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NATIONAL STATE ATTORNEYS GENERAL PROGRAM: CONSUMER PROTECTION REPORT
JUNE 2015
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CONSUMER PROTECTION REPORT: June 1-30, 2015
This newsletter is a monthly circulation that describes consumer protection activity announced by state attorneys general. This information was gathered solely from attorney general press releases. It makes no effort to prioritize or
analyze the impact of any of these cases and initiatives.
The following press releases are organized by state and multistate activity. In addition, certain Medicaid fraud cases that touch on consumer protection and advocacy initiatives have been included.
If an office would like their activity to be included in subsequent newsletters, please notify [email protected].
To sign up for the monthly consumer protection report, please click on the
link below and enter your contact information. Newsletter sign up: http://stateag.us4.list-
manage.com/subscribe?u=9c3bb47bb6aba00473adb0c58&id=fdba3bae7b
The National State Attorneys General Program at Columbia Law School is a legal research, education, and policy center that examines the implications of the jurisprudence of state attorneys general. Working closely with attorneys general, academics, and other members of the legal community, the program is active in the development and dissemination of legal information used by state prosecutors in carrying out their civil and criminal responsibilities. For more information about the National State Attorneys General Program
and resources, please visit our website www.stateag.org.
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TABLE OF CONTENTS
CONSUMER PROTECTION CASES, SETTLEMENTS AND ADVOCACY
STATEMENTS ......................................................................................... 5
ARIZONA ........................................................................................................................ 5
CALIFORNIA .................................................................................................................. 7
COLORADO .................................................................................................................... 8
DELAWARE .................................................................................................................... 8
FLORIDA ........................................................................................................................ 9
IDAHO ......................................................................................................................... 12
ILLINOIS ...................................................................................................................... 12
INDIANA ....................................................................................................................... 14
IOWA ........................................................................................................................... 14
KANSAS ....................................................................................................................... 17
MARYLAND .................................................................................................................. 17
MASSACHUSETTS ........................................................................................................ 20
MINNESOTA ................................................................................................................. 21
MISSOURI .................................................................................................................... 21
NEVADA ....................................................................................................................... 22
NEW JERSEY ............................................................................................................... 23
NEW YORK ................................................................................................................... 27
NORTH CAROLINA ....................................................................................................... 33
OHIO ............................................................................................................................ 33
OREGON ...................................................................................................................... 34
PENNSYLVANIA ............................................................................................................ 35
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WEST VIRGINIA ........................................................................................................... 36
MULTISTATE CASES AND SETTLEMENTS ............................................. 39
MEDICAID FRAUD CASES AND SETTLEMENTS ..................................... 41
ALABAMA..................................................................................................................... 41
CONNECTICUT ............................................................................................................. 42
GEORGIA ..................................................................................................................... 43
LOUISIANA ................................................................................................................... 45
MASSACHUSETTS ........................................................................................................ 47
MISSISSIPPI ................................................................................................................. 47
NEW HAMPSHIRE ........................................................................................................ 49
NEW MEXICO ............................................................................................................... 50
NEW YORK ................................................................................................................... 50
OKLAHOMA ................................................................................................................. 52
PENNSYLVANIA ............................................................................................................ 53
SOUTH DAKOTA .......................................................................................................... 54
VERMONT .................................................................................................................... 55
VIRGINIA ..................................................................................................................... 55
WASHINGTON .............................................................................................................. 56
CONSUMER ADVOCACY ........................................................................ 58
CALIFORNIA ................................................................................................................ 58
COLORADO .................................................................................................................. 58
CONNECTICUT ............................................................................................................. 59
IDAHO ......................................................................................................................... 59
ILLINOIS ...................................................................................................................... 60
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INDIANA ....................................................................................................................... 61
LOUISIANA ................................................................................................................... 63
MARYLAND .................................................................................................................. 64
MISSISSIPPI ................................................................................................................. 65
MISSOURI .................................................................................................................... 66
NEVADA ....................................................................................................................... 67
NEW JERSEY ............................................................................................................... 68
NORTH CAROLINA ....................................................................................................... 69
OHIO ............................................................................................................................ 70
PENNSYLVANIA ............................................................................................................ 70
WEST VIRGINIA ........................................................................................................... 71
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CONSUMER PROTECTION CASES, SETTLEMENTS AND
ADVOCACY STATEMENTS
ARIZONA
June 18, 2015
Attorney General Mark Brnovich Announces Ponzi-Scheme Con Artist
Sentenced; Arizona Consumers Eligible for Restitution
Attorney General Mark Brnovich is letting Arizona consumers know they may
be eligible for financial restitution as a result of a recent conviction of a former
Tucson con artist engaged in a Ponzi-type investment scheme.
57 year-old Herbert Ivan Kay, formerly of Tucson, was sentenced on Monday,
May 11, 2015 to five years in prison after being convicted of two counts of
Fraudulent Schemes and Artifices on October 31, 2014. Over the course of 13
years, Kay built a Ponzi-type scheme in which he infused business LLCs with
new investor money, and then used that money to help pay for pre-existing
business debts, obligations, and investment rights of failed venture capital
projects. Kay, who was stripped of his National Association of Securities
Dealers (NASD) securities trading license in 2004, marketed and sold
investments in residential and commercial developments in Puerto Penasco,
Sonora, Mexico (Rocky Point).
https://www.azag.gov/press-release/ponzi-scheme-con-artist-sentenced-
arizona-consumers-eligible-restitution
June 16, 2015
Attorney General Mark Brnovich Announces Arizona Consumers Eligible
for Criminal Restitution in Solar Rebate Scam
Attorney General Mark Brnovich is letting Arizona consumers know they may
be eligible for financial restitution resulting from the fraudulent business
practices of Salt River & Wind, LLC (SRSW). Tucson victims may submit
restitution claims for lost Tucson Electric Power (TEP) rebates through the
Arizona Attorney General’s Tucson Office. Victims who have solar equipment
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ARIZONA CONT’D
leases held by Michael Fricker d/b/a SRSW also may be eligible to have their
leases released by court order in the criminal case.
Michael Allen Fricker, 55, was a principal of Phoenix-based SRSW which
specialized in solar panel installation. SRSW ended operations in early
2013. SRSW had several contracting licenses, all of which have been revoked
or suspended by the Arizona Registrar of Contractors. The Better Business
Bureau website gave SRSW an “F” rating and listed numerous complaints
against the company. After a criminal investigation was conducted by the
Federal Bureau of Investigation, Phoenix Division, Tucson Resident Agency,
Fricker was indicted on multiple felony charges in January, 2014.
https://www.azag.gov/press-release/arizona-consumers-eligible-criminal-
restitution-solar-rebate-scam
June 1, 2015
Attorney General Mark Brnovich: Arizonans Could Receive SunTrust
Foreclosure Restitution
Attorney General Mark Brnovich reminds Arizona consumers that the
deadline to file a claim form for a foreclosed borrower payment under the
National SunTrust Mortgage (SunTrust) Settlement is June 4, 2015.
Consumers who lost their primary residences to foreclosure by SunTrust
between January 1, 2008 and December 31, 2013 may be eligible.
On September 30, 2014, the U.S. District Court for the District of Columbia
entered a consent judgment between 49 state attorneys general, the District of
Columbia, the Consumer Financial Protection Bureau and SunTrust. A
portion of this settlement includes a payment to foreclosed borrowers who file
valid claims. Rust Consulting is the claims administrator responsible for
distributing the $40 million dollars in the foreclosed borrower fund to more
than 48,000 borrowers nationwide.
https://www.azag.gov/press-release/arizonans-could-receive-suntrust-
foreclosure-restitution
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CALIFORNIA
June 17, 2015
Attorney General Kamala D. Harris Announces Guilty Plea of Hacker
Involved in Cyber Exploitation Scheme
Attorney General Kamala D. Harris today announced that the operator of a
cyber exploitation hacking scheme, who coordinated the hacking of over 300
email accounts, pled guilty to disruption of computer access in San Francisco
Superior Court. Charles Evens, 26, will be sentenced on August 19, 2015.
An investigation conducted by Attorney General Harris’ eCrime Unit found
that Evens utilized a social engineering scheme in which he tricked Gmail
account holders into providing the recovery code – which is provided as an
additional security measure to Gmail users – for their accounts to him by
posing as a Facebook friend. Once in possession of the recovery code, Evens
would then change the recovery email to one of three email accounts under
his control, gaining access to the victim’s Gmail account and any other
accounts associated with that Gmail account. According to public statements,
Evens used this unauthorized access to steal intimate images and access
other personal content, which he then sold to Hunter Moore to post on his
cyber exploitation website for amounts up to $900.
https://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-
announces-guilty-plea-hacker-involved-cyber
June 8, 2015
Attorney General Kamala D. Harris Announces Three-Year Sentence for
Cyber Exploitation Website Operator
Attorney General Kamala D. Harris announced today that Casey E. Meyering,
the operator of a cyber exploitation website which posted intimate images of
unsuspecting victims without their consent, was sentenced to three years in
jail.
In May, Meyering pled no contest to one count of extortion, three counts of
attempted extortion, and one count of conspiracy.
An investigation by the California Department of Justice’s eCrime unit found
that Meyering operated WinByState.com, a cyber exploitation website which
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solicited the anonymous, public posting of private photographs containing
nude and explicit images of individuals without their permission.
https://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-
announces-three-year-sentence-cyber
COLORADO
June 22, 2015
Colorado Attorney General Cynthia H. Coffman Delivers $450,000 in
Restitution To Homeowners Overcharged By Foreclosure Law Firm
Colorado Attorney General Cynthia H. Coffman announced today that her
office has sent out checks totaling approximately $450,000 to homeowners
who were improperly charged posting and title foreclosure costs by the former
foreclosure law firm The Law Office of Michael P. Medved. Homeowners were
overcharged by having to pay the law firm’s fees as part of making their
mortgage current when they stopped their foreclosure through cure or
reinstatement.
The Attorney General obtained these funds through a one million dollar
settlement with The Law Office of Michael P. Medved, which agreed to pay
restitution to affected homeowners by making two payments of $500,000
each, the second of which will be due later this year. The Attorney General
will distribute that second portion to homeowners who stopped their
foreclosure through a loan modification.
http://www.coloradoattorneygeneral.gov/press/news/2015/06/22/colorado_
attorney_general_cynthia_h_coffman_delivers_450000_restitution_homeow
DELAWARE
June 9, 2015
Attorney General Matt Denn Announces Distribution of Restitution
Funds to Tenants of Dover Apartments for False Advertising
Delaware Attorney General Matt Denn announced Tuesday more than 700
tenants will receive a combined $75,000 in restitution as a result of a two
Dover apartment complexes advertising an amenity unavailable for tenants to
use.
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The restitution is part of an agreement the Division of Fraud and Consumer
Protection entered into with Dover Investors L.P. and Trinity Property Group,
LLC, the owner and operators of Alder Park and Pine Grove Apartments in
Dover, earlier this year. This agreement resolves allegations these businesses
falsely advertised a swimming pool as an amenity available for tenants to use
when in fact the pool was not operational for an extended period of time.
http://news.delaware.gov/2015/06/09/attorney-general-announces-
distribution-of-restitution-funds-to-tenants-of-dover-apartments-for-false-
advertising/
FLORIDA
June 29, 2015
Attorney General Bondi and FTC Stop Massive Illegal Robocall
Campaigns
Attorney General Pam Bondi and the Federal Trade Commission obtained a
federal district court order to temporarily halt an Orlando-based operation
bombarding consumers with massive robocall campaigns designed to trick
consumers into paying upfront for worthless credit card interest rate
reduction programs. The order stops the illegal calls, many of which targeted
seniors and claimed to be from credit card services and card member services.
Doing business as Payless Solutions, the defendants illegally called thousands
of consumers nationwide claiming that their program will quickly save
consumers at least $2,500 in interest rate reductions or related savings. After
convincing consumers to provide credit card information, the defendants then
charged between $300 and $4,999 in up-front costs for the worthless
services. In some cases, consumers were illegally charged without consent.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/4B7AAC032F0B99
FD85257E73006E5616
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FLORIDA CONT’D
June 24, 2015
Attorney General Pam Bondi Announces Scuba Diving Company Selling
Bogus Certifications Banned from Doing Business in Florida
A Florida scuba diving company and its owner will no longer conduct scuba
diving related business in Florida as part of a settlement reached in a lawsuit
by Attorney General Pam Bondi. The settlement is the result of an
investigation by the Attorney General’s Consumer Protection Division that
found the company was issuing counterfeit and fraudulent Professional
Association of Diving Instructors open water diver certification cards. In some
cases, consumers who paid for and completed one of the company’s diving
courses, did not receive any certification.
Ocean Hunters, Inc., located in Doral, Fla., and owner, Abdiel Falcon,
allegedly misled and deceived consumers who purchased scuba diving
certification courses. The company’s advertisements promised overall
satisfaction and that the certificate consumers would earn would be
recognized worldwide. Those claims, however, were challenged by consumers
that filed claims with the Attorney General’s Office.
