NATIONAL STATE ATTORNEYS GENERAL PROGRAM: CONSUMER PROTECTION REPORT

JANUARY 2015

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CONSUMER PROTECTION REPORT: January 1-31, 2015

This newsletter is a monthly circulation that describes consumer protection activity announced by state attorneys general. This information was gathered solely from attorney general press releases. It makes no effort to prioritize or

analyze the impact of any of these cases and initiatives.

The following press releases are organized by state and multistate activity. In addition, certain Medicaid fraud cases that touch on consumer protection and advocacy initiatives have been included.

If an office would like their activity to be included in subsequent newsletters, please notify attorneygeneral@law.columbia.edu.

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The National State Attorneys General Program at Columbia Law School is a legal research, education, and policy center that examines the implications of the jurisprudence of state attorneys general. Working closely with attorneys general, academics, and other members of the legal community, the program is active in the development and dissemination of legal information used by state prosecutors in carrying out their civil and criminal responsibilities. For more information about the National State Attorneys General Program

and resources, please visit our website www.stateag.org.

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TABLE OF CONTENTS

CONSUMER PROTECTION CASES, SETTLEMENTS AND ADVOCACY

STATEMENTS ......................................................................................... 4

ARKANSAS ..................................................................................................................... 4

COLORADO .................................................................................................................... 4

GEORGIA ....................................................................................................................... 5

INDIANA ......................................................................................................................... 6

IOWA ............................................................................................................................. 6

KANSAS ......................................................................................................................... 7

MARYLAND .................................................................................................................... 8

MASSACHUSETTS .......................................................................................................... 8

MISSOURI .................................................................................................................... 11

NEVADA ....................................................................................................................... 15

NEW HAMPSHIRE ........................................................................................................ 16

NEW JERSEY ............................................................................................................... 16

NEW YORK ................................................................................................................... 19

NORTH CAROLINA ....................................................................................................... 24

OHIO ............................................................................................................................ 26

OKLAHOMA ................................................................................................................. 28

VERMONT .................................................................................................................... 28

MULTISTATE CASES AND SETTLEMENTS ............................................. 29

MEDICAID FRAUD CASES AND SETTLEMENTS ..................................... 31

ALABAMA..................................................................................................................... 31

FLORIDA ...................................................................................................................... 31

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MASSACHUSETTS ........................................................................................................ 32

MISSOURI .................................................................................................................... 33

NEW JERSEY ............................................................................................................... 36

NEW YORK ................................................................................................................... 36

VIRGINIA ..................................................................................................................... 37

CONSUMER ADVOCACY ........................................................................ 38

COLORADO .................................................................................................................. 38

CONNECTICUT ............................................................................................................. 39

KANSAS ....................................................................................................................... 40

MAINE ......................................................................................................................... 41

NEW YORK ................................................................................................................... 42

OKLAHOMA ................................................................................................................. 44

WASHINGTON .............................................................................................................. 44

WEST VIRGINIA ........................................................................................................... 46

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CONSUMER PROTECTION CASES, SETTLEMENTS AND

ADVOCACY STATEMENTS

ARKANSAS

January 30, 2015

Arkansas Attorney General Leslie Rutledge Announces Judge Orders

Credit-Repair Agency to Cease Operation

Arkansas Attorney General Leslie Rutledge announced today that Pulaski

County Circuit Judge Chris Piazza has granted the Attorney General’s Office

petition to enforce a civil investigative demand against a Texas company,

known as CMCS Services, operating in Arkansas.

CMCS Services was involved in credit repair services in violation of the

Arkansas Deceptive Trade Practices Act and the federal Credit Repair

Organizations Act. Judge Piazza granted an injunction and the business is

prohibited from doing business in Arkansas until the company complies with

the court order.

http://arkansasag.gov/news-and-consumer-alerts/details/judge-sides-with-

the-state-orders-credit-repair-agency-to-cease-operation

COLORADO

January 21, 2015

Attorney General Cynthia Coffman Announces Boobies Rock! Founder

Receives Six-Month Jail Sentence

Adam Shryock, the founder of the fake charity fundraiser Boobies Rock!, Inc.

will serve an additional six months in jail for contempt of court. On Friday

afternoon, Shryock was immediately handcuffed and taken to jail after Denver

District Court Judge Shelley Gilman found there was “overwhelming” evidence

that he violated her July 2013 Order.

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COLORADO CON’T

http://www.coloradoattorneygeneral.gov/press/news/2015/01/21/boobies_r

ock_founder_receives_six_month_jail_sentence

January 2, 2015

Attorney General John Suthers Reaches $2 Million Settlement With Dish

Network Over Deceptive Sales Practices

DISH Accused of Misleading Customers over Price for Satellite Service

The Colorado Attorney General’s Office announced today a $2 million

settlement agreement with DISH Network L.L.C., a wholly owned subsidiary of

DISH Network Corporation (NASDAQ: DISH), regarding the companies’ sales

practices. The Attorney General began investigating DISH’s sales practices in

2011, after a DISH price increase triggered numerous consumer complaints.

