consumer protection report - july 2015
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NATIONAL STATE ATTORNEYS GENERAL PROGRAM: CONSUMER PROTECTION REPORT
JULY 2015
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CONSUMER PROTECTION REPORT: July 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 ........................................................................................ 5
ARIZONA ....................................................................................................................... 5
ARKANSAS .................................................................................................................... 6
COLORADO ................................................................................................................... 7
CONNECTICUT .............................................................................................................. 8
DISTRICT OF COLUMBIA ............................................................................................... 8
FLORIDA ..................................................................................................................... 10
IDAHO ......................................................................................................................... 12
ILLINOIS ..................................................................................................................... 13
INDIANA ...................................................................................................................... 13
IOWA ........................................................................................................................... 14
KANSAS ....................................................................................................................... 15
KENTUCKY .................................................................................................................. 16
MASSACHUSETTS ....................................................................................................... 16
MINNESOTA ................................................................................................................ 17
MISSOURI ................................................................................................................... 17
NEVADA ...................................................................................................................... 18
NEW JERSEY ............................................................................................................... 20
NEW YORK .................................................................................................................. 25
NORTH CAROLINA ...................................................................................................... 31
OHIO ........................................................................................................................... 33
OKLAHOMA ................................................................................................................. 33
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PENNSYLVANIA ........................................................................................................... 34
SOUTH DAKOTA .......................................................................................................... 38
VERMONT ................................................................................................................... 38
VIRGINIA ..................................................................................................................... 39
WASHINGTON .............................................................................................................. 39
MEDICAID FRAUD CASES AND SETTLEMENTS ..................................... 42
ALABAMA .................................................................................................................... 42
ALASKA ....................................................................................................................... 43
ARKANSAS .................................................................................................................. 44
CONNECTICUT ............................................................................................................ 45
DELAWARE ................................................................................................................. 46
FLORIDA ..................................................................................................................... 47
HAWAII........................................................................................................................ 48
IDAHO ......................................................................................................................... 49
KENTUCKY .................................................................................................................. 50
LOUISIANA .................................................................................................................. 50
MARYLAND ................................................................................................................. 51
MICHIGAN ................................................................................................................... 52
MISSOURI ................................................................................................................... 53
NEVADA ...................................................................................................................... 53
NEW YORK .................................................................................................................. 54
OKLAHOMA ................................................................................................................. 58
VERMONT ................................................................................................................... 60
CONSUMER ADVOCACY ....................................................................... 61
CALIFORNIA ................................................................................................................ 61
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COLORADO ................................................................................................................. 61
DELAWARE ................................................................................................................. 63
DISTRICT OF COLUMBIA ............................................................................................. 64
FLORIDA ..................................................................................................................... 65
IDAHO ......................................................................................................................... 65
INDIANA ...................................................................................................................... 66
KENTUCKY .................................................................................................................. 66
LOUISIANA .................................................................................................................. 67
NORTH CAROLINA ...................................................................................................... 68
OHIO ........................................................................................................................... 69
PENNSYLVANIA ........................................................................................................... 70
VERMONT ................................................................................................................... 70
VIRGINIA ..................................................................................................................... 71
WEST VIRGINIA ........................................................................................................... 71
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CONSUMER PROTECTION CASES, SETTLEMENTS AND
ADVOCACY STATEMENTS
ARIZONA
July 6, 2015
Attorney General Mark Brnovich Reaches Plea Agreement with Serial
Fraudulent Real Estate Investor
The Arizona Attorney General’s Office recently reached a plea agreement with
Zavier Kay Hafiz, after an FBI-led investigation revealed his company
fraudulently misled nearly forty victims to whom he sold real estate
throughout Arizona. Mr. Hafiz, while doing business as ZK Group, plead
guilty on May 7, 2015 to Fraudulent Schemes and Artifices and was
sentenced to six years in prison, followed by another seven years of
probation. In addition, he was ordered to pay $3,554,838.40 in restitution.
Hafiz’s guilty plea was a result of a fraudulent house sale in early
2012. While preying on “generally unsophisticated real estate buyers”, Hafiz
sold a house to and provided the loan for the purchase to a Phoenix victim.
Throughout his negotiations with the victim, Hafiz fraudulently represented
that title to the house was good, and clear from any other claims. The truth
however, was that Hafiz had already taken out a mortgage from a hard money
lender on most, if not all, of the properties he sold, including this one. Hafiz
perpetuated this cycle of fraudulent misrepresentation repeatedly in ZK
Group’s business dealings.
https://www.azag.gov/press-release/attorney-generals-office-reaches-plea-
agreement-serial-fraudulent-real-estate-investor
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ARKANSAS
July 28, 2015
Attorney General Leslie Rutledge Obtains Judgment Against Electronic
Media Marketing Group Inc.
Arkansas Attorney General Leslie Rutledge today announced that she has
obtained a judgment against New Jersey-based Electronic Media Marketing
Group Inc., an online advertiser, for violations of consumer protection laws
when it coerced Arkansas businesses into paying for services the businesses
did not authorize.
In the judgment, Electronic Media Marketing Group Inc. must cease any
collection attempts or telemarketing calls in the State. The group must pay a
total of $190,000 in civil penalties to the State and $4,500 in attorneys’ fees.
Electronic Media Marketing Group Inc., which operates as General Yellow
Pages, was accused of violating the federal Telemarketing and Consumer
Fraud and Abuse Prevention Act, the federal Telemarketing Sales Rule and
the Arkansas Deceptive Trade Practices Act.
http://arkansasag.gov/news-and-consumer-alerts/details/rutledge-obtains-
judgment-against-electronic-media-marketing-group-inc
July 07, 2015
Attorney General Leslie Rutledge Reaches Settlement with USA
Publishing
Arkansas Attorney General Leslie Rutledge today announced that she has
reached a settlement with Conway-based USA Publishing and its owners,
William and Kathleen Parker, to resolve allegations that the organization
solicited funds from Arkansas donors on behalf of New Jersey-based National
Police Defense Foundation. Arkansans were told these contributions would
benefit the State’s emergency responders.
In the consent decree filed in Pulaski County Circuit Court today, the
organization will pay $121,000 to the State to be distributed as
reimbursement to Arkansas donors. USA Publishing will also pay another
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$50,000 in civil penalties to the State. The owners have agreed to cease all
operations and will end all professional fundraising activities in Arkansas.
In July 2013, the Attorney General’s Office sued National Police Defense
Foundation and USA Publishing. The lawsuit alleged that National Police
Defense Foundation contributed only $500 of the $231,004 it raised in the
State to charitable purposes. The bulk of the money went to USA Publishing.
A settlement was reached with the National Police Defense Foundation in July
2014. The foundation agreed to pay $120,000 in restitution to consumers and
to permanently stop all professional fundraising activities in Arkansas.
http://arkansasag.gov/news-and-consumer-alerts/details/rutledge-reaches-
settlement-with-usa-publishing
COLORADO
July 17, 2015
Attorney General Cynthia H. Coffman Files Second Lawsuit Against
Business Targeting Military Service Members
Colorado Attorney General Cynthia H. Coffman revealed today that her office
has filed a lawsuit in Denver District Court against USA Discounters, LTD,
d/b/a USA Living and d/b/a Fletcher’s Jewelers (“USA Discounters”). The
lawsuit alleges that these companies have repeatedly violated Colorado’s
consumer lending laws.
According to the Attorney General’s complaint, USA Discounters was in the
business of selling consumer goods and services on credit from its two
locations in Colorado Springs. The complaint alleges that the defendant
focused heavily on credit transactions with members of the military and their
families, often locating its stores in close proximity to large military bases,
such as Fort Carson Army Base and Peterson Air Force Base in Colorado
Springs.
http://www.coloradoattorneygeneral.gov/press/news/2015/07/17/attorney_
general_cynthia_h_coffman_files_second_lawsuit_against_business_targe
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CONNECTICUT
July 9, 2015
AG Jepsen, Consumer Counsel Katz: Settlement with Electric Supplier
Will Provide $2.6 Million in Support for Operation Fuel
Under a settlement agreement filed with the state Public Utilities Regulatory
Authority (PURA) today, electric supply company North American Power LLC
will pay $2.6 million to the nonprofit Operation Fuel, Attorney General George
Jepsen and Consumer Counsel Elin Swanson Katz announced.
If approved by PURA, the settlement would resolve a two-year investigation
into the company's marketing practices. PURA opened this proceeding
following a number of complaints that North American Power offered a low
introductory rate that was quickly replaced by a variable rate that was
substantially higher than market or standard service rates. The $2.6 million
in charitable donations to Operation Fuel would be made in equal payments
of $100,000 over 26 months, beginning within 30 days of PURA's approval of
the settlement and closing of the investigatory proceedings.
http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=568086
DISTRICT OF COLUMBIA
July 23, 2015
Attorney General Karl Racine Announces $60-Plus-Million Win for
District in Tax Case against Major Online Travel Companies
D.C. Court of Appeals Affirms Judgment Ordering Companies to Remit Unpaid
Sales Taxes
Today, Attorney General Karl A. Racine announced a major recovery for the
District in a case regarding online hotel-booking companies and unpaid sales
taxes. In Expedia v. District of Columbia, the DC Court of Appeals affirmed a
judgment of the DC Superior Court requiring the online travel companies
Expedia, Hotels.com, Hotwire, Travelscape, Orbitz, Travelocity, and Priceline
to pay a combined total of more than $60 million in unpaid sales taxes and
interest to the District. The companies had paid District sales taxes based on
the amounts they paid hotels for rooms, rather than on the amounts they
charged their customers.
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DISTRICT OF COLUMBIA CONT’D
http://oag.dc.gov/release/ag-racine-announces-60-plus-million-win-district-
tax-case-against-major-online-travel
July 14, 2015
Attorney General Karl Racine Welcomes Court Decision Stopping Rogue
Conference Promoter
Case Ends Florida-Based Promoter’s Ability to Do Business in the District
Attorney General Karl A. Racine today welcomed news that Superior Court
Judge Robert Okun has issued an order permanently enjoining William S.
Loiry, a Florida-based conference promoter, from operating in the District of
Columbia until his company is properly registered and has paid the District
fees and penalties to be determined by the court.
The Office of the Attorney General (OAG) filed suit against Loiry in October
2013, alleging that many of his conferences – promoted under names like
“United States Leadership Forum,” “American Energy Summit,” and “Defense
Leadership Forum” – were not held as advertised. The complaint alleged that
Loiry made misrepresentations about upcoming conferences, failed to refund
registrants’ conference fees or sponsorship fees when conferences were
rescheduled or changed, and continued operating in the District even after
his business’s registration was revoked.
http://oag.dc.gov/release/attorney-general-racine-welcomes-court-decision-
stopping-rogue-conference-promoter
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FLORIDA
July 7, 2015
Attorney General Pam Bondi and FTC Stop Credit Card Interest Rate
Reduction Scam
For the second time in two weeks, Florida Attorney General Pam Bondi and
the Federal Trade Commission have filed a federal court lawsuit to protect
consumers from a credit card interest rate reduction scam. This time, Florida
Attorney General Bondi and the FTC halted a Pinellas County-based group of
businesses and individuals from operating a nationwide telemarketing scam
that defrauded consumers out of at least $8.5 million.
The scammers operated under a variety of phony business names, including:
Applied Budgeting, Bigger Budget, Competitive Budgeting, Complete
Budgeting, Conserved Budgeting, Consigned Savings, Containing Expenses,
Debt Smart Solutions, Decisive Budgeting, Efficient Budgeting, Insightful
Budgeting, Intuitive Budgeting, Less Costly Living, Living Competitively,
Lowered Expenses, Prepared Budgeting, Reduced Expenses, Resourceful
Budgeting, Sensible Budgeting, Skilled Budgeting, Spend Less Monthly, Total
Budgeting, Today’s Financial Living, Your Household Budget and Your Next
Financial Step.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/14F0E3FC9A3F7
B6885257E7B00515103
July 6, 2015
Attorney General Pam Bondi and FTC Sue to Stop Deceptive Robocalls
Pitching Free Medical Alert Systems to Seniors
Attorney General Bondi and the Federal Trade Commission filed a joint
complaint against a New York-based operation, known as Lifewatch, alleging
that the company used blatantly illegal and deceptive telemarketing robocalls
to trick older consumers throughout the United States and Canada into
signing up for medical alert systems with monthly monitoring fees ranging
from $29.95 to $39.95. Many of the victims are on fixed or limited incomes or
rely on family members or health professionals to make financial decisions on
their behalf.
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FLORIDA CONT’D
The complaint alleges that Lifewatch hired telemarketers to sell these systems
on its behalf, that it has known of the use of both false claims and robocalls
by its agents, and that it has continued to use these tactics even after one of
its largest agents was shut down by Attorney General Bondi’s Office and the
FTC more than a year ago.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/F2AE85601B9D4
4BD85257E7A00636735
July 30, 2015
Attorney General Pam Bondi and Commissioner Putnam Take Action to
Shut Down a Scam Targeting Victims of Previous Scams
Attorney General Pam Bondi and Florida Commissioner of Agriculture Adam
H. Putnam took action to shut down a collections scam targeting victims of
previous scams. Attorney General Bondi filed a complaint against Advocacy
and Collections Group, Inc. and the individuals who ran the company’s
operations for allegedly targeting victims of previous scams with the promise
of collecting the victims’ lost money. In tandem with the complaint filing by
the Attorney General’s Office, Commissioner Putnam’s department is filing an
administrative action to revoke the defendants’ telemarketing license to
further protect Floridians.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/66711FEE5B0AD
5A585257E9200529548
July 28, 2015
Attorney General Pam Bondi Announces Pinellas County Man Sentenced
to Two Years in Prison for a Timeshare Marketing Scheme
Attorney General Pam Bondi announced today the sentencing of a Pinellas
County man to two years in prison for fraudulently misrepresenting
timeshare marketing services resulting in an estimated $900,000 in losses for
the victims of this scheme. James Holmes, 55, previously handled sales
operations for Buy Owner Resort Marketing, a company which operated in
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FLORIDA CONT’D
Ormond Beach and purported to offer advertising to customers looking to sell
their timeshares. In June of this year, Holmes was found guilty of first degree
grand theft for his role in the scheme.