By agreement of the parties, the Circuit Court of the Eleventh Judicial Circuit
entered a stipulated order for permanent injunction and monetary judgment
barring the company and Mr. Falcon from marketing, advertising, selling,
providing, or accepting payment for any scuba diving services whatsoever
including, without limitation, any goods or services relating to open water
diver certification or training, introduction to scuba diving, any other scuba
diving certification, any scuba diving trip or charter, and any scuba diving
gear or products.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/2306A3B11536F2
3485257E6E0055EBE3
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FLORIDA CONT’D
June 5, 2015
Attorney General Pam Bondi Files a Complaint Over Land Buying
Scheme
Attorney General Pam Bondi filed a complaint against Property Solutions
International Corp, Premier 1 Property, Inc. and Marvin Scott for allegedly
defrauding consumers out of thousands of dollars. According to the complaint
filed this week, the defendants promised consumers they could sell their
property for many times the value of the land. The defendants charged
upfront fees on average of $2,250 for brokering the deals, sometimes
promising to refund most of the money, but rarely following through on those
promises.
The defendants used unlicensed telemarketers to contact potential sellers,
promising that buyers were ready to purchase their properties. In one case
cited in the complaint, the defendants contacted a senior citizen and told him,
for $1,300, they could sell his $4,000 property for nearly $30,000.
In most cases, the defendants told consumers the payments would be used
for attorney’s fees, closing fees, transfer fees, title fees, broker fees, deed fees,
administrative fees, assessment fees, and to post the consumers’ property on
its websites, CoastToCoastland.com and FSBOPropertysolutions.com. The
defendants claimed the websites were viewed by 200 million people, however,
these claims are inconsistent with the websites’ traffic estimates.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/3775276FD8CCC4
7385257E5B005C438D
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IDAHO
June 5, 2015
Attorney General Lawrence Wasden Resolves Consumer Protection Case
Against former N. Idaho Coin Dealer
Attorney General Lawrence Wasden has resolved a consumer protection case
that requires a former Coeur d’Alene coin dealer to pay more than $578,000
to customers.
A state judge signed an order earlier this week against Kevin E. Mitchell, 49,
who once owned and operated CoiNuts Inc. Mitchell was accused of taking
money from customers, but never making good on his promise to deliver the
gold and silver coins.
“This case represents an increasing problem in Idaho,” Wasden said.
“Business owners accept consumers’ payments, but fail to deliver their
purchases, then shut down operations and ignore refund requests.”
In the lawsuit, Wasden accused Mitchell of committing multiple violations of
the Idaho Consumer Protection Act between 2008 and 2012. Consumers came
to Mitchell’s store to buy gold and silver coins, and they turned over
thousands of dollars expecting that Mitchell could obtain and deliver the
coins.
http://www.ag.idaho.gov/media/newsReleases/2015/nr_06052015.html
ILLINOIS
June 12, 2015
Attorney General Lisa Madigan Sues Downstate Appliance Repair
Company
Attorney General Lisa Madigan announced a lawsuit against a downstate
appliance repair and servicing company for dishonest business practices that
resulted in consumers losing thousands of dollars.
Attorney General Madigan filed the lawsuit in Woodford County against Rhea
Dismang and Edward Dismang, a married couple who own and operate A Plus
Appliance Assistance, A Plus Appliance Repair, and Dismang & Sons Heating
and Cooling & Appliance Repair in Metamora, Ill. The lawsuit accuses the
couple of violating the state’s Consumer Fraud and Deceptive Practices Act.
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ILLINOIS CONT’D
According to Madigan’s lawsuit, the company falsely advertised that repair
workers had the certifications necessary to repair certain manufacturers’
appliances. The business also falsely advertised it was accredited by the
Better Business Bureau. The lawsuit states workers, usually Edward
Dismang, misdiagnosed problems and significantly overcharged consumers
for parts. The lawsuit also alleges that the work performed failed to repair the
appliances, and in most cases, caused further damage. The defendants
refused to honor warrantee agreements for parts and service and did not
refund customers for damaged appliances, according to the suit.
http://www.illinoisattorneygeneral.gov/pressroom/2015_06/20150612.html
June 3, 2015
Attorney General Lisa Madigan Announces $1 Million Settlement With Safeguard Properties
Homeowners Illegally Locked Out of Homes to Receive Restitution
Attorney General Lisa Madigan today announced a $1 million settlement with Safeguard Properties LLC over allegations the company illegally locked Illinois residents out of their homes before a foreclosure was finalized.
Under Madigan’s settlement, Safeguard, a Delaware corporation based in
Ohio, must pay $1 million, nearly all of which will be paid to Illinois residents who filed complaints over Safeguard’s practices. Safeguard must also follow
40 operating standards in conducting inspections and other services relating to Illinois properties set by Madigan’s office to ensure homeowners’ rights are protected.
http://www.illinoisattorneygeneral.gov/pressroom/2015_06/20150603.html
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INDIANA
June 22, 2015
Attorney General Greg Zoeller Sues Bogus College Prep Company, The
College Network
Indiana Attorney General Greg Zoeller filed a complaint in Marion County
court against the College Network, an Indianapolis-based college test
preparation company, for falsely claiming it offers educational programs that
will lead to college degrees or transferable credits at accredited universities.
The Indiana Attorney General’s Office has received 492 written complaints
since 2011 from consumers who paid thousands of dollars for allegedly bogus
educational programs offered by the College Network. In its complaint, Zoeller
seeks full restitution for customers of the College Network.
http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventid
n=221515&information_id=215661&type=&syndicate=syndicate
IOWA
June 26, 2015
Attorney General Tom Miller Announces Iowa Court Bars New York Man’s
Psychic Scheme from Iowa, Orders Refunds and $20,000 Penalty
International Astrology Foundation and its principal, Joseph Meisels, of
Brooklyn, New York to pay $13,740 in refunds to 78 primarily elderly Iowans
bilked by fraudulent mailings
A Polk County judge Thursday ordered Joseph Meisels and his Brooklyn, New
York-based International Astrology Foundation to permanently cease sending
letters to Iowans that ask for money in return for help from fictitious psychics.
Polk County District Court Judge Douglas F. Staskal, through a consent
judgment, ordered Meisels and the Foundation to pay $13,740 for refunds to
78 Iowa consumers who sent money in 2014 in response to the defendants’
mailings. The order also imposes a penalty of $20,000, and requires the
defendants to cease all unfair or deceptive mail solicitations directed to
Iowans and ensure that no one else uses the Iowa mailing list.
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https://www.iowaattorneygeneral.gov/newsroom/iowa-court-bars-new-york-
mans-psychic-scheme-from-iowa-orders-refunds-and-20000-penalty/
June 19, 2015
Attorney General Tom Miller Announces Iowa Judge Orders New York
Company to Pay $200,000 for Helping Fraudulent European Psychics
Dupe Elderly Iowans
A New York City company has paid $200,000 to the Consumer Protection
Division for refunds to Iowans who were targeted by European psychic mail
campaigns that the company helped orchestrate.
In a consent judgment signed Friday by Polk County District Court Judge
Mary Pat Gunderson, Faircom and company senior account director Audrey
Corvino were ordered to pay $200,000 and must permanently halt all such
mailings to Iowans. Faircom was further ordered to ensure that no one else
uses the Iowa mailing lists.
Each highly personalized mailing promised that, for a fee of between about
$20 and $35, the psychics would miraculously deliver health, wealth and
happiness. The European psychics included “Stella Angelstone, Clairvoyant
and Medium,” “Chris, Master & Mentor in Clairvoyance,” “Angela Moya, Great
Protective High Priestess.”
As one example of the mailings used to cheat elderly Iowans, Miller pointed to
a personalized 2014 solicitation letter from “Stella Angelstone.” The mailing
features an image that purported to be of Angelstone, but was a commercially
available generic stock photo.
https://www.iowaattorneygeneral.gov/newsroom/court-orders-new-york-
company-to-pay-200000-for-helping-fraudulent-european-psychics-dupe-
elderly/
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IOWA CONT’D
June 15, 2015
Attorney General Tom Miller Announces Florida “Sweepstakes Report”
Company Agrees to Refunds and Halt Deceptive Mailings to Iowans
A Florida company will provide refunds to Iowans and permanently cease
mailing deceptive sweepstakes solicitations to Iowans, under an agreement
with Attorney General Tom Miller.
Tactical Marketing Inc., of Boca Raton, Florida, and its owner, Raymond
Jastrzemski, agreed to cease mailing misleading solicitations to Iowans,
including “sweepstakes cash & prize” and “enumeration” reports. The
mailings, from “Prize Research Agency” (PRA) and “Prize Finders Network”
(PFN), appear to inform recipients of substantial prize winnings, and charge a
$25 “research,” “document,” or “administration” fee.
While the mailings include small print disclosures that consumers are merely
purchasing a list of publicly-available contests, Miller said that consumers
who pay the fee likely think it’s required to collect prize winnings.
The agreement, called an assurance of voluntary compliance, requires full
refunds to a list of several older Iowans, some of whom had sent the company
as much as $175 last year, and also requires the company and Jastrzemski to
make refunds to other Iowans upon request.
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KANSAS
June 15, 2015
Attorney General Derek Schmidt Sues Unregistered Roofers
Kansas Attorney General Derek Schmidt today announced that his office has
filed lawsuits against five roofing contractors for violating the Kansas Roofing
Registration Act by failing to register with his office.
Schmidt said the following companies have been served with lawsuits:
Gregory E. Wright, Wichita, dba Extreme Home Solutions; Shawnee
County District Court, Case No. 2015-CV-000492.
Mike’s General Contracting LLC, Derby; Mitchell County District Court,
Case No. 15-CV-13.
Roof PRS LLC, Holdrege, Neb., and Chanse Beinke, Smithfield, Neb.;
Shawnee County District Court, Case No. 2015-CV-000495.
Super Siding LLC and Daniel Roberts, Hutchinson; Reno County
District Court, Case No. 2015-CV-000181.
Taylor Made Exteriors LLC, Wichita; Sedgwick County District Court,
Case No. 2015-CV-001409-OT.
https://ag.ks.gov/media-center/news-releases/2015/06/15/ag-schmidt-
sues-unregistered-roofers
MARYLAND
June 26, 2015
Attorney General Brian Frosh Sues Provider of Loan Modification
Services
Towson firm allegedly took thousands in advance payments, but didn’t deliver
promised services or refunds to consumers
Attorney General Brian E. Frosh announced today that the Consumer
Protection Division has filed charges against the Towson-based Law Office of
Daniel M. Radebaugh, LLC and its founder Daniel M. Radebaugh, for allegedly
charging at least 400 consumers illegal advance fees and not providing
promised refunds after failing to negotiate successful loan modifications.
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MARYLAND CONT’D
The administrative charges allege violations of the Maryland Credit Services
Businesses Act and the Maryland Consumer Protection Act between 2010 and
2013. According to the Division, Mr. Radebaugh made false and misleading
representations to consumers. The firm claimed it could obtain loan
modifications, required consumers to pay prohibited up-front fees of up to
$2,495 when nonprofit organizations offer the same services for free, and
guaranteed refunds if they were not successful in securing loan modifications.
In addition to requiring that restitution be paid to all consumers harmed by
these practices, the charges also seek to impose a civil penalty of up to $1,000
on Mr. Radebaugh and his firm for each of the alleged violations of the
Consumer Protection Act.
http://www.oag.state.md.us/Press/2015/062615.html
June 22, 2015
Attorney General Brian E. Frosh Announces Queen Anne's County
Builder Charged with Multiple Violations Involving Homes in Wicomico
County
Attorney General Brian E. Frosh today announced that administrative charges
have been filed against Bryan Edward Adkins, the owner of Atlantic Bay
Homes, for accepting deposits and payments from consumers to build homes
in Wicomico County and then failing to begin or complete construction, pay
subcontractors or refund the deposits and other payments.
June 22, 2015
Attorney General Brian Frosh Secures Settlement with Mortgage and
Credit Consulting Companies
Baltimore businesses marketed dream of homeownership while collecting illegal
advance fees and misrepresenting their services and success
Attorney General Brian E. Frosh today announced a settlement with mortgage
loan procurement and credit consulting providers Baltimore Home Ownership
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Program, LLC (BHOP), and NowICanBuy, LLC, and their owner, Dwight
Williams.
The settlement, reached by the Office of the Attorney General Consumer
Protection Division, resolves allegations that the defendants offered mortgage
and credit repair consulting services without the required license, collected
illegal advance fees and made false representations about the nature of their
services and their success.
In one advertisement, BHOP solicited consumers by stating, "Once we
determine your eligibility for our program, we will absolutely get you approved
for your very own home." The Division alleged that many clients did not
receive mortgage loan approvals through BHOP, which also allegedly collected
retainer payments and other advance fees from its customers, in violation of
the Maryland Credit Services Business Act.
http://www.oag.state.md.us/Press/2015/062215.html
June 18, 2015
Attorney General Brian Frosh Announces Baltimore-area Investment
Adviser Known for Infomercials Accused of Fraud
Attorney General Brian E. Frosh announced today that his office is seeking to
shut down the investment advisory operations of Towson-based Everest
Wealth Management, Inc. and Everest Investment Advisors, Inc. based on
allegations of fraud and Maryland securities law violations.
The Securities Division of the Office of the Attorney General is also seeking to
permanently prohibit the owner of both companies, Philippe Rousseaux, from
offering investment advisory services in Maryland.
