Tag: Eric T. Schneiderman

  • NY AG WAGES A WAR AGAINST HEROIN AND OPIOID TRAFFICKERS

    NY AG WAGES A WAR AGAINST HEROIN AND OPIOID TRAFFICKERS

    New York State Attorney General launches new law enforcement to crack down on violent heroin and Opioid traffickers

    Schneiderman’s “S.U.R.G.E” Initiative brings together AG’s Organized Crime Task Force and Local and State Law Enforcement to target violent gangs

    ALBANY, NY (TIP): Responding to the heroin epidemic’s rising death toll in New York’s suburban and upstate communities, Attorney General Eric T. Schneiderman announced, April 28, the launch of the Suburban and Upstate Response to the Growing Epidemic (“S.U.R.G.E.”) Initiative, a new law enforcement effort spearheaded by the Attorney General’s Organized Crime Task Force that aims to disrupt New York’s widening heroin and opioid distribution networks. Specifically, the S.U.R.G.E Initiative will target gangs and individuals who deal heroin and opioids and commit acts of violence in suburban and upstate communities across New York State. To carry out this mission, the OAG’s Organized Crime Task Force, which has partnered with all levels law enforcement to arrest more than 750 individuals in metro areas across the state since 2010, will work closely with federal, state, and local law enforcement to investigate, arrest, and prosecute those criminals who target suburban and upstate areas.

    On Thursday, AG Schneiderman and Syracuse Police Chief Frank Fowler announced the first successful takedown under the SURGE Initiative, arresting and indicting 52 people in Operation Bricktown, a multipronged investigation that dealt a major blow to one of Syracuse’s most violent drug dealing street gangs.

    “By the Numbers: The Growing Drug Epidemic in New York,” an April 2017 report published by the Rockefeller Institute of Government, found that New York-like most the country-is experiencing a rise in drug-related deaths. According to the report, 14,173 people died from drugs in New York State between 2010 and 2015. In contrast, 9,754 people suffered drug-related deaths in the preceding six years (2004-2009). In 2015 alone, 3,009 New Yorkers died from drug overdoses or from chronic drug abuse-a 71 percent increase from 2010.

    While the steady increase of drug-related deaths has been felt across the state, suburban and upstate communities have been hit particularly hard. In New York City, drug-related deaths increased by 45 percent since 2010. Comparatively, drug-related deaths increased by 84 percent in 17 counties outside of New York City (for which there is complete federal data). For example, in Onondaga County, the drug-related death rate increased by 145 percent from 8.8 per 100,000 people in 2010 to 21.6 in 2015.

    “The S.U.R.G.E Initiative will bring our state’s most effective law enforcement resources to bear in the fight against New York’s growing opioid and heroin epidemic,” said Attorney General Schneiderman. “I am proud that my Organized Crime Task Force has partnered with state and local enforcement to bring over 750 accused drug and gun dealers to justice since 2010. By directing resources to the communities that need our help the most, we can help curb some the heroin epidemic’s most devastating consequences for New Yorkers. With overdose deaths on the rise and federal funding for drug prevention on the chopping block, the S.U.R.G.E Initiative will be an important part of my office’s multipronged approach to fighting the expansive and violent heroin and opioid distribution networks across New York State.”

    Since 2010, Attorney General Schneiderman has launched a multi-pronged strategy to tackle New York’s constantly evolving heroin and opioid epidemic. Some of the Attorney General’s most significant drug addiction and treatment achievements on behalf of New Yorkers include:

    Obtaining settlements with major domestic and global health insurers including Cigna, Anthem, and Empire BlueCross BlueShield (BCBS), which insures over 4 million New Yorkers, to remove barriers to life-saving treatment for opioid use disorder. The agreement put an end to the insurers’ policy of requiring prior authorization for medication-assisted treatment (“MAT”), which can lead to significant delays for patients seeking relief from addiction.

    Creating the Internet System for Tracking Over- Prescribing Act (“I-STOP), a series of enhancements to New York’s prescription drug monitoring program that provided doctors with patient’s up-to-date controlled substance prescription history and established a safe disposal program providing a place for New Yorkers to get rid of expired and unneeded drugs-thus reducing the likelihood of stolen and forged prescriptions being used to obtain controlled substances from pharmacies. I-STOP also reduced “doctor shopping,” a practice in which an individual attempt to obtain the same or similar prescriptions from multiple physicians, by 90% since 2014.

