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NATIONAL STATE ATTORNEYS GENERAL PROGRAM: CONSUMER PROTECTION REPORT
MARCH 2015
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CONSUMER PROTECTION REPORT: March 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
ALABAMA....................................................................................................................... 5
ARIZONA ........................................................................................................................ 5
CALIFORNIA .................................................................................................................. 6
COLORADO .................................................................................................................... 7
CONNECTICUT ............................................................................................................... 8
FLORIDA ........................................................................................................................ 9
ILLINOIS ...................................................................................................................... 11
IOWA ........................................................................................................................... 13
MAINE ......................................................................................................................... 15
MARYLAND .................................................................................................................. 15
MASSACHUSETTS ........................................................................................................ 16
MICHIGAN ................................................................................................................... 18
MISSOURI .................................................................................................................... 19
NEW JERSEY ............................................................................................................... 22
NEW YORK ................................................................................................................... 28
OHIO ............................................................................................................................ 34
OKLAHOMA ................................................................................................................. 35
PENNSYLVANIA ............................................................................................................ 36
WASHINGTON .............................................................................................................. 37
MULTISTATE CASES AND SETTLEMENTS ............................................. 39
MEDICAID FRAUD CASES AND SETTLEMENTS ..................................... 41
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COLORADO .................................................................................................................. 41
DELAWARE .................................................................................................................. 41
FLORIDA ...................................................................................................................... 42
GEORGIA ..................................................................................................................... 43
KENTUCKY .................................................................................................................. 44
LOUISIANA ................................................................................................................... 45
MARYLAND .................................................................................................................. 46
MASSACHUSETTS ........................................................................................................ 47
MICHIGAN ................................................................................................................... 47
MISSISSIPPI ................................................................................................................. 48
MISSOURI .................................................................................................................... 49
NEVADA ....................................................................................................................... 50
NEW YORK ................................................................................................................... 50
OHIO ............................................................................................................................ 51
OKLAHOMA ................................................................................................................. 51
PENNSYLVANIA ............................................................................................................ 53
VIRGINIA ..................................................................................................................... 54
CONSUMER ADVOCACY ........................................................................ 55
CONNECTICUT ............................................................................................................. 55
INDIANA ....................................................................................................................... 56
IOWA ........................................................................................................................... 56
KENTUCKY .................................................................................................................. 57
MASSACHUSETTS ........................................................................................................ 57
MICHIGAN ................................................................................................................... 59
NEVADA ....................................................................................................................... 61
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NEW JERSEY ............................................................................................................... 62
NEW YORK ................................................................................................................... 63
NORTH DAKOTA .......................................................................................................... 64
OHIO ............................................................................................................................ 65
OREGON ...................................................................................................................... 66
PENNSYLVANIA ............................................................................................................ 66
RHODE ISLAND ............................................................................................................ 67
SOUTH DAKOTA .......................................................................................................... 67
VIRGINIA ..................................................................................................................... 68
WEST VIRGINIA ........................................................................................................... 68
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CONSUMER PROTECTION CASES, SETTLEMENTS AND
ADVOCACY STATEMENTS
ALABAMA
March 12, 2015
Attorney General Luther Strange Obtains Permanent Injunction Against
Elmore County Used Car Dealer Accused Of Defrauding Customers
Attorney General Luther Strange has obtained a permanent injunction against
an Elmore County used car dealer for defrauding Alabama consumers and
businesses.
Elmore County Circuit Judge Sibley G. Reynolds granted the Attorney
General’s request for a permanent injunction against Quality Used Cars, also
doing business as Preowned Automotive, as well as its owners and operators,
Claton (or Clayton) and Connie Reeves. The dealership was located at 6153
and 6155 Elmore Road in Elmore, Alabama.
http://www.ago.state.al.us/News-607
ARIZONA
March 2015
Attorney General Mark Brnovich Files Lawsuit Against Foreclosure
Consulting Company
Arizona Attorney General Mark Brnovich announced the filing of a consumer
fraud lawsuit against Advantage Foreclosure LLC (Advantage) and its owners
Matthew and Lynette Van Remoortel. Advantage is an Arizona based company
that advertised on the internet site located at www.aboutmyforeclosure.com
and purports to provide foreclosure consulting services nationwide.
The lawsuit alleges that Advantage and Mr. Van Remoortel violated the
Arizona Consumer Fraud Act by making misrepresentations to consumers,
failing to disclose material information to consumers, failing to provide
promised services after consumers paid for those services, and engaging in
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unfair acts and practices. Consumer complaints filed with the Attorney
General’s Office brought the wrongful practices to light.
https://www.azag.gov/press-release/attorney-general-files-lawsuit-against-
foreclosure-consulting-company
CALIFORNIA
March 5, 2015
Attorney General Kamala D. Harris Announces 24 Year Prison Sentence For Leader of Mortgage Relief Scam
Attorney General Kamala D. Harris and United States Attorney for the Eastern District of California Benjamin B. Wagner today announced that Alan
Tikal, the principal operator of a large-scale mortgage fraud scheme, was sentenced to 24 years in prison.
In September 2014, Alan David Tikal, 46, was convicted of 11 counts of mail fraud and one count of money laundering by United States District Judge
Troy L. Nunley. The case was jointly prosecuted by the United States Attorney’s Office for the Eastern District of California and the California
Attorney General’s Office. Between January 7, 2010 and August 20, 2013, Tikal operated a business
under the name KATN, which targeted vulnerable and non-English speaking homeowners looking for mortgage assistance in the wake of the financial meltdown. According to evidence presented at trial, Tikal and his associates
promised these homeowners that their outstanding mortgage debt would be reduced by 75%. Tikal falsely claimed that he was a registered private banker
with access to an enormous line of credit and was able to pay off homeowners’ debt in full. In exchange for various fees and payments, the homeowners existing mortgages would be satisfied and replaced with new loans to Tikal at
25% of the original loan obligation. https://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-
announces-24-year-prison-sentence-leader
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COLORADO
March 19, 2015
Attorney General Cynthia H. Coffman Announces Final Outcome of
Boobies Rock! Charitable Fraud Scam
The Denver District Court today handed the Colorado Attorney General’s
Office an across the board victory on its complaint against Adam Shryock, the
founder of the fake charity fundraiser Boobies Rock!, Inc.. Judge Shelley
Gilman ordered Shryock to return $1.89 million in gross receipts, pay $4
million in civil penalties, and also issued an injunction against Shryock from
ever working on or near a charitable solicitation again.
http://www.coloradoattorneygeneral.gov/press/news/2015/03/19/boobies_r
ock_no_more
March17, 2015
Attorney General Cynthia H. Coffman Halts a Fourth Telemarketing
Company – Subscriber Services Inc. – From Deceiving Consumers
The Colorado Attorney General’s Office has stopped another magazine
company and its owners from deceiving consumers in order to secure
magazine subscriptions. Subscriber Services Inc., owner David Keown and
office manager, Marsha Ness are now barred by a court order from tricking
Coloradans into believing that they will receive a $250 voucher and three free
magazines in exchange for purchasing one magazine at a bargain price. The
court found that these business practices violated the Colorado Consumer
Protection Act.
Post cards and text messages claimed consumers had won an “unclaimed
reward.” However, the $250 voucher “good at participating restaurants and
retail stores” was bogus because the company did not have a business
relationship with any of the merchants. To receive any benefit, consumers had
to spend $1,000 in non-grocery items in increments of at least $100 over ten
consecutive months at the same store. According to the company’s records,
from mid-2012 through September 2014, more than 35,000 consumers
nationwide ordered magazines yet fewer than 1% received any rebate at all
and only .05% received $250 in rebate checks.
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http://www.coloradoattorneygeneral.gov/press/news/2015/03/17/colorado_
attorney_general%E2%80%99s_office_halts_fourth_telemarketing_company_%
E2%80%93_subscr
CONNECTICUT
March 10, 2015
Attorney General George Jepsen Wants Information from Lumber
Liquidators on Formaldehyde Levels in Some Laminate Flooring Products
Attorney General George Jepsen wants information from flooring retailer
Lumber Liquidators about Chinese-manufactured laminate flooring sold
online and in its Connecticut stores that, according to a recent media report,
may contain high levels of formaldehyde despite purporting to be in
compliance with certain legal standards.
In a letter sent today to the company's president and its general counsel, the
Attorney General has asked the company whether it intends to discontinue
the sale of the flooring and whether it will take any corrective action to
compensate consumers who may have the flooring installed in their homes.
http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=562054
March 2, 2014
Attorney General George Jepsen Opens Inquiry into Lenovo, Superfish
Privacy and Security Concerns
Asks both companies to provide information about pre-installed software
Attorney General George Jepsen has sent letters to executives at the computer
technology company Lenovo Group Ltd. and the software company Superfish
seeking information about software pre-installed on Lenovo personal
computers and sold to consumers that could potentially expose them to
hackers. The Superfish software was intended to track users' Web searching
and browsing activity in order to place additional ads on the sites they visit.
According to published reports, the Superfish software – Superfish Visual
Discovery – resides in the operating system of certain Lenovo personal
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computers sold from about September 2014 to January 2015, making it
difficult for common antivirus products to detect or remove it. Many
consumers do not know it exists on their personal computer, yet the software
allegedly facilitates the ability of hackers to access a user's computer.
http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=561648
FLORIDA
March 27, 2015
Attorney General Pam Bondi Reaches Settlement with Florida Building
Companies
More than 500 consumers will receive approximately $500,000 in restitution
under a settlement agreement between Attorney General Pam Bondi and
several Florida metal building companies. This week, the Attorney General’s
Office reached an Assurance of Voluntary Compliance with U.S. Metal
Buildings Corp., U.S. Building Systems Corp. d/b/a U.S. Buildings;
International Buildings, LLC; and their principals. The metal building
businesses manufacture and sell custom-made or prefabricated steel and
metal buildings from their South Florida offices, which consumers then
assemble themselves. According to complaints received by consumers, the
businesses engaged in deceptive high-pressure sales, unilaterally canceled
consumer contracts, refused refunds to consumers and misrepresented
material facts pertaining to the sale.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/25CF166593C91C
FF85257E15005931E7
March 19, 2015
Attorney General Pam Bondi Sues Dating Company for Allegedly Making
False Claims About Success Rates, Matches and its Screening Process
Attorney General Pam Bondi’s Division of Consumer Protection is suing
Singles Plus, a South Carolina company with offices in Florida, for unfair and
deceptive trade practices, including allegedly claiming matches were made by
psychologists and other licensed professionals.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/1C94C13BEAAEC
D7485257E0D006B4D8E
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FLORIDA CONT’D
March 13, 2015
Attorney General Pam Bondi Obtains Temporary Injunction and Asset
Freeze Obtained Against Timeshare Company
Attorney General Pam Bondi’s Office obtained a temporary injunction and
asset freeze against World Mark Wholesale and Trade, LLC for alleged unfair
and deceptive business practices. World Mark and owners, Berthony Vernet
and Joseph A. Taylor, allegedly engaged in a systematic scheme to defraud
owners of timeshares throughout Florida and nationwide.
According to consumers’ complaints, World Mark made unsolicited telephone
calls claiming to have a ready buyer willing to purchase the consumers’
timeshare at an inflated price. World Mark allegedly used fake names or, in
some cases, names of licensed real estate agents to make claims sound
legitimate. World Mark also sent consumers a purchase agreement signed by
a fictitious buyer to make the sale seem imminent and requested up-front fees
ranging from $1,600 to $4,100 for a title search or Florida taxes. Timeshare
owners who paid these fees were allegedly contacted again and required to
pay additional fees for capital gains taxes or luxury taxes. After consumers
paid all of the requested fees and taxes, no sale occurred and World Mark was
unreachable.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/31B346EECE1E7
66085257E070052C259
March 5, 2015
Attorney General Pam Bondi Sues Four Companies for Computer Tech
Support Scams
Attorney General Pam Bondi’s Office today announced the filing of four
complaints involving deceptive marketing and sales of computer software and
tech support services to Florida consumers, many of whom are senior
citizens. The call centers, located in the Delray Beach and Boca Raton area,
allegedly used deceptive marketing, such as pop up ads warning of viruses or
other malware, to lead consumers to call these companies. Once in contact
with the companies, consumers are directed through a sales pitch that is
designed to scare the consumers into paying for unnecessary computer
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FLORIDA CONT’D
repairs and support services. Consumers typically paid from $99 to $600 to
resolve non-existent computer issues.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/B6DA84E1959F97
2A85257DFF006EDEBA
March 5, 2015
Attorney General Pam Bondi Announces Settlements with Two Security
System Providers
Attorney General Pam Bondi today announced separate settlements with two
home security system providers, Security Networks, LLC and Vision Security,
LLC to resolve allegations that the firms made false or misleading statements
in door-to-door sales of security alarm systems. These misrepresentations
included that the companies were affiliated with the consumers’ current
security monitoring companies and that the consumers’ products were
outdated, in need of upgrades or that the consumers’ current monitoring
companies were going out of business. Once consumers signed up, they found
that they were billed for two security systems, their existing legitimate
security system and their “new” or “updated” system.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/9FBAB12D6CCF8
6F085257DFF005876B3
ILLINOIS
March 30, 2015
Attorney General Lisa Madigan Announces Charges Against Directors of
Saline County Domestic Violence Nonprofit
Attorney General Alleges Defendants Illegally Obtained State & Federal Grants,
Stole Charitable Funds for Domestic Violence Assistance
Attorney General Lisa Madigan today announced charges against the directors
of a Saline County non-profit domestic violence shelter for falsifying records to
obtain state and federal grant funding and stealing charitable funds for
personal profit.