Rousseaux and his companies are widely known in the Baltimore region for
their frequent infomercial advertising. The paid broadcasts, which run under
the title "The Money Guys," are part of what Rousseaux has said is a $1
million yearly marketing campaign. The shows appear on multiple stations
and lure customers with promises of guaranteed returns and limited risk.
http://www.oag.state.md.us/Press/2015/061815.html
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MASSACHUSETTS
June 23, 2015
Attorney General Maura Healey Announces New Bedford Contractor
Ordered to Pay More Than $125,000 for Violating Massachusetts
Prevailing Wage Laws
Violations Relate to Improper Payment of Workers Installing Solar Panels on
Public Schools in Melrose, New Bedford, and Newton
A New Bedford-based solar energy company has been ordered to pay more
than $125,000 in restitution and penalties for violating the Massachusetts
prevailing wage and hindrance laws, Attorney General Maura Healey
announced today.
The AG’s Office ordered Cavallo-Cavallo, Inc., doing business as Beaumont
Solar Co., and owner Phillip V. Cavallo to pay nearly $83,000 in restitution
and $42,500 in penalties, including a $10,000 penalty for hindrance of the
AG’s investigation. The violations relate to solar panel installations performed
on public schools in Melrose, New Bedford, and Newton.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
06-23-new-bedford-contractor-prevailing-wage.html
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MINNESOTA
June 25, 2015
Attorney General Lori Swanson Announces Savers Signs Regulatory
Agreement with Attorney General
Agreement Calls for Enhanced Disclosures and Other Reforms
Minnesota Attorney General Lori Swanson today announced that retail thrift
store chain Savers has signed an agreement with her office to address
practices raised in a lawsuit filed by her office against the company last
month and in a compliance report issued by her office last year.
“Donors need transparency to decide whether and how to donate. This
agreement requires enhanced transparency about the role of Savers and the
amount that goes to charity. Savers will also credit all donations to the charity
to which the donor intends to donate and pay charities for both clothing and
non-clothing donations,” said Attorney General Swanson.
http://www.ag.state.mn.us/Office/PressRelease/20150625SaversRegulatory
Agreement.asp
MISSOURI
Jun 25, 2015
Attorney General Chris Koster Obtains Court Order to Stop KC Business
from Foreclosing on Consumers, Selling Homes
Attorney General Chris Koster announced today his office has obtained a
preliminary injunction prohibiting Tri-State Holdings-32, LLC, and its
associated representatives, Brandon Miller and Tony Caldwell, from selling
homes in the KC area. Koster’s office had sued the business in February. The
injunction was entered by Jackson County Circuit Judge Sandra Midkiff.
The court found since at least December 2013 and continuing to the present,
Tri-State, Miller, and Caldwell deceived consumers into believing that they
would own a home after making a down payment and monthly payments, that
they would receive a deed shortly after signing a contract, and that major
repairs would be made to the homes. The court found that deeds were not
recorded or delivered to buyers as promised and major repairs were not made,
leaving many, if not most, of the homes in an uninhabitable condition. The
court also found that both Miller and Caldwell knew or reasonably should
22
have known that the promises they made to the consumers were false and
home repairs would not be completed.
In addition, the court found that after leaving Tri-State, Caldwell operated a
home sales program through his church and other entities to consumers he
knew or should have known lacked the means to repair the property. He
continued to make false promises of home ownership and sold homes that
were uninhabitable.
https://www.ago.mo.gov/home/news-archives/2015-news-archives/ag-
koster-obtains-court-order-to-stop-kc-business-from-foreclosing-on-
consumers-selling-homes
NEVADA
June 2, 2015
Attorney General Laxalt Announces Arrest of California Man for Theft
Under False Pretenses
Nevada Attorney General Adam Paul Laxalt announced Robert Musich, 45, of
California, was arrested last week on one count of felony theft, obtaining
money under false pretenses and multiple transactions of fraud or deceit. The
fraud was committed between November and December 2014.
According to the criminal complaint, Musich presented fraudulent invoices to
multiple Las Vegas companies for fire and safety inspection services that they
did not request. The fraudulent invoices requested payment for fire safety
equipment inspections, tests and certifications. The majority of the invoices
requested $413.11, and listed a Las Vegas commercial mail receiving agency
address and phone number. Musich had no intention of providing the services
listed in the invoice. Instead, he collected the payments and deposited the
monies into his bank account.
http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Announces_Arrest
_of_California_Man_for_Theft_Under_False_Pretenses/
23
NEW JERSEY
June 29, 2015
Acting Attorney General John J. Hoffman Announces New Jersey
Division of Consumer Affairs, Federal Trade Commission, Reach
Settlement with Developer of Mobile App that Allegedly Hacked New
Jersey Smartphones with Harmful Malware
In another victory for the security of New Jersey residents’ computers and
mobile devices, the New Jersey Division of Consumer Affairs has joined with
the Federal Trade Commission in a settlement with the makers of “Prized,” a
mobile app that allegedly hacked Android smartphones and/or tablets with
harmful malware.
Specifically, the State and the FTC allege that consumers who downloaded
Prized onto their devices were also unwittingly downloading malicious
software that infected their devices and caused them to “mine” for virtual
currencies such as Litecoin, Dogecoin, and Quarkcoin.
But the “mining” process – which is highly strenuous on computers and even
more so for smartphones and tablets – allegedly harmed the owners of the
infected devices, and had the potential to leave the devices barely functional.
The smartphone and tablet owners faced the possibility of increased costs for
electricity and data usage; shortened life spans for their devices; and money,
time, and effort involved in removing the malware.
The defendants in this matter, Ohio-based app developer Equiliv Investments
and Ryan Ramminger, offered the Prized app through websites such as the
Google Play and Amazon app stores.
http://nj.gov/oag/newsreleases15/pr20150629a.html
June 25, 2015
Acting Attorney General John J. Hoffman and the Division of Consumer
Affairs File Suit Against Two Newton Car Dealerships
The Office of the Attorney General and State Division of Consumer Affairs have filed suit against JDN AA, LLC, which operates Newton Audi and Newton Volkswagen, for alleged violations of the Consumer Fraud Act, Used Car
Lemon Law and related regulations, and the Motor Vehicle Advertising Regulations in connection with its sale of motor vehicles.
24
The State’s four-count complaint, filed in State Superior Court in Sussex County, alleges that JDN AA committed unconscionable commercial practices;
did not disclose required information in advertisements; and did not pay required Used Car Lemon Law fees. In one case, a consumer was told etching
the vehicle identification number on a window was mandatory when such is not the case, and the consumer was charged $350.
http://nj.gov/oag/newsreleases15/pr20150625a.html
June 24, 2015
Acting Attorney General John J. Hoffman Announces New Jersey Division of Consumer Affairs Files Complaint Against Bergen County-
Based Home and Motor Vehicle “Warranty” Company That Allegedly Defrauded Consumers and Refused to Honor the Terms of its Contracts
Division Received 97 Complaints Directly From Consumers, and 498 Consumer Complaints from the Better Business Bureau
The New Jersey Division of Consumer Affairs has filed a Complaint against Englewood Cliffs-based Stanley Warranty LLC d/b/a Stanley Safe Club
(“Stanley Warranty”) and its owner and CEO, Alpine resident Stanislav Mankovsky, alleging that the company defrauded consumers in New Jersey and in other states to whom it sold contracts for the repair and/or
replacement of home systems and appliances, and/or motor vehicles.
The company allegedly used deceptive tactics to sell its so-called “warranties” which were actually residential or motor vehicle service contracts. It also refused to respond to consumer claims for the repair or replacement of items
covered by residential contracts. As a result, consumers paid up to $2,400 per year for coverage that, according to the Stanley Warranty website and other
advertisements, were supposed to provide “100 percent” cost reimbursement for the repair or replacement of covered items. However, many customers ended up paying out of pocket for repair claims that Stanley Warranty ignored
or refused to honor.
http://nj.gov/oag/newsreleases15/pr20150624a.html
25
NEW JERSEY CONT’D
June 17, 2015
Acting Attorney General John J. Hoffman Announces New Jersey Division of Consumer Affairs Reaches $135,000 Settlement with Wayne Mazda and Wayne Auto Mall Hyundai
Under the terms of the Final Consent Judgment that concluded a lawsuit filed
in State Superior Court in Passaic County, Bergen Auto Enterprises, LLC, which does business as Wayne Mazda and Wayne Auto Mall Hyundai (collectively “Bergen Auto Enterprises”), has agreed to pay $135,000 to settle
claims that the dealerships had engaged in unconscionable commercial practices and deceptive advertising practices in their advertisement and sale
of new and used motor vehicles.
The Office of the Attorney General and Division of Consumer Affairs filed suit in August 2014, alleging in its five-count complaint that Bergen Auto Enterprises had violated the Consumer Fraud Act and Motor Vehicle
Advertising Regulations, among other things, by engaging in “bait and switch” tactics by featuring motor vehicles in advertisements that were not actually
available for purchase or lease. The dealerships also allegedly failed to disclose to customers that some used motor vehicles had previously been used as rental vehicles and/or had sustained significant prior damage.
http://nj.gov/oag/newsreleases15/pr20150617a.html
June 15, 2015
Acting Attorney General John J. Hoffman Announces Edison-Based
“Home Warranty” Company to Pay $780,000 Revise its Business
Practices, Retain a Compliance Monitor in Settlement of State’s
Enforcement Action
Edison-based CHW Group, Inc., which does business as Choice Home
Warranty, has agreed to pay the State $779,913.93 including consumer
restitution; revise its business practices; and retain a compliance monitor for
at least one year under a Final Consent Judgment resolving the lawsuit
brought by the New Jersey Division of Consumer Affairs in July 2014 against
the company and its current and former principals, Victor Mandalawi, Victor
Hakim and David Seruya.
26
NEW JERSEY CONT’D
The Division’s Complaint, filed in Superior Court in Middlesex County, alleged
that CHW induced consumers to buy the so-called “home warranties” – which
were actually service contracts – by stating they offered “comprehensive”
coverage. The Division alleged that CHW then used deceptive tactics to deny
consumers’ claims, such as denying claims if the consumers were unable to
submit multiple years’ worth of maintenance records. As a result, consumers
who paid hundreds of dollars for CHW’s “warranties” were required to pay
out-of-pocket for air conditioning, refrigerator, or other repairs that were
purportedly covered.
http://nj.gov/oag/newsreleases15/pr20150615b.html
June 4, 2014
Acting Attorney General John J. Hoffman Announces New Jersey
Division of Consumer Affairs Obtains $940,000 Default Order Against
Atlantic County-Based Home Improvement Contractor
A Superior Court Judge has ordered ShorePro Contractors, LLC, of Linwood,
and its owner, Christopher N. Molosso, Sr., to pay approximately $940,000,
and also ordered the cancellation of the firm’s Certificate of Formation, under
a Final Judgment of Default that resolves a 2014 lawsuit filed by the Attorney
General and the New Jersey Division of Consumer Affairs.
Judge Raymond A. Batten found that the defendants had committed 84
violations of the State’s Consumer Fraud Act, the Home Improvement
Contractors’ Registration Act, and related regulations. The violations include
unconscionable commercial practices, making false promises, and
misrepresentations.
http://nj.gov/oag/newsreleases15/pr20150604a.html
27
NEW JERSEY CONT’D
June 2, 2015
Acting Attorney General John J. Hoffman Announces New Jersey
Division of Consumer Affairs Obtains $6.34 Million Default Judgment
Against Bergen County-Based Home Improvement Contractor
The Office of the Attorney General and the New Jersey Division of Consumer
Affairs have obtained a $6.34 million default judgment against Anthony
Angelo Pizza of Rutherford and two home improvement companies he
operated, A. Pizza Contracting, LLC and AP Building & Construction, LLC,
a/k/a “AP Builders & Construction, LLC,” after a judge found that they
committed 571 violations of the State’s consumer protection laws and
regulations.
The Final Order on Default provides for $585,395.74 in consumer restitution,
$5,710,000 in civil penalties and $39,625.52 in attorneys’ fees and costs. The
State has arranged for the filing of the Final Order on Default as a statewide
lien against the assets of Pizza and his companies.
http://nj.gov/oag/newsreleases15/pr20150602a.html
NEW YORK
June 26, 2015
A.G. Schneiderman Announces Legal Docs By Me Must Pay Full
Restitution to Consumers Victimized By Company's Illegal and Deceptive
Business Practices
Court Order Obtained By Attorney General Requires Company, Now Known As
NextGenJustice, To Repay Consumers By Close Of Business Today
Attorney General Eric T. Schneiderman today announced that Supreme Court
Justice James P. McClusky ordered the business formerly known as Legal
Docs by Me and its owner, Derek Distenfield, to provide full refunds to certain
customers by the close of business today, after failing to comply with an order
to do so last October. The court also ordered the business—now known as
NextGenJustice—to turn over a full accounting of those consumers, together
with other business records requested by the Attorney General.