A criminal investigation revealed that Holmes knew the customers were
desperate to sell their timeshare, but that there was no real resale market for
the timeshares. Buy Owner Resort Marketing sold no timeshares over the
span of nearly a year of operation and approximately 1,100 customers were
charged an average of $998 for marketing services that were not provided.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/A3B8E2FCEE163
A5485257E90005D522B
IDAHO
July 7, 2015
Attorney General Wasden Announces Companies Agree to Quit Doing Business in Idaho in Settlement with Attorney General
Idaho’s Attorney General has reached a settlement that requires two Oregon
companies to cease doing business in Idaho.
A judge approved the agreement July 6, naming Liberty Publishers Service, Inc. and Orbital Publishing Group, Inc. Both companies operated under nine
different business names, and, for years advertised magazine subscriptions to consumers in Idaho, Attorney General Lawrence Wasden said.
Under settlement terms, the companies have agreed to end the practice of mailing renewal offers to subscribers who believed the high-priced offers were
coming from magazine publishers. Complaints about the companies from consumers who believed they were misled date back several years, Wasden
said.
The companies are now prohibited from offering magazine or newspaper subscriptions in the state or collecting debts from the sale of magazine or newspaper subscriptions. The companies also agreed to pay $500 to the
Attorney General to offset fees and investigative costs.
http://www.ag.idaho.gov/media/newsReleases/2015/nr_07072015.html
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ILLINOIS
July 1, 2015
Attorney General Lisa Madigan Sues Suburban Home Repair Companies
Attorney General Lisa Madigan announced a lawsuit against Lake County
home repair companies for scamming northern Illinois residents out of over $175,000 for work that was either never performed or was substandard.
Attorney General Madigan filed the lawsuit in Cook County against Sentry RSW (Roofing, Siding, and Windows) Inc. and its president, Keith Polanowski,
as well as the now-dissolved Sentry Restorations Inc. and its president, Brett Clark. The lawsuit accuses the companies of violating the state’s Consumer
Fraud and Deceptive Business Practices Act and the Home Repair and Remodeling Act.
According to Madigan’s lawsuit, the Volo, Ill.-based companies operated as one entity but used different names to confuse consumers. Polanowski and
Clark allegedly collected homeowners’ insurance checks for roof repairs and other construction services, though according to the lawsuit, they either did
not perform the agreed upon work or the repairs were shoddy. The lawsuit alleges that consumers who contacted the companies to complain either could not reach anyone or were promised further repairs that were never
performed. In most cases, the lawsuit states, consumers attempting to cancel contracts were refused refunds or even sued for breach of contract.
http://www.illinoisattorneygeneral.gov/pressroom/2015_07/20150701.html
INDIANA
July 15, 2015
Attorney General Greg Zoeller Sues Indy Tree Trimming Company
Accused of Scamming Seniors
Indiana Attorney General Greg Zoeller filed a lawsuit against door-to-door tree
trimming company, Cutter’s Tree Service, for allegedly deceiving Indianapolis-
area seniors into purchasing unneeded and overpriced landscaping services.
The complaint was filed in Marion County and names Terry Sizemore, Zack
Sizemore and Bill Carr, Jr. as additional defendants in the case. The
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complaint also alleges the company misrepresented its employees’
qualifications and failed to meet state contract requirements.
http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventi
dn=221904&information_id=216335&type=&syndicate=syndicate
IOWA
July 15, 2015
Attorney General Tom Miller Announces Former Iowa Ashford Online
Education Students Now Receiving Payments from 2014 $7.25 Million
Settlement
Nearly 300 Iowans who sought teaching degrees from online program receiving
$5.2 million in payments
Nearly 300 Iowans who believed they were obtaining teaching degrees from
Ashford University's online program, but were ineligible for teachers' licenses
in Iowa, are now receiving payments through a settlement reached last year
with Attorney General Tom Miller.
The students believed that the Iowa Department of Education had approved
the online programs and graduating would qualify them to be licensed to
teach in Iowa schools.
The Consumer Protection Division is distributing $5,240,000 in tuition
refunds to 296 former students from Iowa who sought online degrees through
Ashford's College of Education. The refunds represent 97 percent of the
tuition paid for classes students completed through the College of Education.
The refunds range from approximately $1,000 to $55,000.
Miller noted that the average federal student loan amount owed by Ashford
online education program students receiving refunds is $27,000, and the
highest loan amount is $248,000.
https://www.iowaattorneygeneral.gov/newsroom/former-iowa-ashford-
online-education-students-now-receiving-payments-from-2014-725-million-
settlem/
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KANSAS
July 28, 2015
Attorney General Derek Schmidt Announces Arkansas Paver To Pay
$250,000 Penalty, Restitution To Kansas Consumers
An Arkansas door-to-door paving operation was ordered to pay a $250,000
penalty and more than $32,000 in restitution to five Kansas consumers for
violating Kansas consumer protection laws, Attorney General Derek Schmidt
said.
In a default judgment entered earlier this month in Shawnee County District
Court, Judge Franklin R. Theis ordered Roger Crawford, doing business as
Allstate Construction and Asphalt Construction, to pay the civil penalty. The
company was accused of engaging in unfair and deceptive practices while
selling paving services door-to-door.
https://ag.ks.gov/media-center/news-releases/2015/07/27/arkansas-
paver-to-pay-$250-000-penalty-restitution-to-kansas-consumers
July 24, 2015
Attorney General Derek Schmidt Announces Southeast Kansas Farmers
Receive $400,000 Under Settlement
A group of Southeast Kansas farmers received a total of $400,000 under a
settlement with a Louisiana-based grain marketing firm, Kansas Attorney
General Derek Schmidt announced today.
Schmidt entered into the settlement with CGB Diversified Services, Inc.,
following an investigation for alleged violations of the Kansas Consumer
Protection Act. The allegations stemmed from the sale of grain by fifteen
farmers in Cherokee, Crawford and Montgomery counties to CGB for which
they did not receive payment between 2003 and 2006. The attorney general’s
investigation had been ongoing since 2007. The agreement was reached in
May, and earlier this week, payments were distributed to the affected farmers.
CGB did not admit any wrongdoing.
https://ag.ks.gov/media-center/news-releases/2015/07/24/ag-schmidt-
southeast-kansas-farmers-receive-$400-000-under-settlement
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KENTUCKY
July 13, 2015
Attorney General Conway Announces Agreement with Mid-Continent
University to Restore Students' Rights
Attorney General Jack Conway today announced that his Office of Consumer
Protection entered into an Assurance of Voluntary Compliance (AVC) with
Mid-Continent University (MCU) to restore the rights of former students to
what they would have been had they received expected federal financial aid.
The AVC resolves the Office of the Attorney General's (OAG) allegations that
between 2011 and 2014, MCU violated state consumer protection laws by
failing to disclose to students that they would not be able to receive federal
aid to pay their education costs at MCU. The school instead offered or signed
students up for private institutional loans instead of federal loans. By doing
so, the OAG alleged that MCU deprived students of the protections and
benefits of federal student loans. The Attorney General's Office asserted that
MCU's conduct constituted unfair, false, misleading or deceptive acts or
practices in violation of Kentucky consumer protection laws.
http://migration.kentucky.gov/Newsroom/ag/mcuavc.htm
MASSACHUSETTS
July 2, 2015
Attorney General Healey Sues Medical Companies for Deceptively
Marketing Treatments at Unlicensed Medical Clinic in Framingham
Complaint Filed against Men’s Medical Clinic for Falsely Advertising Erectile
Dysfunction Treatment to Vulnerable Consumers
Two Florida-based medical companies and their operators have been sued for
deceptively marketing and billing for medications and services relating to the
treatment of erectile dysfunction at an unlicensed medical clinic in
Framingham, Attorney General Maura Healey announced today.
The complaint links to PDF file, filed in Suffolk Superior Court, alleges that
Dr. Kevin Hornsby and Heidi Hornsby of Florida are responsible for deceptive
marketing of a medical facility that went by the names Massachusetts Men’s
Medical Clinic, Massachusetts Men’s Medical and Men’s Medical Clinic.
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http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
07-02-med-co-sued.html
MINNESOTA
Attorney General Lori Swanson Files Lawsuit Against Company
Promising Student Loan Debt "Forgiveness"
Company charged fees of up to $1,500 for filling out and submitting forms to
the federal government for loan repayment and consolidation programs,
which eligible borrowers can apply for on their own for free
Attorney General Lori Swanson today filed a lawsuit against Student Aid
Center, Inc., a Florida company that promised to help borrowers get their
student loans “forgiven.” The company charged people as much as $1,500 for
enrolling them in repayment plans or consolidation loans that all eligible
federal student loan borrowers can apply for on their own for free through the
United States Department of Education.
http://www.ag.state.mn.us/Office/PressRelease/20150701StudentAidCenter
.asp
MISSOURI
Jul 9, 2015
Attorney General Chris Koster Sues Clay County Auto-Repair Shop For
Taking Money, Not Doing Repairs
Attorney General Chris Koster announced today that he has sued John and
Deborah Rocha, the operators of a Kansas City automobile-repair business,
Mobile Auto Repair.
The lawsuit, filed in Clay County Circuit Court, alleges that John and
Deborah Rocha have advertised auto repair services to Missouri consumers
since December 2010 in exchange for up-front payments. The suit alleges the
defendants failed to provide auto-repair services as promised and
misrepresented auto-repair services had been provided when they had not. At
least 14 consumers did not receive the repairs they paid for, resulting in a
loss of more than $9,000.
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https://www.ago.mo.gov/home/news-archives/2015-news-archives/ag-
koster-sues-clay-county-auto-repair-shop-for-taking-money-not-doing-repairs
Jul 1, 2015
Attorney General Chris Koster Sues Six Contractors for Defrauding
Consumers
Attorney General Chris Koster took action against six home-remodeling
companies for defrauding consumers who hired them for repair or remodeling
projects. The companies are located in Jackson, Clay, St. Charles and St.
Louis counties and St. Louis City.
Complaints about home repair and remodeling are consistently among the
top ten complaints received by the Attorney General's Consumer Protection
Division. Many of these complaints involve consumers paying up front for
repairs but no work is provided. The actions announced today affect at least
30 Missouri homeowners who lost nearly $106,000 to unscrupulous
contractors.
https://www.ago.mo.gov/home/news-archives/2015-news-archives/ag-
koster-sues-six-contractors-for-defrauding-consumers
NEVADA
July 9, 2015
Attorney General Laxalt Announces Guilty Pleas of two men for Cheating
Homebuyers out of More Than $900,000
Nevada Attorney General Adam Paul Laxalt announced that Orlando Vera,
55, of Whittier, CA, pleaded guilty to one felony charge of mortgage lending
fraud, a category “B” felony. His plea was a result of his role in a scheme to
cheat several hopeful homebuyers out of $904,861. A month earlier, Vera’s
co-defendant, Juan Robles, 35, of Las Vegas, pleaded guilty to a gross
misdemeanor for the same scam. Their crimes were committed between
November 2012 and January 2014.
http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Announces_Guilt
y_Pleas_of_two_men_for_Cheating_Homebuyers_out_of_More_Than_$900,000
/
19
NEVADA CONT’D
July 1, 2015
Attorney General Laxalt Announces Grand Jury Indictment of Five
Individuals for Elder Exploitation and Telemarketing Scam
Nevada Attorney General Adam Paul Laxalt announced that Marshall Damar
Broussard, 35, Michael Lamonta Dies, 34, Emmanuel D. Ford, 39, Michael
Ford, 34 and Robert Earl Moore, Jr., 50, all of Arizona, were indicted by a
Clark County grand jury on six felony charges for an elder abuse and
telemarketing scam. The charges included one count of racketeering, four
counts of theft of $3,500 or more from a person 60 years of age or older, and
one count of multiple transactions involving fraud or deceit in the course of
an enterprise or occupation. The frauds were committed between April 2013
and March 2014.
http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Announces_Gran
d_Jury_Indictment_of_Five_Individuals_for_Elder_Exploitation_and_Telemark
eting_Scam/
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NEW JERSEY
July 29, 2015
Acting Attorney General John J. Hoffman Announces As Part of
Predatory Towing Initiative, New Jersey Division of Consumer Affairs
Imposes $55,000 in Civil Penalties Against Six Towing Companies
As part of an initiative to combat predatory towing in New Jersey, the New
Jersey Division of Consumer Affairs has reached settlements with six towing
companies that allegedly violated the State’s predatory towing law, with the
companies collectively agreeing to pay $55,106 in civil penalties, consumer
restitution and reimbursement for investigative and legal costs.
