchasing medications, infant formula, or other items if they are exposed to
elevated temperatures for prolonged periods of time.
The settlement follows two separate 2012 incidents in which CVS pharmacies
in Scotch Plains and Clark experienced air conditioning outages for multiple
days. The stores continued to operate after inside temperatures exceeded the
maximum recommended for the storage of drugs and other items for extended
periods of time.
http://nj.gov/oag/newsreleases15/pr20150128a.html
January 14, 2015
Acting Attorney General John J. Hoffman Announces New Jersey
Division of Consumer Affairs Files Consumer Fraud Action Against
Newark Organization that Allegedly Misled Charitable Donors,
Transferred Contributions to For-Profit Business
New Jersey Youth Club, Inc. (NJYC), a Newark-based organization that claims
to help underprivileged New Jersey youths, has been ordered to temporarily
cease seeking door-to-door solicitations, and has had its assets temporarily
frozen, under an Order to Show Cause entered by the Superior Court Judge in
connection with an action filed on behalf of the New Jersey Division of
Consumer Affairs.
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NEW JERSEY CON’T
The Division of Law, acting on behalf of the Division of Consumer Affairs, has
filed a Complaint against NJYC, alleging that it violated the Charitable
Registration and Investigation Act and regulations, as well as the Consumer
Fraud Act, by soliciting for contributions although it is not registered as a
charitable organization in New Jersey, and by making misleading and
untruthful statements while soliciting donations.
http://nj.gov/oag/newsreleases15/pr20150114a.html
January 8, 2015
Acting Attorney General John J. Hoffman Announces HIKO Energy, LLC
Agrees to Pay $2.1 Million, Including $1.8 Million in Consumer
Restitution, and Revise its Business Practices, to Settle Allegations by
New Jersey Attorney General, Board of Public Utilities, and Division of
Consumer Affairs that the Third-Party Energy Supplier Misled
Consumers
HIKO Energy, LLC (“HIKO”) has agreed to pay $2.1 million, including $1.85
million in restitution to consumers, and to significantly revise its business
practices, in order to resolve the Complaint filed by the Acting Attorney
General, New Jersey Board of Public Utilities (BPU), and New Jersey Division
of Consumer Affairs.
The State’s Complaint alleged that HIKO, a third-party energy supplier based
in Monsey, New York, misled New Jersey consumers with written guarantees
that, if they switched from their utility companies, they would see monthly
savings of as much as 10 percent in their electric and/or natural gas bills
during the first six months. HIKO sales representatives also allegedly
represented to consumers that, after the first six months, their monthly bills
would never exceed those of the utility companies.
However, HIKO did not deliver the promised savings. As energy prices spiked
in early 2014, HIKO’s rates far exceeded those its customers would have paid,
had they stayed with their previous electric and/or natural gas utilities.
http://nj.gov/oag/newsreleases15/pr20150108b.html
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NEW YORK
January 21, 2015
A.G. Schneiderman Reaches Settlement With Fraudulent Vacation
Package Scammers Who Targeted Consumers Across State And Posed As
Major U.S. Airlines
Company Claimed Consumers Won Free Airfare And Lodging & Compelled
Them To Attend Sales Presentation
Company Must Cease Deceptive Practices And Pay Restitution & $22,500
Penalty
Attorney General Eric T. Schneiderman today announced that his office
reached a settlement with Vacation Tours USA, Inc., a Florida based firm, and
its principals Henry J. Armand and Tony J. Armand, over a false advertising
scam targeting consumers across New York State. The company sent letters to
consumers telling them they had won a vacation package, including airfare
and lodging, and invited them to attend a seminar at a local hotel. Letters
listed the name of major US airlines in the header, including US Air,
Southwest, and Jet Blue. Once at the hotel, consumers were subjected to a
sales presentation conducted by a third-party company instead of being given
vouchers for free airline tickets and hotel stays.
http://www.ag.ny.gov/press-release/ag-schneiderman-reaches-settlement-
fraudulent-vacation-package-scammers-who-targeted
January 20, 2015
A.G. Schneiderman Announces Indictment Of Orange County Man
Charged With Stealing Hundreds Of Thousands In Investment Scheme
William Vogt Allegedly Posed As Wealthy Fashion Designer “Bill Bolland” To
Steal Over $350,000 From Victim
Vogt Charged on 18-Count Indictment With Grand Larceny, Forgery and
Securities Fraud Under the Martin Act; Attorney General’s Investigation
Continues
Attorney General Eric T. Schneiderman today announced the arrest of William
Vogt, a resident of Orange County, on an 18-count indictment. Vogt is
20
NEW YORK CON’T
charged with having posed as an internationally renowned fashion designer
named “Bill Bolland,” to lure his victim into making more than $350,000 in
investments. In fact, the indictment charges that Vogt stole the monies and
used them for personal expenses. If convicted, Vogt faces up to 15 years in
prison.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
indictment-orange-county-man-charged-stealing-hundreds
January 20, 2015
A.G. Schneiderman Announces Settlement With Middletown Auto Dealer
Over Bogus Fee To Customers
Middletown Honda Charged Customers Who Bought Vehicles At The End Of
Lease An Undisclosed “Processing Fee”
Attorney General Eric T. Schneiderman today announced a settlement with a
Middletown auto dealer, Adee Motors, LLC. (d/b/a Middletown Honda), which
charged customers who leased vehicle an undisclosed $500 “processing fee”
when those consumers bought their vehicles at the end of their leases. No
additional services were provided for the payment of this fee.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
settlement-middletown-auto-dealer-over-bogus-fee-customers
January 19, 2015
A.G. Schneiderman Secures Agreement With Five Star Bank To End
Racially Discriminatory Mortgage Lending Practices In Rochester
Five Star Bank Excluded Predominantly Minority Neighborhoods From Lending
Area
Attorney General Eric T. Schneiderman today announced a landmark
agreement that requires Five Star Bank to end discriminatory mortgage
practices that excluded all predominantly minority neighborhoods in the
Rochester area from the bank’s mortgage lending business. The Attorney
General’s investigation found that Five Star excluded predominantly minority
neighborhoods from its lending area; deemed loans secured by property
21
NEW YORK CON’T
outside of the bank’s lending area to be “undesirable”; and imposed a
minimum mortgage amount requirement that made many of the bank’s
mortgage products effectively unavailable in predominantly minority
neighborhoods.