    Launching the Community Overdose Prevention (“COP”) program, a life-saving initiative that enabled state and local law-enforcement officers in the state of New York to carry naloxone, the extremely effective heroin antidote that can instantly reverse the effects of an opioid overdose. Since the program’s implementation in April 2014, more than 100 overdoses were reversed using kits provided by the COP program, which distributed over 27,000 kits across the state.

    Obtaining an agreement with Amphastar Pharmaceuticals, Inc. to cut and cap the price of naloxone for all agencies in New York State, reducing the price of naloxone by nearly 20 percent.

    Enforcing Mental Health Parity Laws to reach agreements with five insurance companies, Cigna, MVP Health Care, EmblemHealth, Excellus, and ValueOptions, requiring the companies to provide notice of a new appeal right to members whose requests for inpatient substance use disorder rehabilitation and eating disorder residential treatment were denied from 2011 through 2014. The estimated value of Excellus’s denial of these individuals’ requests alone totaled $9 million.

    Successfully prosecuting more than ten licensed prescribers including operators of “pill mills” and other unlawful practices form crimes related to improper opioid prescriptions.

    “Combatting the heroin and opioid epidemic remains one of my top priorities and through key partnerships with law enforcement officials and other organizations we can help turn the tide and save lives,” Suffolk County Executive Steve Bellone said. “I commend Attorney General Schneiderman on this bold initiative and support his efforts to eradicate those who are exploiting others and tearing families apart.”

    AG’s initiative has been widely welcomed by politicians and officials across the State.

  • Attorney General Schneiderman announces criminal charges against SUNY Polytechnic President

    Attorney General Schneiderman announces criminal charges against SUNY Polytechnic President

    NEW YORK (TIP): Attorney General Eric T. Schneiderman announced the filing of a felony complaint charging two individuals for a scheme to rig the bidding process for three multimillion-dollar contracts. Alain Kaloyeros, 60, of Slingerlands, the President of #SUNY Polytechnic Institute, has been charged with three felony counts of Combination in Restraint of Trade and Competition. Joseph Nicolla, 59, of Schenectady, the president of Columbia Development, has been charged with one felony count of Combination in Restraint of Trade and Competition.

    The felony complaint alleges that Kaloyeros steered, or agreed to steer, the awarding of contracts to handpicked companies, including Nicolla’s Columbia Development.

    “The charges filed today outline a blatant and brazen abuse of taxpayer dollars and the public trust,” said Attorney General Schneiderman. “This self-serving scheme alleged in the complaint was particularly egregious because it was aimed at enriching powerful people at the expense of the state’s public university system. We will continue to hold public officials accountable and ensure that all officials are held to the same high standard of integrity that New Yorkers deserve.”

    Kaloyeros is scheduled to be arraigned in Albany City Court on Friday, September 23rd. Nicolla is scheduled to be arraigned on Monday, September 26th.

    If convicted on all charges, Kaloyeros faces a maximum sentence of 4 to 12 years in prison. If convicted on all charges, Mr. Nicolla faces a maximum sentence of 1.3 to 4 years in prison.

    According to the felony complaint, Kaloyeros, a government official, engaged in an ongoing scheme to direct the contracts for government financed projects to favored companies, including Nicolla’s company, Columbia Development. Rather than use a fair and competitive process to award contracts, Kaloyeros allegedly improperly used the Request for Proposal process to award certain contracts for the construction of facilities for SUNY Poly.