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Madigan alleged that as directors of the Anna Bixby Women’s Center in
Harrisburg, Barbara Wingo, 76, of Golconda, and her daughter, Terrie Wingo-
Eichorn, 50, of Elizabethtown, submitted falsified documents to the state to
obtain grant funding to provide fictitious counseling services to domestic
violence victims.
Wingo, the organization’s executive director, was charged in Saline County
Criminal Court Monday with one count of organizer of a continuing criminal
financial crimes enterprise, a Class X felony, one count of continuing criminal
financial crimes enterprise, a Class 1 felony, two counts of financial
institution fraud, a Class 2 felony, one count of loan fraud, a Class 2 felony,
one count of wire fraud, a Class 3 felony, three counts of forgery, a Class 3
felony, and one count of personal use of charitable assets, a Class 2 felony.
http://www.illinoisattorneygeneral.gov/pressroom/2015_03/20150330.html
March 17, 2015
Attorney General Lisa Madigan Sues Online Retailer for Fraud, Deceptive
Business Practices
Attorney General Lisa Madigan today announced a lawsuit against an Illinois-
based online sports equipment retailer for dishonest business practices that
resulted in consumers losing hundreds of thousands of dollars.
Madigan filed the lawsuit in Cook County Circuit Court against Great Sports,
Inc., the now-defunct Legion Global Corp. and Gary M. Briden of Mokena,
president of both companies. Briden operated Legion Global Corp. from 2009
until it was dissolved in 2011, and he continues to operate Great Sports, Inc.,
which was started in 2008. Great Sports, Inc. has headquarters in New Lenox
and Joliet, and sells a variety of sporting goods – motorcycles, exercise
equipment, all-terrain vehicles and more – online and over the phone.
According to Madigan’s lawsuit, consumers purchasing goods at any of the
company’s websites, www.greaterpowersports.com, www.globaltrailer.net and
www.saferwholesale.com, received incorrect orders or damaged products.
Upon contacting the company, consumers were denied refunds and instead
offered store credit or warranties. When returning items, consumers were
oftentimes charged shipping costs, and some were charged a 30 percent
restocking fee.
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http://www.illinoisattorneygeneral.gov/pressroom/2015_03/20150317.html
IOWA
March 19, 2015
Attorney General Tom Miller Announces Texas Business Agrees to Cease
Misleading Solicitations Intended to Generate Sales Leads for Insurance
Agents
The Lead Connection Inc. tried to collect personal data through mailings to
Iowans that the company would then market as leads to sellers of funeral
insurance
A Denison, Texas business and its owner, Chris Etheridge, will cease all lead
generating contacts with Iowans, through an agreement with Attorney General
Tom Miller.
The agreement, called an Assurance of Voluntary Compliance, settles a
dispute over whether mailings to Iowans from The Lead Connection Inc. (TLC)
were misleading and violated Iowa’s Consumer Fraud Act.
In February, an Iowan reported to the Consumer Protection Division that she
received a mailing saying she might qualify for “a state regulated program” to
cover up to $35,000 of her eventual funeral expenses. The mailing asked her
to provide her phone number, her age and her husband’s age, in order to
receive free information.
https://www.iowaattorneygeneral.gov/newsroom/texas-business-agrees-to-
cease-misleading-solicitations-intended-to-generate-sales-leads-for-insuran/
March 6, 2015
Judge Orders Deed Documents Solicitor to Refund Iowans, Cease
Solicitations and Pay $25,000
California-based “Record Transfer Services” owner solicited Iowans after
previously agreeing to a ban
A Polk County judge today ordered a California company behind government
look-alike property record mailings to provide refunds to Iowans and to pay
$25,000 to the state.
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IOWA CONT’D
District Court Judge Karen A. Romano ordered Record Transfer Services LLC,
of Westlake Village, and company owner Neil L. Camenker, 56, of Camarillo,
California, to stop soliciting Iowa residents for payment for property deed
records or any other government records.
The order, called a consent judgment, also requires the defendants to refund
any Iowan who incurred losses, and to pay $25,000 for future consumer fraud
actions and litigation costs. The consent judgment resolves a consumer fraud
lawsuit filed in January by Attorney General Tom Miller.
https://www.iowaattorneygeneral.gov/newsroom/judge-orders-deed-
documents-solicitor-to-refund-iowans-cease-solicitations-and-pay-25000/
March 5, 2015
Attorney General Tom Miller Announces New Jersey Business Sent
Notices to Iowans on The State’s Unclaimed Property List Implying That
a Check Had Already Been Written to Them, And Offering to Help Get It
Re-Issued For A Fee.
A New Jersey company and its owner have agreed to cease soliciting Iowans
listed on the state treasurer’s “Great Iowa Treasure Hunt,” through an
agreement with Attorney General Tom Miller.
The agreement, called an Assurance of Voluntary Compliance, requires Asset
Recovery Services LLC, doing business as Fund Recovery, and owner Robert
Scott Armstrong, 44, both of Franklinville, to cease mailings that had
generated complaints from Iowa consumers and concerns from State
Treasurer Michael Fitzgerald.
The solicitations, sent early this year, offered to assist Iowans in obtaining
unclaimed property for a fee. The “Fund Recovery” mailings, labeled as “Credit
Memos” from the “Escheatment Department,” apologized for earlier failure to
get the unclaimed property into the consumer’s hands. The mailings offered to
have the check “released” as soon as the “Department” could “process the
credit.”
https://www.iowaattorneygeneral.gov/newsroom/fund-recovery-agrees-to-
stop-mailing-deceptive-credit-memos-to-iowans/
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MAINE
March 26, 2015
Attorney General Janet T. Mills Announces Consumer Settlement against
“Bath Fitter”
Attorney General Janet T. Mills announced today that the Maine Office of the
Attorney General has settled a case against National Bath Systems, LLC,
d/b/a Bath Fitter (“Bath Fitter”), of Portland, Maine. The complaint alleged
violations of the Maine Unfair Trade Practices Act.
Attorney General Mills alleged that Bath Fitter engaged in unlicensed
plumbing activities, used non-conforming construction contracts, installed
plumbing before a plumbing permit issued, misrepresented employees’ license
status, and engaged in plumbing installations that may violate the Maine
State Internal Plumbing Code. As part of the settlement, Bath Fitter will
comply with Maine law. The consumer complaint initiating this case was
made through the Maine Office of Professional and Occupational Regulation.
The settlement was reached by consent judgment, which prohibits certain
activities and requires a penalty of up to $750,000 with a portion of that sum
suspended for the duration of the probationary period.
http://www.maine.gov/ag/news/article.shtml?id=640635
MARYLAND
March 27, 2015
Attorney General Brian E. Frosh Announces Former Title Insurance
Agent Pleads Guilty to Stealing Clients' Money
Baltimore woman took from escrow accounts to pay personal expenses
Attorney General Brian E. Frosh announced today that a Baltimore title
insurance agent who took tens of thousands of dollars from her clients'
escrow accounts to pay her personal bills pleaded guilty in the Circuit Court
for Baltimore County to one count each of felony theft and felony theft
scheme.
Carole Tilghman, 50, was sentenced to five years' incarceration, with all but
six months home detention suspended. She was also placed on five years
supervised probation and ordered to pay $2,500 in restitution. The conviction
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is the result of a joint investigation by the Insurance Fraud Division of the
Maryland Insurance Administration and the Office of the Attorney General.
http://www.oag.state.md.us/Press/2015/032715.html
MASSACHUSETTS
March 31, 2015
Attorney General Maura Healey Announces Bellingham Landscaping
Company and Owner Ordered to Pay More Than $50,000 for Wage and
Hour Violations
A Bellingham landscaping company and its president have been ordered to
pay more than $50,000 in restitution and penalties as a result of dozens of
wage and hour violations, Attorney General Maura Healey announced today.
D&D Mulch and Landscaping, Inc. and company president, Paul Doherty,
have been cited for the following wage and hour violations: failure to pay
overtime, independent contractor misclassification, and recordkeeping
violations.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
03-31-d-d-mulch-landscaping.html
March 13, 2015
Attorney General Maura Healey Sues Directors of Lynn Community
Access and Media for Misappropriation of Charitable Funds
AG’s Action Seeks to Recover Misappropriated Funds for the Charity
The current and former president of Lynn Community Access and Media, Inc.
(LynnCAM), along with two of their family members, have been sued for
misappropriating tens of thousands of dollars of the charity’s funds for their
own personal use, Attorney General Maura Healey announced today. Two
other board members have also been sued for failing to exercise proper
oversight of the charity’s operations.
The AG’s Office filed a lawsuit yesterday in Suffolk Superior Court against
Karen Chapman, LynnCAM’s former president; her husband, John Chapman;
Robert Sewell, LynnCAM’s current president; Almanzo Rodriguez, Robert
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MASSACHUSETTS CONT’D
Sewell’s brother-in-law; Cynthia Demakes, LynnCAM’s treasurer; and
Lawrence McCully, a LynnCAM director. A preliminary injunction hearing has
been set for April 2 in Suffolk Superior Court.
LynnCAM is a Massachusetts charitable non-profit corporation organized in
2005 that operates a community television studio for the purpose of providing
public, educational and municipal access.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
03-13-lynncam.html
March 03, 2015
Attorney General Maura Healey Sues Owner of South Shore Used Car
Dealership for Selling Unsafe Motor Vehicles
AG Obtains Court Order Prohibiting Auto Number One from Deceptive Sales
Tactics
The owner of a South Shore used car business has been sued for allegedly
selling unsafe and unreliable used cars, failing to make repairs which were
promised or required under warranties, and operating in unlicensed locations,
Attorney General Maura Healey announced today.
The complaint against Auto Number One, Inc. and its owner Mark Hanna of
Abington, filed in Suffolk Superior Court, alleges that they routinely made
false representations to consumers that cars were in good working order or
would be repaired, about prices charged, and about warranty periods. The
business allegedly failed to issue refunds to consumers who attempted to
return vehicles after discovering, within days, substantial defects which made
the cars unfit for the road.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
03-03-auto-number-one.html
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MICHIGAN
March 17, 2015
Attorney General Bill Schuette, Clover Adams Announce Investigation of
10 Michigan Businesses Related to Faulty Anti-Freeze Distribution
Michigan Attorney General Bill Schuette and Michigan Department of
Agriculture and Rural Development (MDARD) Director Jamie Clover Adams
today announced the state is investigating Royal Packaging and nine of its
distributors who may be continuing to sell two brands of defective anti-
freeze/coolant contrary to MDARD's orders issued last September.
In a petition filed with the Wayne County Circuit Court, Schuette explained
that the MDARD issued stop-sale and stop-use orders late last summer for
Royal Packaging's North Atlantic and Shur-XXX brands. Eleven samples of
these two anti-freezes were laboratory tested and found to have freezing
points well above the temperatures stated on the bottle labels. Several bottles
were also found to contain lower quantities than indicated on the label. Royal
Packaging Company, Inc. of Detroit, the manufacturer of both brands, ceased
operations following the MDARD probe.
https://www.michigan.gov/ag/0,4534,7-164-46849-350030--,00.html
March 10, 2015
Attorney General Bill Schuette, Detroit Man Pleads Guilty to Swindling
Thousands in Fake Mortgage Assistance Scheme
Attorney General Bill Schuette today announced that Anthony Carta, 53, of
Detroit, has pleaded guilty to seven felonies associated with his formation of a
faith-based mortgage assistance scam. The charges resulted from an
investigation by Schuette's Corporate Oversight Division.