28
NEW YORK CONT’D
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-legal-docs-
me-must-pay-full-restitution-consumers-victimized
June 23, 2015
A.G. Schneiderman Cracks Down On E-Cigarette Industry, Announces
Settlements With Liquid Nicotine Retailers And Manufacturer To Keep
Poisonous Substance Out Of Childrens’ Hands
Amid Rise in Child Poisoning Reports, Settlements Ensure Prominent Retailers
and Manufacturer Will Abide by New York Law Requiring Liquid Nicotine To Be
Sold in Child-Resistant Bottles
Attorney General Eric T. Schneiderman today announced agreements with
four liquid nicotine companies whose products were being sold in New York in
violation of a law requiring that this form of nicotine be sold in child-resistant
packaging. Liquid nicotine, together with other chemical additives, is used in
electronic cigarettes, or e-cigarettes, to create the vapor that the user inhales.
Liquid nicotine is highly toxic, and ingestion or even skin exposure to very
small amounts can lead to serious illness and potentially coma and death,
particularly for children. Two of the settlement agreements are with retailers
Henley Vaporium and Beyond Vape, companies with retail outlets in New York
City, including on St. Marks Place in Manhattan; while the two other
companies sell their product to New Yorkers online or through local retailers.
http://www.ag.ny.gov/press-release/ag-schneiderman-cracks-down-e-
cigarette-industry-announces-settlements-liquid-nicoti-0
29
NEW YORK CONT’D
June 22, 2015
A.G. Schneiderman Announces Arrest Of Long Island Landscaper Charged
With Failing To Pay Employees’ Wages And Under-Reporting Employees
Landscaping Company Allegedly Failed To Pay Several Workers Overtime And
Didn’t Pay Any Wages At All for Their Last Work Week
Attorney General Eric T. Schneiderman today announced the arrest of Richard Orvieto, owner and operator of the landscaping company Double “O”
Landscaping Inc., in Suffolk County, NY. The owner and company are charged
with failing to pay more than $13,000.00 in wages to three former employees
and with defrauding the state unemployment insurance system of almost
$12,000.00 by paying wages in cash off-the-books and thereby failing to pay
required unemployment insurance contributions.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-arrest-
long-island-landscaper-charged-failing-pay-employees%E2%80%99
June 20, 2015
A.G. Schneiderman Announces Settlement with Staten Island Travel
Agency for Engaging In a Deceptive and Fraudulent Travel Agency
Scheme
Cuka Tours Duped Customers Out Of Thousands Of Dollars; Left Them
Stranded In Airports
Company Will Pay $25,000 In Restitution And Penalties For Their Deceptive
Practices
Attorney General Eric T. Schneiderman announced an agreement today with a
Staten Island based travel agency and its owners to pay $25,000 in restitution
and civil penalties and costs for violating New York's consumer laws. Cuka
Tours, Corp. preyed on vulnerable customers who were seeking to visit family
in their native countries located in the Balkans such as Albania, Macedonia,
Kosovo and Montenegro. The customers believed they were making a
legitimate purchase of airline travel tickets, and paid upfront cash payments
to Cuka Tours for roundtrip tickets. But Cuka Tours would book the
30
NEW YORK CONT’D
reservations and only pay for one-way tickets, leaving customers stranded
and unable to return home. In some instances, Cuka Tours failed to pay for
any tickets, leaving some customers without any tickets at all.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-
settlement-staten-island-travel-agency-engaging-deceptive
June 17, 2015
A.G. Schneiderman Announces Nearly $14 Million Settlement With NYC
And Westchester Auto Dealerships For Deceptive Practices That Resulted
In Inflated Car Prices
AG Investigation Uncovered Alleged Fraud At Paragon Dealerships, Two In
Queens And One In Westchester; Agreement Returns $13.5 Million In
Restitution To 15,000 Consumers
AG Announces Intent To Sue An Additional Eleven Auto Dealers Across New
York City, Westchester And Long Island As Probe Continues
Attorney General Eric T. Schneiderman today announced a multi-million
dollar settlement with three car dealerships, Paragon Motors of Woodside,
Inc., d/b/a Paragon Honda; Worldwide Motors Ltd., d/b/a Paragon Acura;
and Civic Center Motors Ltd., d/b/a White Plains Honda. The agreement,
which returns more than $13.5 million in restitution to consumers, concludes
an investigation into these dealerships for alleged unlawful sale of credit
repair and identity theft prevention services, and other “after-sale” items to
15,000 consumers – items that in some cases added more than $2,000 in
hidden costs and fees onto the sale or lease price of a single vehicle. The
Paragon dealerships, which are jointly owned, claim to be the largest
combined Honda dealership in the country. Under a consent order agreement
signed by the company, they will also pay $325,000 in penalties, fees and
costs to New York State.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-nearly-14-
million-settlement-nyc-and-westchester-auto
31
NEW YORK CONT’D
June 10, 2015
A.G. Schneiderman Announces Arrest Of Albany Broker For Allegedly
Running Ponzi Scheme Of More Than $1 Million
Frederick E. Monroe, Jr., Senior Vice President Of Capital Financial Planning,
LLC, Allegedly Solicited Over A Dozen Investors And Diverted Their Money For
Personal Use
Attorney General Eric T. Schneiderman today announced the arrest of
Frederick E. Monroe, Jr., 59, of Queensbury, New York, charging him with
stealing over $1 million from investors by fraudulently soliciting them to
reinvest their retirement monies. Monroe is accused of luring clients with
whom he had established relationships over his 20-year career as a financial
planner, and then diverting their monies for his own personal use, as well as
to pay back earlier investors he had defrauded. If convicted, the defendant
faces up to 25 years in prison. Monroe was arraigned before the Honorable
Judge Denise Randall in Guilderland Town Court where he pleaded not guilty.
He is currently being held on $300,000 cash or bond bail.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-arrest-
albany-broker-allegedly-running-ponzi-scheme-more-1
June 4, 2015
A.G. Schneiderman Sues Company For Allegedly Duping Prospective
Nursing Students Across NYS Into Buying Expensive, Ineffective Study
Guides And Academic Assistance
Lawsuit Also Names Credit Union That Financed Consumers’ Purchases And
Collection Agency That Attempted to Collect On Loans; Court Issues Temporary
Injunction Requiring Company To Make Significant Changes To Its Business
Practices
Attorney General Eric T. Schneiderman announced that his office has filed a
lawsuit in Albany County Supreme Court today and has obtained a temporary
restraining order against The College Network and its owner, Gary Eyler. The
suit charges that the company and Eyler induced prospective nursing
students to pay thousands of dollars for ineffective study guides through false
and deceptive business practices. The suit alleges that The College Network,
32
NEW YORK CONT’D
headquartered in Indiana, preyed on as many as 2,000 New York consumers
who sought to obtain associate degrees in nursing. The papers charge that,
through advertising and high pressure sales tactics, The College Network
created the false impression that it was offering online nursing degrees and
that it was affiliated with Excelsior College, an accredited institution based in
Albany that offers such degrees.
http://www.ag.ny.gov/press-release/ag-schneiderman-sues-company-
allegedly-duping-prospective-nursing-students-across-nys
June 2, 2015
A.G. Schneiderman Announces $1.2 Million Settlement With Manhattan
Developer That Pays Restitution To Tenants And NYC For Rent-
Stabilized Apartments Lost In Condo Conversion
Developer Of Landmark Upper West Side Building Filed Inaccurate Offering
Plan With Attorney General’s Office; Cleared Out Tenants Using Prohibited
Buyouts
Agreement Requires Developer to Pay The Restitution Into City-AG Affordable
Housing Fund, Bringing Total In Fund From AG Investigations To More Than
$5.8 Million; Deal Further Provides Two Years Free Rent To Remaining Tenants
And $350,000 In Costs To State
Attorney General Eric T. Schneiderman today announced a settlement with
101 West 78th, LLC, Newcastle Realty Services, LLC, and Margaret Streicker
Porres, that requires the developer to pay $1.2 million to New York City to
compensate for the loss of five rent-stabilized apartments in an Upper West
Side building, some of which were effectively deregulated through prohibited
buyout agreements. The deal provides two years of rent payments to tenants
who have remained in the building. The settlement, which ends an Attorney
General Martin Act public investigation, further ensures that tenants at 101
West 78th Street will not be forced out by a planned condo conversion
process, and instead receive benefits afforded them by law.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-12-
million-settlement-manhattan-developer-pays-restitution
33
NORTH CAROLINA
June 8, 2015
Attorney General Roy Cooper Announces Key Players behind Raleigh
Geeks Ordered To Repay Consumers, Barred From Computer Repair
Business
Defendants ordered to pay $455,000 in refunds and penalties, AG Cooper
announces
After misleading dozens of consumers, local computer repair business Raleigh
Geeks has been ordered to pay restitution and civil penalties, Attorney
General Roy Cooper announced today.
At Cooper’s request, Wake County Superior Court Judge Michael J.
O’Foghludha today ordered defendants Timothy Staie and Mark White of
Raleigh Geeks to return any still-missing computers, pay $10,425.53 in
restitution to consumers, and pay up to $445,000 in civil penalties related to
deceptive and unfair business practices. The default judgment issued by the
court also permanently bans the defendants from operating a computer repair
business in North Carolina.
http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-
Advisories/Press-Releases/Key-players-behind-Raleigh-Geeks-ordered-to-
repay.aspx
OHIO
June 11, 2015
Attorney General DeWine Seeks Consumer Restitution from Tree
Trimmer
Ohio Attorney General Mike DeWine today announced a lawsuit against a
southwest Ohio tree trimmer accused of performing shoddy, incomplete work
and failing to notify consumers about their right to cancel a door-to-door sale.
Kody Sickles, of Springfield, owner of KJ’s Tree Specialists, is accused of
violating Ohio’s Consumer Sales Practices Act and Home Solicitation Sales
Act. In the lawsuit, the Attorney General seeks restitution for consumers, civil
penalties, and injunctive relief to stop any further violations from the tree
trimmer.
34
According to the Attorney General’s lawsuit, Kody Sickles advertised tree and
lawn services under the name KJ’s Tree Specialists by soliciting consumers at
their homes. Sickles and his employees allegedly collected payment upfront
but performed incomplete or shoddy work, in some cases failing to remove
tree stumps and limbs, or causing residential damage.
http://www.ohioattorneygeneral.gov/Media/News-Releases/June-
2015/Attorney-General-DeWine-Seeks-Consumer-Restitution
OREGON
June 23, 2015
Attorney General Rosenblum Runs Nationwide Magazine Subscription
Scam Out of Business; Settles Lawsuit for $3 Million
The national enterprise operated out of White City, Oregon
Attorney General Ellen Rosenblum today announced a $3 million settlement
and an agreement from the White City, Oregon enterprise that operated a
fraudulent nationwide subscription scam to permanently stop engaging in the
newspaper or magazine subscription business. According to the Assurance of
Voluntary Compliance (AVC), which is not an admission guilt, filed in Marion
County today the enterprise will also provide up to $500,000 in restitution to
eligible Oregon consumers who overpaid or did not receive their magazines. As
part of the restitution program, seniors will also receive refunds for
subscriptions that were longer than three years. Service fees will also be
refunded to Oregonians who have previously received refunds.
In March, the Attorney General filed a racketeering and unlawful trade
practices lawsuit against the 19 companies and 9 individuals involved in the
White City enterprise.
http://www.doj.state.or.us/releases/Pages/2015/rel062315.aspx
35
PENNSYLVANIA
June 5, 2015
Attorney General Kane Announces Lawsuit Against Medical Debt
Collector
Attorney General Kathleen G. Kane today announced the filing of a civil
complaint by the Health Care Section of her office against James Havassy and
his company, Hamilton Law Group, P.C.
Havassy and Hamilton Law Group were hired to collect medical debt by
healthcare providers in Lehigh and Northampton counties, as well as the
surrounding area.
According to the civil complaint, Havassy and his company violated the Unfair
Trade Practice and Consumer Protection Law (UTPCPL), the Fair Credit
Extension Uniformity Act (FCEUA) and the Fair Debt Collection Practices Act
(FDCPA).
Havassy is accused of using the state statute commonly known as Relative’s
Liability Procedure to coerce payments from debtors’ relatives, who were not
responsible for the debt. As alleged, the language used in a dunning letter
sent by Havassy is deceptive and confusing for the relatives.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pres
s_Release/?pid=1841
June 3, 2015
Attorney General Kane Announces Legal Actions Against Three
Automobile-Related Companies
Attorney General Kathleen G. Kane today announced her office has filed legal
actions against three automobile-related companies. One Bucks County-
based company is accused of failing to honor motor vehicle warranties,
another based in the western part of the state advertised used cars in a
misleading way and the third York-based company sold used cars without a
license.
The legal actions were filed by the Office of Attorney General's Bureau of
Consumer Protection. The Bureau conducts statewide sweeps of various car
36
dealerships and reviews private online car listings as it seeks to find
unlicensed individuals and others taking advantage of consumers.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pres
s_Release/?pid=1839
WEST VIRGINIA
June 23, 2015
Attorney General Patrick Morrisey Announces $2.4 Million Settlement
with CashPoint
Attorney General Patrick Morrisey today announced his Office recently
reached a $2.4 million settlement with Virginia-based Dominion Management
Services, which does business as CashPoint, to resolve allegations it engaged
in a wide variety of unlawful debt collection practices.