  • A.G. SCHNEIDERMAN ANNOUNCES GUILTY PLEA OF NYS EMPLOYEE FOR STEALING NEARLY $2.4M IN STATE FUNDS

    A.G. SCHNEIDERMAN ANNOUNCES GUILTY PLEA OF NYS EMPLOYEE FOR STEALING NEARLY $2.4M IN STATE FUNDS

    NEW YORK (TIP): – Attorney General Eric T. Schneiderman announced that Keisha Relf Davis, a New York State Department of Education vocational counselor, pleaded guilty to taking part in a scheme that stole over $2.3 million from New York State. In September 2014, a Bronx County grand jury indicted Relf Davis and three co-defendants. Two co-defendants, Juan Cabrera and Juani Ortiz, previously pleaded guilty to Grand Larceny charges. The remaining co-defendant, Steven Washington, is awaiting trial. As a result of her plea, the judge is expected to sentence Relf Davis to 2 to 6 years in state prison. The plea was unsealed by the court today.

    “This scheme drained millions from a state program intended to help vulnerable New Yorkers,”  said Attorney General Schneiderman. “Government employees must be held to the highest standards, and my office will remain vigilant against those who seek to exploit the system for their own financial gain.”

    As part of the scheme, Relf Davis, in exchange for cash bribes, approved students for the Office of Adult Career and Continuing Education Services’ Vocational Rehabilitation Program (“ACCES-VR”), although these students never applied to the program. The ACCES-VR program was created to help eligible New Yorkers with disabilities and functional limitations gain self-dependence through education, training, and employment. Relf Davis knew that the students she approved did not have disabilities or functional limitations to qualify for this program.

    From approximately October 2010 through March 2013, in Bronx County and elsewhere in New York, Relf Davis and others agreed to steal over one million dollars from the ACCES-VR program. When students sought on-the-road commercial driver’s license (“CDL”) training lessons at Roadway and Americana, the co-defendants required the students to provide a copy of their driver’s license and social security card. In addition, students were required to pay $300 to $500 in cash for the lessons. These cash payments were paid directly to Relf Davis as bribes. Over the course of the scheme, each driving school paid Relf Davis over $10,000 in bribes.

    In exchange for the cash bribes, Relf Davis agreed to fraudulently fill out an application for ACCES-VR services on behalf of each Roadway and Americana student for whom she received a driver’s license and social security card by the co-defendants. She forged multiple student signatures and falsely indicated that the students suffered from substance abuse problems, when they did not. For each student Relf Davis approved to receive CDL training at Roadway or Americana, Relf Davis agreed to approve payments from ACCES-VR to the driving schools ranging from approximately $3,900 to$4,930, without requiring documentation or evidence that the schools provided the services contained in the proposals or vouchers.

    Relf Davis and others knowingly filed false and forged documents with the State Education Department and with ACCES-VR. Specifically, they falsely filed: applications; certifications of vocational services eligibility; proposals; and vouchers with certifications that Roadway and Americana provided 50 hours of classroom instruction, 40 hours of theoretical instruction, and 35 hours of on-the-road training services for the ACCES-VR purported consumers. Roadway and Americana did not provide these services to the students. The services that students received from the schools were worth far less than the amount that ACCES-VR paid.

    The Attorney General’s office thanks the Department of Education for their assistance in this case.

    Relf Davis plead guilty to Grand Larceny in the First Degree in the New York Supreme Court for Bronx County before Judge Steven Barrett.

    Prosecuting the case are Assistant Attorneys General Kevin B. Frankel and Travis Hill of the Attorney General’s Public Integrity Bureau, under the supervision of Bureau Chief Daniel Cort and Deputy Bureau Chief Stacy Aronowitz. The investigation was handled by Investigator Angel Laporte of the Attorney General’s Investigations Bureau, under the supervision of Deputy Chief Investigator John McManus. The Investigations bureau is led by Chief Dominick Zarrella. Associate Forensic Auditor Matthew A. Croghan assisted in the investigation under the supervision of Forensic Audit Section Chief Edward J. Keegan, Jr. Legal support analyst Katharine Litka of the Public Integrity Bureau also assisted in the investigation. The Criminal Division is led by Executive Deputy Attorney General for Criminal Justice Kelly Donovan.