Carta defrauded more than 100 victims out of thousands of dollars. His
victims believed he was going to assist them with their mortgage through his
company, Freedom By Faith Ministries (FBF). Carta instead pocketed the
money and did nothing to assist the victims with their mortgages.
https://www.michigan.gov/ag/0,4534,7-164-46849_47203-349514--,00.html
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MISSOURI
Mar 18, 2015
Attorney General Chris Koster Sues Kansas City Real Estate Business For
Running A House-Flipping Scam
Attorney General Chris Koster announced today that he has sued Tri-State
Holdings-32, LLC, and principals Brandon Miller and Tony Caldwell, for
running a scam house-flipping business. According to Koster’s lawsuit, Tri-
State sold Kansas City-area homes purchased at delinquent tax auctions,
offering to renovate the homes, resolve the back taxes, and transfer them to
new owners for an up-front payment of $500, plus additional payments of
$399 per month. The average price of the homes the company offered for sale
was in the $30,000-$40,000 range.
Koster said his office has identified at least 22 consumers who purchased
homes from Tri-State but whose promised renovations went uncompleted. In
some cases, back taxes were not resolved. Additionally, Koster’s lawsuit
asserts that the Tri-State has sought evictions of consumers for failure to pay
on houses that the company had not renovated to make habitable. The
majority of the victims are low-income. The consumers identified to date have
reported losses totaling approximately $35,000.
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
sues-kansas-city-real-estate-business-for-running-a-house-flipping-scam
March 26, 2015
Attorney General Chris Koster Sues St. Louis-Area Car Dealers For
Refusing To Provide Consumers With Titles For Purchased Vehicles
Attorney General Chris Koster announced today that he has sued Suntrup
Ford – Westport and Suntrup Ford – Kirkwood and their owner Thomas
Suntrup, along with the now-defunct Mylenbusch Auto Sales of St. Charles,
and its owner Erik Mylenbusch, for refusing to deliver motor vehicle titles to
consumers throughout the St. Louis metropolitan area. At least 100
consumers who purchased vehicles from Mylenbusch before the dealer went
out of business have been unable to obtain the titles to their vehicles, many of
which are being held by these two Suntrup dealers.
20
According to the lawsuit filed in St. Charles County Circuit Court, these
Suntrup dealers frequently transferred possession of cars traded-in at their
locations in Westport and Kirkwood to Mylenbusch Auto Sales in St. Charles
for re-sale. Under an arrangement between the dealers, when Mylenbusch
sold a trade-in obtained from these dealers, Mylenbusch would send sufficient
proceeds from the sale to Suntrup Ford – Westport or Suntrup Ford –
Kirkwood. Once the dealers received payment from Mylenbusch, they would
release the title. Mylenbusch had similar arrangements with other dealers and
auto-financers.
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
sues-st.-louis-area-car-dealers-for-refusing-to-provide-consumers-with-titles-
for-purchased-vehicles
Mar 25, 2015
Attorney General Chris Koster Sues St. Charles-Area Apartment Finder
For Ripping Off Consumers
Attorney General Chris Koster announced today the filing of a lawsuit against
Elite Placement, LLC, a rental placement assistance business based
principally in St. Charles, and against its operator, Patricia Follin, also known
to go by a number of other last names, including Draine, Andrews, Davis,
Folin, Greene, Jenkins, Jinkins and Silver.
According to the lawsuit filed in St. Charles County Circuit Court, Elite
Placement required up-front deposits of as much as $500 for residential
housing leads. The company told customers the deposit would be refunded if
they failed to find housing or wished to cancel. According to Koster, Elite
Placement provided junk leads and then refused to honor their refund policy.
One consumer who contacted the Attorney General’s Office paid a total of
$1,000 for two batches of leads without finding suitable housing and has yet
to receive a refund after repeated requests. In total, at least twenty consumers
have lost approximately $7,500.
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
sues-st.-charles-area-apartment-finder-for-ripping-off-consumers
21
MISSOURI CONT’D
March 19, 2015
Attorney General Chris Koster Takes Action Against Raytown Excavator
For Violating Missouri One Call Law
Attorney General Chris Koster today announced his office has filed a lawsuit
in Jackson County against Tycon Company LLC, of Raytown, for multiple
separate violations of the Underground Facility Safety and Damage Prevention
Act, commonly known as the Missouri One Call Law.
The lawsuit alleges that starting in the spring of 2013, Tycon Company LLC
conducted seven separate excavations without providing notice to the
Missouri One Call Center. In two instances, Tycon Company LLC provided
notice, but excavated several months past the given start dates. The One Call
Law requires a new notification to the Missouri One Call Center if the
excavation project does not begin within 10 days of initial notification. In
each instance, Tycon struck gas service lines, often in residential areas in
Kansas City.
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
takes-action-against-raytown-excavator-for-violating-missouri-one-call-law
March 17, 2015
Attorney General Chris Koster Obtains Judgment Against Florida
Telemarketers For No Call Violations
Attorney General Chris Koster announced today that he has obtained a
judgment against Florida-based Space Coast Security, LLC, and its owner
Wayne J. Walton for violations of Missouri’s No Call and Telemarketing laws.
In November 2014, Koster filed a lawsuit in St. Charles County against Space
Coast and Walton, alleging that they were calling consumers on the Missouri
No Call List using automated “robocalls” to solicit home security and
monitoring systems. The lawsuit further alleged that when consumers
attempted to opt-out of future calls, Space Coast often continued calling those
consumers, in violation of Missouri’s Telemarketing law. attempted to opt-out
of future calls, Space Coast often continued calling those consumers, in
violation of Missouri’s Telemarketing law.
22
MISSOURI CONT’D
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
obtains-judgment-against-florida-telemarketers-for-no-call-violations
March 5, 2015
Attorney General Chris Koster Sues Three Businesses, Settles With
Another, Over Violations Of Missouri's Telemarketing And No Call Laws
Attorney General Chris Koster today announced a series of lawsuits against
companies for violating Missouri’s telemarketing and No Call laws. The
actions announced today coincide with National Consumer Protection Week.
Unwanted telemarketing calls and abusive treatment by telemarketers
annually rank highest on the list of complaints received by the Attorney
General’s Office.
Today, Koster announced a civil lawsuit against AAA Anytime Duct Cleaning,
its owners, and a St. Louis manager for abusive telemarketing practices and
fraud. In addition to hundreds of No Call complaints, Missouri consumers
have complained to the Attorney General’s Office about abusive practices by
Anytime’s telemarketers, including being cursed at or threatened for refusing
to purchase the company’s air duct cleaning services.
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-sues-
three-businesses-settles-with-another-over-violations-of-missouri's-
telemarketing-and-no-call-laws
NEW JERSEY
March 26, 2015
Acting Attorney General John J. Hoffman Announces Jersey Shore
Landscaping Company Will Pay $33,000 to Resolve State Allegations
over Superstorm Sandy Price Gouging, Sale of Recalled Generators,
Unlicensed Sale of Motor Fuel
Acting Attorney General John J. Hoffman and the New Jersey Division of
Consumer Affairs today announced that Stephen’s Landscaping, d/b/a
“Stephen’s Garden Center,” of Long Branch, will pay $33,000 to resolve the
state’s allegations that it engaged in unlawful price gouging when selling
23
generators during the Superstorm Sandy state of emergency, as well as other
alleged deceptive practices.
The state also had alleged that Stephen’s Landscaping violated the New Jersey
Consumer Fraud act before the Sandy state of emergency by selling
generators that had been recalled due to potential fire hazards. The state
further alleged that, during the immediate aftermath of Sandy, Stephen’s
Landscaping violated state law by selling motor fuel to consumers without
being licensed to engage in the retail sale of motor fuel.
http://nj.gov/oag/newsreleases15/pr20150326b.html
March 25, 2015
Acting Attorney General John J. Hoffman Announces New Jersey
Division of Consumer Affairs Files Action Against Middlesex County
Company That Offered Underground “Survival Shelters” For Sale
The Office of the Attorney General and the New Jersey Division of Consumer
Affairs have filed suit against Titan Shelters, LLC and its owner, Alfred L.
Demola, a/k/a “Al Demola,” for allegedly, among other things, selling
underground survival shelters and survival products to consumers and then
failing to deliver any of the contracted-for products, as well as advertising and
offering for sale such products to consumers in New Jersey without being
registered as a home improvement contractor.
The state’s seven-count complaint, filed in Superior Court in Middlesex
County, alleges that the defendants violated the Consumer Fraud Act, the
Home Improvement Contractors’ Registration Act, the Contractor Registration
Regulations, the Home Improvement Regulations, and the Regulations
Governing General Advertising. The state seeks consumer restitution,
reimbursement of attorneys’ fees and costs, and civil penalties that range up
to $10,000 for each violation of the statutes and/or regulations committed by
defendants.
http://nj.gov/oag/newsreleases15/pr20150325d.html
24
NEW JERSEY CONT’D
March 25, 2015
Acting Attorney General John J. Hoffman Announces Prominent Atlantic
County Attorney Who Practiced Elder Law Sentenced to 10 Years in
Prison for Stealing Millions from Clients
She pleaded guilty in case filed by Division of Criminal Justice and New Jersey
State Police
Acting Attorney General John J. Hoffman announced that a prominent
Atlantic County, N.J., attorney who specialized in elder law was sentenced to
state prison today for defrauding elderly clients of millions of dollars and
laundering the funds through various accounts, including her attorney trust
account. Last week, the Division of Criminal Justice obtained an indictment
charging the owner of an in-home senior care company, her sister and three
other defendants in connection with the fraud.
Barbara Lieberman, 63, of Northfield, was sentenced today to 10 years in
state prison, including 3 ½ years of parole ineligibility, by Superior Court
Judge Michael A. Donio in Atlantic County. Lieberman pleaded guilty on Nov.
3 to an accusation charging her with first-degree money laundering. As a
result of her guilty plea, Lieberman forfeited $3 million that the state seized
from her, which will be used to pay restitution to her victims. She also
forfeited her law license in New Jersey and a BMW.
http://nj.gov/oag/newsreleases15/pr20150325c.html
March 24, 2015
Acting Attorney General John J. Hoffman Announces Jersey City Man
Charged With Stealing Half a Million Dollars From Clients of His
Investment Firm and Using Part of Funds to Play Poker
Acting Attorney General John J. Hoffman announced that a Jersey City man
has been indicted on charges he stole over half a million dollars from clients
of his investment firm and spent the money on personal expenses, including
playing poker at casinos and gambling on poker websites.
Evan Kochav, 33, of Jersey City, was indicted yesterday by a state grand jury
on second-degree charges of theft by deception, money laundering and
misconduct by a corporate official. He also was charged with four counts of
25
third-degree passing bad checks for allegedly writing four bad checks totaling
over $85,000 to a client who questioned what happened to his funds. Kochav
was initially investigated by the New Jersey Bureau of Securities, which
revoked his registration as a securities agent in October 2014 and assessed a
$2 million civil penalty against him and his Red Bank-based firm, White
Cedar Group, LLC. The Bureau of Securities referred the case to the Division
of Criminal Justice.
http://nj.gov/oag/newsreleases15/pr20150324c.html
March 24, 2015
Acting Attorney General John J. Hoffman Announces New Jersey
Division of Consumer Affairs Files Action Against Morris County Used
Car Dealership for Alleged Consumer Fraud and Motor Vehicle
Advertising Violations
The New Jersey Division of Consumer Affairs has filed suit against RLMB,
Inc., a used car dealership located in Ledgewood, alleging that the dealership,
among other things, advertised used motor vehicles for sale without disclosing
to consumers the vehicle’s prior damage or prior use, sold vehicles “as is”
when they qualified for a warranty, and permitted third parties to advertise,
offer for sale and/or sell used motor vehicles that were titled to RLMB on
Craigslist.