Per terms of the settlement, DISH will now revise its sales disclosures

nationwide to more accurately reflect that the company reserves the right to

raise prices at any time.

http://www.coloradoattorneygeneral.gov/press/news/2015/01/02/colorado_

attorney_general%E2%80%99s_offfice_reaches_2_million_settlement_dish_net

work

GEORGIA

January 30, 2015

Attorney General Samuel Olens Announces Former Head of West Georgia

Technical College Foundation Pleads Guilty to Stealing $25K from the

Foundation

On Thursday, Jan. 29, 2015, Dawn Cook, the former head of the West

Georgia Technical College Foundation (foundation), pled guilty to four counts

of Theft by Taking (O.C.G.A. §16-8-2) in Carroll County Superior Court.

As head of the foundation, Cook collected and handled cash during

fundraisers for the foundation and purchased advertising for the foundation.

Cook used her position to funnel money from both the foundation and the

college to herself through several local girls’ softball teams by claiming that

the foundation was buying advertising. She also kept money raised at a

fundraiser for herself. She ultimately stole over $25,000.

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http://law.ga.gov/press-releases/2015-01-30/former-head-west-georgia-

technical-college-foundation-pleads-guilty

INDIANA

January 9, 2015

Attorney General Greg Zoeller Settles With Former Dentist Accused Of

Dumping Patient Files

The state has reached a settlement with former Kokomo-area dentist, Dr.

Joseph Beck, for mishandling medical records containing sensitive

information of more than 5,600 patients.

The Attorney General’s Office sued Beck for failing to protect personal

information and for improperly disposing of records containing personal

information of Indiana residents, which violates state privacy laws as well as

the federal Health Insurance Portability and Accountability Act (HIPAA). This

is the first time Indiana has sued for a violation of HIPAA.

More than 60 boxes of patient records from Beck’s former Comfort Dental

clinic in Kokomo were found discarded in an Indianapolis dumpster in March

of 2013. The files contained records from 2002-2007.

Beck agreed to a consent judgment with the state, in which he will pay a

$12,000 penalty for these violations. The order was signed this week in

Marion County court.

http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventid

n=203146&information_id=210192&type=&syndicate=syndicate

IOWA

January 13, 2015

Attorney General Tom Miller Announces Injunction against Deed

Documents Solicitor

California-based “Record Transfer Services” owner previously agreed not to

solicit deed records to Iowans

A Polk County judge has ordered a California company behind government

look-alike property record mailings to temporarily cease soliciting Iowa

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IOWA CON’T

residents, following a consumer fraud lawsuit filed by Attorney General Tom

Miller.

District Court Judge Karen A. Romano ordered today that Record Transfer

Services LLC, of Westlake Village, and company owner Neil L. Camenker, 56,

of Camarillo, California, cease soliciting Iowa residents for payment for

property deed records or any other government records.

Also today, Miller filed a consumer fraud lawsuit against Camenker and his

company, alleging that the company solicited Iowans for $83 copies of

property records that owners do not generally need. Iowa property owners

can obtain many land records, including deeds, for free or for a small charge,

from a local county recorder’s website or office. Property owners can also

obtain assessment information from a local county assessor’s website or office

for free or for a small charge.

http://www.state.ia.us/government/ag/latest_news/releases/jan_2015/rts.h

tml

KANSAS

January 14, 2015

Attorney General Derek Schmidt Announces California Direct Marketing

Company Banned From Operating In Kansas

A California-based direct marketing company has been banned from doing

business in Kansas and from contacting Kansas consumers until it

cooperates with the attorney general’s investigation into its business

practices, Kansas Attorney General Derek Schmidt said today.

In a lawsuit filed in Shawnee County District Court last month, Schmidt

accused Peter B. Tolman II, d/b/a Leads Direct Marketing of Oakley, Calif., of

violating the Kansas No Call Act. The lawsuit alleges the defendant violated

the Kansas No Call Act by calling Kansas consumers registered on the Do-

Not-Call list, failing to consult the National Do Not Call Registry and failing to

promptly and accurately identify themselves when calling Kansas consumers.