The Predatory Towing Prevention Act, which became effective on April 15,
2009, regulates towing from private property, and towing initiated by law
enforcement, that occur without the prior consent of the towed vehicle’s
owner or operator. This law prohibits towing companies, among other things,
from charging an unreasonable or excessive fee; failing to release a vehicle
hooked or lifted, but not actually removed from private property, upon
request of the vehicle’s owner; trolling for vehicles parked without
authorization; or charging for a towing or storage service not on the schedule
of services maintained by the Division of Consumer Affairs.
http://nj.gov/oag/newsreleases15/pr20150729a.html
July 27, 2015
Acting Attorney General John J. Hoffman Announces Cumberland
County Used Car Dealership Agrees to Revise Its Business Practices,
Under Settlement with the New Jersey Division of Consumer Affairs
The New Jersey Division of Consumer Affairs and AutoSource Group, LLC, a
used car dealership located in Vineland, have settled a lawsuit filed by the
Division in February 2015, with the dealership agreeing to pay $25,000 and
to revise its business practices.
The State’s seven-count complaint, filed in State Superior Court in
Cumberland County, alleged that AutoSource Group violated the Consumer
Fraud Act, the Automotive Sales Regulations, the Motor Vehicle Advertising
Regulations and the Used Car Lemon Law and related regulations. Under the
21
NEW JERSEY CONT’D
terms of the Final Consent Judgment that resolves the lawsuit, AutoSource
Group will revise its business practices to comply with state laws and
regulations.
http://nj.gov/oag/newsreleases15/pr20150727a.html
July 24, 2015
Acting Attorney General John J. Hoffman Announces New Jersey Bureau
of Securities Revokes Registration of Midland Park Broker Who Has
Admitted to Defrauding Clients and Stealing Hundreds of Thousands of
Dollars for His Own Use, Concurrent Investigation Leads to Federal
Guilty Plea
The New Jersey Bureau of Securities today issued an order that revoked the
registration of and issued a civil monetary penalty against Kwen Young Chun,
a Midland Park resident and former broker, after its investigation found that
he unlawfully stole hundreds of thousands of dollars from at least eight of his
clients and used investor funds for his and his family’s personal benefit.
Concurrent with the Bureau’s action, Chun pleaded guilty Wednesday before
U.S. District Judge Susan D. Wigenton to one count of mail fraud in Newark
federal court in connection with these actions. The mail fraud charge to
which Chun pleaded guilty carries a maximum potential penalty of 20 years
in prison and a fine of $250,000. Sentencing is scheduled for November 2,
2015.
http://nj.gov/oag/newsreleases15/pr20150724a.html
July 21, 2015
Acting Attorney General John J. Hoffman Announces New Jersey
Division of Consumer Affairs Cites Eight Unlicensed Moving Companies
that Targeted Asian and Latino Communities
Over this past year, the New Jersey Division of Consumer Affairs has been
investigating unlicensed movers who were allegedly targeting Asian and
Latino communities in New Jersey, often through foreign language
newspapers. As part of this initiative, the Division is announcing the issuance
22
NEW JERSEY CONT’D
of Notices of Violation to eight different moving companies. Each of these
companies is being cited because it solicited customers or performed moving
services in New Jersey, without being licensed by the Division of Consumer
Affairs, as required by law.
The unlicensed moving companies cited by the Division targeted either
predominantly Korean-speaking or Spanish-speaking communities, largely
focusing on consumers who spoke little, if any, English. All eight of these
cited companies have been assessed civil penalties, with the option to
challenge these penalties or seek licensure.
http://nj.gov/oag/newsreleases15/pr20150721a.html
July 17, 2015
Acting Attorney General John J. Hoffman Announces New Jersey
Division of Consumer Affairs and “Prada Puppies” Agree to Settlement,
“Prada Puppies” Agrees to Change Business Practices and Pay $65,634
for Restitution, Reimbursements and Penalties
Acting Attorney General John J. Hoffman and the New Jersey Division of
Consumer Affairs and defendant Jessica Durkin, d/b/a "Prada Puppies," of
Salem, a pet dealer who allegedly sold sick pets to consumers, have reached a
$65,634.41 settlement that includes consumer restitution along with civil
penalties and legal/investigative cost reimbursements.
Five consumers will receive a total of $6,443.72 in restitution for the
purchase price and/or veterinary costs incurred for their pets. Of the
remaining settlement amount, $58,134.41 in civil penalties and cost
reimbursements to the State are suspended for a 30-month period and will be
vacated if the settlement terms are not violated.
http://nj.gov/oag/newsreleases15/pr20150720a.html
23
NEW JERSEY CONT’D
July 17, 2015
Acting Attorney General John J. Hoffman Announces Man Pleads Guilty
to Stealing $125,000 from Elderly Couple He Met While Working as
Atlantic County Caseworker
Investigation charged lawyer and sisters who ran senior care service with
stealing millions from clients
Acting Attorney General John J. Hoffman announced that a man pleaded
guilty today to stealing $125,000 from an elderly couple he met as a
caseworker for Atlantic County Adult Protective Services. He was indicted in
March along with the owner of an in-home senior care company in Atlantic
County and her sister, who face first-degree charges of conspiracy and money
laundering for allegedly conspiring with a lawyer to steal millions of dollars
from elderly clients.
William Price, 57, of Linwood, pleaded guilty today to a second-degree charge
of theft by deception before Superior Court Judge Michael A. Donio in Atlantic
County. Under the plea agreement, the state will recommend that Price be
sentenced to five years in state prison. He must pay full restitution of the
$125,000 he stole. Judge Donio scheduled sentencing for Price for Sept. 18.
http://nj.gov/oag/newsreleases15/pr20150717a.html
July 16, 2015
Acting Attorney General John J. Hoffman and the New Jersey Division of
Consumer Affairs File Action Against Bergen County-Based Home
Improvement Contractor
The Office of the Attorney General and the New Jersey Division of Consumer
Affairs have filed an action against ABC Construction NJ, Inc., also known as
ABC Construction, LLC and ABC Construction (“ABC Construction”), and its
two owner/operators, for failing to complete contracted-for work, performing
substandard work, damaging consumers’ homes, and other alleged violations
of state law.
The State’s eight-count Complaint, filed in State Superior Court in
Hackensack, names Charleston J. Masterson of Bergenfield and Frankie
24
NEW JERSEY CONT’D
Olandesi of Wyckoff, as defendants, along with the company. ABC
Construction maintained business locations in Oradell and Bergenfield.
http://nj.gov/oag/newsreleases15/pr20150716a.html
July 13, 2015
Acting Attorney General John J. Hoffman Announces “As Seen On TV”
Company Telebrands Will Make Changes to its Business Practices and its
Automated Ordering System, Will Also Pay $550,000 to Settle New
Jersey Division of Consumer Affairs Lawsuit
Telebrands Corp., the Fairfield, New Jersey-based company known for its “As
Seen on TV” products, has agreed to revise its Interactive Voice Response
(IVR) merchandise ordering system and other business practices, and to pay
$550,000 to the State, under terms of the Final Consent Judgment and
Settlement Agreement that resolves the 2014 lawsuit filed by the Office of the
Attorney General and State Division of Consumer Affairs.
The State alleged in its August 2014 Complaint, filed in State Superior Court
in Essex County, that Telebrands violated the New Jersey Consumer Fraud
Act and Advertising Regulations by, among other things, aggressively
upselling products through its IVR phone system and websites; subjecting
consumers to a lengthy ordering process; failing to provide a means for
consumers to decline offers for additional products; failing to provide
consumers with an opportunity to confirm the merchandise order prior to
authorizing charges; shipping and billing for additional products that
consumers declined to purchase; failing to provide consumers with the total
cost of their orders; and failing to provide consumers with an opportunity to
speak with a live customer service representative when ordering through the
IVR system. The State’s allegations, in part, were established through the
undercover purchases made by Division investigators of Telebrands’ products
(e.g. “Instabulbs,” the “Olde Brooklyn Lantern” and the “Pocket Hose). The
Complaint also alleged that Telebrands, by its conduct, violated the terms of a
2001 Final Consent Judgment and Order that resolved prior litigation with
the State.
http://nj.gov/oag/newsreleases15/pr20150713b.html
25
NEW YORK
July 24, 2015
A.G. Schneiderman Announces Indictment Of Orange County Man
Charged With Stealing Thousands In Investment Scheme
William Vogt Allegedly Posed As Wealthy Fashion Designer “Bill Bolland”To
Steal Over $36,000 From Victim In Investment Scheme
New York State Attorney General Eric T. Schneiderman today announced the
arraignment of William Vogt, a/k/a Bill Bolland, for allegedly stealing over
$36,000 from a victim in an investment scheme perpetrated in Ulster County.
This is the second indictment lodged against Vogt by the Attorney General’s
Office this year for similar scams. In January 2015, Vogt was indicted in New
York County for defrauding another victim in a similar investment scheme. If
convicted, Vogt faces up to 7 years in prison on the case in Ulster County and
up to 15 years in prison on the earlier indictment.
According to the indictment Vogt was arraigned on today in Ulster County
Court and statements made by the prosecutor, the attorney general's
investigation revealed that Vogt, 57, of New Hampton, New York, held himself
out as an internationally renowned fashion designer named Bill Bolland. Vogt
allegedly convinced the victim in this case, like in the previous case, that he
could use his connections to secure investment opportunities in tax-free, high
return accounts. Instead of delivering on his promises, Vogt allegedly took
tens of thousands of dollars of the victim’s money over a five-month period,
but made no investments and transacted no business on behalf of the victim.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
indictment-orange-county-man-charged-stealing-thousands
26
NEW YORK CONT’D
July 21, 2015
A.G. Schneiderman Sues Children’s Leukemia Charity For Deceiving
Donors And Using Vast Majority Of $10 Million Raised For Non-
Charitable Purposes
Brooklyn-Based National Children’s Leukemia Foundation Allegedly Raised
Money From Donors Across America By Touting Non-Existent And Defunct
Programs; Bulk Went to Fundraisers; Less than 1% To Helping Children
Suffering From Cancer
Attorney General Eric T. Schneiderman today announced that his office has
filed a court action to shutter the National Children’s Leukemia Foundation
(NCLF), and to hold accountable its founder, its president, its vice president,
who is the founder’s son, and its auditor. The lawsuit comes after an
investigation by the Attorney General’s Charities Bureau allegedly revealed
that the NCLF, which touted itself as a leading organization in the fight
against leukemia, did not conduct most of the programs advertised on its
website and in its solicitations – including claims it operated a bone marrow
registry and fulfilled the last wishes of dying children - and flouted critical
filing obligations required of it under New York law. The court papers charge
that, despite claims it had a board of directors and other significant financial
and scientific controls, the two-decade-old organization was largely a one-
man operation, run by founder Zvi Shor, 64, out of the basement of his
Brooklyn home. NCLF’s president and vice president are alleged to have
breached their duties to the organization and to have aided and abetted Shor
in running the organization; the auditor is accused of making false filings.
http://www.ag.ny.gov/press-release/ag-schneiderman-sues-
children%E2%80%99s-leukemia-charity-deceiving-donors-and-using-vast
27
NEW YORK CONT’D
July 15, 2015
A.G. Schneiderman And U.S. Department Of Labor Announce Criminal
Charges Against, And Civil Settlement With, Papa John’s Franchisee For
Wage Theft
Papa John’s Franchisee Arrested For Allegedly Failing To Pay Workers
Minimum Wage And Overtime; As Part Of Scheme, Franchisee Allegedly
Required Workers To Use Fake Names As Part Of A Scheme To Cover Up His
Criminal Conduct
A.G.’s Criminal Charges Seek To Recoup $230,000 In Back Wages For
Workers, And U.S. Department of Labor’s Civil Settlement Recovers An
Additional $230,000 In Damages And $50,000 In Civil Monetary Penalties
Attorney General Eric T. Schneiderman and Administrator for the U.S.
Department of Labor’s Wage and Hour Division Dr. David Weil today
announced charges against Abdul Jamil Khokhar and BMY Foods, Inc.,
which together owned and operated nine Papa John’s franchises throughout
the Bronx. According to court documents, the owner and company allegedly
failed to pay minimum wage and overtime to approximately 300 current and
former employees, created fictitious identities to conceal overtime worked by
employees, and filed fraudulent quarterly tax returns with New York State in
order to cover up their alleged wage theft.
Charges filed by the Attorney General’s Office seek jail time and $230,000 in
back wages to Khokar’s current and former employees. Administrator Weil
announced the filing of a consent judgment whereby Khokhar would pay an
additional $230,000 in liquidated damages to employees and $50,000 in civil
monetary penalties.
http://www.ag.ny.gov/press-release/ag-schneiderman-and-us-department-
labor-announce-criminal-charges-against-and-civil
28
NEW YORK CONT’D
July 14, 2015
A.G. Schneiderman Announces $32,500 Settlement With White Plains
Auto Dealer Over Deceptive Advertising Practices
Settlement Ensures That Consumers Won't Be Lured To Dealership By
Misleading Sale Prices
Attorney General Eric T. Schneiderman today announced that his office
reached a settlement with Hyundai of White Plains LLC, d/b/a Hyundai of
White Plains. An investigation by the Attorney General’s Office found that the
auto dealer used deceptive and misleading advertising practices in both its
print and online ads. Among its deceptive practices, the dealership widely
promoted sale and lease prices that were illusory because they included
discounts or rebates that were not available to most consumers, and thus,
did not represent the actual sale or lease prices. The dealership has agreed to
reform its advertising practices and will pay $32,500 in costs and penalties to
New York State.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-32500-
settlement-white-plains-auto-dealer-over-deceptive
July 14, 2015
A.G. Schneiderman Announces Settlement With Atlantic Auto Group
Over Misleading Advertising And Sales Practices Across 22 Dealerships
On Long Island
Promotional Materials Misled Consumers Into Believing They Won Prizes, Staff
Deceived Customers Over Pricing
Attorney General Eric T. Schneiderman today announced a settlement
requiring 22 auto dealerships in Nassau and Suffolk Counties to pay
$310,000 in restitution and penalties to resolve false advertising claims. The
dealerships, all affiliated with Atlantic Automotive Group based in West Islip,
persistently defrauded consumers with misleading promotions and fraudulent
sales tactics. In total, the Attorney General’s Nassau and Suffolk Regional
Offices received more than 250 complaints regarding the dealerships and
their advertising and sales practices.