http://www.ag.ny.gov/press-release/ag-schneiderman-secures-agreement-
five-star-bank-end-racially-discriminatory-mortgage
January 14, 2015
A.G. Schneiderman Sues Unlicensed Employment Agency And Security
Guard Training Company For Scamming Unemployed Consumers
Companies Posted Phony Job Listings And Made False Promises Of
Employment To Trick Consumers Into Paying For Expensive Security Guard
Training Courses
Attorney General Eric T. Schneiderman today announced that his office has
filed a lawsuit against two companies and their owners that use phony job
listings and false promises of employment to trick unemployed consumers
into paying for expensive security guard training courses they don’t need. New
York City-based Security Elite Group, a/k/a Secure Enforcement Group
(“Security Elite”) and LJW Security Services & Training, Inc. (“LJW Security”)
and their respective owners Stephan Edouard and Larry Williams are alleged
to have scammed thousands of consumers.
http://www.ag.ny.gov/press-release/ag-schneiderman-sues-unlicensed-
employment-agency-and-security-guard-training-company
January 12, 2015
A.G. Schneiderman Announces Settlement With Health Insurer Over
Excessive Copays For Customers In Rochester Area
Nearly 3,000 Customers Will Get Refunds, Health Plan Billing Glitches Must Be
Resolved
Attorney General Eric T. Schneiderman today announced an agreement with
Excellus Health Plan, Inc. requiring that its contracted health care providers
22
NEW YORK CON’T
issue refunds to thousands of members in New York State for charging
excessive copays. The Attorney General's investigation revealed that Excellus
issued incorrect Explanations of Benefits, which imposed an additional
specialty co-payment for member visits to a primary care provider.
The investigation began when an Excellus member complained to the Attorney
General’s Health Care Bureau Helpline that his provider billed him a specialty
care co-payment -- $25 -- after visiting his primary care physician to whom he
had already paid the primary care co-payment of $15. The amount billed
reflected the amount on the Explanation of Benefits issued by Excellus to the
member.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
settlement-health-insurer-over-excessive-copays-customers
January 9, 2015
A.G. Schneiderman Obtains Settlement From Major Debt Buyer Who
Filed Thousands Of Time-Barred Debt Collection Actions
Encore Capital Group Inc. Will Vacate More Than 4,500 Improperly Obtained
Judgments Totaling Nearly $18 Million; Reform Practices; And Pay $675,000
In Penalties And Costs
Attorney General Eric T. Schneiderman today announced that his office has
obtained a settlement from Encore Capital Group, Inc. (“Encore”), a major
debt buyer, for bringing improper debt collection actions against thousands of
New York consumers. For years, Encore sued New York consumers and
obtained uncontested default judgments against consumers who failed to
respond to the lawsuits, even though the underlying claims were untimely
under New York law. Under the settlement, Encore will seek to vacate more
than 4,500 improperly obtained judgments totaling nearly $18 million. Encore
will also reform its debt collection practices and pay civil penalties and costs
in the amount of $675,000.
http://www.ag.ny.gov/press-release/ag-schneiderman-obtains-settlement-
major-debt-buyer-who-filed-thousands-time-barred
23
NEW YORK CON’T
January 6, 2015
A.G. Schneiderman Seeking Jail Time For Accused Snow Removal
Scammer In Western New York
Attorney General Eric T. Schneiderman today announced that his office has
brought criminal contempt proceedings against Scott Romero, who has
perpetrated scams involving snow removal services. Romero, the target of a
2011 lawsuit by Attorney General Schneiderman for defrauding customers in
the Buffalo area, is accused of violating a court order that was obtained
against him and scamming additional consumers, this time in the greater
Rochester area. The contempt of court charges were filed in in Erie County
Supreme Court and will be heard by Justice Catherine Nugent Panepinto.
http://www.ag.ny.gov/press-release/ag-schneiderman-seeking-jail-time-
accused-snow-removal-scammer-western-new-york
January 5, 2015
A.G. Schneiderman Announces $300k Settlement With Queens-Based
Transportation Provider
Settlement Resolves Allegations That Apple Transportation of New York, Inc.
Overbilled Medicaid
Attorney General Eric T. Schneiderman today announced that Apple
Transportation of New York, Inc., a Queens-based transportation company,
will pay $300,000 to settle claims that it overbilled Medicaid for
transportation services.