  • Attorney General announces settlement from Company that targeted Chinese speaking parents with false advertisements for academic enrichment program

    Attorney General announces settlement from Company that targeted Chinese speaking parents with false advertisements for academic enrichment program

    NEW YORK (TIP): Attorney General Eric T. Schneiderman announced that his office reached a settlement agreement with a company that targeted Chinese-speaking parents with false advertising for a summer academic enrichment program for children. The company, Global Elites Network Xpeed Learning Academy (“Xpeed”) and its owner Maverick Bian will pay $60,000 in restitution to parents of children in the program. The settlement also requires the company and Mr. Bian to cease its deceptive advertising of the program and to make changes to the company’s refund policy.

    “This company took advantage of parents’ natural desire to go the extra mile to help their children achieve academic success,” said Attorney General Schneiderman. “These devoted parents spent thousands of dollars to try to help their children succeed. But Xpeed was a company that touted empty promises, squandering parents’ hard-earned money and their children’s limited academic time. I am pleased that we have been able to secure restitution for these affected families, while also sending a message that this type of conduct will not be tolerated.”

    “I want to thank Attorney General Eric Schneiderman and his team for bringing this company that exploited vulnerable immigrant families to justice. I hope this settlement will send a loud and clear message to all businesses preying on susceptible communities: Don’t make promises you can’t keep! I will continue to work with my Assembly and Senate colleagues on measures to better protect students and parents, including more oversight and proper vetting for these kinds of educational entities,” said Assembly member Ron Kim.

    Xpeed advertised in Chinese-language media, promising that its 2015 summer program would boost children’s academic level by three grade levels in just eight weeks; transform poor-performing students into top students; enable children to complete high school by the age of 10; and even turn all children into “child prodigies” using a special new learning methodology and one-on-one tutoring. Xpeed also promised intensive SAT tutoring for high school students.

    The Attorney General’s Office investigation revealed that the company was unable to provide substantiation for the miraculous results promised in its advertisements. Moreover, the 2015 summer program failed to provide the promised one-on-one tutoring at the start of the program, and provided virtually no SAT tutoring at the largest Xpeed site, in Flushing, Queens. In addition, the program failed to provide any group instruction. Instead, children at each of the program’s six sites were told to spend hours engaged in “independent-study” using haphazardly-chosen educational computer “apps.” The college students hired as “tutors” were provided with virtually no training in any special “learning methodology.”

    Parents typically paid more $3000 for the 2015 summer program, and some parents paid as much as $8000. When parents discovered that the program did not provide the promised services, many parents lodged complaints, withdrew their children from the program, and requested refunds. However, the company refused to provide refunds to any of the dozens of parents who requested refunds. Around 30 parents lodged complaints with New York State Assemblyman Ron Kim’s office and the Attorney General’s Office.

    In addition to requiring the company to pay$60,000 for restitution to parents of children enrolled in the summer 2015 Xpeed program, the settlement requires the company to end its false advertising of the program and reform its refund policies to ensure that parents who withdraw children from the program in the future will be able to obtain refunds.

    If you were a parent of a child enrolled in the 2015 Xpeed summer program and you have not already filed a complaint with our office, you can file a complaint online at: https://forms.ag.ny.gov/CIS/consumer-complaints.jsp. Please submit your complaint by September 1, 2016.

    Attorney General Schneiderman would like to thank New York State Assemblyman Ron Kim for his assistance in this matter.

    This investigation was handled by Special Counsel Carolyn Fast and Deputy Bureau Chief Laura Levine, under the supervision of Jane Azia, Bureau Chief of the Bureau of Consumer Frauds and Protection and Executive Deputy Attorney General for Economic Justice Manisha Sheth.

  • Eric Schneiderman on #OrlandoShooting

    Eric Schneiderman on #OrlandoShooting

    This weekend’s tragedy in Orlando – the worst mass shooting in our nation’s history – was not only an act of terrorism, but an unspeakable hate crime directed at our LGBTQ brothers and sisters. The nation’s outpouring of support for the grieving families has been inspirational. But as we mourn, we must also come together to confront the challenge of combating terrorism here at home. Together, we must demand that Congress finally pass common sense gun control measures that can prevent the loss of innocent lives to gun violence.

    Fortunately, Hillary Clinton is doing exactly that, and reminding us of every American’s unalienable right to feel safe and welcome in our country. Sadly, Donald Trump is doing the opposite and even trying to divide us. Just one day after the massacre, Trump called for a ban on all Muslims entering the United States.