As part of the settlement, the company has agreed to forgive more than $2.36
million in consumer loan debt, as well as release its liens on vehicle titles for
435 West Virginians, most of whom live in the Eastern Panhandle. While it
admitted no wrongdoing in the settlement, the company has pledged to
uphold all state and federal consumer protection laws in the future.
http://www.ago.wv.gov/pressroom/2015/Pages/Attorney-General-Patrick-
Morrisey-announces-$2.4-million-settlement-with-CashPoint.aspx
June 19, 2015
Attorney General Patrick Morrisey's Office Files Complaint Against Trio
Alarm
Attorney General Patrick Morrisey today announced his Office recently filed a
complaint against Wisconsin-based Trio Alarm, LLC, alleging the business
and its manager violated the West Virginia Consumer Credit and Protection
Act.
The complaint, which was filed in Cabell County Circuit Court, alleges Trio
Alarm and its manager, Tyler Ignatowski, engaged in unfair and deceptive
sales practices.
37
WEST VIRGINIA
The complaint alleges Trio employees went door-to-door to sell home security
systems, despite the company lacking a license to sell these systems in West
Virginia. Employees then allegedly used several fraudulent, high-pressure
sales tactics to deceive consumers.
The company allegedly told its employees to target homes with signs or
stickers indicating it was already protected by another company’s security
system. Trio employees would allegedly then try to deceive the homeowner by
claiming Trio had taken over their existing company, or by claiming they were
from the homeowner’s current provider and were there to “upgrade” the
system.
The complaint states that as a result of these alleged fraudulent practices,
consumers unknowingly entered into new agreements for their home security.
Customers did not realize they were deceived until they received monthly
statements from both their former provider and Trio, the complaint alleges.
Consumers were then allegedly told they could not rescind their contract with
Trio unless they paid a termination fee.
http://www.ago.wv.gov/pressroom/2015/Pages/Attorney-General-Patrick-
Morrisey%27s-Office-Files-Complaint-Against-Trio-Alarm.aspx
June 5, 2015
Attorney General Patrick Morrisey's Office Files Complaint Against
Stiltner Contracting
Attorney General Patrick Morrisey announced his Office recently filed a
complaint and petition for preliminary and permanent injunction against a
Boone County contractor, alleging the business and its owner violated the
West Virginia Consumer Credit and Protection Act.
The complaint, which was filed in Kanawha County Circuit Court, alleges
Stiltner Contracting and its owner, Howard Stiltner, Jr., accepted payments
from consumers for home improvement projects that were not complete as
promised.
Attorney General Patrick Morrisey said his Office’s Consumer Protection
38
Division began an investigation into Stiltner Construction after receiving a
number of complaints from consumers. According to the complaint, the
investigation revealed that Stiltner did not complete the work he was paid to
do, accepted money for materials while using scraps from previous jobs, and
left homeowners with no siding and a mismatched leaking roof.
http://www.ago.wv.gov/pressroom/2015/Pages/Attorney-General-Patrick-
Morrisey%27s-Office-Files-Complaint-Against-Stiltner-Contracting.aspx
39
MULTISTATE CASES AND SETTLEMENTS
June 18, 2015
Largest National Medicare Fraud Takedown in History Results in 73
Individuals Charged in South Florida
Florida Attorney General Pam Bondi today joined federal authorities including
the Federal Bureau of Investigation, the Department of Health and Human Services, the Office of Personnel Management and the Food and Drug Administration to announce the charges of 73 South Florida residents for
their alleged participation in various schemes to defraud Medicare and Medicaid out of more than $262 million. The charges in South Florida are
part of a nationwide takedown by Medicare Fraud Strike Force operations in 17 cities that resulted in charges against 243 individuals, including more than 46 doctors, nurses, and other licensed medical professionals, involving
approximately $ 712 million in false billings. This coordinated takedown is the largest in strike force history, both in terms of the number of defendants and dollar amount.
http://www.myfloridalegal.com/newsrel.nsf/newsreleases/4783A2FF14D0C4AC85257E6800616A53
June 18, 2015
Attorney General Conway Announces Settlement with Inspire Pharmaceuticals
Attorney General Jack Conway announced his office and 48 attorneys general joined the federal government to reach a settlement with manufacturer Inspire
Pharmaceuticals, Inc., a pharmaceutical company with its U.S. headquarters in Illinois. This resolution settles allegations that the company violated the
False Claims Act by misleadingly marketing its drug AzaSite. It is alleged that these misleading practices caused doctors to write prescriptions for a non-FDA approved use that resulted in Medicaid and federal healthcare programs
paying millions of dollars in false claims.
The FDA only approved AzaSite for the treatment of bacterial conjunctivitis (pink eye). However, Inspire marketed AzaSite for the treatment of
blepharitis, the inflammation of eyelash follicles around the edge of the eyelid, for which it had not obtained FDA approval, by intentionally and misleadingly emphasizing the purported anti-inflammatory properties of AzaSite that had
40
not been demonstrated by substantial evidence or substantial clinical experience. As a result of the settlement, Inspire will pay the states and the
federal government $6 million.
http://migration.kentucky.gov/Newsroom/ag/inspirepharm.htm
41
MEDICAID FRAUD CASES AND SETTLEMENTS
ALABAMA
June 25, 2015
Attorney General Luther Strange Announces Conviction For Medicaid
Fraud, Identity Theft Scheme
Attorney General Luther Strange announced that Darnell Davon Nash, 30, of
Cleveland, Ohio, pleaded guilty yesterday in Montgomery County Circuit
Court to defrauding the Alabama Medicaid Agency.
Nash was indicted for his role in the filing of numerous false claims for
payment to the Alabama Medicaid Agency, and being in possession of
identifying information of approximately 25 Alabama residents.
Prosecutors describe how Nash, along with a co-defendant, established a fake
business named “Chase Farms Group” and fraudulently obtained status as
an Alabama Medicaid provider. The two then obtained, by deceit, the
Medicaid Provider ID of a north Alabama physician’s office, by stating they
ran a crisis center and wanted the physician’s office to be their medical
provider. People in the physician’s office became suspicious when they
attempted to contact Nash, who had used an alias, to inquire about the
partnership. The scheme also involved the distribution of flyers throughout
the Birmingham area, advertising assistance with obtaining government
subsidies. Then victims called the number provided and gave their identifying
information. Nash and his co-defendant would then bill Medicaid for alleged
services provided by the physician’s office using the stolen data. No
information may be released at this time regarding the co-defendant.
http://www.ago.state.al.us/News-658
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ALABAMA CONT’D
June 11, 2015
Attorney General Luther Strange Announces Conviction of Bessemer
Woman for Conspiring with Pharmacist to File False Claims to Medicaid
Attorney General Luther Strange announced the conviction of Sonia Judd
Coleman, 34, of Bessemer, for second-degree theft from the Alabama Medicaid
Agency. Coleman, who has been held at the Montgomery County Detention
Facility, pleaded guilty today in Montgomery County Circuit Court.
The Attorney General’s Medicaid Fraud Control Unit presented evidence to a
Montgomery County grand jury, resulting in her indictment in January.
Coleman was charged for her role in conspiring with a Bessemer Pharmacist,
Alan Bruce Connell, to file numerous false claims for payment to the Alabama
Medicaid Agency. The total loss to the Alabama Medicaid Agency was over
$50,000.00.
http://www.ago.state.al.us/News-655
CONNECTICUT
June 18, 2015
Attorney General George Jepsen Files False Claims Act Complaint
Alleging Psychiatrist Knowingly Submitted False Claims to the
Connecticut Medicaid Program
Attorney General George Jepsen announced today that he has filed a
complaint in Hartford Superior Court under the Connecticut False Claims Act
seeking treble damages and other relief stemming from an alleged long-
running scheme to submit false claims to the Connecticut Medical Assistance
Program (CMAP) from January 2010 through December 2014.
The state's complaint alleges that the co-owners of Brighter Concept, Inc. –
Dr. Ashwini Sabnis, a licensed psychiatrist enrolled as a provider in the
CMAP, and her husband, Saurav "Sam" Mohanty – participated in an
elaborate and illegal scheme that resulted in the submission of false claims
for services that were not provided, and claims that were "upcoded" - - billed
at a higher reimbursement code than warranted. In addition, the complaint
alleges that Sabnis and Mohanty knowingly attempted to conceal from the
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CONNECTICUT CONT’D
Department of Social Services (DSS), and the Attorney General, the existence
of evidence that would have established the fraud.
http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=567212
June 8, 2015
Attorney General George Jepsen Announces State Reaches Settlements
with Three Defendants in Alleged Fraudulent Medicaid Billing Lawsuit
The state has executed settlement agreements with three defendants that resolve civil fraud allegations and claims stemming from an illegal Medicaid
dental billing scheme, Attorney General George Jepsen said today.
David Wu of Cheshire, Conn. and his companies, Arbor Dental Association LLC and Alpha Dental Group PC; Paul Anusavice of North Grafton, Mass.; and John Gallagher of Manchester, Mass. were among 28 individuals, dental
practices and corporations named in a civil lawsuit filed by the state in May 2012 that alleged participation in an elaborate and illegal scheme that resulted in the submission of fraudulent Medicaid dental claims over two
years in violation of the Connecticut False Claims Act and the Connecticut Unfair Trade Practices Act.
http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=566752
GEORGIA
June 23, 2015
Attorney General Sam Olens Announces Columbus Woman Sentenced to
Prison for Submitting Fraudulent Claims to Medicaid.
On Monday, June 23, 2015, Della Upshaw of Columbus, Ga., pleaded guilty
in Muscogee Superior Court to one count of Medicaid Fraud (O.C.G.A. § 49-4-
146.1(b)). She also pleaded guilty to one count of Insurance Fraud (O.C.G.A. §
33-1-9), a charge brought by Muscogee County District Attorney Julia Slater.
Judge Ronald Mullins sentenced Upshaw to one year in prison, followed by
nine years probation and restitution in the amount of $98,344.15.
Upshaw owned Senior Care of Columbus, Inc., and Reaching Out Healthcare,
Inc. The companies were enrolled in the Community Care Service Program, a
44
Medicaid program administered by the Georgia Department of Community
Health, for senior citizens in need of assistance, including in-home personal
care and day health services.
http://law.ga.gov/press-releases/2015-06-23/columbus-woman-sentenced-
prison-medicaid-fraud
June 22, 2015
Attorney General Sam Olens Announces Four Individuals Charged with
Submitting Fraudulent Claims to Medicaid
On Thursday, June 11, 2015, a Henry County Grand Jury charged Casandra
Jones, Fredrick Thrasher, Antoine Johnson and Lynesha McElveen with one
felony count of Medicaid Fraud (O.G.G.A. § 49-4-146.1(b)) and one felony
count of Conspiracy to Defraud the State (O.C.G.A. § 16-10-21). Casandra
Jones was charged with 38 additional counts of Forgery (O.C.G.A. § 16-9-1).
Casandra Jones and Fredrick Thrasher were the owners and operators of
House of Preparation, LLC, located in Henry County, Ga. House of
Preparation, LLC purported to provide Community Mental Health Services to
children. Antoine Johnson and Lynesha McElveen were employees of House of
Preparation, LLC.
http://law.ga.gov/press-releases/2015-06-22/four-individuals-charged-
medicaid-fraud-henry-county
June 10, 2015
Attorney General Sam Olens Announces Georgia Dentist Convicted of
Misuse of Medicaid Funds
On June 5, 2015, Attorney General Sam Olens announced the conclusion of a
multi-part investigation into Dr. Dennis B. Jaffe’s Atlanta-based dentistry
practice. After a joint investigation conducted by the Georgia Medicaid Fraud
Control Unit and federal partners, Dr. Jaffe, D.M.D., pled guilty to criminal
charges and civilly settled allegations of fraud for $324,327.05.
The criminal plea focused on allegations that Dr. Jaffe knowingly billed for
services provided on certain days when Dr. Jaffe was not in the office. On
45
those days, unqualified staff performed services and Dr. Jaffe then billed as if
he had performed the services. Dr. Jaffe pled guilty to one count of Misuse of
Healthcare Funds, 18 U.S.C. § 669, and received a sentence of one year of
probation, 50 hours of community service and restitution of $3,368.10. In
connection with his plea, Dr. Jaffe also surrendered his license to practice
dentistry.
http://law.ga.gov/press-releases/2015-06-10/georgia-dentist-convicted-
misuse-medicaid-funds
LOUISIANA
June 29, 2015
Attorney General Buddy Caldwell Announces Medicaid Fraud Control
Unit Makes Two Arrests for Illegally Billing the Louisiana Medicaid
Program for Services That Were not Performed
Attorney General Buddy Caldwell announced today that a Shreveport
caregiver has been arrested after illegally billing the Louisiana Medicaid
Program for services that were not performed.
Terri Dewitt, 45, of 3414 Clarke Boulevard in Shreveport, was charged with
two counts of Medicaid fraud after submitting time sheets and service logs
that contained overlapping service hours which resulted in claims being
submitted to the Medicaid Program for services not rendered. As a result of
Dewitt’s actions, the personal care agencies where she was employed billed
Medicaid for services not rendered and were paid $11,784 by the Medicaid
Program. Dewitt was arrested last week by the Attorney General’s Medicaid
Fraud Control Unit investigators and booked into the East Baton Rouge
Parish Prison.
https://www.ag.state.la.us/Article.aspx?articleID=1038&catID=2
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LOUISIANA CONT’D
June 19, 2015
Attorney General Buddy Caldwell Announces Medicaid Fraud Control
Unit Arrests St. Martin Parish Woman For Submitting False Claims To
Medicaid
Attorney General Buddy Caldwell announced today that a St. Martinville
woman has been arrested for Medicaid fraud after causing false claims to be
submitted to the Louisiana Medicaid Program for health-care services that
were not performed.