http://ag.ks.gov/media-center/news-releases/2015/01/14/california-direct-

marketing-company-banned-from-operating-in-kansas

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MARYLAND

January 9, 2015

Attorney General Brian E. Frosh Announces Settlement Against Do Not

Call Registry Violator

HomeFix Corporation alleged to have repeatedly made illegal sales calls

Attorney General Brian E. Frosh announced today that his Consumer

Protection Division entered into a settlement with Prince George's County-

based home improvement contractor HomeFix Corporation ("HomeFix") and

its owner, Tope Lala. The settlement resolves allegations that HomeFix placed

telemarketing calls to consumers who asked to not be called on their home

telephones or whose numbers were on the Federal Trade Commission's

National Do Not Call Registry.

http://www.oag.state.md.us/Press/2015/010915.html

MASSACHUSETTS

January 14, 2015

Attorney General Martha Coakley Announces Maine Woman Arrested for

Allegedly Defrauding the One Fund Boston

Woman Allegedly Collected $8,000 and Attempted to Collect Additional

$12,500; Claimed to Have Undergone Foot and Hip Operations Due to Boston

Marathon Bombing Injury

A Maine woman has been arrested and charged with collecting a fraudulent

$8,000 claim from The One Fund Boston and attempting to collect another

$12,500, Attorney General Martha Coakley announced today. The woman

claimed she received foot and hip surgery as a result of an injury she

sustained at the Boston Marathon bombing.

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MASSACHUSETTS CON’T

Amey S. Molloy, age 49, of Portland, Maine, was arrested in Portland this

morning on a Massachusetts fugitive warrant. She was charged with Larceny

over $250 and Attempted Larceny.

http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-

01-14-molloy-arrest.html

January 7, 2015

Attorney General Martha Coakley Announces NSTAR to Refund $44.7

Million to Customers Overcharged for Capital Projects, Pensions, and

Energy Efficiency Programs

AG Resolves 11 Cases Pending Before the DPU in Which Ratepayers Were

Overcharged

NSTAR Gas & Electric Company has agreed to pay $44.7 million to refund its

customers, resolving 11 previously outstanding cases before the Department

of Public Utilities (DPU) that deal with the company’s capital improvements,

pension expenses, and energy efficiency programs, Attorney General Martha

Coakley announced today.

NSTAR’s delivery rates include certain cost components that are updated

annually outside of the base distribution rate cases. These so-called

“reconciliation factors” are supposed to be reviewed and reconciled against

actual costs by the DPU after investigation and hearings. In practice, the DPU

permits the utilities to collect the rates immediately and rarely completes its

review in a timely manner. All of the cases have been outstanding for a

number of years prior to the settlement reached by the AG’s Office and

NSTAR.

http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-

01-07-nstar-44m-refund.html

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MASSACHUSETTS CON’T

January 6, 2015 Attorney General Martha Coakley Announces Electricity Supplier to Pay

$4 Million Over Alleged Deceptive Marketing and Sales That Overcharged Consumers

AG Alleges “Just Energy” Harmed Consumers with Falsely Promised Savings, Unauthorized Switching, and Sizeable Termination Fees; Settlement to Provide Restitution

A competitive retail electricity supplier in Massachusetts has agreed to pay $4

million to settle allegations of deceptive marketing and sales that promised savings but charged significantly higher rates, entered consumers into agreements without their consent, and charged costly termination fees,

Attorney General Martha Coakley announced today. The assurance of discontinuance with Just Energy Group Inc. and its

affiliates was filed in Suffolk Superior Court. The AG’s Office alleges that Just

Energy, through a third-party telemarketing vendor and door-to-door agents,

engaged in deceptive marketing and sales that misled consumers into signing

contracts based on attractive introductory pricing, only to later increase their

electricity supply costs.

http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-

01-06-just-energy.html

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MISSOURI

January 30, 2015

Attorney General Koster Announces St. Charles, And St. Louis Counties

Obtain Criminal Sentence Against Man For Stealing Donations Intended

For Wounded Vets Organization

Missouri Attorney General Chris Koster announced today that William

Harshbarger was sentenced in St. Louis County Circuit Court to seven years

in prison for stealing funds people thought they were donating to the

Wounded Warrior Project, Inc. Harshbarger was sentenced to eight years in

prison on similar charges in January in St. Charles County. The sentences

will run concurrently. Koster’s office assisted the offices of St. Louis County

Prosecutor Bob McCulloch and St. Charles County Prosecutor Tim Lohmar in

the respective criminal cases.

In a civil case filed in St. Charles County Circuit Court in 2013, Judge Daniel

Pelikan signed an order following the conclusion of the criminal cases

permanently prohibiting Harshbarger from making charitable solicitations of

any kind. He was also ordered to pay a $5,000 fine and to turn over all funds

and accounts still in his possessions, which will be turned over to the actual

Wounded Warrior Project.

http://ago.mo.gov/newsreleases/2015/Attorney_General_Koster_St_Charles_

and_St_Louis_counties_obtain_criminal_sentence_against_man_for_stealing_d

onations_intended_for_wounded_vets_organization/

January 28, 2015

Attorney General Chris Koster Reaches Settlement with Rolla Company

For No-Call Violations

Attorney General Chris Koster today announced his office has reached a

settlement with Fawe Enterprise, LLC, which conducted business in the Rolla

area as Air Essentials, for violating Missouri's no-call law. The Attorney

General's Office began an investigation into Air Essentials after receiving a

dozen complaints from consumers about unwanted telemarketing calls from

the company soliciting air purification systems.