29
NEW YORK CONT’D
Atlantic Automotive Group caused advertisements to be mailed to thousands
of Nassau and Suffolk County consumers, with approximately 500,000
promotional items in total distributed by direct mail. The advertisements
contained a scratch off game card, a pull tab game card, or a “Triple
Diamond” game card where consumers could win a cash prize, a free vehicle,
a flat-screen television or an Apple iPad. A winning ticket contained 3 like
symbols but it did not explain what, if anything, the consumer won. Instead,
consumers were instructed to bring the game card to the dealership during
event times in order to claim their prize.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
settlement-atlantic-auto-group-over-misleading-advertising
July 9, 2015
A.G. Schneiderman Announces Contractor Will Pay $76k For Failing To
Pay Wages To Workers On Construction Projects In Manhattan And
Brooklyn
Contractor Failed To Pay 21 Workers Any Wages For Several Weeks of
Work
Attorney General Eric T. Schneiderman today announced the resolution of an
investigation into non-payment of wages by Stonehenge Restoration Inc.
(“Stonehenge”) and its owners and managers, Sulajman Koci and Witold
Matejkowski, on constructions projects located in Manhattan and
Brooklyn. The Attorney General’s agreement requires Stonehenge to pay
back wages and liquidated damages totaling $76,429.81.
Between January 2014 and March 2015, Stonehenge failed to pay any wages
to 21 workers for construction work performed at private job sites in Brooklyn
and Manhattan. The workers were not paid for periods of work ranging from 2
to 6 weeks. While two employees are owed approximately $6,000.00, the
majority of the workers are owed between $2,500.00 and $4,000.0 in unpaid
wages. In addition to paying restitution, Stonehenge must designate an
internal monitor and submit compliance reports to the Attorney General’s
Office.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
contractor-will-pay-76k-failing-pay-wages-workers
30
NEW YORK CONT’D
July 8, 2015
A.G. Schneiderman Announces $550k Settlement Agreement To Shutter
Debt Collection Company
Med-Rev Recoveries, Inc. Repeatedly Violated Debt Collection and Consumer
Protection Laws
Attorney General Eric T. Schneiderman today announced that a court order
has been obtained against Med-Rev Recoveries, a consumer debt collection
agency formerly located in Liverpool, NY, permanently barring it from
operating as a debt collector and requiring payment of $550,000 for
consumer restitution, civil penalties and costs. Med-Rev’s sole owner, John
St. Denis, and its former President, Jamie Fortino signed a stipulation
agreeing to the terms.
The Attorney General’s Office and the Better Business Bureau received
dozens of complaints from consumers alleging verbal harassment by Med-Rev
collectors and their refusal to provide consumers with account balance or
verification of the debts it was attempting to collect. In addition, consumers
and medical providers complained that Med-Rev was not timely remitting
consumers’ payments to the creditors. Some consumers learned their
payments had not been credited to their past-due accounts when they sought
medical, dental and/or veterinary care and were denied treatment due to
unpaid debt.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-550k-
settlement-agreement-shutter-debt-collection-company
31
NEW YORK CONT’D
July 2, 2015
A.G. Schneiderman Announces $500k Settlement With Per Se
Restaurant For Keeping Tips
Per Se Must Pay $500,000 In Restitution To Workers
Attorney General Eric T. Schneiderman announced that his office has
reached a settlement with Per Se, a Manhattan fine-dining establishment, for
failing to pay its waitstaff a 20% surcharge designated as a “service charge” in
its contracts with customers for private dining and banquet services from
January 2011 through September 2012.
The Attorney General’s investigation revealed that during this period, Per Se
charged its private dining customers an additional 20% for service and listed
the 20% service charge on its receipts and printed materials. In addition, Per
Se also informed certain customers who inquired that the 20% charge was
equivalent to a gratuity. For example, in response to one email inquiry, Per
Se replied, “[K]indly note that service/gratuity is certainly included in the
pricing.”
Instead of directing it to the workers, Per Se used the service charges for its
restaurant operations. The law requires Per Se to distribute the charges as
gratuities to its employees, and this requirement applies even for employees
paid above the minimum wage.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-500k-
settlement-se-restaurant-keeping-tips
NORTH CAROLINA
July 28, 2015
Attorney General Roy Cooper Announces Mortgage Broker Banned,
Ordered To Repay Consumers
Carolina Mortgage Group, owner ordered to pay $110,940 for failing to
refinance mortgages
A mortgage broker that took money upfront to refinance mortgages but failed
to deliver is permanently banned from the business and under court order to
pay refunds and penalties, Attorney General Roy Cooper announced today.
32
At Cooper’s request, Superior Court Judge James Roberson ordered
defendants Carolina Mortgage Group, Inc. and Jeffrey D. Cox to cancel all
contracts and turn over all property to consumers. Thedefault
judgment issued by the court also permanently bans the defendants from
working in the mortgage business in North Carolina, Cooper said.
The court ordered Cox and Carolina Mortgage Group to pay $20,940 in
consumer refunds $90,000 in civil penalties for their unfair and deceptive
business practices. This is in addition to $46,145 in consumer refunds and
$90,345 in penalties Cox and his company were ordered to pay previously by
the N.C. Commissioner of Banks, who revoked Cox’s license as a mortgage
loan operator and Carolina Mortgage Group’s mortgage broker license on
August 15, 2014.
http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-
Advisories/Press-Releases/Mortgage-broker-banned,-ordered-to-repay-
consumers.aspx
July 6, 2015
Attorney General Cooper, Ritz-Carlton and Ciaa Reach Agreement Over
Service Charge
Ritz to pay refunds to consumers who paid extra charge, donate $75,000 for
CIAA scholarships
The Ritz-Carlton will pay refunds to consumers, fund college scholarships
and clearly notify customers about any future special service fees under an
agreement announced today between the Ritz, the Central Intercollegiate
Athletic Association and the Office of Attorney General Roy Cooper.
Consumers who visited the Lobby Lounge at the Ritz in Charlotte during the
CIAA Basketball Tournament in late February, 2015 complained that an extra
service charge was unexpectedly added to their bills. Following complaints
from consumers, the Attorney General’s Consumer Protection Division
launched an investigation into the charge.
http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-
Advisories/Press-Releases/AG-Cooper,-Ritz-Carlton-and-CIAA-reach-
33
agreement-o.aspx
OHIO
July 24, 2015
Attorney General DeWine Seeks Reimbursement from Used Car
Dealership Accused of Failing to Deliver Titles
Ohio Attorney General Mike DeWine today announced a lawsuit against a
Middletown used car dealership accused of failing to deliver titles to vehicles
it sold to consumers.
The lawsuit, filed in the Butler County Common Pleas Court, accuses Dixie
Cars Concepts and its owner Ali El Azzouzi of violating state law. It also seeks
reimbursement for consumers and a state fund that helps consumers resolve
title problems.
Dixie Cars Concepts last operated at 2701 Dixie Highway in Hamilton. It
currently is closed.
Since 2013, the Ohio Attorney General’s Consumer Protection Section has
received 20 complaints against the dealership. Most involved title problems.
http://www.ohioattorneygeneral.gov/Media/News-Releases/July-
2015/Attorney-General-DeWine-Seeks-Reimbursement-from-U
OKLAHOMA
July 15, 2015
Attorney General Scott Pruitt Charges Woman Who Faked Cancer
Diagnosis to Solicit Donations
Attorney General Scott Pruitt on Wednesday filed charges against a Shawnee
woman who obtained funds by falsely claiming a cancer diagnosis she did not
really have.
Jennifer L. Garrison, 40, allegedly claimed to have terminal stomach cancer
with only three months to live. Garrison posted information to Facebook
about a surgery to remove a tumor and part of her stomach. Garrison also
claimed she shaved her head because chemotherapy was causing her hair to
34
fall out. Groups collected money for Garrison’s treatments and a vacation for
Garrison and her young son.
Some who knew of Garrison’s claims grew skeptical when learning Garrison
began driving a new truck while not working for the past year. Garrison also
claimed to have donated her hair to Locks of Love; however the organization
would not accept a donation of hair which had undergone chemotherapy.
During the same time Garrison claimed to have cancer, she posted pictures of
herself taking part in manual labor while volunteering following the May 2013
Shawnee tornado.
http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258
&article_id=16191
PENNSYLVANIA
July 30, 2015
Attorney General Kathleen Kane Announces Results of Used Car Lot
Investigations
Attorney General Kathleen G. Kane today announced four legal settlements
and a subpoena enforcement action filed as the result of two separate
investigations of used car lots that were violating state automobile sales
licensure laws, advertising requirements and sales regulations.
The settlements were reached in the form of assurances of voluntary
compliance (AVCs) and were the result of work done by a statewide task force
comprised of agents and attorneys from the Office of Attorney General's
Bureau of Consumer Protection. Through July 9, the Bureau had visited 109
dealerships lots or locations statewide and reviewed more than 3,250
automobile advertisements.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pre
ss_Release/?pid=2002
35
PENNSYLVANIA CONT’D
July 23, 2015
Attorney General Kane Announces Lawsuit against Philadelphia
Furniture Store and Its Owners
Attorney General Kathleen G. Kane today announced her office has filed a
lawsuit against several business entities which operated a Philadelphia
furniture store commonly known by the name “Furniture Sir-Plus.”
The lawsuit, filed by the Office of Attorney General's Bureau of Consumer
Protection, also named individuals Charles Lederman, Mark Finkelstein and
Daniel Roberts as defendants. Additionally, Attorney General Kane’s Bureau
of Consumer Protection filed a motion for preliminary injunction, accounting
and asset freeze. The motion seeks to prevent the defendants from accepting
further payments or selling furniture that belongs to certain consumers.
The lawsuit alleges the business entities and individuals failed to deliver
furniture after accepting payments from certain consumers. They also failed
to provide refunds to certain consumers when furniture was not delivered as
agreed upon, the lawsuit states.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pre
ss_Release/?pid=1994
July 20, 2015
Attorney General Kathleen G. Kane Announces $18K Paid Back To
Consumers After Investigation Of Somerset County Company That Sold
Burial Monuments
Attorney General Kathleen G. Kane today announced her office has entered a
settlement agreement with the former operators of a Somerset County
company accused of failing to deliver burial monuments and memorials after
accepting advance payments from consumers.
The settlement was reached with Fred E. Lichty and Roger P. Lichty, who did
business under the company name Cook and Lintz, after an investigation by
the Office of Attorney General's Bureau of Consumer Protection.
36
PENNSYLVANIA CONT’D
In connection with the investigation, the operators issued more than $18,000
in refunds to Pennsylvania consumers. Other customers who allege they were
affected by the company's business practices must submit complaints by
Aug. 4 to the Office of Attorney General to be eligible for refunds.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pre
ss_Release/?pid=1980
July 13, 2015
Attorney General Kane announces $35,000 settlement with two
Philadelphia loan modification companies
Attorney General Kathleen G. Kane today announced a legal action, in the
form of an assurance of voluntary compliance (AVC), against two
Philadelphia-based mortgage loan modification companies that will provide
$30,000 in restitution for consumers.
The AVC was reached with Liberty Financial Consultants, Inc. and Doc Prep
Solutions, LLC as the result of an investigation by the Office of Attorney
General's Bureau of Consumer Protection.
The AVC alleges the companies made a number of misleading representations
throughout their websites. For example, Liberty Financial Consultants
advertised for a "forensic loan audit," among other services.
The company allegedly stated the audit could expose mistakes and
unscrupulous lending practices that may assist the borrower in negotiating
efforts to obtain mortgage payment relief or loan modifications. Liberty
Financial Consultants claimed to use the audit results to apply for mortgage
relief with consumers' lenders, the AVC states.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pre
ss_Release/?pid=2147483659
37
PENNSYLVANIA CONT’D
July 9, 2015
Attorney General Kathleen G. Kane Legal Action Against Blair County
Home Improvement Contractor
Attorney General Kathleen G. Kane today announced the filing of a legal
action against a Blair County home improvement contractor accused of
working without a registration, failing to disclose information about his past
and failing to complete services for which he was paid.
The legal action against David M. Rogalski, who did business under the
company name Rogalski Construction, was filed in the Blair County Court of
Common Pleas by the Office of Attorney General's Bureau of Consumer
Protection.
It alleges that Rogalski on multiple occasions violated the Home Improvement
Consumer Protection Act (HICPA) and the Unfair Trade Practices and
Consumer Protection Law. For example, Rogalski allegedly continued working
as a home improvement contractor after his mandatory HICPA registration
lapsed.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pre
ss_Release/?pid=1943
July 1, 2015
Attorney General Kane Announces Legal Action against Golden Living
Nursing Homes
Attorney General Kathleen G. Kane today announced her office has filed a
legal action against a chain of nursing home companies accused of
misleading consumers by failing to provide basic services to elderly and
vulnerable residents.