The state’s ten-count complaint, filed in State Superior Court in Morris
County, alleges that RLMB and its manager, Michael L. Bloom, violated the
Consumer Fraud Act, the Motor Vehicle Advertising Regulations, the
Automotive Sales Regulations, the Used Car Lemon Law (UCLL) and UCLL
regulations. The state seeks consumer restitution, reimbursement of
attorneys’ fees and costs, and civil penalties that range up to $10,000 for each
violation of the statutes and/or regulations committed by the defendants.
http://nj.gov/oag/newsreleases15/pr20150324b.html
26
NEW JERSEY CONT’D
March 17, 2015
Acting Attorney General John J. Hoffman Announces Sisters Who Ran
Senior Care Company In Atlantic County Indicted For Allegedly
Conspiring With Lawyer To Steal Millions From Clients
Indictment also charges an employee, a county caseworker and a doctor who
allegedly lied to police
Acting Attorney General John J. Hoffman announced that a state grand jury
has indicted the owner of an in-home senior care company in Atlantic County
and her sister on first-degree charges of conspiracy and money laundering for
allegedly conspiring with a lawyer to steal over $2.7 million from a dozen
elderly clients. The indictment, handed up late yesterday, also charges three
other people: an employee of their company who allegedly conspired with
them to steal from one client; a former caseworker for Atlantic County Adult
Protective Services who allegedly conspired with them to steal from an elderly
couple; and a doctor who allegedly lied to the State Police during the
investigation.
http://nj.gov/oag/newsreleases15/pr20150317a.html
March 12, 2015
Acting Attorney General John J. Hoffman Announces New Jersey Bureau
of Securities Obtains $23 Million Default Judgment Against Branded
Marketing Investment Scammer And His Companies
The New Jersey Bureau of Securities has obtained a default judgment totaling
more than $23 million in restitution, disgorgement, and civil penalties against
Haskell-based Branded Marketing LLC (also known as 1800tarjetas.com), its
successor company Branded Marketing, Inc., and its President and CEO,
Richard Jackowitz, and affiliated company IT Connect, Inc., all controlled by
Jackowitz, for their role in an investment scam that raised more than $4
million from unsuspecting investors.
“Jackowitz cheated investors out of more than $4 million, which he used to
bankroll a lavish lifestyle of travel, spa services and fine dining,” Acting
Attorney General John J. Hoffman said. “This defendant was a conscienceless
con artist dressed up like a legitimate financial professional.”
27
NEW JERSEY CONT’D
Division of Consumer Affairs Acting Director Steve Lee said, “This default
judgment is a step toward righting the wrongs committed by Jackowitz and
the Branded Marketing companies against defrauded investors.”
http://nj.gov/oag/newsreleases15/pr20150312a.html
March 10, 2015
Acting Attorney General Hoffman Announces New Jersey Division of
Consumer Affairs Files Suit Against Atlantic County Installer of In-
Ground Pools, for Allegedly Defrauding Multiple Consumers
The New Jersey Division of Consumer Affairs has filed a civil lawsuit against
Waterworld Fiber Glass Pools, Inc., a Hammonton-based installer of in-ground
swimming pools, alleging that the company defrauded multiple consumers by,
among other things, failing to perform contracted-for work and/or failing to
repair its own substandard work, and refusing to refund consumers’ down
payments.
The State’s lawsuit, against Waterworld and its vice president, Donald
Tallman, also alleges that the company’s failure to fulfill its promises created
significant costs and inconvenience for multiple consumers. For example,
several consumers rented heavy equipment, had large holes excavated in their
backyards, and obtained delivery of 60 to 80 tons of stone or gravel, all in
preparation for the dates on which Waterworld had promised to deliver their
pools. The company then failed to show up – not merely missing the promised
dates, but failing to deliver the pools at all.
http://nj.gov/oag/newsreleases15/pr20150310a.html
March 9, 2015
Acting Attorney General Hoffman Announces New Jersey Division of
Consumer Affairs Files Action Against Cumberland County Used Car
Dealership for Alleged Consumer Fraud and Advertising Violations
The New Jersey Division of Consumer Affairs has filed suit against
AutoSource Group, LLC, a used car dealership located in Vineland, alleging,
28
among other things, a failure to disclose prior motor vehicle damage or prior
fleet use of motor vehicles to consumers, and a failure to honor warranties.
The State’s seven-count complaint, filed in State Superior Court in
Cumberland County, alleges 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. The State
seeks consumer restitution, reimbursement of attorneys’ fees and costs, and
civil penalties that range up to $10,000 for each violation of the statutes
and/or regulations committed by AutoSource Group.
The complaint also alleges that AutoSource Group failed to disclose prior
damage before the sale of 17 used motor vehicles, and failed to disclose prior
fleet use before the sale of five other used motor vehicles. In addition,
AutoSource Group advertised at least 22 used motor vehicles without the
required statement that “prices include all costs to be paid by a consumer,
except for licensing costs, registration fees and taxes.” AutoSource Group also
failed to itemize document processing fees for consumers as required by law.
http://nj.gov/oag/newsreleases15/pr20150309a.html
NEW YORK
March 30, 2015
A.G. Schneiderman Announces Agreement With GNC To Implement
Landmark Reforms For Herbal Supplements
GNC To Use DNA Barcoding To Authenticate Plants Used In Supplements; Adopt
New Testing Standards To Prevent Contamination; Improve Transparency For
Consumers
Reforms – Which Exceed FDA Standards — Follows A.G. Investigation That
Found Majority Of Tested Supplements Didn’t Contain DNA From Listed Plant
Attorney General Eric T. Schneiderman today announced a landmark
agreement with Pennsylvania-based retail giant GNC to implement new
standards in authenticating herbal supplements, ensuring their purity, and
educating consumers about their chemical content. Under today’s agreement,
GNC will perform DNA barcoding on the “active” plant ingredients used in its
29
NEW YORK CONT’D
products; implement testing for contamination with allergens, both before
and after production; and post prominent signage advising consumers of the
processed, chemical nature of extracts. GNC will be required to implement
these new procedures in all of its more than 6,000 stores nationwide, making
this agreement the first in the nation to require testing standards for herbal
supplements that exceed current FDA requirements.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
agreement-gnc-implement-landmark-reforms-herbal-supplements
March 18, 2015
A.G. Schneiderman Announces Settlement With Excellus Health Plan To
End Wrongful Denial Of Mental Health And Addiction
Investigation Reveals Excellus Denied Inpatient Addiction Treatment Services At
Least Twice As Often As Inpatient Medical Services Between 2011 And 2014,
Including Nearly Seven Times As Often In 2012
Settlement With Excellus Requires Reforms To Claims Review Process, Could
Net Up To $9 Million For Patients
Attorney General Eric T. Schneiderman today announced the fifth settlement
since last year in an unprecedented enforcement effort of mental health parity
laws. The settlement, reached with Rochester-based Excellus Health Plan,
requires the health insurer to cover residential treatment for behavioral health
conditions and reform its procedures for evaluating behavioral health
treatment claims. The settlement also requires Excellus to provide notice of a
new appeal right to 3,300 members whose requests for inpatient substance
use disorder rehabilitation and eating disorder residential treatment Excellus
denied from 2011 through 2014. The estimated value of Excellus’s denial of
these individuals’ requests is up to $9 million.
Excellus, which is part of the Blue Cross Blue Shield Association, has 1.5
million members and is upstate New York’s largest health plan. An
investigation by Attorney General Schneiderman’s Health Care Bureau found
that Excellus denied inpatient substance use disorder rehabilitation recovery
services seven times as often as inpatient medical services.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
settlement-excellus-health-plan-end-wrongful-denial-mental
30
NEW YORK CONT’D
March 13, 2015
A.G. Schneiderman Announces Two Lawsuits And One Settlement
Against Contractors Accused Of Price Gouging During Buffalo Snow
Storm
Action Taken Against Contractors Accused Of Charging Exorbitant Rates For
Goods And Services During State Of Emergency
Attorney General Eric T. Schneiderman today announced that his
office has filed two lawsuits and has reached one settlement against
contractors accused of price gouging during last November’s massive
snowstorm in Greater Buffalo. The contractors are accused of inflating the
price for goods and services during the snow storm. In some areas, the storm
resulted in up to 7 feet of snow and the declaration of a state of emergency.
Under New York State’s price gouging law (General Business Law 396-r),
merchants are prohibited from taking unfair advantage of consumers by
selling goods or services for an “unconscionably excessive price” during an
“abnormal disruption of the market,” including severe weather events.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-two-
lawsuits-and-one-settlement-against-contractors-accused
March 11, 2015
A.G. Schneiderman Announces That President Of Korean Social Service
Center Is Heading To State Prison For Stealing More Than $200,000
From Immigrants Seeking Affordable Housing
Ock Chul Ha Was Sentenced To 1-3 Years State Prison, Banned From
Performing Social Service Work, Faces Possible Deportation, And Is Required To
Pay Restitution To The Victims
Ha Posed As A Social Worker, Made False Promises Of Low-Income Housing In
Exchange For Thousands Of Dollars In Fees
Attorney General Eric T. Schneiderman today announced the sentencing of
Ock Chul Ha, President of the Korean Social Service Center, a not-for-profit
organization, who operated a pervasive scam on primarily elderly Korean-
Americans for more than three years. Ha, 58, of Fort Lee, NJ, was sentenced
to 1-3 years state prison and was banned from performing social service work
and is required to pay restitution to the victims, who cooperated with this
31
investigation. The order also includes the closure of the Korean Social Service
Center.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-president-
korean-social-service-center-heading-state-prison
March 11, 2015
A.G. Schneiderman Announces Agreement With EmblemHealth To Boost
Coverage For Preventive Services
Affordable Care Act Requires Expanded Access To Preventative Care Without
Cost-Sharing For Patients
Enforcement Effort Will Remove Barriers To Patients Getting Preventative
Colonoscopies, Provide Nearly $400,000 In Reimbursements To Patients
Attorney General Eric T. Schneiderman today announced an agreement with
EmblemHealth, Inc., requiring Emblem to cover anesthesiology services
provided in connection with an in-network preventive colonoscopy, without
any cost-sharing by the member. Emblem has also issued refunds to
hundreds of Emblem members who paid a copayment, coinsurance, or
deductible for such anesthesiology services.
An important provision of the Patient Protection and Affordable Care Act
(“Affordable Care Act”) is the requirement that health plans cover
recommended preventive services without member cost-sharing. Preventive
services can improve health and save money by identifying health issues
before they become complex and costly to manage. In order to encourage more
individuals to seek these services, the Affordable Care Act requires free access
to certain preventive services, without any cost-sharing requirements such as
copayments, coinsurance and deductibles. One of these preventive services is
in-network preventive colonoscopies.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
agreement-emblemhealth-boost-coverage-preventive-services
32
NEW YORK CONT’D
March 9, 2015
A.G. Schneiderman Announces Groundbreaking Consumer Protection
Settlement With The Three National Credit Reporting Agencies
Experian, Equifax, And Transunion, Which Maintain Consumer Credit
Information On 200 Million Americans, Have Agreed To Increase Protections For
Consumers Facing Credit Report Errors; Provide Second Free Annual Credit
Report To Consumers
Agreement Increases Protections For Consumers With Medical Debt; Reforms
Process For Correcting Report Errors; Improves Accuracy Of Reports
Attorney General Eric T. Schneiderman today announced a settlement with
the nation’s three leading national credit reporting agencies, Experian
Information Solutions, Inc., (“Experian”), Equifax Information Services, LLC
(“Equifax”), and TransUnion LLC (“TransUnion”). The agreement means the
companies will improve credit report accuracy; increase the fairness and
efficacy of the procedures for resolving consumer disputes of credit report
errors; and protect consumers from unfair harm to their credit histories due
to medical debt. All three credit reporting agencies worked cooperatively with
the office to develop these critical reforms.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
groundbreaking-consumer-protection-settlement-three-national
March 5, 2015
A.G. Schneiderman Announces Settlement With ValueOptions To End
Wrongful Denial Of Mental Health And Substance Abuse Treatment
Services
Investigation Revealed ValueOptions Denied Mental Health Claims Twice The
Rate Of Other Claims, And Addiction Recovery Services Denied Four Times As
Often
Company Administers Mental Health and Substance Use Disorder Benefits For
Major Health Insurance Plans Including The Empire Plan, MVP, and Emblem
Health, Among Others
33
NEW YORK CONT’D
Attorney General Eric T. Schneiderman today announced a settlement with
Beacon Health Options (formerly known as ValueOptions) requiring the
managed care company – which administers behavioral health benefits for
approximately 2.7 million New Yorkers in fully funded or state and local
government health plans – to dramatically reform its claims review process
and pay a $900,000 penalty. The settlement resolves allegations of
widespread violations of mental health parity laws by the company, which
serves a total of 45 million consumers across all 50 states. An investigation by
the Attorney General’s Health Care Bureau found that ValueOptions issued
denials twice as often for behavioral health claims as insurers did for other
medical or surgical claims and four times as often for addiction recovery
services.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
settlement-valueoptions-end-wrongful-denial-mental-health
34
OHIO
March 24, 2015
Attorney General Mike DeWine Announces Storm-Chasing Roofer Sentenced to Prison
Ohio Attorney General Mike DeWine and Union County Prosecuting Attorney
David Phillips today announced that a storm-chasing home repair contractor will serve prison time for stealing more than $150,000 from 40 victims throughout central and southwest Ohio.