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MISSOURI CON’T

Under the terms of the agreement filed in Phelps County Circuit Court, Air

Essentials must pay $5,000 in fines and is prohibited from placing any

telemarketing calls to numbers on the no-call list without the consumer's

express consent.

http://ago.mo.gov/newsreleases/2015/AGKoster_reaches_settlement_RollaC

ompany_nocall/

January 27, 2015

Attorney General Chris Koster Sues Owner of Oak Grove Cemetery For

Allowing Derelict And Unsafe Conditions

Attorney General Chris Koster announced today the filing of a civil lawsuit

against Marilyn Stanza and her companies, including the Oak Grove

Cemetery Association and Oak Grove Mausoleum Company. According to

Koster, Stanza owns and operates the Oak Grove Cemetery at 7800 St.

Charles Rock Road and the mausoleum on the west side of the grounds near

Hanley Road. More than 45 Missourians have complained to the Attorney

General's office about the onset of derelict and unsafe conditions throughout

the cemetery grounds and mausoleum, exorbitant fees for moving loved ones

to a more suitable resting place, and excessive delays for delivery of

purchased grave markers.

http://ago.mo.gov/newsreleases/2015/AGKoster_sues_owner_OakGroveCem

etery/

January 26, 2015

Attorney General Chris Koster Negotiates Settlement With Benjamin

Bradley, Owner Of Columbia Party Bus And Whiskey Wild Saloon

Attorney General Chris Koster announced today that he has negotiated a

settlement with Columbia Party Bus, LLC, COMO Entertainment Inc., which

operated Whiskey Wild Saloon, and owner Benjamin Bradley, to provide

restitution to customers who paid for services that were never delivered.

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MISSOURI CON’T

According to Koster, Benjamin Bradley, through Columbia Party Bus and

Whiskey Wild Saloon, took money upfront for parties and transportation that

he failed to provide. Columbia Party Bus contracted with at least 11 Missouri

consumers to provide private transportation services they never received.

COMO Entertainment, Inc. contracted with at least one consumer to provide

event space at Whiskey Wild Saloon in Columbia, and then cancelled the

event. None of the 12 consumers received refunds.

http://ago.mo.gov/newsreleases/2015/AGKoster_negotiates_settlement_part

y_bus_WhiskeyWildSaloon/

January 21, 2015

Attorney General Chris Koster Announces Sentence For Former

Springfield Used Car Dealer

Attorney General Chris Koster today announced the sentence for a Springfield

used car dealer convicted of misrepresenting the true mileage on cars he sold.

Koster said Ashley Bolton was sentenced today in Greene County Circuit

Court to four years in the Department of Corrections, with the execution of

the sentence suspended so long as he meets all other terms of the

sentence. Bolton must serve 30 days' shock-incarceration in the Greene

County jail and five years of supervised probation, and is prohibited from

working as or for a licensed automobile dealer. Bolton also must provide

restitution to consumers. The court scheduled a hearing for March 10 on the

amount of restitution to be paid.

http://ago.mo.gov/newsreleases/2015/AG_Koster_announces_sentence_form

er_Springfield_car_dealer/

January 16, 2015

Attorney General Chris Koster Negotiates Settlements On Behalf Of

Missouri Consumers Misled On Credit-Card Payment-Protection Plans

Attorney General Chris Koster announced today negotiated settlements with

three major credit-card companies over allegations that they misleadingly

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MISSOURI CON’T

marketed payment-protection plans and other add-on products to Missouri

consumers. In total, the three companies will pay $2,235,000 to the state and

agree to cease misleading marketing of these products in Missouri.

According to Koster, consumers were led to believe that for a monthly fee their

credit-card payments could be suspended if they became unemployed or

disabled. However, after making monthly protection plan payments,

consumers who attempted to make claims were often told they did not qualify

for the benefit. Additionally, the monthly protection plan fee was added to the

consumer’s credit-card balance, reducing the amount of the consumer’s

available credit by the amount of the fee. Even when card issuers agreed to

waive minimum payments during a hardship, the consumer’s balance often

increased due to charged interest and fees, including the continued payment-

protection plan fee.

http://ago.mo.gov/newsreleases/2015/AG_Koster_resolves_lawsuits_consum

ers_misled_credit_card_payment_plans/

January 12, 2015

Attorney General Chris Koster Sues Home Construction Firm For

Violating Missouri's No Call Law

Attorney General Chris Koster today announced that his office has filed a

lawsuit against Abelard Construction Missouri, LLC, for violating Missouri’s

No Call law. Abelard Construction Missouri, LLC is a St. Louis County based

franchise of Abelard Construction, a home repair company with franchisees

operating in several states.