Crystal Babers was charged with two counts of Medicaid fraud after
submitting false time sheets and service logs claiming she performed in-home
care services for a Medicaid beneficiary. As a result of Babers’ actions, the
personal care agency where she was employed billed Medicaid for services not
rendered and was paid $2,155.93 by the Medicaid Program. Babers was
arrested Tuesday by the Attorney General’s Medicaid Fraud Control Unit
investigators with assistance from the St. Martin Parish Sheriff’s Office and
was transported to the East Baton Rouge Parish Prison for booking.
https://www.ag.state.la.us/Article.aspx?articleID=1032&catID=2
June 8, 2015
Attorney General Buddy Caldwell Announces Two Caregivers Arrested for
Billing the Louisiana Medicaid Program for Services That Were Not
Performed
Attorney General Buddy Caldwell announced today that two caregivers have
been arrested for Medicaid fraud after illegally billing the Louisiana Medicaid
Program for services that were not performed.
Elaine Breaux, 64, of 222 St. Anthony Street in Raceland, was charged with a
single count of Medicaid fraud after submitting time sheets and service logs
that contained overlapping service hours which resulted in claims being
submitted to the Medicaid Program for services not rendered. Breaux was
arrested today by the Attorney General’s Medicaid Fraud Control Unit
investigators and booked into the East Baton Rouge Parish Prison.
https://www.ag.state.la.us/Article.aspx?articleID=1023&catID=2
47
MASSACHUSETTS
June 11, 2015
Attorney General Maura Healey Announces Medway Woman Pleads
Guilty, Sentenced to Prison for Defrauding MassHealth and Filing False
Insurance Claims
Defendant and Husband Profited More Than $1 Million from the Sale of Medical
Products Obtained Through Fraudulent Insurance Claims
A Medway woman has pleaded guilty and been sentenced to one year in state
prison in connection with fraudulently billing MassHealth and profiting more
than $1 million from the sale of medical products obtained through the filing
of false health care claims, Attorney General Maura Healey announced
today. She was also ordered to pay $57,288 in restitution.
Denise Alessandrini, age 49, pleaded guilty on Wednesday in Suffolk Superior
Court to charges of Filing a False Health Care Claim, Larceny Over $250 (4
counts), Medicaid False Claims (8 counts), Larceny Over $250 by False
Pretenses (8 counts), and Conspiracy to Commit Health Care Fraud.
http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-
06-11-woman-guilty-defraud-masshealth.html
MISSISSIPPI
June 30, 2015
Attorney General Jim Hood Announces Ridgeland Resident Going to
Prison for Medicaid Fraud
A Ridgeland resident is going to prison for Medicaid Fraud, announced
Attorney General Jim Hood today.
Theresa Lane Fisher, 46, of Ridgeland, pleaded guilty to two counts of
Medicaid Fraud and one count of Medicare Fraud before Rankin County
Circuit Court Judge John Emfinger on Monday. As a result, Fisher was
sentenced to 11 years in the custody of the Mississippi Department of
Corrections with five years to serve, six years suspended and five years of
probation. Fisher was also ordered to pay $803,744.93 in restitution, a
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MISSISSIPPI CONT’D
penalty of $2,411,234.79, a $1,000 fine and $500 to the Victims
Compensation Fund.
The Attorney General’s investigation showed that Fisher was acting as a
medical director for a hospice care company and certifying patients for
hospice while only being qualified to be a physician’s assistant. Fisher also
billed the Medicaid program for visits while her license as a physician’s
assistant was suspended.
http://www.ago.state.ms.us/wp-
content/uploads/2015/06/june30_Ridgeland-Resident-Going-to-Prison-for-
Medicaid-Fraud.pdf
June 15, 2015
Attorney General Jim Hood Announces Southaven Resident Arrested on
Medicaid Fraud Charges
A former Rankin County resident has been arrested today following her
indictment on Medicaid Fraud charges, announced Attorney General Jim
Hood.
Natarsha Shuntel Short, 38, of Southaven, turned herself in to investigators
of the Mississippi Attorney General’s Medicaid Fraud Control Unit. A Rankin
County Grand Jury indicted her on one count of Felonious Medicaid
Fraud. She is accused of turning in fraudulent time sheets while employed as
a personal care sitter for a home health care agency in Flowood.
http://www.ago.state.ms.us/wp-
content/uploads/2015/06/JUNE15_Southaven-Resident-Arrested-on-
Medicaid-Fraud-Charges.pdf
49
MISSISSIPPI CONT’D
June 10, 2015
Attorney General Jim Hood Announces Louisville Resident Arrested for
Medicaid Fraud
A Louisville woman is facing charges for filing false claims to her former
employer, announced Attorney General Jim Hood today.
Labeatris Estes, 31, was arrested Tuesday by the Mississippi Attorney
General’s Office Medicaid Fraud Control Unit following her recent indictment
by a Rankin County grand jury.
Estes is accused of filing Medicaid claims for more than $10,000 for home
health services that she did not provide.
http://www.ago.state.ms.us/wp-
content/uploads/2015/06/june10_Louisville-Resident-Arrested-for-Medicaid-
Fraud.pdf
NEW HAMPSHIRE
June 25, 2015
Attorney General Joseph Foster Announces Settlement Reached With Dr.
Eyad Almahayni for Failure to Maintaining the Required Documentation
Attorney General Joseph A. Foster announces that the Medicaid Fraud
Control Unit (MFCU) of the Department of Justice has reached a settlement
with Dr. Eyad Almahayni, DMD, to resolve allegations that his dental practice
submitted claims to Medicaid for dental services, between February 2008 and
July 2012, without maintaining the required documentation, without
documenting the participation of a dentist in a procedure requiring a dentist,
and for work done on Medicaid recipients by non-Medicaid providers. Under
the terms of the agreement, Dr. Almahayni agreed to pay a total sum of
$13,150.25 in restitution and investigative costs. Dr. Almahayni fully
cooperated with the investigation. During the relevant time period he was
practicing in Hampton, NH. He is no longer practicing in the state.
http://doj.nh.gov/media-center/press-releases/2015/20150625-dr-
almahayni-settlement.htm
50
NEW MEXICO
June 2, 2015
Attorney General Hector Balderas Complaints Allege Medicaid Fraud at
Carlsbad-area Mental Health Center
Attorney General Hector Balderas’ office today charged four top personnel at
Carlsbad Mental Health Center with Medicaid fraud and also brought charges
against the center as a corporation. Criminal complaints against the four
individuals— Michael Stoll, Noel Clark, Darrill Woodfield and John Bain—and
the corporation were filed June 2, 2015, in Eddy County Magistrate Court.
The corporation and each of the individuals was charged with eight counts of
Medicaid fraud under the Medicaid Fraud Act, one count of conspiracy and
one count of fraud involving non-Medicaid funds.
http://www.nmag.gov/uploads/PressRelease/48737699ae174b30ac51a7eb2
86e661f/Carlsbad_area_Mental_Health_Center.pdf
NEW YORK
June 29, 2015
A.G. Schneiderman Announces $2.5 Million Settlement With NYC
Pharmacy For Improper Medicaid Billings
AG Investigation Resolves Allegations Related To Walgreen-Owned Trinity
HomeCare LLC; Pharmacy Lacked Proof It Delivered Expensive Infusion Drugs,
Primarily For Hemophilia Patients, To Their Homes
Attorney General Eric T. Schneiderman today announced a settlement that
returns $2.5 million to the state’s Medicaid program. The agreement reached
with Trinity Homecare LLC, a pharmacy primarily owned by Walgreen Co.,
began with a whistleblower claim of improper conduct and false Medicaid
billings related to drugs mainly prescribed for hemophilia patients. The court
approved settlement resolves claims of undocumented delivery by the
pharmacy of infusion drugs. In at least one instance, these expensive drugs
were allegedly left outside a patient’s home without signature by the patient.
The drugs can cost tens of thousands of dollars per delivery. Located in
College Point, Queens, Trinity also allegedly submitted claims to Medicaid for
a greater amount of drugs than it could document were actually delivered.
51
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-25-
million-settlement-nyc-pharmacy-improper-medicaid
June 16, 2015
A.G. Schneiderman Announces Arrest Of Capital Region Personal Care
Aides For Allegedly Defrauding Medicaid For Services Never Provided
Robert Lee Van Horne And Nicholas Gallup Submitted False Claims In Excess
Of $1K Each
Attorney General Eric T. Schneiderman today announced the arrest of
personal care aides Robert Lee Van Horne and Nicholas Gallup in Albany. Van
Horne and Gallup were arraigned in Albany City Court in front of the Hon.
William Carter. Van Horne, 33 and Gallup, 27, both of Schenectady, were
arraigned on multiple counts of Falsifying Business Records in the First
Degree, and Grand Larceny in the Fourth Degree, both Class E felonies. It is
charged that both defendants caused more than 50 false entries in the
business records of Capital District Physicians Health Plan (CDPHP), a
Medicaid Managed Care contractor for New York State, located in the City of
Albany, and stole property in excess of one thousand dollars.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-arrest-
capital-region-personal-care-aides-allegedly
June 10, 2015
A.G. Schneiderman Announces Arrests Of Six NYC And Westchester
Home Health Aides Charged With Defrauding Medicaid
The Individuals Allegedly Faked Credentials; Impersonated Certified Home
Health Aides; And Received No Show Jobs; Four Allegedly Defrauded The
Program Out Of Tens Of Thousands Of Dollars
Attorney General Eric T. Schneiderman today announced the arrests of six
home health care workers who worked in the Bronx, Kings, New York,
Richmond and Westchester Counties accused of defrauding the New York
State Medicaid Program, either directly or through a Medicaid managed care
plan. The defendants are charged separately, including allegations against
four of them for defrauding the program of more than $30,000. They were
52
arrested and charged with a variety of felonies, including identity theft, grand
larceny and possession of forged documents for faking home-health care
credentials and submitting false billings for services which were never
rendered.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-arrests-
six-nyc-and-westchester-home-health-aides-charged
June 9, 2015
A.G. Schneiderman Announces Arrest Of Rochester Woman Allegedly
Involved In Fraudulent Billing Medicaid $13,000
Defendant Maria Quinones Accused Of Misrepresenting Educational
Credentials To Obtain Job At The Community Place of Greater Rochester
Attorney General Eric T. Schneiderman today announced Maria Quinones, 43,
of Rochester, was charged with Grand Larceny, a felony, in Rochester City
Court, for causing the New York State Medicaid program to be illegally billed
more than $13,000. It is alleged that Quinones falsely claimed to have a
college degree in order to obtain a job at The Community Place of Greater
Rochester (CPGR). CPGR then billed Medicaid for client services performed by
Quinones. State Medicaid regulations require providers to have at least an
associate’s degree or be a Registered Nurse.
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-arrest-
rochester-woman-allegedly-involved-fraudulent-billing
OKLAHOMA
June 23, 2015
Oklahoma Attorney General Scott Pruitt Announces Poteau Speech
Pathologist Found Guilty of Falsifying Timesheets to Medicaid
A child’s speech pathologist pleaded no contest to one count of Medicaid
Fraud following charges brought by Oklahoma Attorney General Scott Pruitt.
Rebecca Lynn Reif, 46, of Poteau, worked as a speech pathologist for Ramsey
Speech Pathology in Muskogee. Reif was hired by the company to provide
speech therapy sessions to children, many of whom were eligible for Medicaid.
53
Reif submitted falsified timesheets indicating she had conducted sessions
with children that never took place. This in turn caused Medicaid to pay more
than $2,500 for sessions that Reif did not conduct.
http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258
&article_id=16018
June 18, 2015
Attorney General Scott Pruitt Announces Child Counselor Pleads Guilty
to Submitting Fraudulent Bills to Medicaid Fraud
A former children’s counselor pleaded guilty to 11 felony counts following
charges brought by Oklahoma Attorney General Scott Pruitt.
Vincent Chukuneye Dike, 58, of Edmond, pleaded guilty to 11 counts of
Medicaid fraud.
Dike worked as a licensed professional counselor under supervision for
Genesi LLC in Moore and Reliant Living Center in Del City between December
2013 and February 2014. During the time period Dike submitted fraudulent
bills to the Oklahoma Health Care Authority for services that were not
rendered adding up to more than $78,000.
Dike was sentenced to 90 days in jail and will serve 10 years probation. As
part of probation, Dike was ordered to pay $179,898.40 in restitution, fines
and investigative costs.
http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258
&article_id=15999
PENNSYLVANIA
June 17, 2015
Attorney General Kathleen G. Kane Announces Pittsburgh Woman
Accused Of Abusing Special Needs Son Charged In Second Medicaid
Fraud Case
Attorney General Kathleen G. Kane today announced her office has filed a
second set of criminal charges against a Pittsburgh caregiver accused of
54
overbilling a state disability program in part by forging the signature of her
care-dependent brother.