Medicaid recipients in New York can receive transportation to medical
appointments in cases where recipients have a medical need for
transportation services. Medicaid pays for different types of transportation,
including livery and ambulette services. Transportation companies can bill for
ambulette service when personal assistance, such as physical assistance, is
provided to a passenger in connection with a trip. Medicaid pays more for
ambulette services than for livery trips in which no personal assistance is
provided to the passenger.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-300k-
settlement-queens-based-transportation-provider
24
NORTH CAROLINA
January 27, 2015
Attorney General Roy Cooper Announces Off-Road Vehicle Seller Banned
From Doing Business In NC
Court orders company to pay more than $400,000 in consumer refunds
A North Carolina off-road vehicle seller can no longer do business in the state
after collecting more than $400,000 in payments and deposits and failing to
deliver vehicles as promised, Attorney General Roy Cooper announced today.
Cooper’s office first filed suit against Riders Wholesale in August 2014 after
hearing from consumers that the company collected money upfront—either
the full purchase price or a substantial deposit for all-terrain vehicles (ATVs),
utility vehicles (UTVs), scooters, go-carts and mopeds sold online. Consumers
were often asked to pay by check or wire funds directly from their bank
account but Riders Wholesale routinely failed to deliver the vehicles they paid
for and when asked refused to provide refunds. In other cases, consumers
received vehicles that were damaged or in bad shape.
http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-
Advisories/Press-Releases/Off-road-vehicle-seller-banned-from-business-in-
NC.aspx
January 22, 2015
Attorney General Roy Cooper: Mortgage Broker Promised Loans But
Pocketed Fees
Suit alleges Carolina Mortgage Group took money for refinancing, didn’t close
loans
A Zebulon mortgage broker that took thousands of dollars in upfront fees but
failed to refinance home loans as promised should be permanently barred
from the mortgage business, Attorney General Roy Cooper said in a lawsuit
filed Wednesday.
Cooper filed a complaint late yesterday in Wake County Superior Court
against Carolina Mortgage Group and its president and primary owner Jeffrey
D. Cox for violating state laws against unfair business practices. The
25
NORTH CAROLINA CON’T
mortgage broker previously had offices in Zebulon and Wilson. The Attorney
General is asking the court to permanently ban the defendants from the
mortgage loan business in North Carolina and order them to pay refunds to
consumers and civil penalties.
http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-
Advisories/Press-Releases/Mortgage-broker-promised-loans-but-pocketed-
fees,.aspx
January 20, 2015
Attorney General Roy Cooper Announces NC Musical Equipment Store
Barred From Business
Fat Sounds ordered to repay consumers for undelivered products
A musical equipment company based in Cary has been permanently barred
from business for not giving consumers what they paid for, Attorney General
Roy Cooper said today.
At Cooper’s request, Wake County Superior Court Judge Donald Stephens
last week permanently barred Stuart Vries Carter, Jr. and Fat Sound Guitar
and Musical Company, Inc. from advertising, selling, or collecting payments.
The order also prohibits Carter and his company from destroying records or
transferring any assets.
http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-
Advisories/Press-Releases/NC-musical-equipment-store-barred-from-
business,-A.aspx
26
OHIO
January 29, 2015
Attorney General DeWine Seeks Consumer Restitution from Heating and
Cooling Repairman
Ohio Attorney General Mike DeWine today announced a lawsuit against a
Zanesville man who did business as Alan Able Heating and Cooling for failing
to deliver promised services to consumers.
Filed in the Muskingum County Common Pleas Court, the lawsuit accuses
Alan Vohs of violating the Ohio Consumer Sales Practices Act.
http://www.ohioattorneygeneral.gov/Media/News-Releases/January-
2015/Attorney-General-DeWine-Seeks-Consumer-Restitu-%281%29
January 22, 2015
Attorney General Mike DeWine Announces Ohio Charity Agrees to
Dissolve After Raising Money for Alleged Pyramid Scheme
Ohio Attorney General Mike DeWine and the Ohio Department of Commerce
today announced a settlement with northwest Ohio residents who were
accused of using their charity to solicit funds for Profitable Sunrise — an
alleged international pyramid scheme.
Under the agreement, filed in the Williams County Court of Common Pleas,
Nancy Jo Frazer, of Bryan, and Albert Rosebrock, of Sherwood, agree not to
hold a position with a charitable organization and not to sell securities in
Ohio.
They also agree to dissolve their charity, most recently known as Defining
Vision Ministries Inc., and to turn over charitable assets to the Ohio Attorney
General's Office to be used for charitable purposes.
http://www.ohioattorneygeneral.gov/Media/News-Releases/January-
2015/Ohio-Charity-Agrees-to-Dissolve-After-Raising-Mone
27
OHIO CON’T
January 14, 2015
Attorney General DeWine Seeks Consumer Restitution from Home
Improvement Contractor
Ohio Attorney General Mike DeWine today announced a lawsuit seeking consumer restitution and other relief from a Northeast Ohio home improvement contractor accused of failing to deliver promised services to
consumers. The lawsuit, filed in the Summit County Common Pleas Court, accuses Dean
Jones of Westlake, doing business as Premier Contractor Services, of committing multiple violations of Ohio’s consumer protection laws.
http://www.ohioattorneygeneral.gov/Media/News-Releases/January-
2015/Attorney-General-DeWine-Seeks-Consumer-Restitution
January 8, 2015
Attorney General Mike DeWine Announces Storm-Chasing Home Repair
Contractor Sentenced to Prison
Ohio Attorney General Mike DeWine today announced that an Illinois man
has been sentenced to prison for operating a traveling home repair scam that
cost 35 Ohio victims more than $140,000.