The legal action was filed today by the Office of Attorney General's Health
Care Section against Golden Gate National Senior Care LLC, which manages
and operates 36 facilities statewide. Its subsidiaries are commonly known as
Golden LivingCenters, of which there are 14 named in the legal action.
38
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pre
ss_Release/?pid=1936
SOUTH DAKOTA
July 23, 2015
Attorney General Marty Jackley Announces Oklahoma Man Arrested for
Deceptive Trade Practices Violations
Attorney General Marty Jackley announced today that Willie Buck Stanley
Jr., 43, Spiro, Oklahoma was indicted yesterday on 1 count each of failure to
inform buyer of their right to cancel and failure to furnish cancellation form,
class 6 felonies, punishable by up to 2 years in the penitentiary and/or
$4,000 fine.
http://atg.sd.gov/News/NewsReleases/NewsReleasesView/tabid/441/itemID
/3661/moduleID/597/Default.aspx
VERMONT
July 10, 2015
Attorney General William H. Sorrell Announces $1.25 Million Settlement
Reached With Bank of America Over Foreclosure Settlement Practices
Vermont Attorney General William H. Sorrell announced today that Bank of
America will pay the State $1.25 million to resolve the State’s claim that the
bank failed to honor the terms of settlement agreements it entered into with
homeowners in foreclosure actions.
http://ago.vermont.gov/focus/news/attorney-general-reaches-$1.25-million-
settlement-with-bank-of-america-over-foreclosure-settlement-practices.php
39
VIRGINIA
July 21, 2015
Attorney General Herring Sues Fredericksburg Pawnshop For Illegal
Loans
~ B & B Pawnbrokers allegedly engaged in predatory lending practices; AG
Herring seeks consumer restitution ~
Attorney General Mark R. Herring today filed a lawsuit against
Fredericksburg-based B&B Pawnbrokers, Inc., for making illegal, unlicensed
motor vehicle title loans, and for charging excessive fees in connection with
the company's pawnbroker loans. This is part of Attorney General Herring's
revitalization of his consumer protection division and commitment to combat
predatory lending.
The lawsuit was filed today in Richmond City Circuit Court. Attorney General
Herring is seeking restitution on behalf of consumers, civil penalties,
attorneys' fees, and asking the court to ban B&B from further violating the
motor vehicle title loan statutes, the pawnbroker statutes, the state's
consumer finance statutes, and the Virginia Consumer Protection Act. The
Commonwealth is represented in this matter by Assistant Attorney General
Mark Kubiak, and by Senior Assistant Attorney General David Irvin.
http://www.oag.state.va.us/index.php/media-center/news-releases/586-
july-21-2015-attorney-general-herring-sues-fredericksburg-pawnshop-for-
illegal-loans
WASHINGTON
Jul 27 2015
Attorney General Bob Ferguson Makes Crowdfunded Company Pay For
Shady Deal
Restitution for Washington backers, civil penalties
Attorney General Bob Ferguson today announced the successful conclusion
of the first enforcement action in the nation against a crowdfunded project
that didn’t follow through on its promise to backers.
King County Superior Court Commissioner Henry Judson ordered Edward J.
Polchlopek III, otherwise known as Ed Nash, and his company, Altius
40
WSHINGTON CONT’D
Management, to pay $54,851 as a result of the 2012 “Asylum Playing Cards”
Kickstarter campaign.
The court ordered a total of $668 in restitution for the 31 Washington state
backers, $31,000 in civil penalties for violating the state Consumer Protection
Act ($1,000 per violation), and $23,183 to cover the costs and fees involved in
bringing the case.
http://www.atg.wa.gov/news/news-releases/ag-makes-crowdfunded-
company-pay-shady-deal
Jul 17 2015
Attorney General Bob Ferguson Stops Deceptive Practices Targeting
Elderly Military Veterans
Washington State Attorney General Bob Ferguson has stopped the deceptive
business practices used by Lynnwood, Wash. company Emerald Capital
Preservation, Inc. (ECP) and its owner Donald Smith, who failed to disclose a
financial conflict of interest to veteran clients and charged unreasonable fees
for basic services. The enforcement action announced today includes $26,564
in restitution to 35 victims.
ECP provided elder care planning and information about qualifying for Aid &
Attendance, a benefit administered by the federal Veterans Administration
(VA). ECP solicited customers by providing presentations at local assisted
living facilities and other organizations such as Rotary clubs. During these
presentations, ECP focused on recruiting veteran clients by providing estate-
planning advice and discussed ways individuals could avoid the legal process
of administering their estate, also known as probate.
However, ECP never disclosed to attendees that it was not affiliated with or
otherwise endorsed by the VA or the Washington State Department of
Veterans Affairs, in violation of the state’s Pension Poacher Prevention Act.
ECP’s clients included Washington veterans, many of whom ECP referred to
local attorneys to draft living trusts and special house trusts. Establishing
these trusts was done in order to reduce the veterans’ incomes so they could
qualify for Aid & Attendance.
http://www.atg.wa.gov/news/news-releases/ag-stops-deceptive-practices-
targeting-elderly-military-veterans
41
MULTISTATE CASES AND SETTLEMENTS
Jul 8 2015
CFPB, 47 States and D.C. Take Action Against JPMorgan Chase for Selling Bad Credit Card Debt and Robo-Signing Court Documents
Chase Ordered to Overhaul Debt Sales and Halt Collections on 528,000 Consumers’ Accounts Today the Consumer Financial Protection Bureau and Attorneys General in 47 states and the District of Columbia took action against JPMorgan Chase
for selling bad credit card debt and illegally robo-signing court documents. The CFPB and states found that Chase sold “zombie debts” to third-party debt buyers, which include accounts that were inaccurate, settled, discharged
in bankruptcy, not owed, or otherwise not collectible. The order requires Chase to document and confirm debts before selling them to debt buyers or
filing collections lawsuits. Chase must also prohibit debt buyers from reselling debt and is barred from selling certain debts. Chase is ordered to permanently stop all attempts to collect, enforce in court, or sell more than
528,000 consumers’ accounts. Chase will pay at least $50 million in consumer refunds, $136 million in penalties and payments to the CFPB and
states, and a $30 million penalty to the Office of the Comptroller of the Currency (OCC) in a related action. http://www.consumerfinance.gov/newsroom/cfpb-47-states-and-d-c-take-
action-against-jpmorgan-chase-for-selling-bad-credit-card-debt-and-robo-signing-court-documents/
42
MEDICAID FRAUD CASES AND SETTLEMENTS
ALABAMA
July 24, 2015
Attorney General Luther Strange Announces Indictment of Owner of
Jefferson County Counseling Service For Medicaid Fraud
Attorney General Luther Strange announced the arrest of Victor Paul
Williams, 57, of Leeds, for filing false claims with the Alabama Medicaid
Agency and theft of property in the first degree. Williams surrendered at the
Montgomery County Detention Facility yesterday and was released on a
$10,000 bond.
The Attorney General’s Medicaid Fraud Control Unit presented evidence to a
Montgomery County grand jury resulting in an indictment* dated July 17
charging Williams with filing numerous false claims to the Alabama Medicaid
Agency totaling over $40,000. It is alleged that Williams perpetrated a
scheme to bill the Alabama Medicaid Agency for counseling services that were
never provided and then attempted to conceal the fraud by manipulating
treatment records. Williams had several contractors providing the actual
services; however, he was billing for far more services than these individuals
were actually performing. When confronted, Williams attempted to
manufacture paperwork to support the billings.
http://www.ago.state.al.us/News-680
July 24, 2015
Attorney General Luther Strange Announces Indictment Of Coffee
County Counselor For Submitting False Claims to Medicaid
Attorney General Luther Strange announced the arrest of Gwendolyn Lajonda
Robinson, 36, of Enterprise, for filing false claims with the Alabama Medicaid
Agency and theft of property in the first degree. Robinson surrendered at the
Montgomery County Detention Facility today and was released on a $10,000
bond.
The Attorney General’s Medicaid Fraud Control Unit presented evidence to a
Montgomery County grand jury resulting in an indictment* dated July 17
charging Robinson with causing numerous false claims to be filed with the
43
Alabama Medicaid Agency. The fraudulent claims caused more than $40,000
to be paid for services never rendered. It is alleged that Robinson, who was
working for Turning Point Counseling as associated licensed counselor,
submitted falsified records in order to be compensated. The owners of
Turning Point in turn billed the Alabama Medicaid Agency. Robinson
fabricated treatment records in order to cover her fraud, sometimes placing
herself in two or three places at once. Management from Turning Point was
unaware of the scheme and cooperated fully with the investigation.
http://www.ago.state.al.us/News-683
ALASKA
July 29, 2015
Attorney General Craig W. Richards Announces Anchorage Doctor
Sentenced to 3 ½ years for Fraudulently Billing Medicaid and Tampering
with Physical Evidence
The Alaska Department of Law, Medicaid Fraud Control Unit, announced
today that 40-year-old Dr. Shubhranjan Ghosh was sentenced to 3 ½ years of
active incarceration. Dr. Ghosh pled guilty to Medical Assistance Fraud and
Tampering With Physical Evidence, which he committed between 2010 and
2013 at his practice, Ghosh Psychiatric Services.
Judge Philip Volland also ordered Dr. Ghosh to repay $605,000 in restitution
to Medicaid. After release, Dr. Ghosh will be on probation for 10 years, and
there will be 3 ½ years jail time that the Court could impose if he violates
probation. Dr. Ghosh was remanded to custody at sentencing today. The
Medical Board will decide the future of Dr. Ghosh’s medical license.
http://law.alaska.gov/department/ag.html
44
ARKANSAS
July 30, 2015
Attorney General Leslie Rutledge Announces Medicaid Fraud
Convictions
Arkansas Attorney General Leslie Rutledge today announced the convictions
of a Jefferson County woman and a Mississippi County woman for Medicaid
fraud. The two women pleaded guilty in unrelated cases in the Pulaski
County Courts. Each will serve a period of probation and pay restitution to
the Arkansas Medicaid Program and fines totaling over $7,000. Additionally,
the Medicaid fraud convictions will be reported to federal authorities and may
result in the defendants being excluded from participation as providers in the
Medicaid and Medicare program for a period of up to 10 years.
http://arkansasag.gov/news-and-consumer-alerts/details/attorney-general-
announces-medicaid-fraud-convictions
July 23, 2015
Attorney General Leslie Rutledge Announces Arrest of Licensed
Professional Counselor for Fraudulently Billing Medicaid
Arkansas Attorney General Leslie Rutledge today announced the arrest of Al
Greggory Dodds, LPC, of Camden, by the Attorney General’s Medicaid Fraud
Control Unit on one charge of Medicaid Fraud, a Class B felony. Dodds, 55,
was arrested in Little Rock.
On July 21, 2015, the Medicaid Fraud Control Unit served a search warrant
on Dodds’ office in Camden, and he admitted to purposely billing the
Arkansas Medicaid Program in a fraudulent manner for the last six months
and estimated his own fraudulent billings to be between $70,000 and
$80,000.
http://arkansasag.gov/news-and-consumer-alerts/details/rutledge-
announces-arrest-of-licensed-professional-counselor-for-medicaid-f
45
ARKANSAS CONT’D
July 01, 2015
Attorney General Leslie Rutledge Announces Arrest of Chicot County
Woman for Submitting False Claims to Medicaid
Arkansas Attorney General Leslie Rutledge today announced the arrest of
Tabitha Woods of Dermott by the Attorney General’s Medicaid Fraud Control
Unit on one charge of Medicaid Fraud, a Class B felony.
Woods, 43, was arrested in Dermott. She is accused of billing Medicaid for
providing services for her mother while she was clocked in and working as a
contract employee at the Arkansas Department of Correction Delta Regional
Unit. Woods also billed Medicaid while her mother was admitted to a long-
term care facility. Woods was transported to the Pulaski County Jail where
bond was set at $250,000.
Medicaid fraud occurs when Medicaid providers use the Medicaid program to
obtain money to which they are not entitled. Woods is awaiting trial.
http://arkansasag.gov/news-and-consumer-alerts/details/rutledge-
announces-arrest-of-chicot-county-woman-for-medicaid-fraud
CONNECTICUT
July 10, 2015
Attorney General George Jepsen: State Reaches False Claims Act
Settlement with Providers at Children's Behavioral Health Clinic
A social worker and a doctor will pay a total of $120,000 to Connecticut's
Medical Assistance Program (CMAP) through settlement agreements that
resolve civil allegations involving the filing of false and fraudulent claims for
payments at a Branford-based outpatient behavioral health clinic for
children, Attorney General George Jepsen said today.
The state alleged that David M. Meyers, a licensed clinical social worker and
former president of Cornerstones P.C., located in Branford, hired Dr. W.
Blake Taggart to be the medical director of Cornerstones through an
independent contractor agreement. Cornerstones' provider agreement with
46
the state Department of Social Services (DSS) for participation in CMAP –
which is the state's Medicaid program – required that the clinic comply with
all applicable regulations. The state Department of Children and Families
(DCF), which licenses and regulates outpatient psychiatric clinics for
children, required Cornerstones to have a medical director. As part of Meyers'
effort to maintain his clinic's enrollment in the CMAP beginning in January
2010, the DSS required an updated letter representing that Cornerstones
continued to have a medical director overseeing care.
http://www.ct.gov/ag/cwp/view.asp?Q=568122&A=2341
DELAWARE
July 10, 2015
Attorney General Matt Denn Announces Social Worker Arrested for
Medicaid Fraud; Counselor billed Medicaid for fictitious office visits
Pamela Davis, 51, of Bear, a self-employed Licensed Clinical Social Worker
operating PD Counseling Services out of several locations in New Castle
County, was arrested July 8, 2015, for health care fraud, theft of more than
$1,500, and falsifying business records.