James Twaddle, of Reynoldsburg, was sentenced today to 59 months (nearly
five years) in prison. In December, he pleaded guilty to felony charges of attempted engaging in a pattern of corrupt activity, grand theft, and theft from the elderly after running an elaborate home improvement scheme that
involved taking homeowners’ insurance checks and providing no services in return.
http://www.ohioattorneygeneral.gov/Media/News-Releases/March-2015/Storm-Chasing-Roofer-Sentenced-to-Prison
March 18, 2015
Attorney General DeWine Seeks Reimbursement from Dealership
Accused of Failing to Deliver Titles
Ohio Attorney General Mike DeWine today announced that his office has filed
a lawsuit against a Clinton County used car dealership accused of failing to
deliver motor vehicle titles as required by law.
The lawsuit accuses MC Auto and its owner Michael Crow of violating Ohio
consumer laws. It also seeks reimbursement to the Title Defect Rescission
Fund, a state program that helps car buyers who fail to receive valid titles to
vehicles they purchase from a dealership.
http://www.ohioattorneygeneral.gov/Media/News-Releases/March-
2015/Attorney-General-DeWine-Seeks-Reimbursement-from-D
35
OHIO CONT’D
March 9, 2015
Attorney General DeWine Seeks Consumer Restitution from Home
Improvement Contractor Accused of Failing to Deliver Services
Ohio Attorney General Mike DeWine today announced a lawsuit against a
Columbus home improvement contractor accused of taking consumers’
money but failing to deliver promised goods and services.
The lawsuit accuses Remodeling Group LLC and its owner Joshua Hickman of
multiple violations of Ohio’s Consumer Sales Practices Act.
http://www.ohioattorneygeneral.gov/Media/News-Releases/March-
2015/Attorney-General-DeWine-Seeks-Consumer-Restitution
OKLAHOMA
March 13, 2015
Attorney General Scott Pruitt Charges Contractor for Defrauding Moore
Tornado Victims
Attorney General Scott Pruitt Thursday charged a Tulsa contractor with two
felony counts of embezzlement for fraudulent business practices in rebuilding
homes damaged by the May 2013 tornado.
Wesley Gamble, Jr., 46, and his company NEXT Construction and
Remodeling, was contracted in July 2013 by two Oklahoma City-area families
to rebuild their homes that were damaged in the May 2013 tornado. By
February 2014, Gamble had allegedly stopped working on either home, even
while reassuring each family that their home would be completed, and
continuing to ask for more money from each family. One family alleges that
Gamble even admitted in April 2014 that he had mismanaged the money he
was paid and the money was now gone.
http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258
&article_id=15562
36
PENNSYLVANIA
March 26, 2015
Attorney General Kane Announces Electric Generation Supplier
Settlement Would Deliver $2.3 Million More in Refunds
Attorney General Kathleen G. Kane and Acting Consumer Advocate Tanya J.
McCloskey today announced a proposed settlement with an electric
generation supplier accused of deceptively marketing its variable electric rates
to Pennsylvania consumers, many of whom filed complaints about spikes in
their rates during the winter of 2014.
Under the settlement, Energy Services Providers Inc., which does business as
Pennsylvania Gas and Electric (PaG&E), has agreed to pay $2.3 million in
refunds to eligible consumers in addition to the $4.5 million the company has
already paid. The corporation must also pay a civil penalty of $25,000 and
make a contribution of $100,000 to the Electric Distribution Companies’
hardship funds.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pres
s_Release/?pid=1613
March 25, 2015
Attorney General Kane Announces Lawsuit Against Philadelphia-Area Car
Dealerships
Attorney General Kathleen G. Kane today announced her office has filed a
lawsuit against three Philadelphia-area car dealerships and their president
amid allegations they sold and leased used cars at inflated prices, used
deceptive business practices and sold vehicles that were not roadworthy.
The lawsuit comes after the Office of Attorney General’s Bureau of Consumer
Protection investigated more than 130 complaints concerning Dean Cafiero
and his businesses. The lawsuit seeks injunctive relief, restitution and
penalties of up to $1,000 for every violation of the Consumer Protection Law.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pres
s_Release/?pid=1611
37
PENNSYLVANIA CONT’D
March 10, 2015
Attorney General Kathleen Kane Announces Electra Lighting and
Electric Co. owner ordered to pay $19,878
Attorney General Kathleen G. Kane today announced that her office has
obtained a court order that requires a Westmoreland County man to cease
operations of his home furnishings business and permanently prohibits him
from operating a similar business in the state of Pennsylvania.
Michael J. Free, 63, the sole proprietor of Electra Lighting and Electric Co., is
also required to pay $4,878 in restitution to 11 customers he is accused of
deceiving, as well as $15,000 in state penalties and costs.
The customers complained to the Attorney General's Bureau of Consumer
Protection that Free had accepted deposits and failed to timely deliver
merchandise. He also was accused of providing deceptive information about
customer orders and deliveries while ignoring requests for refunds.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pres
s_Release/?pid=1541
WASHINGTON
Mar 17 2015
Attorney General Bob Ferguson Sues Grant County Mobile Home
Landlord For Sham Sales Used To Evade City Health And Safety
Inspections — Tenants Live In Poor Conditions
Seattle landlord accused of consumer protection violations
Attorney General Bob Ferguson today filed a complaint in Grant County
Superior Court against Gary Chavers, owner of Sun & Sand Mobile Home
Park in Mattawa, Wash., for forcing tenants to sign “purchase” contracts so
that he could evade city health and safety inspections and thereby avoid the
expense of improving the poor condition of the mobile homes. The tenants,
mostly farm workers whose primary language is Spanish, were told they must
sign the contracts or move out.
38
http://www.atg.wa.gov/news/news-releases/attorney-general-sues-grant-
county-mobile-home-landlord-sham-sales-used-evade
March 11 2015
Attorney General Bob Ferguson Files Lawsuit Over Deceptive Super Bowl
Ticket Sales
For some Seahawks fans, the Super Bowl heartbreak started before the
interception.
Just hours before the Super Bowl, customers of SBTickets.com, LLC received
an email announcing the company would not fulfill all its ticket orders. The
company did not have the tickets it promised when it made sales to many
consumers.
Because of its unfair and deceptive practices, Washington Attorney General
Bob Ferguson today filed a consumer protection lawsuit against SB Tickets
http://www.atg.wa.gov/news/news-releases/attorney-general-bob-ferguson-
files-lawsuit-over-deceptive-super-bowl-ticket
39
MULTISTATE CASES AND SETTLEMENTS
March 31, 2015
New York, Oregon, Minnesota, Missouri, And Texas, Files Lawsuit Against
Companies Over Allegedly Fraudulent Subscription Solicitations Sent
Nationwide
As part of a coordinated law enforcement action, Attorney General Eric T.
Schneiderman today announced that his office and the Attorneys General of
Oregon, Minnesota, Missouri and Texas filed lawsuits against Orbital
Publishing Group, Inc. and a ring of interrelated New York and Oregon
companies for mailing millions of unauthorized and allegedly misleading
magazine and newspaper subscription notices to consumers nationwide. The
solicitations were sent without the permission of the publishers and stated
that consumers were receiving “one of the lowest available rates,” when, in
fact, they were being charged, in some cases, more than double the
publication price. The companies then pocketed the difference.
http://www.ag.ny.gov/press-release/ag-schneiderman-files-lawsuit-against-
companies-over-allegedly-fraudulent-subscription
March 19, 2015
Attorney General Sam Olens and 47 Other State Attorneys General
Enters National Settlement with Pharmaceutical Company Daiichi
Sankyo to Resolve Kickback Allegations
Georgia Attorney General Sam Olens announced on March 19, 2015, that
Georgia has joined the federal government, 48 states and the District of
Columbia to reach an agreement with the pharmaceutical manufacturer
Daiichi Sankyo, Inc., a global pharmaceutical company with its U.S.
headquarters in New Jersey. The agreement settles allegations that the
company violated the False Claims Act by providing kickbacks to physicians
to induce them to prescribe the drugs Azor, Benicar, Tribenzor, and Welchol.
Daiichi Sankyo will pay the states and the federal government $39 million in
civil damages and penalties. Georgia’s share of the settlement is $415,579.02,
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of which $162,015.12 will be returned directly to the Georgia Department of
Community Health.
http://law.ga.gov/press-releases/2015-03-19/georgia-enters-national-
settlement-pharmaceutical-company-daiichi-sankyo
March 4, 2015
FTC, Colorado, Florida, Indiana, Kansas, Mississippi, Missouri, North
Carolina, Ohio, Tennessee, and Washington State Attorneys General Take
Action Against Political Survey Robocallers Pitching Cruise Line
Vacations to the Bahamas
Settling Defendants to Pay More Than $500,000 in Penalties for Billions of
Illegal Robocalls
The Federal Trade Commission and 10 state attorneys general have taken
action against a Florida-based cruise line company and seven other
companies that assisted a massive telemarketing campaign resulting in
billions of robocalls. The FTC and state partners allege that that the
companies illegally sold cruise vacations using political survey robocalls.
Although the FTC’s do-not-call and robocall rules do not prohibit political
survey robocalls, the defendants’ robocalls violated federal law because they
incorporated a sales pitch for a cruise to the Bahamas. The robocalls
generated millions of dollars for the cruise line.
According to the joint complaint filed by the FTC and the states, the
defendants’ robocall campaign ran from October 2011 through July 2012 and
averaged approximately 12 to 15 million illegal sales calls a day. Consumers
who answered these calls typically heard a pre-recorded message supposedly
from “John from Political Opinions of America,” who told them they had been
“carefully selected” to participate in a 30-second research survey, after which
they could “press one” to receive a two-day cruise to the Bahamas.
https://www.ftc.gov/news-events/press-releases/2015/03/ftc-ten-state-
attorneys-general-take-action-against-political
41
MEDICAID FRAUD CASES AND SETTLEMENTS
COLORADO
March 20, 2015
Attorney General Cynthia Coffman Announces Colorado Nurse Stole from
Medicaid Using Medically-Fragile Children’s Claims
Donna Everly Sentenced on 136 Counts of Theft and Forgery
Colorado Attorney General Cynthia H. Coffman announced that Colorado
nurse Donna F. Everly, 61-years-old, cheated the state’s Medicaid program by
submitting bills for care of medically-fragile children that was not provided.
For her crimes of falsifying medical and billing records, Everly was sentenced
this week by El Paso County District Court Judge Michael McHenry to three
years supervised probation and ordered to pay more than $16,500 in criminal
restitution. She must also report her guilty conviction to the Colorado Nursing
Board.
http://www.coloradoattorneygeneral.gov/press/news/2015/03/20/colorado_
nurse_stole_medicaid_using_medically_fragile_children%E2%80%99s_claims
DELAWARE
March 25, 2015
Attorney General Matt Denn Announces Milton Woman Pleads Guilty to
Submitting False Claims to Medicaid
Karen Fueyo, 51, of Milton, a former employee of a licensed clinical social
worker, pled guilty to one count of felony health care fraud, one count of
felony theft and one count of felony conspiracy in the second degree in Sussex
County Superior Court. She was sentenced by Judge E. Scott Bradley to three
years of incarceration suspended for probation, and ordered to pay full
restitution to the Delaware Medicaid Program, in addition to fines and court
costs, as well as costs of investigation to the Department of Justice Medicaid
Fraud Control Unit.
Fueyo worked as a biller for Rosa Fernandez, a licensed clinical social worker
in Milton, who was also arrested and indicted in this case. Following an audit,
the Delaware Division of Medicaid and Medical Assistance referred the matter
42
to the Department of Justice Medicaid Fraud Control Unit. The DOJ
investigation showed Fueyo billed the Delaware Medicaid program for
numerous office visits that never occurred, including dates when clients were
out of the country.
http://news.delaware.gov/2015/03/25/milton-woman-pleads-guilty-to-
health-care-fraud/
FLORIDA
March 20, 2015
Attorney General Pam Bondi Announces Four Arrested in Medicaid Fraud Scheme that Exploited the Homeless
Attorney General Pam Bondi’s Medicaid Fraud Control Unit announced the
arrests of four individuals for allegedly recruiting the homeless to bilk Medicaid out of at least $215,000. According to the investigation, Christina Benson, owner of Tranquility Healthcare Solutions in Orlando, billed Medicaid
for services for homeless men and women who were recruited by her associates to pose as patients. Tranquility Healthcare Solutions allegedly billed Medicaid for services not provided and services not warranted. The
company also allegedly used personnel who were not trained, including some who had criminal arrest records.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/95FC1DCE8177047985257E0E0053372A
March 3, 2015
Attorney General Pam Bondi Announces Alachua County Home and
Community Based Service Provider Arrested For Overbilling, Billing For Services Not Rendered
Attorney General Pam Bondi’s Medicaid Fraud Control Unit and the Alachua County Sheriff’s Office today arrested Christopher A. Days, 43, for more than
$65,000 in Medicaid fraud. Days, the owner of Better Days of North Central Florida, LLC., allegedly defrauded the Florida Medicaid program by overbilling, billing for services not rendered and failing to properly document for services
rendered for several Medicaid recipients. http://www.myfloridalegal.com/newsrel.nsf/newsreleases/CD9BCC9A6819D
81385257DFD005CB040
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GEORGIA
March 11, 2015
Attorney General Sam Olens Announces Gwinnett Couple Pleads Guilty
to Falsely Billing Georgia Medicaid for $1.4 Million
On March 6, 2015, Olufemi Afuape and Oluyemisi Afuape of Lilburn, Ga.,
pled guilty to one count of Medicaid Fraud (O.C.G.A. § 49-4-146.1(b)(1)) and
one count of Conspiracy to Defraud the State (O.C.G.A. § 16-10-21(a)).