Leo Patrick Richard Jr., who operated All Seasons of Kentucky, was
sentenced today in the Lawrence County Common Pleas Court to three years
in prison. In late September, he pleaded guilty to 36 felony counts, including
attempted engaging in a pattern of corrupt activity, theft, and theft from the
elderly.
His wife and All Seasons of Kentucky co-owner, Carol Richard, was sentenced
in October 2014 to serve four years of community control and was ordered to
pay $143,426.98 — the total amount of restitution both she and her husband
are responsible to pay.
http://www.ohioattorneygeneral.gov/Media/News-Releases/January-
2015/Storm-Chasing-Home-Repair-Contractor-Sentenced-to
28
OKLAHOMA
January 30, 2015
Attorney General Scott Pruitt Announces Home Repairman is Sentenced;
Must Pay Restitution
An Oklahoma City home repairman was sentenced Thursday after pleading
guilty to two counts of home repair fraud, Attorney General Scott Pruitt said. Alan B. Holcombe, 54, was sentenced in Cleveland County District Court to a
10-year suspended sentence and must pay $64,900 in restitution. Holcombe must continue Gambler's Anonymous and pay the Victims Compensation Assessment fund $50 per count.
The restitution is for six victims after an investigation by the Attorney General's Public Protection Unit found Holcombe had accepted payments from
homeowners for promised home repairs and never provided the service.
http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258&article_id=15359
VERMONT
January 6, 2015
Attorney General General William Sorrell Settles Consumer Protection
Lawsuit Against Dollar Tree
Dollar Tree Stores, Inc., will permanently keep all jewelry off its shelves in
Vermont and pay the State $42,500 in settlement of a lawsuit filed by the
Vermont Attorney General’s Office in July 2014. The suit alleged that Dollar
Tree, a national discount chain based in Chesapeake, Virginia, violated a prior
settlement with the State to minimize children’s exposure to toxic substances
by refraining from selling jewelry in Vermont. Vermont Attorney General
William H. Sorrell noted that the new settlement “reflects my continued
commitment to keeping products that may contain toxic substances out of the
hands of Vermont’s children.”
http://ago.vermont.gov/focus/news/vermont-attorney-general-settles-
consumer-protection-lawsuit-against-dollar-tree.php
29
MULTISTATE CASES AND SETTLEMENTS
January 22, 2015
Attorneys General of Maryland and Massachusetts Secures Settlement in
Mortgage Title Company Kickback Scheme
Wells Fargo, JPMorgan Chase will pay more than $11 million in restitution
Attorney General Brian E. Frosh today announced a settlement with Wells
Fargo Bank and JPMorgan Chase Bank (Chase) to resolve allegations that the
financial firms illegally steered customers to a now-defunct Maryland-based
title company in exchange for marketing services that increased their
customer base.
From 2009 to 2013, Genuine Title, LLC, allegedly provided marketing leads,
direct-mail letters and other costly services to loan officers from Wells Fargo
and Chase, which increased the number of loans that the banks originated or
refinanced, thereby boosting their commissions. In exchange, the loan officers
referred consumers to Genuine Title for settlement services. The arrangement,
which was investigated by the Attorney General's Consumer Protection
Division and the Consumer Financial Protection Bureau (CFPB), violated the
federal Real Estate Settlement Procedures Act and the Maryland Consumer
Protection Act.
http://www.oag.state.md.us/Press/2015/012215.html
Attorneys General Pam Bondi Along With Eight Other Attorneys General Reach Settlement With Zappos Over Data Breach (January 7, 2015)
Attorney General Pam Bondi, along with eight other attorneys general, today announced a settlement with Nevada-based online retailer Zappos.com, Inc.
The settlement resolves allegations that Zappos placed consumers’ personal data at risk by allegedly failing to protect financial information during a data breach that occurred in 2012. Zappos has agreed to pay $106,000 to the
states and must take certain actions intended to better protect consumers’ information.
http://myfloridalegal.com/__852562220065EE67.nsf/0/F12E26235A23E577
85257DC60063AEE9?Open&Highlight=0,zappos
30
Attorneys General of California, Colorado, Florida, Kentucky and Ohio Announces $22 Million Settlement with Davita Regarding Illegal Kickbacks (January 5, 2015)
Colorado Attorney General John Suthers today announced five states have
reached a $22 million settlement with DaVita Healthcare Partners, Inc., of which Colorado will recover more than $3 million. The settlement resolves allegations that between 2008 and 2013, DaVita entered into a number of
transactions with physicians and/or physician groups in which the company would buy or sell shares in dialysis clinics at prices that were manipulated to
make the transactions financially attractive for the physicians and generate patient referrals to its dialysis centers.
http://www.coloradoattorneygeneral.gov/press/news/2015/01/05/colorado_attorney_general_announces_22_million_settlement_davita_regarding_ill
31
MEDICAID FRAUD CASES AND SETTLEMENTS
ALABAMA
January 28, 2015
Attorney General Luther Strange Announces Indictment of Pharmacist
For Medicaid Theft Of Over $50,000.