According to the lawsuit filed in St. Charles County Circuit Court, in July

2013 Abelard Construction Missouri called consumers in St. Charles County

with telephone numbers registered on the Missouri No Call list to solicit home

repair services. When several consumers advised the company their telephone

numbers were registered with the No Call list, the caller disputed the

information.

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http://ago.mo.gov/newsreleases/2015/AG_Koster_sues_home_construction_f

irm_violating_NoCallLaw/

NEVADA

January 27, 2015

Attorney General Laxalt Announces Sentencing of Las Vegas Man Who

Swindled Northern Nevadans in Mortgage Fraud Scheme

Nevada Attorney General Adam Paul Laxalt announced that George Christo

George, 55, of Las Vegas, was sentenced for six to 20 years in prison on a

mortgage fraud case on Jan 26. George pleaded guilty to defrauding several

Northern Nevadans of more than $238,000 through elaborate schemes

including a false business partner posing as a wealthy sheikh to lure victims

into bogus real estate deals and to investments in a luxury downtown Reno

high rise condominium.

http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Announces_Sente

ncing_of_Las_Vegas_Man_Who_Swindled_Northern_Nevadans_in_Mortgage_Fr

aud_Scheme/

January 9, 2015

Attorney General Laxalt Announces Sentencing in Magazine Scam Case

Attorney General Adam Paul Laxalt announced that Craig Walters, 60, of

Sparks, Nev. was sentenced on Wednesday, Jan. 7 for running a scam in

which he sold advertisement space in a magazine that did not exist.

http://ag.nv.gov/News/PR/2015/Attorney_General_Laxalt_Announces_Sente

ncing_in_Magazine_Scam_Case/

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NEW HAMPSHIRE

January 29, 2015

Attorney General Joseph A. Foster Announces Co-Owner of The Meat

House Pleads Guilty to Misapplication of Property For Non-Payment To

Veterans' Charity

Attorney General Joseph A. Foster announces that Justin Rosberg, co-owner

of The Meat House, entered a guilty plea this morning in the 10th Circuit

Court in Seabrook to one count of misapplication of property for violating his

fiduciary duty to pay funds that The Meat House raised for a charitable cause

to benefit veterans. In July, 2013, The Meat House held a charitable event for

the benefit of the Chaplain Emergency Relief Fund. Mr. Rosberg, as co-owner,

failed to pay the charity the funds that had been raised.

http://doj.nh.gov/media-center/press-releases/2015/20150129-justin-

rosberg.htm

NEW JERSEY

January 29, 2015

Acting Attorney General John J. Hoffman Announces Seller of Motor

Vehicle Service Contracts Will Cease Business in New Jersey; Agrees to

$810,000 Settlement and to Reimburse Consumers Up to Nearly

$200,000

Direct Buy Associates, Inc., which does business as Direct Buy Auto Warranty

(“DBAW”), will stop offering motor vehicle service contracts (“MVSCs”) to New

Jersey consumers, shut down its New Jersey office within six months, and

also reimburse consumers who purchased MVSCs but were not provided the

coverage they were promised, under terms of the Final Consent Judgment

that resolves a lawsuit filed by the New Jersey Division of Consumer Affairs

(“Division”).

The Division filed its lawsuit against DBAW in February 2014, alleging that

DBAW had violated the New Jersey Consumer Fraud Act, the Regulations

Governing General Advertising, the Plain Language Act and the Business

Corporations Act through its advertising, offering for sale and sale of MVSCs.

http://nj.gov/oag/newsreleases15/pr20150129a.html

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NEW JERSEY CON’T

January 28, 2015

Acting Attorney General John J. Hoffman Announces New Jersey

Division of Consumer Affairs Obtains Settlement with CVS Pharmacy,

Resolving Incidents in Which Stores Sold Medications Exposed to

Excessive Temperatures

CVS Pharmacy Will Pay $500,000, Change Certain Business Practices to

Prevent, Respond to Future Incidents

Acting Attorney General John J. Hoffman, the New Jersey Division of

Consumer Affairs, and the State Board of Pharmacy today announced a

settlement with CVS Pharmacy Inc. in which the company will pay more than

$500,000 and will take steps to protect New Jersey consumers from

purchasing medications, infant formula, or other items if they are exposed to

elevated temperatures for prolonged periods of time.