Davis contracted with Delaware Medicaid and Medical Assistance and
Delaware Physicians Care, Inc. to provide social work services to Delaware
Medicaid recipients. As part of their normal course of business, Delaware
Physicians Care, Inc. sent out verification letters to validate services rendered
and accurate billing practices. In 2013, Delaware Physicians Care, Inc.
received responses from several of Davis’ clients, advising they had not seen
Pamela Davis for services rendered or paid on the dates in question.
http://news.delaware.gov/2015/07/10/social-worker-arrested-for-medicaid-
fraud/
47
FLORIDA
July 17, 2015
Attorney General Pam Bondi Announces Escambia County Caregiver
Arrested Again for Medicaid Fraud
Attorney General Pam Bondi’s Medicaid Fraud Control Unit, with the
assistance of the Escambia County Sheriff’s Office, today arrested Gloria
Michal’le Hardaway, 25, for allegedly defrauding the Florida Medicaid
program out of more than $5,500. According to the investigation, Hardaway,
a caregiver working in Escambia County, failed to report to her employer that
she had previously been arrested for Medicaid fraud, making her ineligible to
work in the health care field or submit reports for Medicaid billings.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/97CBAA1CEB16B
14E85257E8500549C1C
July 15, 2015
Attorney General Pam Bondi Announces Pasco Doctor and Office Manager Arrested for Billing Medicaid More Than $100,000 for Services
not Rendered
Attorney General Pam Bondi’s Medicaid Fraud Control Unit and the University of South Florida Police Department and Pasco County Sheriff’s Office today arrested a Pasco County physician and his office manager for
defrauding the Florida Medicaid program out of more than $100,000. After receiving a complaint from the Division of Insurance Fraud and Amerigroup
Health Plan, the Medicaid Fraud Control Unit began an investigation revealing that Dr. Daniel Jiannetto and Michelle McKleroy, his office manager and ex-wife, allegedly billed for medical services that were never rendered.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/4FA41380B346B0
6B85257E8300472E14
48
FLORIDA CONT’D
July 6, 2015
Attorney General Pam Bondi Announces Orange County Woman
Sentenced to 18 months for Fraudulently Billing Medicaid
Attorney General Pam Bondi today announced the prosecution of Shanqual
Marshall-Gunn for billing more than $47,000 worth of targeted case
management services that were fraudulent or not authorized to the Medicaid
program. Marshall-Gunn, the owner of Second Chances TCM, Inc., paid
monetary incentives, or kickbacks, to both employees and clients who
referred new business to her company.
The Honorable Jenifer M. Davis, Circuit Judge of the 9th Judicial Circuit,
sentenced Shanqual Marshall-Gunn to 18 months in prison, five years of
supervised probation, no future employment by any Medicaid provider and
more than $47,000 in restitution. The investigation was conducted by the
Attorney General’s Medicaid Fraud Control Unit and prosecuted by the
Attorney General’s Office of Statewide Prosecution.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/FB0D449F53E3D
30C85257E7A006911C5
HAWAII
July 15, 2015
Attorney General Doug Chin Announces State Wins Over $7 Million
Award From Liberty Dialysis For Overpayments And Files False Claims
Lawsuit
On Friday, July 10, 2015 the State of Hawaii won an order declaring that
Liberty Dialysis (“Liberty”) owes over $7 million in funds that Liberty was
overpaid for treatments given to Medicaid patients between 2006 and 2010.
The State sued Liberty yesterday for false claims, alleging that Liberty
deliberately submitted claims it knew would result in overpayments.
Original overpayments to Liberty were due to a computer error in the state
department of human services claims processing system resulting in
overpayments for claims Liberty submitted for the drug Epogen during
49
dialysis treatments. Last Friday’s administrative decision concluded the
outstanding balance Liberty must reimburse is $7,032,108.73
http://ag.hawaii.gov/wp-content/uploads/2015/01/News-Release-2015-
29.pdf
July 8, 2015
Attorney General Doug Chin Sues Dentist For Alleged Fraudulent Claims For Treatment And Services
The State Attorney General filed a fraudulent claims lawsuit in state circuit court today, alleging that Dr. Bryant LaPorte and Edie LaPorte (the
“LaPortes”) filed false claims for treatment and services that were not actually provided to Medicaid beneficiaries. The complaint covers the period from 2007-2009 and also alleges that the LaPortes, who operate a dental clinic in
Honolulu, charged Medicaid patients additional funds beyond Medicaid’s reimbursement amounts, which would violate federal and state Medicaid
rules. The complaint stems from an audit of the LaPortes’ claims and billings of
Medicaid patients. According to the audit the LaPortes allegedly billed for services before they were completed or in some cases when services were
never provided, including times when the LaPortes billed for dentures for Medicaid patients, even when dentures were not delivered to these patients. http://ag.hawaii.gov/wp-content/uploads/2015/01/News-Release-2015-
26.pdf
IDAHO July 21, 2015
Attorney General Lawrence Wasden Announces Bovill Woman Sentenced
for Submitting False Claims to Medicaid
Bovill resident, Pamela Jean Lockman, has been sentenced on one count of
Provider Fraud, Attorney General Lawrence Wasden announced today.
Second District Judge John Stegner sentenced Lockman to one to five years
in prison. The court suspended the prison sentence and ordered her to serve
30 days in jail. She was placed on probation for three years and ordered to
reimburse the Idaho Department of Health and Welfare, $3,920 and
reimburse the Attorney General’s Office $232 for investigative costs.
http://www.ag.idaho.gov/media/newsReleases/2015/nr_07212015.html
50
KENTUCKY
July 23, 2015
Attorney General Conway Announces Indictment of Floyd County Clinic
Owner for Fraud and Theft
Attorney General Jack Conway and his Medicaid Fraud and Abuse Control
Unit announce the indictment of a Floyd County clinic owner, Debra Lafferty
Holiday of Prestonsburg Ky., on felony charges of Medicaid fraud and theft.
Ms. Holiday, 50, owns and operates All Family Health Care in Prestonsburg,
KY, which includes services to Medicaid patients. According to the
indictment, from September 11, 2008 through November 12, 2012, Holiday
engaged in various frauds and actions which caused fraudulent claims to be
submitted to Medicaid. She was indicted by a Floyd County grand jury
yesterday on three counts of Kentucky Medical Assistance Program Fraud
over $300, a Class D Felony, and one count of Theft by Unlawful Taking over
$10,000, a Class C Felony.
http://migration.kentucky.gov/Newsroom/ag/holidaymedfraud.htm
LOUISIANA
July 10, 2015
Attorney General “Buddy” Caldwell Announces Medicaid Fraud Control
Unit Jails Two Women in Separate Cases
Attorney General James D. “Buddy” Caldwell announced today that two
Louisiana women have been charged in separate Medicaid-related cases—one
for felony theft and the other for felony Medicaid fraud.
Karen Jones, 57, of 723 West Avenue, New Iberia, is accused of using a
Medicaid beneficiary’s debit card to make unauthorized ATM debits totaling
$5,087. Jones was arrested Tuesday by the Attorney General’s Medicaid
Fraud Control Unit investigators and charged with one count of felony theft.
She was booked into the Iberia Parish Prison.
https://www.ag.state.la.us/Article.aspx?articleID=1051&catID=5
51
LOUISIANA CONT’D
July 1, 2015
Attorney General “Buddy” Caldwell Announces Two Women Caught
Cheating Medicaid Program; illegally billing the Louisiana Medicaid
Program for health-care services that were not performed
Attorney General Buddy Caldwell announced today that two caregivers have
been arrested for Medicaid fraud after illegally billing the Louisiana Medicaid
Program for health-care services that were not performed.
Amy M. Mayes, 45, of 133 Prairie Road, Wisner, was charged with one count
of Medicaid fraud after submitting time sheets and service logs that
contained overlapping service hours which resulted in claims being
submitted to the Medicaid Program for services not rendered. As a result of
Mayes’ actions, the personal care agencies where she was employed billed
Medicaid for services not rendered and were paid $4,132 by the Medicaid
Program. She was arrested Tuesday by the Attorney General’s Medicaid
Fraud Control Unit investigators with assistance from the Franklin Parish
Sheriff’s Office and Wisner Police Department. Mayes was transported to the
East Baton Rouge Parish Prison for booking.
https://www.ag.state.la.us/Article.aspx?articleID=1042&catID=5
MARYLAND
July 21, 2015
Attorney General Frosh: Prime Contractor for Maryland Health Benefit
Exchange Web Site to Repay State $45 Million
State recoups majority of funds paid to vendor who helped build broken system
Attorney General Brian E. Frosh today announced that the prime contractor
hired to build Maryland's flawed health exchange web site will pay $45
million to avoid legal action over its performance.
Noridian Healthcare Solutions LLC has agreed to pay $20 million upfront,
and an additional $25 million in annual installments of $5 million over five
years. The payments represent a recovery of 61 percent of the total paid to
the company for the failed web site development and launch in 2013.
52
The agreement, which is subject to regulatory approvals, will lead to the
recovery of funds for both Maryland and the federal Centers for Medicare and
Medicaid Services, which provided significant funding to develop the
exchange.
http://www.oag.state.md.us/Press/2015/072115.html
MICHIGAN
July 7, 2015
Attorney General Bill Schuette Secures Second Conviction in Unlicensed
Doctor Case
Michigan Attorney General Bill Schuette announced today the conviction of
Dr. Timothy Whiteus, 61, of Oak Park, for orchestrating a health care fraud
scheme involving an unlicensed doctor. Whiteus marks the second conviction
involving this unlicensed doctor operation.
Case Background
Attorney General investigators from Schuette’s Health Care Fraud Division
determined that Whiteus hired out his home podiatry work to an unlicensed
individual, Golden Higgwe, 63, of Dearborn Heights.
Higgwe is a former podiatrist who had his license to practice podiatry revoked
in 2003 after a federal health care fraud conviction. This activity in 2003 also
led to Higgwe being excluded from participation in any government health
care program, such as Medicaid and Medicare for a period of 25 years.
Nevertheless, Whiteus billed government and private insurance for Higgwe’s
unlicensed work as if he had performed the work himself. Whiteus was never
present in the homes when Higgwe provided medical services to patients.
Higgwe would also present himself as a doctor when he treated patients in
their homes.
http://www.michigan.gov/ag/0,4534,7-164-46849_47203-358520--,00.html
53
MISSOURI
Jul 17, 2015
Attorney General Chris Koster Announces $13,000 Settlement with St.
Louis County Home-Care Provider
Attorney General Chris Koster announced today that he has reached a
settlement with Assisted Daily Living, LLC, of St. Louis County, and the
company's owner, Shirley Moore, for submitting false claims to MO
HealthNet, Missouri's Medicaid program. The agreement requires Moore and
her business to pay the state $13,529.
Koster said his Medicaid Fraud Control Unit conducted an investigation into
the billing practices of Assisted Daily Living, LLC. Koster contends from
November 2010 through August 2012, Assisted Daily Living submitted claims
to Medicaid for services that were not provided, either because the recipients
were found to be in the hospital, the attendant was working elsewhere, or the
services were allegedly provided by an ineligible attendant. Assisted Daily
Living denied the conduct.
https://www.ago.mo.gov/home/ag-koster-announces-13-000-settlement-
with-st.-louis-home-care-provider
NEVADA
July 23, 2015
Attorney General Laxalt Pursues Fraudulent Health Care Provider For
Failure To Maintain Adequate Records
Nevada Attorney General Adam Paul Laxalt announced that Jeremy Sean
Long, 40, of Las Vegas, was sentenced for submitting false Medicaid claims
for behavioral health services he failed to provide. Long entered a guilty plea
to one count of intentional failure to maintain adequate records, a gross
misdemeanor. The fraud was committed between June and August 2012.
Long provided behavioral health services through Serenity Mental Health, a
company that offers services such as substance abuse and rehabilitative
mental health services. These services included therapy and other
interventions designed to teach constructive cognitive and behavioral skills.
An investigation by the Attorney General’s Medicaid Fraud Control Unit
(MFCU) revealed that Long created and submitted fraudulent service
54
documentation to Serenity Mental Health for services that he failed to provide
to Medicaid recipients. The MFCU discovered that Long asserted he had
provided services to several Medicaid recipients while he was in fact outside
the state of Nevada. In his documentation, he also maintained that he had
provided services to a family of Medicaid recipients after the date the family
had moved out of the state to California.
http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Pursues_Fraudul
ent_Health_Care_Provider/
NEW YORK
July 29, 2015
A.G. Schneiderman Announces Sentencing Of Executive Director Of
Westchester Not-For-Profit Company To Jail For Stealing Medicaid
Funds From State Program For Seniors And The Disabled
Program Allowed Elderly And Disabled To Live At Home Rather Than In A
Nursing Home
Attorney General Eric T. Schneiderman today announced that Darlington
Odidika, 47, of Poughkeepsie, Executive Director of Systems and Abilities,
Inc., was sentenced today to 90 days in jail and five years’ probation, after
pleading guilty to Grand Larceny in the Fourth Degree, a felony, for
defrauding the Medicaid system of monies earmarked to allow the elderly and
infirm to live in the community, rather than in an institutional setting. The
corporation was also sentenced to pay a fine of $5,000 on its plea of guilty to
Grand Larceny in the Fourth Degree.