Pharmacist conspired with the mother of a terminally ill child to bill the
Alabama Medicaid Agency for expensive medications that the child required but
were not dispensed by the Pharmacist.
Attorney General Luther Strange announced the arrest of Alan Bruce Connell,
68, a Bessemer pharmacist and former owner of Westlake Pharmacy in
Bessemer, on four counts of filing false claims with the Alabama Medicaid
Agency and one count of first-degree theft of property.
The Attorney General’s Medicaid Fraud Control Unit presented evidence to the
January 2015 term of the Montgomery County grand jury, resulting in an
indictment* charging Connell with filing numerous false claims for payment to
the Alabama Medicaid Agency totaling over $50,000.
http://www.ago.state.al.us/News-589
FLORIDA
Attorney General Pam Bondi Announces Six Arrested In Leon County For More Than $170,000 In Medicaid Fraud; The Defendants Allegedly
Submitted False Claims Attorney General Pam Bondi’s Medicaid Fraud Control Unit, with the assistance from the Tallahassee Police Department and the Leon County Sheriff’s Office, arrested six former Targeted Case Managers of DS
Connections, Inc. for more than $170,000 in Medicaid fraud. DS Connections is a targeted case management company headquartered in Winter Park, Fla. with offices in Clermont and Tallahassee.
According to the investigation, the defendants did not meet required minimum
criteria for providing targeted case management services to persons.
32
Additionally, the defendants allegedly caused false claims to be submitted to Florida Medicaid in various ways including, but not limited to, improperly
billing for mileage, multiplying one trip by the number of recipients at an address, and billing for services of individuals that never required targeted
case management services. http://www.myfloridalegal.com/newsrel.nsf/newsreleases/AA770526B074F84585257DD3006602EA
MASSACHUSETTS
January 30, 2015
Attorney General Maura Healey Announces Billerica Pharmacy to Pay
$1.5 Million Over Claims of Operating an Unauthorized Automatic Refill
Program
A Billerica pharmacy will pay more than $1.5 million to settle allegations that
it improperly billed and received payments from the state’s Medicaid program
when it automatically refilled prescription medications that were not
specifically requested by MassHealth patients or caregivers, Attorney General
Maura Healey announced today.
Under the terms of the settlement, Neighborhood Diabetes, Inc. will pay more
than $1.5 million in restitution to the Commonwealth for the overpayments,
and be subject to additional reporting requirements to ensure compliance in
the future.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
01-30-neighborhood-diabetes-settlement.html
33
MASSACHUSETTS CON’T
January 20, 2015
Attorney General Martha Coakley Announces South Shore Physician
Hospital Organization to Pay $1.77 Million Over Alleged Kickbacks for
Patient Referrals
State-Federal Agreement Alleges Defendants Operated Unlawful Grant
Program; Massachusetts to Receive $620,000
The South Shore Physician Hospital Organization in South Weymouth has
agreed to pay a total of $1.77 million to settle allegations of operating a
recruitment grant program through which it paid kickbacks to its physician
members in exchange for patient referrals, Attorney General Martha Coakley
announced today. Massachusetts will receive a total of $620,000.
In a consent judgment, and related settlement agreement, entered today
against South Shore Physician Hospital Organization, Inc. (SSPHO) and its
member organizations, South Shore Hospital, Inc. and Physicians
Organization of the South Shore, Inc. (POSS), AG Coakley alleges that SSPHO
paid kickbacks in the form of cash grants via a recruitment grant program.
Over the course of the program, from 2001 to 2010, SSPHO allegedly
approved 103 separate grants to 33 different physician groups.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
01-20-south-shore-cj.html
MISSOURI
January 30, 2015
Attorney General Chris Koster Announces Settlement With Medicaid
Provider For Allegedly Submitting False Claims To Missouri’s Medicaid
Program
Attorney General Chris Koster announced today that his office reached a
settlement with Jennifer Kirchhoff, a Cape Girardeau counselor, for allegedly
submitting false claims to Missouri’s Medicaid program, MO HealthNet. As
required by the settlement agreement, Kirchhoff has paid the state $25,000.
An investigation by Koster's Medicaid Fraud Control Unit revealed that
34
MISSOURI CON’T
Kirchhoff billed Medicaid for therapy services she did not provide and that she
repeatedly billed Medicaid multiple times for one single family-therapy
session. Kirchhoff received $8,062 from MO HealthNet for these claims. Under
the terms of the settlement agreement, Kirchhoff has paid $8,062 in
restitution, $14,438 in damages and civil penalties, and $2,500 for
investigative costs. Kirchhoff also agreed to refrain from any future
participation in MO HealthNet.
http://ago.mo.gov/newsreleases/2015/AGKoster_announces_settlement_Cap
e_MedicaidProvider/
January 30, 2015
Attorney General Chris Koster Announces Adult Daycare Provider
Submitted Claims to Medicaid for Services That Were Not Provided;
$29,000 Will Be Returned To Missouri Medicaid
Attorney General Chris Koster today announced a settlement with B & D
Adult Daycare, LLC, of St. Louis County, and its owner-operator, Bryan
Sanders, Sr. The agreement requires Sanders and his company to pay
$29,000 to the state's Medicaid program.