The settlement follows two separate 2012 incidents in which CVS pharmacies

in Scotch Plains and Clark experienced air conditioning outages for multiple

days. The stores continued to operate after inside temperatures exceeded the

maximum recommended for the storage of drugs and other items for extended

periods of time.

http://nj.gov/oag/newsreleases15/pr20150128a.html

January 14, 2015

Acting Attorney General John J. Hoffman Announces New Jersey

Division of Consumer Affairs Files Consumer Fraud Action Against

Newark Organization that Allegedly Misled Charitable Donors,

Transferred Contributions to For-Profit Business

New Jersey Youth Club, Inc. (NJYC), a Newark-based organization that claims

to help underprivileged New Jersey youths, has been ordered to temporarily

cease seeking door-to-door solicitations, and has had its assets temporarily

frozen, under an Order to Show Cause entered by the Superior Court Judge in

connection with an action filed on behalf of the New Jersey Division of

Consumer Affairs.

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NEW JERSEY CON’T

The Division of Law, acting on behalf of the Division of Consumer Affairs, has

filed a Complaint against NJYC, alleging that it violated the Charitable

Registration and Investigation Act and regulations, as well as the Consumer

Fraud Act, by soliciting for contributions although it is not registered as a

charitable organization in New Jersey, and by making misleading and

untruthful statements while soliciting donations.

http://nj.gov/oag/newsreleases15/pr20150114a.html

January 8, 2015

Acting Attorney General John J. Hoffman Announces HIKO Energy, LLC

Agrees to Pay $2.1 Million, Including $1.8 Million in Consumer

Restitution, and Revise its Business Practices, to Settle Allegations by

New Jersey Attorney General, Board of Public Utilities, and Division of

Consumer Affairs that the Third-Party Energy Supplier Misled

Consumers

HIKO Energy, LLC (“HIKO”) has agreed to pay $2.1 million, including $1.85

million in restitution to consumers, and to significantly revise its business

practices, in order to resolve the Complaint filed by the Acting Attorney

General, New Jersey Board of Public Utilities (BPU), and New Jersey Division

of Consumer Affairs.

The State’s Complaint alleged that HIKO, a third-party energy supplier based

in Monsey, New York, misled New Jersey consumers with written guarantees

that, if they switched from their utility companies, they would see monthly

savings of as much as 10 percent in their electric and/or natural gas bills

during the first six months. HIKO sales representatives also allegedly

represented to consumers that, after the first six months, their monthly bills

would never exceed those of the utility companies.

However, HIKO did not deliver the promised savings. As energy prices spiked

in early 2014, HIKO’s rates far exceeded those its customers would have paid,

had they stayed with their previous electric and/or natural gas utilities.

http://nj.gov/oag/newsreleases15/pr20150108b.html

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NEW YORK

January 21, 2015

A.G. Schneiderman Reaches Settlement With Fraudulent Vacation

Package Scammers Who Targeted Consumers Across State And Posed As

Major U.S. Airlines

Company Claimed Consumers Won Free Airfare And Lodging & Compelled

Them To Attend Sales Presentation

Company Must Cease Deceptive Practices And Pay Restitution & $22,500

Penalty

Attorney General Eric T. Schneiderman today announced that his office

reached a settlement with Vacation Tours USA, Inc., a Florida based firm, and

its principals Henry J. Armand and Tony J. Armand, over a false advertising

scam targeting consumers across New York State. The company sent letters to

consumers telling them they had won a vacation package, including airfare

and lodging, and invited them to attend a seminar at a local hotel. Letters

listed the name of major US airlines in the header, including US Air,

Southwest, and Jet Blue. Once at the hotel, consumers were subjected to a

sales presentation conducted by a third-party company instead of being given

vouchers for free airline tickets and hotel stays.

http://www.ag.ny.gov/press-release/ag-schneiderman-reaches-settlement-

fraudulent-vacation-package-scammers-who-targeted

January 20, 2015

A.G. Schneiderman Announces Indictment Of Orange County Man

Charged With Stealing Hundreds Of Thousands In Investment Scheme

William Vogt Allegedly Posed As Wealthy Fashion Designer “Bill Bolland” To

Steal Over $350,000 From Victim

Vogt Charged on 18-Count Indictment With Grand Larceny, Forgery and

Securities Fraud Under the Martin Act; Attorney General’s Investigation

Continues

Attorney General Eric T. Schneiderman today announced the arrest of William

Vogt, a resident of Orange County, on an 18-count indictment. Vogt is

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NEW YORK CON’T

charged with having posed as an internationally renowned fashion designer

named “Bill Bolland,” to lure his victim into making more than $350,000 in

investments. In fact, the indictment charges that Vogt stole the monies and

used them for personal expenses. If convicted, Vogt faces up to 15 years in

prison.