Oluyemisi Afuape was sentenced to three years house arrest, followed by 12
years of probation. Olufemi Afuape was sentenced to three years work release
at the Gwinnett Detention Center, followed by 12 years of probation. They
were ordered to pay $1,407,325.50 in restitution to the Georgia Department of
Community Health.
Oluyemisi Afuape was a physical therapist enrolled in the Georgia Medicaid
program. Together, she and her husband, Olufemi Afuape, opened a business
called Zion Rehab Services. In order to attract low income children into the
program, they advertised free day care and free summer camp programs
under a ruse they called “Give Mom a Break.” Recruiting patients into a
program or a medical practice of any kind is not permitted in Georgia
Medicaid.
Once the children were enrolled, the Afuapes billed the children’s Medicaid
numbers for physical, occupational and speech therapy without regard to
whether the services were medically necessary and without regard to whether
the services were actually delivered. Children genuinely in need of therapy did
not receive services and children who did not require therapy services
nevertheless had their Medicaid numbers billed for therapy on a daily basis.
Using this scheme, the Afuapes submitted fraudulent claims to the Medicaid
program over a period of years and were paid $1.4 million.
http://law.ga.gov/press-releases/2015-03-11/gwinnett-couple-pleads-guilty-
stealing-14-million-georgia-medicaid
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KENTUCKY
March 30, 2015
Attorney General Jack Conway Announces Guilty Plea and Sentencing Of
Whitley County Dentist Ronald Hungerbuhler For Medicaid Fraud
Attorney General Jack Conway and his Office of Medicaid Fraud today
announce the guilty plea and sentencing of a Whitley County, Ky Dentist
Ronald Hungerbuhler in Whitley Circuit Court.
Hungerbuhler ran a dental practice in Whitley County, Kentucky and
provided dental care to Medicaid patients at a local nursing home. Beginning
in 2003 and continuing into 2009, he began to bill for dental exams but
stopped providing the services to the patients. He then submitted fraudulent
billings for dental exams that he did not perform on patients including those
who were in the hospital or had already died resulting in $16,000 restitution
to Medicaid.
http://migration.kentucky.gov/Newsroom/ag/hungerbplea.htm
March 10, 2015
Attorney General Jack Conway Announces Guilty Plea in Medicaid Fraud
Case
Attorney General Jack Conway and his Medicaid Fraud and Abuse Control
Unit announce the guilty plea and sentencing of Hailey Smith in Hopkins
District Court on a charge of defrauding the Kentucky Medicaid Program.
Smith, a resident of Madisonville, Kentucky, received a 12-month sentence,
which will be diverted for a period of two years as long as she meets the terms
of the plea agreement. Smith was also ordered to pay $8,290 in restitution to
the Kentucky Department of Medicaid Services. As part of the guilty plea,
Smith is prohibited from working in any Kentucky Consumer Directed Option
(CDO) program.
http://migration.kentucky.gov/Newsroom/ag/smithmedicaidplea.htm
45
LOUISIANA
March 27, 2015
Attorney General Buddy Caldwell Announces Medicaid Fraud Control
Unit Arrests Two for Fraudulently Billing Medicaid
Two women have been arrested this week on Medicaid fraud charges after
illegally billing the Louisiana Medicaid Program for health-care services that
were not performed, Attorney General Buddy Caldwell announced today.
https://www.ag.state.la.us/Article.aspx?articleID=981&catID=2
March 18, 2015
Attorney General Buddy Caldwell Announces Arrests of Tangipahoa
Parish Woman on Medicaid Fraud Charges
A Tangipahoa Parish woman accused of illegally billing the Louisiana
Medicaid Program for services she did not provide has been arrested for felony
Medicaid Fraud, Attorney General Buddy Caldwell announced today.
https://www.ag.state.la.us/Article.aspx?articleID=972&catID=2
March 12, 2015
Attorney General Buddy Caldwell Announces East Carroll Parish Woman
Arrested on Medicaid Fraud Charges
Attorney General Buddy Caldwell announced today that agents from the
Attorney General’s Medicaid Fraud Control Unit have arrested an East Carroll
Parish health care worker for felony Medicaid fraud.
Peggy C. Kuykendoll, 50, of Lake Providence, is accused of fraudulently billing
the state Medicaid program for services she did not perform. Kuykendoll is
accused of submitting false time sheets and service logs during the period
from March 2012 to August 2014 while she was employed as a direct care
worker at two personal care agencies in Bastrop.
https://www.ag.state.la.us/Article.aspx?articleID=967&catID=2
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MARYLAND
March 23, 2015
Attorney General Brian Frosh Recoups Nearly $30,000 for State Medicaid
Program.
The settlement covers duplicate claims submitted to the Maryland Medicaid
program by the Annapolis Foot and Ankle Center
Attorney General Brian E. Frosh announced today that the State entered into
a settlement agreement with the owner of an Annapolis-based podiatry office
to resolve allegations of duplicate Medicaid payment claims. Under the
settlement, Dr. John G. DeLeonibus, who operates the Annapolis Foot and
Ankle Center, will repay the state $28,483.
http://www.oag.state.md.us/Press/2015/032315.html
March 4, 2015
Attorney General Brian Frosh Recoups Funds from Autism Services
Provider that Improperly Billed Medicaid
Children Achieving Maximum Potential, Inc. has offices in Rockville, Towson
Attorney General Brian E. Frosh announced today that an autism services
provider with offices in Rockville and Towson has agreed to pay $58,000 to
resolve claims that it billed the state Medicaid program for services it never
delivered.
The Office of the Attorney General's Medicaid Fraud Control Unit launched an
investigation into Children Achieving Maximum Potential, Inc., (ChAMP) in
2010, after receiving a tip from a former employee.
http://www.oag.state.md.us/Press/2015/030415.html
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MASSACHUSETTS
March 31, 2015
Attorney General Maura Healey Announces Quincy Dentist to Pay
$750,000 Over Claims of Improperly Billing MassHealth for Emergency
Dental Services
Wollaston Dental Care Frequently Billed MassHealth for Services Not Provided
A Quincy dentist has agreed to pay $750,000 over allegations of improperly
billing the state’s Medicaid program for emergency dental services, resulting
in thousands of dollars of overpayments, Attorney General Maura Healey
announced today.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
03-31-lee-settlement.html
MICHIGAN
March 18, 2015
Attorney General Bill Schuette Files Felony Charges Against Employees
of Detroit Medical Practice
Attorney General Bill Schuette today announced felony charges against Dr.
Murtaza Hussain, 51, of Livonia and three unlicensed Southeast Michigan
employees with Livernois Family Medical Services, P.C. for their role in an
elaborate Medicaid fraud scheme. The charges were filed following an
investigation launched by Schuette's Health Care Fraud Division after a
complaint was referred by the Inspector General for the Department of
Community Health (DCH).
https://www.michigan.gov/ag/0,4534,7-164-46849-350275--,00.html
48
MISSISSIPPI
March 25, 2015
Attorney General Jim Hood Announces Former Madison County Resident
Arrested For Medicaid Fraud For Falsely Claiming To Be A Licensed
Physician’s Assistant
A former Madison County resident has been arrested following indictment for
Medicaid Fraud and Mail/Wire Fraud, announced Attorney General Jim Hood
today.
Theresa Lane Fisher, 46, formerly of Madison County, was arrested Tuesday
by investigators with the Attorney General’s Office Medicaid Fraud Control
Unit with assistance from the Madison County Sheriff’s Department. Fisher
was booked into the Madison County jail and posted a $35,000 bond. The
arrest followed Fisher’s indictment by the Madison County Grand Jury on
four counts of Medicaid Fraud and three counts of Mail/Wire Fraud.
http://www.ago.state.ms.us/releases/former-madison-county-resident-
arrested-for-medicaid-fraud/
49
MISSOURI
Mar 18, 2015
Attorney General Chris Koster Announces $2.4 Million For Missouri
Medicaid For False Claims Submitted By Care-Coordination Company
Attorney General Chris Koster today announced a Medicaid fraud civil
settlement that will return $2,429,000 million to the state of Missouri.
Under the terms of the settlement, APS Healthcare, Inc., APS Healthcare
Bethesda, Inc., and Innovative Resource Group, LLC d/b/a APS Healthcare
Midwest (“APS”) will immediately pay a total $5 million to Missouri and the
federal government to resolve allegations that it submitted false claims to the
Missouri Medicaid Program.
From 2008 to 2010, APS contracted to provide administrative services for two
state Medicaid programs, the Chronic Care Improvement Plan and
Administrative Services Organization. Under the two programs, APS was to
assist with managing the care for chronically ill Medicaid beneficiaries in
Missouri, coordinating their preventive care in order to reduce overall costs
related to emergency care.
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
announces-2.4-million-for-missouri-medicaid-for-false-claims-submitted-by-
care-coordination-company
March 2, 2015
Attorney General Koster Announces $70,000 Settlement With Kansas
City Medicaid Provider
Attorney General Chris Koster announced today that he has reached a
settlement with Haske International Agency, LLC, of Kansas City, and the
company's owner, Rakiya Bello, for submitting false claims to MO HealthNet,
Missouri's Medicaid program. The agreement requires Bello and her business
to pay the state $70,000.
Koster said that Haske International Agency, LLC, doing business as Haske
Adult Day Care, provides adult day care services to Medicaid participants. An
investigation by Koster's Medicaid Fraud Control Unit revealed Bello and her
company submitted claims to Medicaid for services that were not provided,
50
either because participants were found not to have been in at Haske Adult
Day Care at that time, or were in their homes receiving personal care services.
In other instances, Bello and her company billed Medicaid for more hours of
adult day care services than were actually provided to the participants. Haske
International Agency, LLC received $15,555.00 from MO HealthNet as
reimbursement for the false claims.
https://ago.mo.gov/home/news-archives/2015-news-archives/ag-koster-
announces-settlement-with-kansas-city-medicaid-provider
NEVADA
March 3, 2015
Attorney General Laxalt Announces Sentencing Of Medical Equipment
Provider
Nevada Attorney General Adam Paul Laxalt announced that Oluwole
Adegboruwa, 45, of Las Vegas, was sentenced this week for submitting false
Medicaid claims for delivery of medical supplies. A jury found him guilty of
felony and gross misdemeanor offenses of false Medicaid claims, theft,
intentionally inadequate records and unlawful use of another’s personal
identification. The fraud occurred between October 2008 and December 2009.
http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Announces_Sente
ncing_of__Medical_Equipment_Provider/
NEW YORK
March 19, 2015
A.G. Schneiderman Announces Arrest Of Former Not-For-Profit Director
For Defrauding Medicaid And Stealing From A Developmentally Disabled
Individual
Suzanne Shumway Submitted Fraudulent Medicaid Billings For Over $2,200;
Stole Over $1,000 From Developmentally Disabled Consumer
Attorney General Eric T. Schneiderman today announced the arrest and
arraignment of Suzanne Shumway, former Executive Director of Battenkill
Community Services, Inc. (BCS), a not-for-profit agency servicing
51
developmentally disabled individuals, for allegedly defrauding Medicaid for
services rendered to BCS consumers and theft of funds of a developmentally
disabled person under her care. If convicted, she could face 1 1/3 to 4 years
in prison.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-arrest-
former-not-profit-director-defrauding-medicaid-and
OHIO
March 9, 2015
Attorney General Mike DeWine Announces Home Health Nurse Ordered
to Pay $165,000 Following Medicaid Fraud Conviction
Ohio Attorney General Mike DeWine announced today that an independent home health nursing services provider has been ordered to pay $165,000 following her conviction on a felony charge of Medicaid fraud.