    Vilifying the entire Muslim community based on the actions of one terrorist is profoundly un-American. It goes against everything we stand for as a country founded on religious freedom. And it will make us less safe.

    The response to hatred cannot be more hatred. Now is the time for us to come together and work towards the America we need and deserve.

  • NY State Attorney General Eric Schneiderman acts tough against Wage Theft in Fast Food Industry

    NY State Attorney General Eric Schneiderman acts tough against Wage Theft in Fast Food Industry

    NEW YORK (TIP): NY State Attorney General Eric Schneiderman has acted tough against employers in the fast food industry who have been indulging in wage theft. In a communication to The Indian Panorama, Mr. Schneiderman has disclosed that he has launched a campaign to stamp out wage theft. He said:

    “Major news: this week, as part of my campaign to stamp out wage theft throughout the fast food industry, my office brought a first of its kind lawsuit against Domino’s Pizza, seeking to hold the company responsible for the widespread and systemic wage theft that we allege occurs across its franchise restaurants.

    “As the Daily News, NY Times, and NY Post reported, our lawsuit is the culmination of a four-year investigation that uncovered clear evidence that Domino’s executives not only knew about the extent of the alleged wage theft at their restaurants, but also forced franchises to use payroll software that systematically underpaid low-wage workers. That is unacceptable-and under my watch, we will end it.

    “Since I’ve taken office, we’ve uncovered rampant wage theft at Domino’s restaurants across New York State. We’ve busted 12 franchise owners operating 61 restaurants in 14 different counties, each time uncovering a pattern of illegal conduct aimed at denying hard working New Yorkers their full wages. Through our efforts, we’ve already recovered more than $26 million for nearly 20,000 worker’s industry wide who were cheated out of their wages. “The wage theft epidemic needs to stop. And, with your support, we are making major progress towards that goal each and every day.”

  • Deceptive Business Practices will not be tolerated : Schneiderman

    Deceptive Business Practices will not be tolerated : Schneiderman

    ALBANY, NY (TIP): As part of a wider investigation into energy service companies, Attorney General Eric T. Schneiderman today announced that claim forms have been sent to more than 25,000 current and former New York customers of HIKO Energy, LLC who purchased HIKO energy products between June 1, 2011 to October 1, 2014. An investigation by the Attorney General’s Consumer Protection Bureau found that the energy service company lured consumers with false promises of lower rates, and then fleeced customers with much higher bills; enrolled new customers without their knowledge or consent; and made it difficult for customers to cancel their enrollments in a timely manner. The Attorney General secured the refunds for customers as part of a settlement that also imposes new restrictions on HIKO’s marketing practices to prevent future frauds.

    “Thousands of New Yorkers were lured by HIKO’s false promises for huge savings, only to be stuck with more expensive energy bills. I am pleased to return more than $1 million to consumers who lost money to this company,” Attorney General Schneiderman said. “These are difficult economic times, and companies that exploit New Yorkers looking to save their hard-earned money will be held accountable. These kinds of consumer frauds will not be tolerated.”

    The Attorney General’s ongoing investigation into energy service companies (or ESCOs) has returned millions to consumers, including, most recently, nearly $2 million to customers of Columbia Utilities Power LLC pursuant to a 2011 settlement.

    The Attorney General’s investigation found that HIKO’s marketers falsely promised savings of 10 to 15 percent on consumers’ energy bills. Customers who enrolled were hit with rates that were frequently much higher than those offered by their local utilities. Energy service companies purchase energy on the open market and then sell it to consumers.

    Utilities still deliver the energy to consumers, but consumers can choose to purchase their energy directly from the utility or through an ESCO. HIKO used its status as an ESCO to charge its customers much higher prices than they would have paid if they purchased energy from their utilities.

    HIKO engaged in telemarketing and door-to-door sales. The investigation found that, in addition to promising lower costs, the company’s marketers enrolled consumers as customers without their knowledge or consent. They used a number of deceptive practices in order to do this, including tricking consumers into providing their account numbers which HIKO then used to transfer their accounts; falsely claiming that they represented consumers’ utilities; and obtaining consent to switch from individuals who were not authorized to provide such consent.