Koster said his Medicaid Fraud Control Division conducted an investigation
into the billing practices of B & D Adult Daycare. The investigation revealed
that in multiple instances from January 2011 through April 2013, B & D
Adult Daycare submitted claims to Medicaid for services that were not
provided, either because the recipients were found not to have been in the
facility at that time or were receiving personal care services at their homes. B
& D Adult Daycare denied the allegations.
http://ago.mo.gov/newsreleases/2015/AGKoster_announces_MedicaidFraud
Settlement/
35
MISSOURI CON’T
January 29, 2015
Attorney General Chris Koster Announces Judgment Against St. Louis
County Woman Submitting False Claims To Medicaid
Attorney General Chris Koster announced today that a consent judgment
against Loretta Baskin, 53, of St. Louis County, for submitting false claims to
Missouri’s Medicaid program.
Koster's Medicaid Fraud Control Unit conducted an investigation into
Compassionate Care in Home Health Care, LLC, and discovered issues
regarding employment overlap by Baskin, the manager/owner of
Compassionate. Baskin billed Medicaid multiple times for services during
times she was actually working a separate job at a different location.
http://ago.mo.gov/newsreleases/2015/AGKoster_StLouisCounty_woman_Me
dicaidFraud/
January 13, 2015
Attorney General Chris Koster Charges Home Care Service Company with
Fraud for Submitting False Claims to MO HealthNet
Attorney General Chris Koster announced today that he has reached a
settlement with Victor's Home Care Services, LLC, of St. Louis, for submitting
false claims to MO HealthNet, Missouri's Medicaid program. The agreement
required Victor's to pay $50,000 to the state’s Medicaid fraud reimbursement
fund.
Koster said that Victor's provides services to Medicaid participants under two
of MO HealthNet's in-home programs. An investigation by Koster's Medicaid
Fraud Control Unit revealed the company failed to ensure that the personal
care attendants employed by the company were actually providing the
services to the Medicaid participants as they claimed. In some instances,
Victor's billed for services to Medicaid participants in their homes during
times when those participants were actually hospitalized or in a nursing
home.
http://ago.mo.gov/newsreleases/2015/AG_Koster_announces_MedicaidFrau
d_settlement/
36
NEW JERSEY
January 13, 2015
Acting Attorney General John J. Hoffman Announces Former Home
Health Aide Admits to Falsely Billing Medicaid 178 Times
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 yesterday pleaded guilty to charges that he caused bills to be
submitted to the Medicaid program for services that were never provided.
Naum Lavnevich, 57, of Oakland, pleaded guilty to one count of second-
degree health care claims fraud before Bergen County Superior Court Judge
Edward A. Jerejian. As part of the plea agreement, the State recommended
that he serve three years in state prison and pay restitution in the amount of
$5,614. His sentencing is scheduled for April 10.
http://nj.gov/oag/newsreleases15/pr20150113a.html
NEW YORK
January 8, 2015
A.G. Schneiderman Announces Arrest Of Dentist In Medicaid Theft
Defendant Charged With Filing False Dental Services Claims For Patients He
Never Treated
Attorney General Eric T. Schneiderman today announced the arrest of a
Manhattan dentist for filing false claims and stealing $11,479 from Medicaid.
Howard Rothenberg, 64, of West Nyack, NY, allegedly claimed to have
provided services to patients he never met or who he treated only in prior
years. The defendant is a licensed, practicing dentist with an office located at
205 East 111th Street in Manhattan.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-arrest-
dentist-medicaid-theft
37
VIRGINIA
January 8, 2015
Attorney General Mark Herring Announces Provider of Home Health Care
Services and Spouse Sentenced for Medicaid Fraud
Over a four year period they orchestrated a massive false billing scheme
W. Wayne Perry, Jr., 56, and his wife Angela Perry, 52, formerly of Suffolk,
Virginia, were sentenced today for charges including health care fraud, false
statements relating to health care matters, alteration of records and
aggravated identity theft to W. Wayne Perry, Jr. was sentenced to 63 months
in prison, followed by three years of supervised release. Angela Perry was
sentenced today to 25 months in prison, followed by three years of supervised
release. In addition, together they are to pay $1,459.451.08 in restitution.
http://www.oag.state.va.us/index.php/media-center/news-releases/427-
january-8-2015-provider-of-home-health-care-services-and-spouse-
sentenced-for-medicaid-fraud
38
CONSUMER ADVOCACY
COLORADO
January 7, 2015
Attorney General John Suthers Warns Consumers To Beware Of Fake
Debt Collectors
The Colorado Attorney General’s Office is warning people to beware of a debt
collection scam in which people pose as law enforcement officials or
government agencies. Consumer complaints to the Attorney General reveal a
sharp increase in Coloradans receiving threatening phone calls and emails
from this particular fraudulent debt collector scam. By using personally
identifiable information, including Social Security Numbers, the caller
attempts to collect on alleged payday loan debt. Complaints about this scam
have increased by 1350% between 2013 and 2014.
Fictitious payday lender names being invoked include ACS Inc., ACS Legal
Group, Ace Cash Services, Ace Cash Advance, Advance Cash Service and
American Cash Advance. The familiarity of these names, along with strong-
arm language like “you are in violation of federal banking regulations,” and
use of official sounding agencies such as “United States of attorney” and
“state investigation department,” are the most common elements found in the
complaints.
http://www.coloradoattorneygeneral.gov/press/news/2015/01/07/colorado_
attorney_general%E2%80%99s_office_warns_consumers_beware_fake_debt_co
llectors
39
CONNECTICUT
January 29, 2015
Attorney General George Jepsen Warns Consumers to Avoid Companies
Offering Student Loan Debt Relief for a Fee
The Department of Consumer Protection, the Department of Banking, and the
Office of the Attorney General are warning residents with student loan debt to
avoid companies that promise to provide student loan debt relief, but for a fee.