Odidika personally and on behalf of Systems and Abilities, Inc. admitted to
falsifying bids to agents of the New York State Department of Health Nursing
Home Transition and Diversion program, a Medicaid-funded program that
provides senior citizens and those suffering from physical disabilities an
alternative to institutional living. Through the program, Medicaid pays for
renovations to the homes of the elderly and disabled, such as wheelchair
accessibility ramps, widening of doorways and installation of grab bars, which
allow for individuals to remain in their homes rather than be transferred to a
nursing home or rehabilitation facility. Medicaid also pays for moving
expenses and basic home furnishings for individuals transitioning from a
nursing home or rehabilitation center back into their homes.
55
NEW YORK CONT’D
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
sentencing-executive-director-westchester-not-profit-company
July 20, 2015
A.G. Schneiderman Announces Prison Term Of Up To 21 Years For NYC
Medical Supply Company Operator In Medicaid Fraud Scheme
Humphrey Udeh, Owner Of Brooklyn-Based Advanced Medical Supply,
Convicted Of Illegally Billing Medicaid For Expensive Pediatric Nutritional
Formula; Judge Orders Udeh Pay $1.7 Million Fine
Attorney General Eric T. Schneiderman today announced the conviction and
sentencing of Humphrey Udeh, 43 of Baldwin, NY, for defrauding Medicaid of
over $1 million. Udeh billed the state for over three thousand units of a
highly-specialized and expensive liquid pediatric nutritional formula, when he
actually dispensed over-the-counter nutritional supplement formulas. New
York State Supreme Court Acting Justice John G. Ingram presided over
Udeh’s jury trial in Supreme Court, Kings County, and today sentenced Udeh,
who was convicted of grand larceny and other healthcare fraud-related
charges, to serve 7 to 21 years in state prison and pay a $1.7 million fine.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-prison-
term-21-years-nyc-medical-supply-company-operator
July 15, 2015
A.G. Schneiderman Announces Guilty Plea Of Nurse Who Bilked Medicaid
Out Of $30k
Sisteria Turner Billed Medicaid for Hundreds of Hours of Care for Disabled
Children Not Provided
Attorney General Eric T. Schneiderman today announced a guilty plea in the
case of Sisteria Turner, 34, a Licensed Practical Nurse from Rochester, for
stealing nearly $30,000 from the Medicaid program by billing for hundreds of
hours of care that she did not provide. The hours were billed during the
56
NEW YORK CONT’D
course of her work in providing private nursing services to disabled and
special needs children.
An investigation launched by Attorney General Schneiderman’s Medicaid
Fraud Control Unit and the Office of the Medicaid Fraud Inspector General
revealed that Sisteria Turner billed the Medicaid program repeatedly for work
she never performed. In one case, Turner provided services to a medically
fragile child for approximately one month in 2012 and then continued to bill
for regular care throughout 2013 and 2014. In that case alone, Turner
wrongfully obtained $26,630.35. In court today, Turner admitted that she
illegally obtained Medicaid funds by submitting false claims involving four
separate children.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-guilty-
plea-nurse-who-bilked-medicaid-out-30k
July 10, 2015
A.G. Schneiderman Announces $22.4 Million Settlement With NYC
Pharmacy For Improper Medicaid Billings For Injectable Pediatric Drug
Synagis
This Settlement With Walgreen-Owned Trinity HomeCare LLC Concludes
Second Investigation Against The Pharmacy And Results In $25 Million In
Combined Recoveries For Medicaid; Resolves Allegations Company Used
Improperly Obtained Information From Hospital Neonatal Units To Make
Misrepresentations To Families And Prescribers To Increase Synagis
Prescriptions
Federally Approved Synagis Settlement Marks $1 Billion In Medicaid
Recoveries For Attorney General Schneiderman’s Medicaid Fraud Control Unit
Attorney General Eric T. Schneiderman today announced a settlement that
returns $22.4 million to the state’s Medicaid program. The agreement reached
with the pharmacy Trinity Homecare LLC, primarily owned by Walgreen Co.,
began with a whistleblower claim of improper conduct and false Medicaid
billings by the company and led to an expanded investigation by the Attorney
General. The settlement relates to Synagis, an injectable drug for certain at-
risk premature infants. The drug can cost more than $2,000 per dose, with
57
NEW YORK CONT’D
some babies requiring additional vials based on their weight. The settlement
resolve claims of improper prescriptions and billings for patients in New York
City, Dutchess, Orange, Rockland, Sullivan, Westchester and Ulster counties,
and on Long Island, and allegations that Trinity lacked basic documentation
for Medicaid claims it submitted or proof it delivered Synagis.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-224-
million-settlement-nyc-pharmacy-improper-medicaid
July 6, 2015
A.G. Schneiderman Announces $400k Settlement With Westchester
Transportation Company For Failing To Provide Proper Documentation
For Medicaid Billings
4J’s Transportation, Inc. Failed To Produce Records To Establish That
Transportation Services To Medicaid Recipients Were Provided
Attorney General Eric T. Schneiderman announced a $400,000 settlement
with 4J’s Transportation, Inc., a Westchester transportation company which
billed Medicaid for services that were not supported by documentation. 4J’s
Transportation and its owner James Herring will repay Medicaid $316,991 for
unsupported billings, together with $84,072 in interest.
The investigation conducted by the Attorney General’s Medicaid Fraud
Control Unit revealed that from January 2005 through August 2011 Four J’s
Transportation billed Medicaid for services for which it could not provide
required records to establish that the services were in fact provided. To deter
Medicaid fraud, Medicaid requires its health care providers to document and
maintain records which establish the nature and extent of the services for
which they bill Medicaid.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-400k-
settlement-westchester-transportation-company-failing
58
OKLAHOMA
July 31, 2015
Attorney General Pruitt Charges Texas Woman with Medicaid Fraud,
Identity Theft
Attorney General Scott Pruitt on Friday announced charges against a Texas
woman for fraudulently billing the state’s Medicaid program for services that
were never provided.
Melody Lewis, 37, of Dallas, worked as a behavioral health rehabilitation
specialist providing therapy sessions through the Oklahoma Department of
Mental Health and Substance Abuse Services. Between October 2011 and
September 2014, Lewis worked for several behavioral health counseling
agencies in the Oklahoma City area.
An investigation by the Attorney General’s Medicaid Fraud Control Unit found
that Lewis was traveling outside the state, away from her clients while billing
for face-to-face services that never occurred.
http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258
&article_id=16437
July 21, 2015
Attorney General Pruitt Files Medicaid Fraud Charges Against Health
Care Provider
Attorney General Scott Pruitt announced Tuesday Medicaid fraud charges
against a Tulsa woman for billing for services that were never provided.
Mavis Floydneka Owens, 33, was employed through the Consumer Directed
Personal Assistance Services and Supports (CD-PASS) program as an in-
home health care provider for an elderly stroke victim. On November 1, 2013,
Owens was terminated by the patient and replaced by another individual.
However, she continued to electronically submit timesheets through the end
of December of that year as though she was still working. This resulted in a
loss of $2,623 in Medicaid costs.
Owens is charged with one count of Medicaid fraud and one count of
obtaining property by deception. If convicted, Owens could face up to three
59
OKLAHOMA CONT’D
years in prison and fines up to $10,000 for the first count, and up to 10 years
in prison and fines up to $5,000 for the second count.
http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258
&article_id=16226
July 17, 2015
Attorney General Pruitt Charges Rehab Specialist for Medicaid Fraud,
Identity Theft
Attorney General Scott Pruitt on Friday filed one felony count of
each Medicaid fraud and identity theft against an Oklahoma City behavioral
health specialist.
Timothy Nickalas Traylor, 35, of Oklahoma City, allegedly billed the
Oklahoma Health Care Authority for 56 phony sessions between October
2011 and October 2013 while working for Pennington Creek Lifehouse, LLC.
Traylor simultaneously worked for the Oklahoma City Fire Department during
this time, and allegedly caused Pennington Creek Lifehouse to submit
reimbursements to the OHCA for sessions with patients that never occurred
because he was on duty with the fire department.
http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258
&article_id=16199
60
VERMONT
July 30, 2015
Attorney General William Sorrell Announces Three Charged With
Participation In Medicaid Fraud Scheme
Gloria Relation, age 70, of Williamstown, Vermont, and Jamie LaFountain,
age 27, of East Montpelier, Vermont, were each arraigned on July 30, 2015,
in Vermont Superior Court for Washington County on one felony count of
Medicaid fraud. Additionally, Chris Relation, age 43, of Barre, Vermont, was
arraigned on one felony count each of Medicaid Fraud, False Pretenses, and
Identity Theft. The Court imposed conditions of release governing the parties’
conduct while the case is pending.
According to papers filed in court, Gloria Relation is accused of submitting
claims for payments in excess of $29,000 for providing care to a disabled
adult under the Developmental Services Medicaid waiver program, when, in
fact, she did not provide the care. It is alleged that the care was actually
provided by Chris Relation, who was excluded from providing care under the
Medicaid program and to whom payments were not authorized. According to
affidavits filed with the Court, Mr. Relation impersonated another individual
to health care providers and state inspectors in order to perpetrate the
scheme. Gloria Relation is alleged to have cashed the checks from ARIS
Solutions, the payroll processor for the Medicaid Program, for the fraudulent
services and provided the amounts in cash to Chris Relation.
http://ago.vermont.gov/focus/news/three-charged-with-participation-in-
medicaid-fraud-scheme.php
61
CONSUMER ADVOCACY
CALIFORNIA
July 28, 2015
Attorney General Kamala D. Harris Partners with U.S. Department of
Labor to Combat Wage Theft
Attorney General Kamala D. Harris and the U.S. Department of Labor’s Wage
and Hour Division (WHD) have signed a cooperative agreement to crack down
on employer wage theft and other illegal labor practices. The Memorandum of
Understanding signed by both agencies will facilitate the sharing of
information and enhance enforcement of labor violations.
The agreement will establish a collaborative partnership between the Attorney
General’s Office and the U.S. Department of Labor to coordinate enforcement
efforts. Specifically, the agreement will enhance both agencies’ ability to
investigate and prosecute cases of wage theft and other labor violations
through the exchange of investigative information and resources.
https://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-
partners-us-department-labor-combat-wage-theft
COLORADO
July 15, 2015
Attorney General Cynthia H. Coffman Unveils Military Consumers’ Top
Complaints Of 2014
Colorado is home to more than 400,000 veterans of our nation’s armed
forces. More than 50,000 active duty members are either from Colorado or
stationed here in Colorado. Unfortunately, scam artists frequently prey upon
service members and their families knowing that these members have limited
time and resources, especially during deployments, to seek redress when
harmed.
In recognition of Military Consumer Protection Day, the Colorado Attorney
General’s Office unveiled a list of the top military consumer complaints filed
this past year. In 2014, the Office received 418 reports of fraud from
consumers with a military affiliation.
62
The Top Five Types of Complaints Received From Military Consumers
1. Debt Collection Companies
2. Utility Complaints (cable, telecom and satellite)
3. Payday Lenders / Finance Companies
4. Mortgage Lenders and Loan Servicers
5. Automobile Dealers New and Used
http://www.coloradoattorneygeneral.gov/press/news/2015/07/15/colorado_
attorney_general_cynthia_h_coffman_unveils_military_consumers%E2%80%9
9_top_co
July 9, 2015
Attorney General Cynthia H. Coffman Warns Class Of 2015 About
Scholarship And Student Loan Scams
As young Coloradans begin the next stages of their education or their
professional life, they are often attractive targets for scams. In the interest of
alerting graduates and their loved ones to the increasingly-sophisticated
means criminals use to entice them, the Colorado Attorney General’s office
has compiled this list of the Top Five Tips from www.StopFraudColorado.gov
to help protect against unscrupulous scholarship offers and student loan
scams.
http://www.coloradoattorneygeneral.gov/press/news/2015/07/09/colorado_
attorney_general_cynthia_h_coffman_warns_class_2015_about_scholarship
July 6, 2015
Attorney General Cynthia H. Coffman Issues Alert To Consumers On
Threatening Twist To Grandparent Phone Scam
A popular telephone scam targeting older citizens has taken a threatening new twist. The grandparent scam is often perpetrated when an older adult is
called by someone pretending to be a grandchild or relative. The caller may claim they were arrested in a foreign country for drunk driving or were
involved in a car accident. They ask the potential victim to send money so
63
COLORADO CONT’D
they can return home safely and not to tell anyone so they don’t get into more
trouble.
Recent national reports have indicated that the callers are now demanding money to be sent immediately in order to free a kidnapped relative. The
callers are threatening physical harm to the relative if funds are not delivered. Victims are often ordered to stay on the phone until the ransom money is wired. The requested ransom payments range from $600 to more
than $1,900 and are often sent to a third party. Some reports have stated that even after the payment was made, the scammers claim it wasn’t received
and demanded additional funds.
http://www.coloradoattorneygeneral.gov/press/news/2015/07/06/colorado_attorney_general_cynthia_h_coffman_issues_alert_consumers_threatening
DELAWARE
July 6, 2015
Attorney General Matt Denn’s Department of Justice Consumer
Protection Unit Issues Consumer Alert
The Consumer Protection Unit of the Delaware Department of Justice is
warning Delawareans of a number of scams involving wire transfers and
prepaid debit cards.