http://www.ag.ny.gov/press-release/ag-schneiderman-announces-

indictment-orange-county-man-charged-stealing-hundreds

January 20, 2015

A.G. Schneiderman Announces Settlement With Middletown Auto Dealer

Over Bogus Fee To Customers

Middletown Honda Charged Customers Who Bought Vehicles At The End Of

Lease An Undisclosed “Processing Fee”

Attorney General Eric T. Schneiderman today announced a settlement with a

Middletown auto dealer, Adee Motors, LLC. (d/b/a Middletown Honda), which

charged customers who leased vehicle an undisclosed $500 “processing fee”

when those consumers bought their vehicles at the end of their leases. No

additional services were provided for the payment of this fee.

http://www.ag.ny.gov/press-release/ag-schneiderman-announces-

settlement-middletown-auto-dealer-over-bogus-fee-customers

January 19, 2015

A.G. Schneiderman Secures Agreement With Five Star Bank To End

Racially Discriminatory Mortgage Lending Practices In Rochester

Five Star Bank Excluded Predominantly Minority Neighborhoods From Lending

Area

Attorney General Eric T. Schneiderman today announced a landmark

agreement that requires Five Star Bank to end discriminatory mortgage

practices that excluded all predominantly minority neighborhoods in the

Rochester area from the bank’s mortgage lending business. The Attorney

General’s investigation found that Five Star excluded predominantly minority

neighborhoods from its lending area; deemed loans secured by property

21

NEW YORK CON’T

outside of the bank’s lending area to be “undesirable”; and imposed a

minimum mortgage amount requirement that made many of the bank’s

mortgage products effectively unavailable in predominantly minority

neighborhoods.

http://www.ag.ny.gov/press-release/ag-schneiderman-secures-agreement-

five-star-bank-end-racially-discriminatory-mortgage

January 14, 2015

A.G. Schneiderman Sues Unlicensed Employment Agency And Security

Guard Training Company For Scamming Unemployed Consumers

Companies Posted Phony Job Listings And Made False Promises Of

Employment To Trick Consumers Into Paying For Expensive Security Guard

Training Courses

Attorney General Eric T. Schneiderman today announced that his office has

filed a lawsuit against two companies and their owners that use phony job

listings and false promises of employment to trick unemployed consumers

into paying for expensive security guard training courses they don’t need. New

York City-based Security Elite Group, a/k/a Secure Enforcement Group

(“Security Elite”) and LJW Security Services & Training, Inc. (“LJW Security”)

and their respective owners Stephan Edouard and Larry Williams are alleged

to have scammed thousands of consumers.

http://www.ag.ny.gov/press-release/ag-schneiderman-sues-unlicensed-

employment-agency-and-security-guard-training-company

January 12, 2015

A.G. Schneiderman Announces Settlement With Health Insurer Over

Excessive Copays For Customers In Rochester Area

Nearly 3,000 Customers Will Get Refunds, Health Plan Billing Glitches Must Be

Resolved

Attorney General Eric T. Schneiderman today announced an agreement with

Excellus Health Plan, Inc. requiring that its contracted health care providers

22

NEW YORK CON’T

issue refunds to thousands of members in New York State for charging

excessive copays. The Attorney General's investigation revealed that Excellus

issued incorrect Explanations of Benefits, which imposed an additional

specialty co-payment for member visits to a primary care provider.

The investigation began when an Excellus member complained to the Attorney

General’s Health Care Bureau Helpline that his provider billed him a specialty

care co-payment -- $25 -- after visiting his primary care physician to whom he

had already paid the primary care co-payment of $15. The amount billed

reflected the amount on the Explanation of Benefits issued by Excellus to the

member.

http://www.ag.ny.gov/press-release/ag-schneiderman-announces-

settlement-health-insurer-over-excessive-copays-customers

January 9, 2015

A.G. Schneiderman Obtains Settlement From Major Debt Buyer Who

Filed Thousands Of Time-Barred Debt Collection Actions

Encore Capital Group Inc. Will Vacate More Than 4,500 Improperly Obtained

Judgments Totaling Nearly $18 Million; Reform Practices; And Pay $675,000

In Penalties And Costs

Attorney General Eric T. Schneiderman today announced that his office has

obtained a settlement from Encore Capital Group, Inc. (“Encore”), a major

debt buyer, for bringing improper debt collection actions against thousands of

New York consumers. For years, Encore sued New York consumers and

obtained uncontested default judgments against consumers who failed to

respond to the lawsuits, even though the underlying claims were untimely

under New York law. Under the settlement, Encore will seek to vacate more

than 4,500 improperly obtained judgments totaling nearly $18 million. Encore

will also reform its debt collection practices and pay civil penalties and costs

in the amount of $675,000.