Student loan debt is an increasing financial hardship for Connecticut
residents. Some unscrupulous companies take advantage of borrowers who
are trying to manage or lessen their debt, often charging high up-front fees
and not offering any services beyond what borrowers can get at no cost by
contacting their loan servicers or the U.S. Department of Education.
http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=560124
January 26, 2015
Attorney General George Jepsen, DCP Remind Residents that Price
Gouging on Consumer Items, Energy Resources Prohibited
Attorney General George Jepsen and state Department of Consumer
Protection Commissioner Jonathan A. Harris are reminding residents and
retailers that state law prohibits price gouging on consumer items and energy
resources during the current civil preparedness emergency in Connecticut.
Governor Dannel P. Malloy has declared a civil preparedness emergency in
Connecticut in advance of the incoming storm. While an emergency period is
in effect, consumer items cannot be priced higher than they would be during
the normal course of business. Violations are considered an unfair or
deceptive trade practice and violators are subject to fines.
http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=559982
40
CONNECTICUT CON’T
January 15, 2015
Attorney General George Jepsen: Don’t Pay for Financial Aid Forms or
Information
The Department of Consumer Protection, Department of Banking and the
Office of the Attorney General are warning high school seniors and college
students applying for college financial aid to steer clear of companies charging
fees for financial aid forms. These services, which falsely imply that they will
improve an applicant’s chances of success, often end up charging students as
much as $1,000 for materials that are available at no cost.
http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=559488
KANSAS
January 30, 2015
Attorney General Derek Schmidt Issues Consumer Alert: Be Wary Of Fake
Invoice Scams
Kansas Attorney General Derek Schmidt today warned consumers to be on
the lookout for fake invoices for services or products not ordered. They are
likely being generated from disreputable companies perpetrating fraud.
Schmidt’s office has received more than 150 complaints from school districts
and other entities across the state about fraudulent invoices being sent from
an organization doing business as American Yellow Group, Inc., American
Yellow Corporation, Inc., and American Yellow Distribution, Inc. The invoices
are purportedly for “directory listing” and demand $496.95 for a one-year
listing or $685.95 for a two-year listing. The geographical origin of the invoices
include San Diego, Calif., Dallas, Texas, New York, N.Y., and Varna, Bulgaria.
http://ag.ks.gov/media-center/news-releases/2015/01/30/consumer-alert-
be-wary-of-fake-invoice-scams
41
KANSAS CON’T
January 7, 2015
Attorney General Derek Schmidt: Kansas to Back Consumers In U.S.
Supreme Court Natural Gas Price-Fixing Case
The State of Kansas next week will ask the U.S. Supreme Court to preserve
state authority to protect consumers from antitrust violations that increase
the retail price of natural gas, Kansas Attorney General Derek Schmidt said
today.
The U.S. Supreme Court granted Kansas’ request to participate in oral
argument in the case, even though the state is not a party, because the
outcome could determine whether Kansas and other states’ consumer
protection laws are preempted by a federal law on the transportation and sale
of natural gas. Solicitor General Stephen McAllister will argue on behalf of
Kansas and the amici states in the case to be heard January 12 at the Court.
http://ag.ks.gov/media-center/news-releases/2015/01/07/ag-schmidt-
kansas-to-back-consumers-in-u.s.-supreme-court-natural-gas-price-fixing-
case
MAINE
January 26, 2015
Attorney General Janet T. Mills Issues Consumer Warning: Scams Target
Taxpayers As Filing Season Gets Underway
Tax season may just be getting started, but tax scammers have been hard at
work already. The Maine Attorney General’s Office and the Federal Trade
Commission (FTC) have gotten thousands of complaints about one kind of
scammer in particular — IRS imposters.
Here’s how they work: Scammers posing as IRS officials call and say you owe
taxes. They threaten to arrest you, or deport you, or revoke your license, or
even shut down your business if you don’t pay right away. They may know
your Social Security number — or at least the last four digits of it — making
you think it really is the IRS calling. They also can rig caller ID to make it look
like the call is coming from Washington, DC.
http://www.maine.gov/ag/news/article.shtml?id=636296
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NEW YORK
January 28, 2015
A.G. Schneiderman Announces Commitment By Citibank To Eliminate
Barriers That Unfairly Keep Low-Income Americans From Opening
Checking And Savings Accounts
Policy Changes Will Expand Access To Bank Accounts For Previously Excluded
Consumers
Attorney General Eric T. Schneiderman today announced that Citibank, 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. Citibank’s new policies are expected to allow thousands of
additional New Yorkers and consumers nationwide to open bank accounts by
March 15, 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.