The message is simple – don’t wire money to anyone who asks you to. Wiring
money is like sending cash. Once it’s gone, it’s gone. The same is true for
prepaid debit cards. Do not put money on a card at the request of anyone
who asks you to.
http://news.delaware.gov/2015/07/06/department-of-justice-consumer-
protection-unit-issues-consumer-alert/
64
DISTRICT OF COLUMBIA
July 28, 2015
Attorney General Karl A. Racine: U.S. Department of Justice Charges
Nigerian Nationals for Online Scams, Publishes Names and E-Mail
Addresses Used in Fraud
Attorney General Racine Encourages District Residents to Cooperate with
Investigation
Attorney General Karl A. Racine is encouraging District residents who believe
they might have been the victims of online fraud perpetrated by Nigerian
nationals to cooperate with a federal inquiry. In a case investigated by the
U.S. Postal Inspection Service and the federal Homeland Security
Investigations agency, the U.S. Department of Justice (DOJ) has charged 20
individuals it says were involved in fraud schemes involving online dating and
work-from home offers.
http://oag.dc.gov/release/us-department-justice-charges-nigerian-nationals-
online-scams-publishes-names-and-e-mail
July 16, 2015
Attorney General Karl Racine Warns Businesses of Utility Bill Scam
Fraudulent Callers Claiming to Be from Pepco Call Businesses and Demand
Immediate Payment
Attorney General Karl A. Racine today alerted District businesses to
telephone calls by scam artists claiming to be with Pepco. These fraudulent
callers threaten to shut off businesses’ electric service within hours unless
the businesses pay amounts they supposedly owe to Pepco. The callers
request that the payments be made by prepaid card, money order or wire
transfer – making it almost impossible for a business to recover its money
after discovering it was scammed.
http://oag.dc.gov/release/attorney-general-racine-warns-businesses-utility-
bill-scam
65
FLORIDA
June 13, 2015
Attorney General Bondi Warns Consumers about an Increase in Robocall
Scams
Attorney General Pam Bondi is warning Florida consumers this week about
robocall scams. The number of complaints about robocalls to the Attorney
General’s No Fraud Hotline is on the rise. Over the past two weeks, as part of
a joint effort to combat this trend, Attorney General Bondi and the Federal
Trade Commission took legal action to shut down two scams involving
robocalls targeting Floridians. In addition, the Federal Communications
Commission Friday issued a formal ruling to further tighten laws relating to
robocalling.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/710E3BB1C9B4C
A7B85257E81004BEB7A
IDAHO
July 14, 2015
Attorney General Wasden, Secretary of State Warn Business Owners to
be Aware of Scam
Attorney General Lawrence Wasden and Secretary of State Lawerence Denney are warning business owners to protect themselves against a new scam
targeting Idaho businesses.
In recent weeks, business owners have reported receiving postcards entitled “Important Compliance Notice” from a company identified as Division of Corporate Services, Business Compliance Division. The message mentions
potential compliance violations, but is vague on what those compliance issues may be.
The cards also include a phony legal citation and a telephone number to call
if recipients hope to avoid potential fees and penalties.
http://www.ag.idaho.gov/media/consumerAlerts/2015/ca_07142015.html
66
INDIANA
July 30, 2015
Attorney General Greg Zoeller Urges Credit Freeze In Wake Of Data
Breach Affecting 1.5 Million Hoosiers
Indiana Attorney General Greg Zoeller is urging all Hoosiers to freeze their
credit in the wake of the recent data breach at Fort Wayne-based Medical
Informatics Engineering (MIE) and its subsidiary NoMoreClipboard, which
may have impacted an estimated 1.5 million Hoosiers and 3.9 million people
nationwide. The two companies provide electronic medical record services to
healthcare providers and individuals. Information that was breached includes
social security numbers, lab results, medical conditions, health plan
information and more.
http://www.in.gov/activecalendar/EventList.aspx?fromdate=7/1/2015&toda
te=8/31/2015&display=Month&type=public&eventidn=222333&view=EventD
etails&information_id=217385
KENTUCKY
July 14, 2015
Attorney General Conway Warns Against Storm-Related Price Gouging
and Scams
Attorney General Jack Conway is putting Kentucky on notice that price-
gouging businesses and scam artists preying on flood victims will not be
tolerated. Gov. Steve Beshear today declared a state of emergency in the wake
of this week's severe thunderstorms and flooding. He also triggered the price-
gouging provisions at the request of Attorney General Conway. The provisions
will remain in place for 30 days.
The recent storms have resulted in flooding and widespread damage across
the central and eastern parts of Kentucky. Additionally, at least one death is
blamed on the flooding and several people are still missing in Johnson
County.
http://migration.kentucky.gov/Newsroom/ag/stormscamsjuly2015.htm
67
LOUISIANA
July 29, 2015
Attorney General James D. “Buddy” Caldwell Issues Consumer Alert:
Watch Out for Credit Card and Loan Scams
Attorney General James D. “Buddy” Caldwell is reminding incoming college
students, military families and other consumers to be skeptical of ads and
websites that guarantee loans or credit cards, regardless of your credit
history.
https://www.ag.state.la.us/Article.aspx?articleID=1057&catID=2
July 23, 2015
Attorney General James D. “Buddy” Caldwell Issues Warning: Beware of
Hotel Room Poachers Targeting Louisiana Conventions
Attorney General James D. “Buddy” Caldwell is warning consumers and
vendors of a hotel room poaching scam targeting Louisiana meetings, events,
and trade shows. “Room poachers” or “room-block pirates” misrepresent
themselves as the event’s housing bureau, deceptively convincing attendees
to unknowingly book outside the official room block.
https://www.ag.state.la.us/Article.aspx?articleID=1055&catID=2
July 15, 2015
Attorney General James D. “Buddy” Caldwell Issues Consumer Alert:
Military Families Are Often Targets of Scams
Military households are often targets for con artists, and that’s why Attorney
General James D. “Buddy” Caldwell is committed to consumer education and
outreach aimed at empowering servicemembers, veterans and their families to
protect themselves from fraud.
https://www.ag.state.la.us/Article.aspx?articleID=1053&catID=2
68
NORTH CAROLINA
July 29, 2015
Attorney General Roy Cooper: Don’t Fall For Misleading Mail From
Division Of Corporate Services, AG And Secretary Of State
Cooper’s office working to return money to businesses that fell for scam
Businesses that get letters asking them to pay $150 to stay in compliance
with state records laws should ignore the request, Attorney General Roy
Cooper and Secretary of State Elaine Marshall said today.
North Carolina business owners have reported getting letters from Division of
Corporate Services asking them to complete a form and return it with a $150
fee by July 31 to a Raleigh address that is a rented mailbox.
http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-
Advisories/Press-Releases/Don%E2%80%99t-fall-for-misleading-mail-from-
Division-of-Co.aspx
July 15, 2015
Attorney General Roy Cooper Warns: Watch Out For Scams That Target
Military Consumers
Cooper shares tips, resources for Military Consumer Protection Day
North Carolina is the home to many military servicemembers, who are too
often the targets of frauds and bad deals, Attorney General Roy Cooper
warned on Military Consumer Protection Day.
Consumer protection resources for servicemembers of the armed forces and
their families are available from Cooper’s Consumer Protection Division.
Military consumers can also file complaints and get help directly from
consumer protection experts on Cooper’s staff.
http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-
Advisories/Press-Releases/Watch-out-for-scams-that-target-military-
consumers.aspx
69
OHIO
July 13, 2015
Attorney General DeWine Warns of Military Identity Theft
Ohio Attorney General Mike DeWine today warned service members to watch
for signs of identity theft. The warning comes following the announcement of
recent federal data breaches and prior to Military Consumer Protection Day,
July 15, 2015.
The Attorney General’s Identity Theft Unit helps victims correct the effects of
identity theft, such as fraudulent accounts or credit reporting errors. Since its
creation in 2012, the unit has received more than 3,300 complaints and has
helped to adjust or clear approximately $900,000, according to consumer
complaint data.
http://www.ohioattorneygeneral.gov/Media/News-Releases/July-
2015/Attorney-General-DeWine-Warns-of-Military-Identity
July 10, 2015
Attorney General DeWine Warns of Rental Scams
Ohio Attorney General Mike DeWine today warned consumers to beware of phony listings for apartment and house rentals.
In the past year, the Ohio Attorney General’s Office has received more than a dozen complaints about potential rental scams. Consumers who lose money
report losses ranging from $500 to $5,500.
In a typical rental scam, a con artist steals information from a legitimate real estate listing and reposts it as a place for rent on Craigslist or another website. Using information pulled from the legitimate listing, the scammer
will list the property’s address and photos of the place. http://www.ohioattorneygeneral.gov/Media/News-Releases/July-
2015/Attorney-General-DeWine-Warns-of-Rental-Scams
70
PENNSYLVANIA
July 8, 2015
Attorney General Kane Warns Consumers About Common Work-At-Home
Scams
Attorney General Kathleen G. Kane today warned Commonwealth residents to
be cautious of common work-at-home scams.
Work-at-home scams are some of the oldest and most common types of
consumer fraud. Advertisements may guarantee high earnings, but most of
these offers fail to deliver on their claims.
"Many work-at-home opportunities may sound promising," Kane said.
"However, if an offer sounds too good to be true, it is probably a scam."
Work-at-home scams are often advertised in the classified sections of major
newspapers, on the Internet, radio and television, or they may be mailed
directly to your home. Some solicitations may even be sent to your personal
email address.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pre
ss_Release/?pid=2147483658
VERMONT
July 28, 2015
Attorney General William Sorrell Warns Vermont Businesses Targeted:
Wire Transfer Fraud Imposter Scam
The Vermont Attorney General’s Office is warning about an imposter scam
targeting Vermont businesses. Since February four Vermont businesses have
reported to the Attorney General’s Office that they received fraudulent emails
purporting to be company representatives, requesting wire transfers of tens of
thousands of dollars. The reports involve fraudulent communications that are
not associated with the businesses in question. However, the
communications may appear legitimate because the scammers replicate
information found on the company’s website.
http://ago.vermont.gov/focus/news/vermont-businesses-targeted-wire-
transfer-fraud-imposter-scam.php
71
VIRGINIA
July 31, 2015
Attorney General Herring Warns Of Continuing Utility Scam Targeting
Virginia Consumers
~ Scammers are banking on separating you from your money using phone calls
threatening immediate disconnection of your electrical service if payment is not
made on the spot ~
The thought of having your electrical service disconnected is frightening for
anyone. That is exactly what scammers are banking on to make a currently
active scam effective. Attorney General Mark Herring's office is aware of
continuing reports of consumers receiving calls from individuals claiming to
be from their electric company threatening power disconnection unless
payment is made immediately. Attorney General Herring, Dominion Virginia
Power, Appalachian Power and the Virginia Electric Cooperatives want
customers to remember that they do not take payment over the phone, and
never ask for immediate payment via cash, PayPal, 'Green Dot' or any prepaid
debit card as a prerequisite to keeping lights on.
http://www.oag.state.va.us/index.php/media-center/news-releases/592-
july-31-2015-attorney-general-herring-warns-of-continuing-utility-scam-
targeting-virginia-consumers
WEST VIRGINIA
July 23, 2015
Attorney General Patrick Morrisey Warns 'Grandparent Scam' is
Reappearing in Parts of West Virginia
Attorney General Patrick Morrisey today urged West Virginia seniors to be on
alert as the so-called “Grandparent Scam,” where someone pretending to be a
person’s grandchild calls and begs for emergency cash, has begun
reoccurring around the state.
The scam typically begins with a frantic phone call from someone posing as a
grandchild who says he or she is in trouble. In some cases, the caller hands
the phone to someone else who says he is an attorney or health care
professional trying to help the “family member,” but needs to have money
transferred over immediately to cover legal, medical or other costs. Sometimes
72
the scammers call twice in a short time—first as the grandchild in distress
and then either as a law enforcement officer, medical provider or family
friend. Sometimes the second caller says the amount quoted earlier was too
low and asks for more money.
http://www.ago.wv.gov/pressroom/2015/Pages/Attorney-General-Patrick-
Morrisey-Warns-%27Grandparent-Scam%27-is-Reappearing-in-Parts-of-
West-Virginia.aspx
July 14, 2015
Attorney General Patrick Morrisey Urges Consumers to Carefully
Evaluate Charities Before Donating
Attorney General Patrick Morrisey is reminding West Virginia residents to
carefully research and evaluate organizations and individuals that make
unsolicited requests for donations to charitable organizations.
The Attorney General’s Office has received several calls and emails in recent
days regarding phone calls and other communications residents are receiving
that solicit donations to various charitable organizations, including those run
by the Fraternal Order of Police and Charleston Area Medical Center. While
these organizations conduct legitimate charitable fundraising activities,
scammers can sometimes pose as representatives of these groups in an
attempt to defraud consumers.
For CAMC, fundraising activities are managed by the CAMC Foundation. A
caller has recently been asking for donations under the name “The Breast
Center,” which is in no way affiliated with the hospital. While the national
Fraternal Order of Police organization does not solicit donations by phone,
several of its state lodges are authorized to engage in fundraising activities.
Callers are encouraged to contact their local lodge if they have concerns or
questions about fundraising phone calls.
http://www.ago.wv.gov/pressroom/2015/Pages/Attorney-General-Patrick-
Morrisey-Urges-Consumers-to-Carefully-Evaluate-Charities-Before-
Donating.aspx