Vonda Kay Brown, 44, was charged Tuesday with three counts of Medicaid
fraud, two counts of theft by deception and one count of forgery.
The charges were filed three months after Brown was charged in a separate
case in which agents with the Attorney General's Medicaid Fraud Control
Section reported that Brown abused her special needs son and committed
Medicaid fraud. In that case, Brown is accused of submerging her son's hand
in liquid hot enough to cause a severe burn and submitting time sheets for
services that were never rendered for her son's care.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pres
s_Release/?pid=1852
SOUTH DAKOTA
June 11, 2015
Attorney General Marty Jackley Announces Madison Man Sentenced in
Medicaid Fraud Case
Attorney General Marty Jackley announced today that Shawn Earl Nills, 42,
Madison, was sentenced to serve 5 years in the State Penitentiary for
committing Medicaid fraud.
Third Circuit Court Judge Vincent A. Foley suspended the execution of
sentence on several conditions. Judge Foley ordered Nills to serve 90 days in
county jail, 2 years of probation, and ordered him to pay a total of $27,680.22
in restitution to the State of South Dakota. Nills was also ordered to pay a
$750 fine, and pay court costs of $104.00.
Nills pleaded guilty on March 18, 2015, in Lake County Criminal Case #15-22
to Making False Claims, a class 5 felony, pursuant to a plea agreement
reached with the State. Nills admitted that he knowingly and intentionally
submitted false claims to programs funded by the State of South Dakota,
including Medicaid, while he worked as a mental health counselor in
Madison. Nills admitted that he knowingly and intentionally prepared
numerous progress notes for counseling sessions that did not occur. Nills
further admitted that he used these fraudulent progress notes to substantiate
55
false claims that he had submitted between October 3, 2012, and March 28,
2014.
http://atg.sd.gov/News/NewsReleases/NewsReleasesView/tabid/441/itemID
/3623/moduleID/597/Default.aspx
VERMONT
June 26, 2015
Attorney General William H. Sorrell Announces Ludlow Woman Charged
With Medicaid Fraud And False Pretenses
Attorney General William H. Sorrell announced today that Jennifer Newsome,
age 50, of Ludlow, Vermont, was arraigned on June 23, 2015, in Vermont
Superior Court for Windsor County on two felony counts of Medicaid Fraud
and three felony counts of False Pretenses. The court imposed conditions of
release governing Ms. Newsome’s conduct while the case is pending.
http://ago.vermont.gov/focus/news/ludlow-woman-charged-with-medicaid-
fraud-and-false-pretenses.php
VIRGINIA
June 12, 2015
Attorney General Mark Herring Announces Two Plead Guilty to
Healthcare Fraud
Connie and Stephanie Robbins Admit to Billing Medicaid for Services Not
Performed
A mother and daughter who operated a business that provided oversight to
personal care aides caring for elderly and disabled individuals, pled guilty
today in the United States District Court for the Western District of Virginia in
Abingdon to healthcare fraud.
Connie Robbins, 59, of Sugar Grove, Virginia and Stephanie Dawn Robbins,
37, of Marion, Virginia, both waived their rights to be indicted this morning
and pled guilty to a one-count Information charging them with conspiracy to
commit healthcare fraud.
According to evidence presented at today’s guilty plea hearing by Virginia
Assistant Attorney General and Special Assistant United States Attorney
56
Janine Myatt, Stephanie and Connie Robbins operated Robbins CD Services,
a Consumer Directed Service Facilitator (CDSF) service provider. CDSF service
providers are hired by Medicaid recipients who are eligible for a waiver that
allows them to avoid moving into a nursing home and instead receive critical
care in their homes.
http://www.oag.state.va.us/index.php/media-center/news-releases/546-
june-12-2015-two-plead-guilty-to-healthcare-fraud
WASHINGTON
Jun 11, 2015
Attorney General Bob Ferguson Sues Couple Behind Scheme To Profit Off
Elderly, Veterans
Sold investments with no benefit, misrepresented qualifications
Attorney General Bob Ferguson has filed a lawsuit against a Snohomish
couple who scammed elderly Washington residents applying for Medicaid and
veterans benefits. The Attorney General’s Office alleges that the Cooks’
actions violated the state Consumer Protection Act.
Peter and Carolyn Cook, doing business as C&C Consulting, claim to help
their clients navigate applications for state and federal need-based programs
— namely, Medicaid and U.S. Veterans Administration Aid and Attendance —
to obtain necessary care.
The Cooks had no special training to provide Medicaid or Aid and Attendance
consulting services, and in fact broke the law by offering this Aid and
Attendance consulting for a fee without Veterans Administration
accreditation. Peter Cook also was involved in an elder fraud scheme in
California, and pleaded guilty to a criminal charge of filing a false income tax
return.
http://www.atg.wa.gov/news/news-releases/ag-ferguson-sues-couple-
behind-scheme-profit-elderly-veterans
57
WASHINGTON CONT’D
Jun 4 2015
Attorney General Bob Ferguson Announces Jail Time For Fake Nurse
Who Forged Credentials To Access Medicaid Dollars
Attorney General Bob Ferguson announced that the King County Superior
Court yesterday convicted Elene Allonce of forging a nursing license that she
used to fraudulently serve as a Medicaid healthcare provider. Allonce is
sentenced to six months in jail, the most time allowed for this 16-year-old
crime.
After the Washington State Attorney General’s Office (AGO) charged Allonce
with forging a nursing license in 1999, she failed to appear for arraignment
and a warrant was issued. The defendant then disappeared for sixteen years.
She was recently returned to Washington state custody on that warrant after
being convicted in federal court in New York for stealing patient records and
submitting $10 million in false billings to Medicare— a separate scheme,
using a different name. Allonce’s six-month sentence from Washington will
run concurrently with the 12-year federal prison sentence she is currently
serving.
While taking classes at Bastyr University in Bothell, Wash., Allonce asked
another student, who was a registered nurse, for a letter of recommendation.
Allonce stated her future employer required the person writing the
recommendation to include a copy of his or her nursing license. The
defendant used this registered nurse’s number and fabricated another license,
inserting her name instead.
http://www.atg.wa.gov/news/news-releases/jail-time-fake-nurse-who-forged-
credentials-access-medicaid-dollars
58
CONSUMER ADVOCACY
CALIFORNIA
June 12, 2015
Attorney General Kamala D. Harris Releases Debt Relief Interactive Tool
For Corinthian Colleges Students
Attorney General Kamala D. Harris today released an enhanced interactive
tool to help former Corinthian Colleges, Inc. students learn about new
expanded loan relief options granted to students by the U.S. Department of
Education. As a result of the Department’s announcement, a large majority of
former California Heald College students are now eligible for a streamlined
process for loan forgiveness, with an estimated $500-$600 million worth of
loans made to approximately 40,000 former Heald students since 2010.
Corinthian students should utilize the interactive tool created by the Attorney
General’s office to learn more about their new relief eligibility and to connect
with free resources near them.
https://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-
releases-debt-relief-interactive-tool
COLORADO
June 24, 2015 Attorney General Cynthia H. Coffman Warns Homeowners of Contractor
Home Repair Scams After Extreme Weather This spring, Colorado has experienced extreme weather, leaving many
homeowners with costly damage from water and hail. Colorado Attorney General Cynthia H. Coffman is reaching out to homeowners to warn them of phony home repair contractor scams.
These scams typically involve phony contractors going door-to-door offering a
“special price” on roofing, siding, windows, asphalt or other services. Some claim to have done work for neighboring homes and have extra materials that they can offer at a discounted rate.
http://www.coloradoattorneygeneral.gov/press/news/2015/06/24/colorado_attorney_general_cynthia_h_coffman_warns_homeowners_contractor_home_r
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CONNECTICUT
June 2, 2015
Statement from AG Jepsen on Final Passage of Data Breach Notification
and Consumer Protection Legislation
Attorney General George Jepsen today issued the following statement on the
House of Representative's final passage of Senate Bill 949, An Act Improving
Data Security and Agency Effectiveness, which includes several changes to
the state's data breach notification law and requires at least one year of
identity theft protection for victims of data breaches involving Social Security
numbers:
"I welcome the General Assembly's attention to this important issue. The
number of reported data breaches has skyrocketed since the legislature
amended the breach notification law in 2012 to require companies to provide
notification to my office, and the unfortunate reality is that, as hackers
become more and more sophisticated, it's likely that consumers will continue
to be impacted by breaches for the foreseeable future. The legislation passed
by the Senate and the House this year will provide clarity on the minimum
requirements under Connecticut law for businesses that experience data
breaches affecting consumers' personal information.
http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=566508
IDAHO
June 11, 2015
Attorney General Wasden Announces Coalition Devoted to Combatting
Identity Theft and Preventing Fraud
A collection of nonprofits, advocacy groups and state government agencies
committed to helping Idahoans learn about identity theft and prevent fraud
are forming a new partnership, Attorney General Lawrence Wasden
announced Thursday.
The 12-member coalition is now calling itself “The Idaho Scam Jam Alliance,”
a title Wasden says demonstrates the commitment members have in arming
Idahoans with the tools they need to protect themselves from con artists and
cyber criminals.
http://www.ag.idaho.gov/media/newsReleases/2015/nr_06112015.html
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ILLINOIS
June 24, 2015
Attorney General Lisa Madigan Warns Homeowners to Be On Alert For
Storm-Related Home Repair Scams
Following Monday’s tornadoes, Attorney General Lisa Madigan today warned
north-central Illinois residents to be on alert for home repair con artists
looking to exploit homeowners and local businesses needing repairs due to
storm-related damage.
Madigan cautioned Illinois residents who may be targeted by scammers who
quickly move into communities hit hard by storms to take advantage of people
with damage to their homes. Madigan noted that these “storm chasers” use
the opportunity to pressure people into making impulsive, and often
expensive, decisions about cleanup and construction work.
http://www.illinoisattorneygeneral.gov/pressroom/2015_06/20150624b.html
June 11, 2015
Attorney General Lisa Madigan: Phone Scammers Posing as Attorney
General’s Office Representatives
Attorney General Warns Phone Scammers Posing as Government Officials
Attempt to Con Targets Into Sending Money
Attorney General Lisa Madigan today alerted Illinois residents to a phone
scam in which callers pose as representatives of the Attorney General’s office
in an attempt to con people into sending money on supposed unpaid fines.
Madigan’s office has received several complaints this week from people who
have been contacted by scammers pretending to be officials representing the
Illinois Attorney General with bogus claims that the call recipients have
warrants out for their arrest. Call recipients, some of whom received multiple
calls, are told they will be arrested if they do not pay the fines within 30
minutes.
http://www.illinoisattorneygeneral.gov/pressroom/2015_06/20150611.html
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ILLINOIS CONT’D
June 2, 2015
Attorney General Lisa Madigan Calls On U.S. Dept. Of Education to Stop
Scammers Targeting Millions of Student Loan Borrowers
Attorney General Urges U.S. Department of Education to Implement Nonprofit
Credit Counseling Certification Program to Assist Borrowers
Attorney General Lisa Madigan today called on the U.S. Department of
Education to initiate a program to provide certified nonprofit credit counselors
for the millions of student loan borrowers seeking help to repay their federal
student loans. Madigan said more qualified sources for help are needed as an
industry of scam operations are increasingly targeting and exploiting
borrowers for profit.
In a letter to Secretary Arne Duncan, Madigan urged the Department to adopt
a program to certify nonprofit credit counselors who can serve as legitimate
sources of help for borrowers in need of counseling on their repayment
options, in particular borrowers who are in default. Madigan pointed to the
counselors certified by the U.S. Department of Housing and Urban
Development in the wake of the housing crisis that provided extensive support
and resources for struggling homeowners.
http://www.illinoisattorneygeneral.gov/pressroom/2015_06/20150602.html
INDIANA
June 15, 2015
Attorney General Greg Zoeller: Speak Up and Urge FCC to Stop Robocalls
The FCC will issue a long-awaited ruling this week that could help stop
endless robocalls, scam text messages and telemarking calls to peoples’
phones. One of the key proposals in the proposed rule change would allow
phone carriers to implement call-blocking technologies to screen robocalls
before they reach peoples’ landlines. This technology has existed for some
time, but the FCC’s current rules have prevented phone carriers from offering
the service. Zoeller and his fellow attorneys general have been urging the
FCC to make this and other telephone privacy updates for years.
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http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventid
n=221408&information_id=215467&type=&syndicate=syndicate
June 10, 2015
Attorney General Greg Zoeller Warns of Scam Targeting Property Owners
The Attorney General’s Office is warning people about a phone scam targeting
property taxpayers. Several Marion County residents have reported phone
calls to the Marion County Treasurer’s Office in which the caller claims to be
from the Treasurer’s or Auditor’s Office and tells them that their property will
be reviewed by the Court or sold the next day unless delinquent property
taxes are paid immediately over the phone.