With today’s agreement, Citibank now joins Capital One as the second bank
to commit to overhaul its use of ChexSystems.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
commitment-citibank-eliminate-barriers-unfairly-keep-low
January 27, 2015
A.G. Schneiderman Warns Consumers Against Scammer Posing As
Official From Attorney General’s Office
Scammer Threatening Consumers Across New York State With False Claim Of
Lawsuit And Arrest
Attorney General Eric T. Schneiderman today announced that his office has
been alerted to a scam involving an individual posing as a representative of
the Attorney General’s Office. The scammer is threatening consumers with a
lawsuit and possible arrest and instructs consumers to call 347-779-0198, a
number that is associated with other phone scams nationwide. One Syracuse
area consumer reported that the scammer told him that he was going to be
arrested in connection with a lawsuit and needed to call the provided number
to communicate about the litigation. The voicemail associated with this
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NEW YORK CON’T
number falsely purports to be that of Attorney Sam Wilson from the Attorney
General’s Office.
http://www.ag.ny.gov/press-release/ag-schneiderman-warns-consumers-
against-scammer-posing-official-attorney-general%E2%80%99s
January 15 2015
A.G. Schneiderman Proposes Bill To Strengthen Data Security Laws,
Protect Consumers From Growing Threat Of Data Breaches
New Legislation Would Impose Data Security Standards To Protect Personal
Information; Broaden Scope Of Information Subject To Existing Notification
Laws; And Encourage Companies To Meet
Attorney General Eric T. Schneiderman announced today that he would
propose legislation in Albany to overhaul New York State’s data security law
and require new and unprecedented safeguards for the personal data of
consumers. Currently, New York State does not have a law directly requiring
entities to institute data security measures to protect consumer information.
Moreover, in the event of a data breach or unauthorized disclosure,
companies are merely required to notify affected individuals if “private
information” is compromised—which does not include email addresses and
passwords, security questions, medical history and health insurance
information, among other categories. Attorney General Schneiderman’s bill
would broaden the scope of information that companies would be responsible
for protecting; require stronger technical and physical security measures for
protecting information; and create a safe harbor for companies who meet
certain security standards, incentivizing them to adopt tough measures to
protect personal data.
http://www.ag.ny.gov/press-release/ag-schneiderman-proposes-bill-
strengthen-data-security-laws-protect-consumers-growing
44
OKLAHOMA
January 30, 2015
CONSUMER ALERT: AG Pruitt Warns Oklahomans of Phone Scam
Caller Claims to Be From Attorney General's Office
Oklahoma Attorney General Scott Pruitt issued a scam warning Friday after
concerns were raised that someone may be calling consumers claiming to be
with the Attorney General’s Office.
According to complaints to the AG’s Public Protection Unit, the caller is falsely
telling Oklahomans they will be arrested if money is not wired to the Attorney
General’s Office for various reasons, such as debt. The phone calls originate
from the number: (206) 512-1480.
http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258
&article_id=15365
WASHINGTON
January 13, 2015
Attorney General Bob Ferguson Cracks Down On Patent Trolls As Part Of
2015 Legislative Agenda
Protects businesses from bad faith predatory claims of patent infringement;
gives Attorney General’s Office legal enforcement authority
Washington State Attorney General Bob Ferguson has proposed the Patent
Troll Prevention Act to protect the rights of legitimate patent holders and
crack down on deceptive and predatory patent troll practices.
“Patent trolls target and swamp small businesses with deceptive demand
letters,” said Ferguson. “The Patent Troll Prevention Act will protect small
businesses and provide my office with enforcement authority to hold
fraudulent trolls accountable.”
http://www.atg.wa.gov/pressrelease.aspx?&id=32517#.VMZkLC4sCDM
45
WASHINGTON CON’T
January 12, 2015
Attorney General Bob Ferguson Targets Wage Theft As Part Of 2015
Legislative Agenda
Proposes legislation to prohibit wage theft violators from doing business with
the state
Washington State Attorney General Bob Ferguson has proposed bipartisan
legislation that would prohibit businesses that have repeatedly or willfully
violated the state’s wage payment laws during the past three years from doing
business with Washington state.
“Wage theft hurts workers and honest businesses that want to compete for
government contracts,” said Ferguson. “Government contracts and taxpayer
dollars should go to companies that follow the law. Washington won’t do
business with those that unlawfully withhold wages from employees.”
http://www.atg.wa.gov/pressrelease.aspx?&id=32512#.VMZjwC4sCDM
January 07, 2015
Attorney General Bob Ferguson Calls For Enhanced Data Security Law To
Protect Consumers As Part Of 2015 Legislative Agenda
30-day notification required for all data breaches
Washington State Attorney General Bob Ferguson has introduced bipartisan
legislation that will strengthen Washington’s data breach notification law to
help Washingtonians protect their personal information.
“Identity thieves are using increasingly sophisticated methods to hack into
consumer databases and steal financial information,” said Ferguson. “We
must update our laws to help consumers better protect themselves in the
digital age.”
http://www.atg.wa.gov/pressrelease.aspx?&id=32508#.VMZjQS4sCDM
46
WEST VIRGINIA
January 29, 2015
Attorney General Patrick Morrisey Cautions Citizens About IRS Tax
Refund Email Scam
Attorney General Patrick Morrisey is warning taxpayers to be aware of an
email scam claiming to be from the Internal Revenue Service that targets
consumers’ financial information.
Morrisey said the email often has a subject line that reads “Tax Refund
Notification.” The sender claims to be from the IRS and says the consumer is
entitled to receive a tax refund. The consumer is directed to a third-party
website, where he or she is asked to provide vital personal and financial
information.
http://www.ago.wv.gov/pressroom/2015/Pages/Attorney-General-Patrick-
Morrisey-Cautions-Citizens-About-IRS-Tax-Refund-Email-Scam.aspx