    The settlement between the Attorney General’s office and HIKO required that HIKO pay $1.25 million to the Attorney General’s office for use in a restitution program as well as penalties and fees. The claims process will be handled by the Better Business Bureau of Metropolitan New York. The settlement also requires HIKO to take measures to prevent deceptive practices in the future, including adequate training of sales representatives, recording of communications between customers and customer service representatives, recordings of communications between customers and sales representatives that result in a sale, regular monitoring of sales recordings, and appropriate disciplinary procedures for violations of the law.

    If you bought electricity or natural gas from HIKO before October 2014 and do not receive a claim form by mail, you may still be eligible for a refund if you were subject to certain deceptive practices. You can submit a claim online at go.bbb.org/ny-hiko, or call 212-358-2857 to have a claim form sent to you that you can submit by mail.

    ALL CLAIMS MUST BE RECEIVED BY AUGUST 15, 2015

    Consumers can protect themselves from unscrupulous ESCOs by remembering the following tips:

    • If you receive an offer for energy services, make sure you understand whether the offer is from your utility or an ESCO.
    • You do not have to choose an ESCO to supply your gas or electricity. You may choose to use your utility as your direct supplier.
    • Make sure you understand whether an ESCO contract involves an early termination fee and, if so, the fee amount and the length of your contract commitment.
    • Before accepting any offer, ask the ESCO to show you how its rates have compared with your utility’s rates during each month in the past year. This can help you judge how competitive the ESCO’s rates may be in the future.
    • Remember that you have the right to cancel an ESCO contract with no obligation within three days if you change your mind.
    • If you are uncomfortable with how a marketer behaves, end the conversation with a request to look over their offer in writing so you can get back to them when you have made a decision free of any pressure.
    • If you receive a notice that your service is being switched to an ESCO and you did not authorize the switch, contact the utility and the ESCO immediately to tell them to halt the switch. If you are unable to get an ESCO switch cancelled, contact the New York Public Service Commission at 1-888-697-7728.

    The HIKO investigation was handled by Assistant Attorneys General Jeanna E. Hussey and Kate Matuschak, Deputy Bureau Chief Laura J. Levine and Bureau Chief Jane Azia all of the Consumer Frauds and Protection Bureau, and Executive Deputy Attorney General for Economic Justice Karla G. Sanchez.

  • “Dark Money Has No Place In Our Elections”, Says NY State Attorney General Eric Schneiderman

    “Dark Money Has No Place In Our Elections”, Says NY State Attorney General Eric Schneiderman

    NEW YORK (TIP): NY State Attorney General Eric Schneiderman is reaching out to New Yorkers to garner support for his proposal to have new regulations to make donations to federal, state and local electioneering more transparent.

    The text of his letter reads:
    “You and I both know that dark money has no place in our elections.”

    “Ever since filing cabinets stuffed with untraceable cash were found at President Nixon’s campaign headquarters during the Watergate scandal, there has been a broad consensus in America: when people spend money to try to influence our elections, the public needs to know where that money is coming from, and how it is being spent.Simply put, transparency reduces the likelihood of corruption.”

    “But since the Supreme Court decision in Citizens United, nonprofits, and particularly 501(c)(4)’s have been used to subvert transparency and avoid accountability.”

    “This week, my office has filed new regulations requiring nonprofit groups, including 501(c)(4) “social welfare” organizations, to report the percentage of their expenditures that go to federal, state and local electioneering. Those groups that spend at least $10,000 to influence state and local elections in New York will be required to file itemized expenses and report contributions of $100 or more. Under the proposed new rules, those disclosures will be posted online.”

    “We know that more money is being spent on our elections, with less disclosure of where that money is coming from, than ever before. By shining a light on this dark corner of our political system, New York will serve as a model for other states, and for the federal government, to protect the integrity of nonprofits and our democracy.”

    “In the coming weeks, my office will hold public hearings on the proposed regulations across the state. I would appreciate your input. Together, we can stamp out the corrosiveness of secret money in our state’s elections. “Thank you, as always, for your commitment to the civic process. Sincerely, Eric Schneiderman “