Julia Andrews, of Marysville, pleaded guilty to the charge today in Franklin County Common Pleas Court. Judge Michael Holbrook then sentenced the
defendant to a suspended 18 month prison sentence, with the condition that she successfully complete five years of community control.
http://www.ohioattorneygeneral.gov/Media/News-Releases/March-2015/Home-Health-Nurse-Ordered-to-Pay-$165-000-Followin
OKLAHOMA
March 27, 2015
Attorney General Scott Pruitt Announces Guilty Plea in Medicaid False
Claims Case
A former healthcare worker pleaded guilty to Medicaid fraud following an
investigation by the Oklahoma Attorney General’s Office.
John Edward Karis, of Yukon, pleaded guilty to three felony counts of
Medicaid fraud along with one misdemeanor count. Karis received a 10-year
deferred sentence and owes more than $16,000 in restitution and
investigative costs. Karis also will be put on probation where he may not
submit or cause claims to be submitted the Medicaid program.
52
In October, Attorney General Scott Pruitt announced the charges after Karis’s
former employer, All Behavioral Health Services, contacted the Medicaid
Fraud Control Unit of the Attorney General’s Office regarding counseling
services that never occurred.
http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258
&article_id=15630
March 18, 2015
Attorney General Pruitt Announces Guilty Plea in Medicaid Fraud
Prosecution of Mental Health Care Facility Operator
The operator of an Oklahoma mental health care facility pleaded guilty
Wednesday to seven felony counts related to Medicaid fraud following charges
brought by Attorney General Scott Pruitt’s Medicaid Fraud Control Unit.
John Michael Doneti, operator of Central Oklahoma Behavioral Health
Services, LLC (COBHS), is sentenced to five years in prison followed by five
years of probation. Doneti is also ordered to pay $194,000 in restitution and
is ordered not to bill Medicaid during his time on probation.
Doneti, a licensed professional counselor, was allegedly aided by a co-
defendant, Angelique Williamson, whose charges are still pending before the
Court. Together they are accused of billing in excess of $289,000 in
fraudulent claims to the Oklahoma Health Care Authority.
http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258
&article_id=15580
March 13, 2015
Attorney General Scott Pruitt Announces Broken Bow Optometrist,
Office Manager Face Eight Felony Charges for Submitting False Claims to
Medicaid
Oklahoma Attorney General Scott Pruitt filed eight felony counts against Dr.
Fred Romine, an optometrist from Broken Bow as well as the doctor’s office
manager, Marcita Green.
53
Romine, 53, and Green, 60, allegedly submitted false claims to the Oklahoma
Health Care Authority, requesting payment for services as well as eyeglasses
that were never provided, and kept the money for their own benefit.
The Attorney General’s Medicaid Fraud Control Unit received a complaint
regarding the Broken Bow doctor. An investigation found that more than
$81,000 was reimbursed by Medicaid on services that allegedly never
occurred.
http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258
&article_id=15570
PENNSYLVANIA
March19, 2015
Attorney General Kathleen Kane Announces Philadelphia Woman
Charged With Submitted Fraudulent Time Sheets to Medicaid
Attorney General Kathleen G. Kane today announced the arrest of a
Philadelphia woman for Medicaid fraud and theft for allegedly submitting false
information about attendant care services she did not provide.
Niesha Brown allegedly submitted fraudulent time sheets as an independent
contractor through Liberty Resources Inc., resulting in $4,598 being paid to
Liberty Resources by the Department of Human Services for the services not
rendered to her mother, a Medicaid recipient.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pres
s_Release/?pid=1586
54
VIRGINIA
March 24, 2015
Attorney General Mark Herring Announces Henrico Woman Pleads Guilty
to Submitting False Claims to Medicaid
Kateresea L. Ford, 42, of Glen Allen, Virginia, pleaded guilty today to one
count of Health Care Fraud.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Mark
R. Herring, Virginia Attorney General, made the announcement after the plea
was accepted by U.S. Magistrate Judge David J. Novak.
On March 9, 2015, the United States filed a one count criminal information
charging Ford with Health Care Fraud in violation of 18 .U.S.C. § 1347. Ford
faces a maximum penalty of 10 years in prison when sentenced on July 9,
2015 by U.S. District Court Judge Robert E. Payne. The maximum statutory
sentence is prescribed by Congress and is provided here for informational
purposes, as the sentencing of the defendant will be determined by the court
based on the advisory Sentencing Guidelines and other statutory factors.
http://www.oag.state.va.us/index.php/media-center/news-releases/479-
march-24-2015-henrico-woman-pleads-guilty-to-health-care-fraud
55
CONSUMER ADVOCACY
CONNECTICUT
March 11, 2015
Attorney General Jepsen Forms Permanent Department on Privacy, Data
Security within Office of the Attorney General
Attorney General George Jepsen today announced the creation of a new
department within the Connecticut Office of the Attorney General – the
Privacy and Data Security Department – that will work exclusively on
investigations and litigation related to privacy and data security.
In 2011, Attorney General Jepsen appointed a multidisciplinary Privacy Task
Force to educate the public about data protection and to focus the office's
response to Internet privacy concerns and data breaches that affect
consumers. The Privacy and Data Security Department will continue and
expand upon the Task Force's work by dedicating staff to work exclusively on
privacy-related matters.
http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=562108
DISTRICT OF COLUMBIA
March 23, 2015
Attorney General Karl A. Racine Alerts District Consumers to Protect
Themselves in Wake of Premera Blue Cross Security Breach
Washington State-Based Insurance Company’s Breach May Have Affected
District Residents
In the wake of another breach of a major health insurance provider’s records,
Attorney General Karl A. Racine today alerted District residents to be vigilant
about their personal information.
Premera Blue Cross recently reported that a security breach it discovered in
January meant that the personal information (including names, Social
Security numbers, banking information and medical records) of as many as
11 million of its customers and business associates might have been exposed.
56
http://oag.dc.gov/release/attorney-general-alerts-district-consumers-protect-
themselves-wake-premera-blue-cross
INDIANA
March 10, 2015
Attorney General Greg Zoeller Urges Lawmakers to Keep Mortgage
Settlement Conferences, Not Repeal Them
Indiana Attorney General Greg Zoeller today warned that an important
consumer protection helping distressed homeowners avoid foreclosure – the
settlement conference – is in danger of being eliminated because of a proposal
moving through the Legislature that to this point received insufficient
discussion or debate in committee or floor sessions. Zoeller urged state
legislators to remove the proposal before it goes any further in the process so
that the foreclosure-preventing settlement conference process that helps
homeowners stay in their homes can continue unimpeded.
http://www.in.gov/activecalendar/EventList.aspx?fromdate=3/1/2015&todat
e=3/31/2015&display=Month&type=public&eventidn=212322&view=EventDe
tails&information_id=212026
IOWA
March 10, 2015
Attorney General Tom Miller Warns about Pervasive Telephone Scams
Criminals use many ruses and methods, but always make one demand: pay
now Threatening callers make many claims: they’re an IRS agent collecting back taxes, they’re a sheriff’s deputy seeking unpaid fines from unfulfilled jury
duty, they’re your local utility demanding payment for delinquent bills, or it’s a debt collector claiming you owe an unpaid debt.
The list of stories is long, but it always ends with one demand: pay now, or else. If you don’t pay now, the caller claims you’ll face serious consequences, including imminent arrest or a court summons.
Attorney General Tom Miller warned Iowans to guard against these scams, which dozens of consumers daily are reporting to the Consumer Protection Division and local law enforcement statewide.
57
https://www.iowaattorneygeneral.gov/newsroom/miller-warns-about-pervasive-telephone-scams/
KENTUCKY
March 16, 2015
Attorney General Jack Conway Warns of Scam Targeting Seniors
Kentucky Attorney General Jack Conway and the Kentucky Cabinet for
Health and Family Services Department for Aging and Independent Living
(DAIL) is warning consumers of a reported scam targeting Kentucky's seniors.
DAIL has reported to the Office of the Attorney General that it has received
multiple reports of an individual or individuals who falsely identify themselves
as a representative of the "Division of Aging" offering a complimentary Life
Alert system paid for by the state. The callers are telling consumers all they
need to do to receive this service is to verify some personal information.
http://migration.kentucky.gov/Newsroom/ag/seniorscammarch2015.htm
MASSACHUSETTS
March 26, 2015
Attorney General Maura Healey Announces AG’s Office Participates in
Federal-State Crackdown on Auto Sales Fraud
Partners with the Federal Trade Commission and Law Enforcement Agencies
Nationwide in “Operation Ruse Control”
Along with the Federal Trade Commission (FTC) and 32 law enforcement
partners, Attorney General Maura Healey’s Office today announced its
participation in “Operation Ruse Control,” a nationwide and cross-border
crackdown to protect consumers when they buy a car, encompassing a total
of 252 enforcement actions.
Last year, the FTC reached out to national, state, and local law enforcement
agencies to participate in its nationwide sweep against automobile dealers
that use deceptive sales tactics. “Operation Ruse Control” partnered the AG’s
Office with the FTC, the U.S. Attorney’s Office in the Northern District of
MASSACHUSETTS CONT’D
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Alabama, Ontario Motor Vehicle Industry Council, state agencies, including
other Attorneys General, and other law enforcement agencies at the federal
and local level in the United States and Canada.
Enforcement efforts included a range of deceptive advertising charges,
criminal automotive loan application fraud, odometer fraud, deceptive add-on
fees, and deceptive marketing of car title loans. Today, the FTC’s Bureau of
Consumer Protection announced the sweep at a press event in Birmingham,
Ala. There were 187 enforcement actions in the United States since the
agency’s last sweep, and 65 actions in Ontario and British Columbia, Canada.
Since January 2014, the AG’s Office obtained a $175,000 settlement with four
Western Massachusetts car dealerships over allegations of deceptive
advertising, and filed a lawsuit against Auto Number One, a South Shore car
dealership, for selling unsafe motor vehicles.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
03-26-operation-ruse-control.html
March 26, 2015
AG Healey Makes Push to Protect Residents by Urging Stronger Prepaid
Card Regulations, Lower Auto Insurance Costs
Advocates for Stronger Federal Protections for Prepaid Cards Users; Calls on
DOI to Reject Increase of Auto Insurance Fees for MAIP Policyholders
To address the needs of economically vulnerable consumers in
Massachusetts, Attorney General Maura Healey this week sent letters urging
stronger federal protections for consumers who use prepaid financial products
and encouraging state regulators to reject auto insurance fee increases for
certain policyholders.
“As the people’s law firm, it is squarely on our shoulders to help protect our
most vulnerable residents from financial harm,” AG Healey said. “Whether it
concerns insurance coverage, financial products, housing, or employment, we
are on the lookout to ensure all Massachusetts residents receive a fair deal
and the protections they deserve.”
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
03-26-prepaid-protections.html
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March 31, 2015
Attorney General Healey Launches Webpage for Homeowners Seeking
Assistance From National Bank Settlement Over Unlawful Foreclosures
Non-Monetary Assistance Available for Residents Seeking to Refinance or Sell
Property after Unlawful Foreclosures
Following a $2.7 million settlement with four national banks resolving
allegations of unlawfully foreclosing on properties in Massachusetts, Attorney
General Maura Healey’s Office has launched a webpage to assist eligible
homeowners in clearing property titles so they can refinance or sell their
properties.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
03-31-foreclosure-webpage.html
MICHIGAN
March 2, 2015
Attorney General Schuette Releases Top Ten Michigan Consumer Complaints
List
Top 10 Consumer Complaint Categories of 2014
1. Credit and Financial Concerns: The top complaint category for 2014
held on to the spot that it has had since 2006 generating almost 1,700
complaints in a variety of areas including debt collection, credit repair,
payday lending, and mortgage brokering.
2. Gasoline, Fuel, and Energy: Rising all the way from number 8 in 2013,
propane complaints dominated this category last year. In 2014,
Attorney General Schuette secured agreements with two companies
relating to their propane prices and helped more than 6,200 customers
obtain more than $600,000 in relief.
3. Telecommunications, Cable, and Satellite TV: Maintaining the third
spot from the previous year, this category includes complaints involving
issues like robocalls, telemarketing, and cable and satellite TV
services. These categories made up almost 1,000 of the complaints in
2014.
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4. Retail: This category also ranked fourth for the second year in a row
includes complaints about merchandise quality, warranty, and pricing
disputes.
5. Motor Vehicle and Automobiles: Rising back to number 5, disputes
with used car dealers, automotive repair service complaints, and lemon
law violations are included in this category.
6. Personal Service Providers: Falling back to number 6, complaints in
this category range from dating services and beauty shops to home
security and health and fitness organizations.
7. Internet: Complaints in this computer-based category numbered more
than 600. Included are issues with internet service providers, online
auction disputes, and fraudulent e-mail solicitations.
8. Landlord and Tenant: Rising one spot to number 8 in 2014, this
category made up nearly 500 complaints. A majority of the complaints
in this category involved apartment owners and managers.