These scam calls are NOT coming from local government offices. A treasurer’s
office will send information to taxpayers via the Postal Service or email unless
a property owner is already in contact with their staff. They will not demand
immediate payment over the phone.
http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventid
n=221345&information_id=215351&type=&syndicate=syndicate
June 1, 2015
Attorney General Greg Zoeller Thanks Legislators For Passing Indiana
Servicemembers Civil Relief Act
A newly passed state law extends the U.S. military’s consumer protections to
Indiana National Guard and Reserve members who are called up to active
duty. Having recommended the legislation, Indiana Attorney General Greg
Zoeller today thanked northeast Indiana legislators who passed the Indiana
Servicemembers Civil Relief Act into law.
“When Hoosiers in uniform are called up to active duty, they should not be
distracted by civilian-life difficulties such as canceling service contacts or
dealing with billing disputes while they are deployed far from home. We are
grateful to members of the Indiana General Assembly who recognized the
sacrifices our military personnel make and who updated state law to take
these concerns into account,” Zoeller said today in Fort Wayne.
http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventid
n=221149&information_id=215022&type=&syndicate=syndicate
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LOUISIANA
June 25, 2015
Attorney General Buddy Caldwell Warns Against Fake Debt Collectors
Attorney General Buddy Caldwell is warning consumers to be on the alert for
scam artists posing as debt collectors. It may be difficult to tell the difference
between a legitimate debt collector and an imposter.
Attorney General Caldwell said his office is seeing an uptick in reports from
consumers who have received harassing telephone calls from people trying to
collect on loans that don’t even exist.
https://www.ag.state.la.us/Article.aspx?articleID=1034&catID=2
June 11, 2015 Attorney General Buddy Caldwell Advises Consumers to Avoid Natural
Disaster Scams
With areas of Northwest Louisiana impacted by severe flooding, Attorney
General Buddy Caldwell warns consumers to be on the lookout for potential scams linked to fake charities or contractors seeking to cash in on the
damage. “While established charities shift into disaster response mode and seek
donations to help residents, scammers also jump on the chance to cash in on sympathy for flood victims,” Attorney General Caldwell said. “Fly-by-night
contractors often go door to door after natural disasters, offering to help victims clear debris, remove mold or repair homes.”
Attorney General Caldwell advises consumers to check out charities and contractors before writing a check or making an online donation.
https://www.ag.state.la.us/Article.aspx?articleID=1026&catID=2
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LOUISIANA CONT’D
June 3, 2015 Attorney General Buddy Caldwell Cautions Consumers Don't Pay For a
Vacation to Nowhere
With school out and summer in, many Louisiana residents may be itching to get out of town for vacation. As consumers search for their perfect getaways, they may come across good-looking vacation rental deals that seem amazing.
In an instance where a deal sounds too good to be true, that may be exactly the case. Attorney General Buddy Caldwell cautions consumers to beware of
the vacation to nowhere.
https://www.ag.state.la.us/Article.aspx?articleID=1020&catID=2
MARYLAND
June 23, 2015
Attorney General Brian Frosh Announces Successful Challenge to Merger
of Two Foodservice Providers
Attorney General Brian E. Frosh announced today that a challenge to the
merger of the nation's two largest foodservice distributors has been
successful, with a federal judge blocking the transaction pending further
review.
The Maryland Office of the Attorney General Antitrust Division joined with the
Federal Trade Commission, nine other states and the District of Columbia to
halt the merger of Sysco Corp. and USF Holding Corp., or US Foods. US
District Court Judge Amit P. Mehta, in the District of Columbia, on Tuesday
issued temporary injunction blocking the merger. The Federal Trade
Commission must now complete a full administrative review of the proposal
before it can proceed.
http://www.oag.state.md.us/Press/2015/062315.html
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MARYLAND CONT’D
June 9, 2015
Attorney General Frosh Helps Launch Effort to Protect Assets of Aging
Adults
Maryland Attorney General Brian E. Frosh today helped launch a new effort to
safeguard assets of older adults and protect them from fraud, promoting the
need for specially-tailored banking services to help aging consumers manage
money and stay in their homes.
Attorney General Frosh was joined by the Maryland Consumer Rights
Coalition and other advocates in encouraging the banking industry to adopt
innovative practices and tailor products for an aging population, while
improving training so staff can be on the lookout for fraud.
Frosh took part in the kick-off of "Securing Older Adult Resources," or SOAR,
a new initiative of the Maryland Consumer Rights Coalition. The Coalition
released a report card issuing grades to 10 Baltimore-area banks on how they
serve older adults. A short video of the kick-off event can be seen here:
https://youtu.be/IfhoVfN3ayw
http://www.oag.state.md.us/Press/2015/060915.html
MISSISSIPPI
June 16, 2015
Attorney General Jim Hood Warns Consumers to Be Aware of Phone
Scams Targeting Taxpayers After the Tax Season
Attorney General Jim Hood is once again reminding Mississippi consumers to
remain cautious of tax-related phone scams. Even though the 2015 tax
season has ended, these scams continue.
Con artists are impersonating IRS agents when calling and threatening
Mississippi consumers. Attorney General Jim Hood warns consumers not to
fall victim to these con artists or others like them. “The answer is simple for
this and other similar phone scams – listen to your instincts. If something
sounds too good to be true or is suspicious, don’t take the action requested.”
http://www.ago.state.ms.us/wp-
content/uploads/2015/06/june16_Attorney-General-Warns-Consumers-to-
66
Be-Aware-of-Phone-Scams-Targeting.pdf
MISSOURI
Jun 23, 2015
Attorney General Chris Koster releases Resource Guide on Identity Theft
Attorney General Chris Koster said today his office has developed a new
Identity Theft Resource Guide that is available to the public. The guide
informs Missourians on steps they should take now to protect themselves
from becoming a victim and how to repair the damage caused by identity
theft.
Koster said identity theft is one of the fastest-growing crimes in the United
States, affecting more than 10 million victims every year.
The new booklet can be viewed online. Printed copies of the guide can be
ordered online.
https://www.ago.mo.gov/home/news-archives/2015-news-archives/ag-
koster-releases-resource-guide-on-identity-theft
Jun 19, 2015
Attorney General Chris Koster Warns Consumers Of “Storm-Chasers”
Following Flooding
Attorney General Chris Koster today warned consumers to be alert for
possible "storm-chasers" following the heavy rains and flooding across
Missouri. Koster said that his office will pursue action against anyone who
takes advantage of Missouri consumers in the aftermath of storms.
"We are here to protect Missourians whose homes and businesses are
damaged by these devastating storms," Koster said. "All Missourians who
experience storm or flooding damage should be on the alert for storm-chasers
-- scammers who follow severe weather and prey on people needing to repair
or rebuild their property."
Koster said storm-chasers typically go door-to-door offering to provide repair
or clean-up services. They often claim to be recovery experts or contractors
specializing in flood repairs. In reality, these storm-chasers provide shoddy or
67
no work after taking up-front payment, and then flee the area, leaving the
homeowner with little or no recourse.
https://www.ago.mo.gov/home/news-archives/2015-news-archives/ag-
koster-warns-consumers-of-storm-chasers-following-flooding
NEVADA
June 25, 2015
Attorney General Laxalt Encourages Nevadans to Take Advantage of Free
Credit Restoration Assistance
Home Again Program offers one-on-one financial counseling and guidance to all
Nevadans statewide
Nevada Attorney General Adam Paul Laxalt recommends Nevadans learn more
about free credit restoration services available through the Home Again
Program sponsored by his office. Residents are encouraged to be sure they
qualify for a mortgage before looking for a new home. Subprime credit scores
may not only affect Nevadans’ abilities to purchase a home, but may also
determine payment at higher rates for consumer loans or insurance.
Consumers are urged to use free annual credit reports offered by the Federal
Trade Commission (FTC) to ensure their reports are accurate and up to date.
Should they find errors in their credit report, consumers may file a dispute
with the listed reporting agencies. If the error is not corrected, a complaint
may also be filed with the Consumer Protection Financial Bureau (CFPB).
http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Encourages_Neva
dans_to_Take_Advantage_of_Free_Credit_Restoration_Assistance/
June 12, 2015
Attorney General Laxalt Advises Nevada Homeowners to be Wary of Loan
Modification Scams
Nevada Attorney General Adam Paul Laxalt, in partnership with the Home
Again Nevada Homeowner Relief Program sponsored by the Office of the
Nevada Attorney General, warns Nevadans of loan modification scams. With
interest rates at an all-time low, many Nevada homeowners may be looking to
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NEVADA CONT’D
modify their existing loans. Some home equity lines of credit, having been
acquired by homeowners as long as 10 years ago, are due to be adjusted to
higher rates over the next three years. For many struggling homeowners,
particularly those underwater, securing a loan modification may provide the
relief needed to avoid going into default.
http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Advises_Nevada_
Homeowners_to_be_Wary_of_Loan_Modification_Scams/
June 4, 2015
Attorney General Laxalt Warns Nevadans of Fraudulent Veterans Charity
Scam
Nevada Attorney General Adam Paul Laxalt warns Nevadans of a fraudulent
charity scam soliciting donations for veterans. A caller claiming to represent
Veterans Helping Nevada Veterans seeks contributions by phone. The caller
then directs the contributor to send money to a specified location. In reality,
the contributions are forwarded to the residence of a fraudster.
http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Warns_Nevadans_
of_Fraudulent_Veterans_Charity_Scam/
NEW JERSEY
June 11, 2015
Acting Attorney General John J. Hoffman Warns with Ramadan
Approaching, New Jersey Division of Consumer Affairs Enforces Honesty,
Transparency in Sale of Halal Foods
New Jersey consumers who shop for halal foods, either in preparation for the
approaching month of Ramadan or throughout the year, can rest assured that
the New Jersey Division of Consumer Affairs requires all food vendors to live
up to their promises when selling foods that are represented as being halal,
just as the Division does for the sale of kosher foods.
http://nj.gov/oag/newsreleases15/pr20150611a.html
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NORTH CAROLINA
June 29, 2015
Attorney General Roy Cooper Urges Vacationers To Know Their Rights
On Vacation Rentals
State law applies to vacation rental properties at NC beaches, mountains
Families renting vacation homes in North Carolina can avoid problems by
reading rental agreements carefully and learning their rights under state law,
Attorney General Roy Cooper said today.
For both North Carolinians and people from other states, North Carolina’s
coast and mountains are popular summer vacation destinations that offer a
variety of vacation properties for short-term rental. The Vacation Rental Act
protects consumers who rent a property in North Carolina for fewer than 90
days.
http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-
Advisories/Press-Releases/Know-your-rights-on-vacation-rentals,-AG-Cooper-
ur.aspx
June 16, 2015
Attorney General Roy Cooper Avoid Rip Offs With AC Repairs, Attorney
General Roy Cooper Urges
Check out repair services before you hire one and don’t pay for work up front
With temperatures forecast to hit 100 degrees in parts of North Carolina this
week, air conditioners are working overtime and some will break down,
leaving homeowners in need of quick relief. But don’t let soaring temperatures
keep you from doing your homework on air conditioning repairs, Attorney
General Roy Cooper urged North Carolina homeowners today.
Each year, dozens of consumers contact the Attorney General’s Consumer
Protection Division to complain about problems with air conditioning and
heating repairs. To avoid problems with HVAC repairs:
http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-
Advisories/Press-Releases/Avoid-rip-offs-with-AC-repairs,-Attorney-General-
R.aspx
70
OHIO
June 19, 2015
Attorney General DeWine Warns of Lottery Scams
Ohio Attorney General Mike DeWine today warned Ohioans to avoid lottery
and sweepstakes scams as the Mega Millions and Powerball jackpots grow.
In 2015, the Ohio Attorney General’s Consumer Protection Section has
received more than 400 complaints about sweepstakes or prizes. Most
consumers do not lose money, but dozens of individuals have reported losses
ranging from $12 to more than $200,000.
The scams often begin with a phone call or a letter claiming the consumer has
won a few million dollars through a lottery or sweepstakes. In order to collect
the winnings, consumers are told to wire a few hundred or a few thousand
dollars to cover fees or taxes. In reality, they haven't won a prize, and any
money they send will be lost.
http://www.ohioattorneygeneral.gov/Media/News-Releases/June-
2015/Attorney-General-DeWine-Warns-of-Lottery-Scams
PENNSYLVANIA
June 24, 2015
Attorney General Kane offers tips for avoiding popular travel scams
Attorney General Kathleen G. Kane today offered guidance to Pennsylvanians
on popular travel scams. This latest advisory is the third in a summer series
of travel-related alerts designed to keep consumers safe from fraud during the
busy summer travel season.
https://www.attorneygeneral.gov/Media_and_Resources/Press_Releases/Pres
s_Release/?pid=2147483651
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WEST VIRGINIA
June 2, 2915
Attorney General Patrick Morrisey Warns Business Owners of FTC
Complaint Scam
Attorney General Patrick Morrisey is warning business owners of a fraudulent
email from the Federal Trade Commission that claims to deal with a “pending
consumer complaint.”
The email warns that a complaint against the business has been filed with the
FTC and requests that the owner click on a link. Clicking on the link may
install malware on a computer that can cause the device to crash. Malware
also can be used to monitor and control a person’s online activity, steal his or
her personal information, send spam, and commit fraud.
http://www.ago.wv.gov/pressroom/2015/Pages/Attorney-General-Patrick-
Morrisey-Warns-Business-Owners-of-FTC-Complaint-Scam.aspx