9. Health Service Providers: Also rising one spot from 2013, this category
involves complaints about different health service providers like doctors,
dentists, and hospitals.
10. Contractors: Absent from last year's list and rounding out the
top ten are complaints about landscaping services, special trade
contractors, and residential building construction services.
https://www.michigan.gov/ag/0,4534,7-164-46849_47203-348713--
,00.html
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NEVADA
March 5, 2015
Attorney General Adam Paul Laxalt Cautions Nevadans About Charity
Scams
Nevada Attorney General Adam Paul Laxalt cautions all consumers to be wary
of fraudulent charity scams. While charity scams may take place throughout
the year, they are especially prevalent during tax season. Fraudulent charities
target generous individuals by inviting them to donate their tax refunds to a
good cause.
http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Cautions_Nevada
ns_About_Charity_Scams/
March 4, 2015
Attorney General Laxalt Urges Parents To Protect Their Children From
Identity Theft
Nevada Attorney General Adam Paul Laxalt urges all parents to be wary of an
emerging threat that targets the personal information of minors. In addition to
the publicized data breaches, hackers have been targeting insurance
companies, physician practices and other professional offices. With the rise in
data breaches not only comes a threat to adult personal information, but also
to the information of minors.
http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Urges_Parents_to_
Protect_Their_Children_From_Identity_Theft/
March 2, 2015
Attorney General Laxalt Warns Small Businesses of Utility Scam
Nevada Attorney General Adam Paul Laxalt warns consumers about a scam
directed at small businesses, regarding alleged unpaid power bills. All small
businesses should be aware. Individuals claiming to be employees of Nevada
Power, Southwest Gas or other utility companies call small businesses stating
that their utilities will be cut off, unless an immediate payment is made. The
caller usually asks payment to be made via Western Union, MoneyGram,
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Green Dot Card or other wire payments. In some cases, the caller ID may even
cleverly show that the call is being made from the utility company. If the
business calls the number back on the caller ID, an individual claiming to be
employed by the utility company answers. These calls are not traceable, and
are highly likely to originate from outside the United States.
http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Warns__Small_Bu
sinesses_of_Utility_Scam/
NEW JERSEY
March 2, 2015
Acting Attorney General John J. Hoffman: “Home Improvements” and
“Motor Vehicles” Dominated New Jersey’s 2014 Consumer Complaints,
With Third-Party Energy Companies Joining the Top 10
Acting Attorney General John J. Hoffman and the New Jersey Division of
Consumer Affairs today kicked off National Consumer Protection Week, a
consumer awareness campaign that runs during the first week of March, with
a recap of New Jersey’s top 10 consumer complaint categories from 2014.
Top 10 consumer complaint categories list for 2014 is as follows:
#1 Home Improvement Contractors
#2 Motor Vehicles #3 Professional Services #4 Energy Marketers
#5 Banks/Financial Institutions #6 Health Clubs #7 Miscellaneous Scams
#8 Internet Sales #9 Debt Collection
#10 Wireless Phones
http://nj.gov/oag/newsreleases15/pr20150302a.html
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NEW YORK
March 4, 2015
A.G. Schneiderman Report On Charity Telemarketers Finds Majority Of
Funds Solicited Go Into Pockets Of Fundraisers, Not To Charitable
Causes
A.G. Offers Key Tips For Those Who Donate Via Phone Solicitations
"Pennies for Charity" Report Finds That For-Profit Fundraisers Kept An Average
Of 52 Cents Of Every Charitable Dollar
Attorney General Eric T. Schneiderman today released his annual “Pennies for
Charity” fundraising report showing that for-profit telemarketers operating in
New York in 2013 retained the majority of the funds they raised on behalf of
charities – more than $156 million that was intended to support charitable
causes.
Telemarketers registered in New York reported raising more than $302 million
for charity in 2013, a 20% increase over the previous year and the most ever
reported in the history of the New York Attorney General’s annual Pennies for
Charity report. Of those funds, $146.5 million went to organizations’
charitable missions, about 48% of the total money raised. In 75% of the
fundraising campaigns run by telemarketers, the charities retained less than
50% of the funds raised.
http://www.ag.ny.gov/press-release/ag-schneiderman-report-charity-
telemarketers-finds-majority-funds-solicited-go-pockets
March 2, 2015
A.G. Schneiderman Announces Over $13.5 Million Recovered For
Individuals Through Consumer Assistance Program Since 2011
New Report Highlights Consumer Frauds And Internet Bureaus Helping Over
17,000 Individuals Resolve Complaints
Attorney General Eric T. Schneiderman today announced that since January
2011, his office has helped over 17,000 people successfully resolve their
consumer complaints. This includes recovering over $13.5 million in refunds
and other relief for over 12,000 of these consumers through his agency’s
Consumer Assistance Program. These figures were released as part of a new
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report – Fighting Fraud in New York: One Consumer at a Time – that highlights
the office’s efforts to recover funds for individual consumers. The report,
released to coincide with national Consumer Protection Week, also indicates
that the program has resulted in an average per complaint recovery of
$1,107. This is in addition to the litigation and other enforcement actions
that have resulted in a record of over $1.8 billion in consumer relief obtained
by the Consumer Frauds Bureau since 2011.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-over-135-
million-recovered-individuals-through-consumer
NORTH DAKOTA
March 9, 2015
Attorney General Wayne Stenehjem Urges Consumers To Make Sure
Contractor Is Fully Licensed Before Putting Money Down
Cease & Desist Orders issued against Amador Construction and OakHill
Construction.
Two more unlicensed contractors have been banned from doing business in
North Dakota, for a total of fourteen unlicensed contractors banned since
January last year, announced Attorney General Wayne Stenehjem.
Edgar Rodriguez, d/b/a Amador Construction in Minot, and Monte Ekern of
South Dakota, d/b/a OakHill Construction, were banned after the Consumer
Protection division of the Attorney General’s office determined that the
contractors were not licensed. The division investigated after receiving reports
from consumers who had paid advance money to the contractors but the work
was never completed. Neither contractor cooperated with investigators.
Rodriguez appears to have fled to Colorado.
http://www.ag.nd.gov/NewsReleases/2015/03-09-15.pdf
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March 6, 2015
Attorney General Wayne Stenehjem Issued a Warning: After Warnings
Issued, Scammers Try New Tactics
New tactic claims victim of fake IRS Enforcement scam
Earlier this week, Attorney General Wayne Stenehjem issued a warning to
consumers about the IRS Enforcement Scam. Today, the Consumer Protection
division learned the scam artists are trying a new tactic in the hope of
convincing consumers that this time, the call is legitimate. Unfortunately, this
new tactic has already claimed one victim.
In this new variation, the phony IRS Enforcement agent instructs the victim to
purchase a certified cashier’s check directly from their bank, deposit it into
another bank account specified by the scammer and then immediately email
the deposit transaction receipt to the scam artist. As soon as the scam artists
have a copy of the deposit transaction receipt, they can access the account
and empty it. Once the scam artist has the money, it is gone.
http://www.ag.nd.gov/NewsReleases/2015/03-06-15.pdf
OHIO
March 26, 2015
Attorney General Mike DeWine: Ohioans Report Scam Calls from “911”
Attorney General Mike DeWine today warned Ohioans about scam calls that
appear to come from the phone number “911” and instruct consumers to contact the Attorney General’s Office to avoid arrest or legal action.
DeWine’s office has received approximately 20 reports of the scam in 2015, with most filed this month.
The scam begins when consumers receive a phone call that displays “911” on their caller ID. When they answer the call, consumers are told that a warrant
will be issued for their arrest or a lawsuit will be filed against them unless they contact the Attorney General’s Office immediately using a number provided by the caller.
In reality, the calls are not coming from the Ohio Attorney General’s Office or
from 911 dispatchers.
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http://www.ohioattorneygeneral.gov/Media/News-Releases/March-2015/Ohioans-Report-Scam-Calls-from-911%E2%80%9D
OREGON
March 2, 2015
Attorney General Rosenblum Announces Top 10 Consumer Complaints
List IRS Phone Scam Tops the List
Oregon Attorney General Ellen Rosenblum today recognized National
Consumer Protection Week (March 1 – 7, 2015) by releasing the Oregon
Department of Justice's 2014 list of Top 10 Consumer Complaints. For the
first time, the IRS imposter phone scam and magazine subscription fraud
topped Oregon’s list.
http://www.doj.state.or.us/releases/Pages/2015/rel030215.aspx
PENNSYLVANIA
March 4, 2015
Attorney General Kathleen G. Kane Issues Consumer Advisory: Know
your health club membership rights Defunct Lehigh Valley health clubs
to refund $75,000 to members who prepaid
Attorney General Kathleen G. Kane is reminding consumers of their rights
when joining health clubs and gyms after entering an agreement through
which $75,000 in refunds will be paid to consumers who lost the benefit of
their prepaid health club memberships when several Lehigh Valley health
clubs abruptly closed last year. The Bureau of Consumer Protection received
124 complaints about the clubs.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pres
s_Release/?pid=1533
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RHODE ISLAND
March 18, 2015
Attorney General Kilmartin Files "Patent Troll" Legislation
Business Groups Applaud Legislation
Attorney General Peter F. Kilmartin has filed legislation (S0596/H5455) that
would prohibit bad faith assertions of patent infringement against Rhode
Island businesses and individuals. "Patent trolls" are individuals or
companies that acquire patents solely for the purpose of using them to extract
license fees and settlements from those targeted as alleged infringers.
Consumers, small businesses and non-profit agencies are often targeted by
patent trolls because they have purchased or used products with a wide-range
of patented technology such as printers or scanners.
http://www.ri.gov/press/?agency_id=12
SOUTH DAKOTA
March 04, 2015 Attorney General Jackley Warns Public of Increased Number of Sweepstakes Scams Targeting South Dakotans
Attorney General Marty Jackley is asking consumers statewide to reach out to
their friends or neighbors to warn them of the dangers of sweepstake scams. The Attorney General’s Consumer Protection Division has had several victims
come forward to file formal complaints against these types of telemarketers. Many of the complaints come from victims who believed they were working with Publisher’s Clearing House, when in fact they were wiring money out of
the country to places like Jamaica. One senior has wired as much as $8,000 to an unknown source.
http://atg.sd.gov/News/NewsReleases/NewsReleasesView/tabid/441/itemID/3547/moduleID/597/Default.aspx
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VIRGINIA
March 26, 2015
Attorney General Mark Herring Launching Effort To Combat Predatory
Lending
During a field hearing of the federal Consumer Financial Protection Bureau in
Richmond, Attorney General Mark R. Herring today announced that his office
will be developing strategies to combat predatory lending that ensnares
thousands of Virginians each year in a cycle of debt. The effort coincides with
the CFPB's announcement at the hearing that it will begin a federal regulatory
process to establish a national baseline of regulations on payday lenders.
http://www.oag.state.va.us/index.php/media-center/news-releases/480-
march-26-2015-herring-launching-effort-to-combat-predatory-lending
WEST VIRGINIA
March 16, 2015
Attorney General Patrick Morrisey Warns Business Owners of Fake
Invoice Scam
Attorney General Patrick Morrisey today warned business owners of a scam
circulating through West Virginia in which business owners are getting fake
invoices for allegedly being listed in telephone directories and social media.
The invoices, some of which are for thousands of dollars, are sent by
American Yellow Group Inc.’s Outsourced Accounting Department with a
return address of Varna, Bulgaria. The design of the invoice includes the
familiar “walking fingers” logo, which makes it appear as though the business
is being charged for its inclusion in a telephone book’s yellow pages. However
businesses who have received the faxed invoice said they never contracted
with the company for the service.
http://www.ago.wv.gov/pressroom/2015/Pages/Attorney-General-Patrick-
Morrisey-Warns-Business-Owners-of-Fake-Invoice-Scam.aspx
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March 5, 2015
Attorney General Patrick Morrisey Urges Consumers to Take Precautions
When Hiring Home Improvement Contractors
Attorney General Patrick Morrisey today urged consumers to be on alert when
considering contractors for home improvement projects.
As colder temperatures begin to give way to warmer weather, many
homeowners will consider sprucing up their homes for spring. Armed with a
list of to-dos, a vision for getting them done, and a projected budget, now all
you need is someone to do the work; it's time to hire a contractor. And while
most contractors operate legitimate, trustworthy businesses, there are a few
who are looking to prey on the unsuspecting.
http://www.ago.wv.gov/pressroom/2015/Pages/Attorney-General-Patrick-
Morrisey-Urges-Consumers-to-Take-Precautions-When-Hiring-Home-
Improvement-Contractors.aspx