http://www.ag.ny.gov/press-release/ag-schneiderman-obtains-settlement-

major-debt-buyer-who-filed-thousands-time-barred

23

NEW YORK CON’T

January 6, 2015

A.G. Schneiderman Seeking Jail Time For Accused Snow Removal

Scammer In Western New York

Attorney General Eric T. Schneiderman today announced that his office has

brought criminal contempt proceedings against Scott Romero, who has

perpetrated scams involving snow removal services. Romero, the target of a

2011 lawsuit by Attorney General Schneiderman for defrauding customers in

the Buffalo area, is accused of violating a court order that was obtained

against him and scamming additional consumers, this time in the greater

Rochester area. The contempt of court charges were filed in in Erie County

Supreme Court and will be heard by Justice Catherine Nugent Panepinto.

http://www.ag.ny.gov/press-release/ag-schneiderman-seeking-jail-time-

accused-snow-removal-scammer-western-new-york

January 5, 2015

A.G. Schneiderman Announces $300k Settlement With Queens-Based

Transportation Provider

Settlement Resolves Allegations That Apple Transportation of New York, Inc.

Overbilled Medicaid

Attorney General Eric T. Schneiderman today announced that Apple

Transportation of New York, Inc., a Queens-based transportation company,

will pay $300,000 to settle claims that it overbilled Medicaid for

transportation services.

Medicaid recipients in New York can receive transportation to medical

appointments in cases where recipients have a medical need for

transportation services. Medicaid pays for different types of transportation,

including livery and ambulette services. Transportation companies can bill for

ambulette service when personal assistance, such as physical assistance, is

provided to a passenger in connection with a trip. Medicaid pays more for

ambulette services than for livery trips in which no personal assistance is

provided to the passenger.

http://www.ag.ny.gov/press-release/ag-schneiderman-announces-300k-

settlement-queens-based-transportation-provider

24

NORTH CAROLINA

January 27, 2015

Attorney General Roy Cooper Announces Off-Road Vehicle Seller Banned

From Doing Business In NC

Court orders company to pay more than $400,000 in consumer refunds

A North Carolina off-road vehicle seller can no longer do business in the state

after collecting more than $400,000 in payments and deposits and failing to

deliver vehicles as promised, Attorney General Roy Cooper announced today.

Cooper’s office first filed suit against Riders Wholesale in August 2014 after

hearing from consumers that the company collected money upfront—either

the full purchase price or a substantial deposit for all-terrain vehicles (ATVs),

utility vehicles (UTVs), scooters, go-carts and mopeds sold online. Consumers

were often asked to pay by check or wire funds directly from their bank

account but Riders Wholesale routinely failed to deliver the vehicles they paid

for and when asked refused to provide refunds. In other cases, consumers

received vehicles that were damaged or in bad shape.

http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-

Advisories/Press-Releases/Off-road-vehicle-seller-banned-from-business-in-

NC.aspx

January 22, 2015

Attorney General Roy Cooper: Mortgage Broker Promised Loans But

Pocketed Fees

Suit alleges Carolina Mortgage Group took money for refinancing, didn’t close

loans

A Zebulon mortgage broker that took thousands of dollars in upfront fees but

failed to refinance home loans as promised should be permanently barred

from the mortgage business, Attorney General Roy Cooper said in a lawsuit

filed Wednesday.

Cooper filed a complaint late yesterday in Wake County Superior Court

against Carolina Mortgage Group and its president and primary owner Jeffrey

D. Cox for violating state laws against unfair business practices. The

25

NORTH CAROLINA CON’T

mortgage broker previously had offices in Zebulon and Wilson. The Attorney

General is asking the court to permanently ban the defendants from the

mortgage loan business in North Carolina and order them to pay refunds to

consumers and civil penalties.

http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-

Advisories/Press-Releases/Mortgage-broker-promised-loans-but-pocketed-

fees,.aspx

January 20, 2015

Attorney General Roy Cooper Announces NC Musical Equipment Store

Barred From Business

Fat Sounds ordered to repay consumers for undelivered products

A musical equipment company based in Cary has been permanently barred

from business for not giving consumers what they paid for, Attorney General

Roy Cooper said today.

At Cooper’s request, Wake County Superior Court Judge Donald Stephens

last week permanently barred Stuart Vries Carter, Jr. and Fat Sound Guitar

and Musical Company, Inc. from advertising, selling, or collecting payments.

The order also prohibits Carter and his company from destroying records or

transferring any assets.

http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-

Advisories/Press-Releases/NC-musical-equipment-store-barred-from-

business,-A.aspx

26

OHIO

January 29, 2015

Attorney General DeWine Seeks Consumer Restitution from Heating and

Cooling Repairman

Ohio Attorney General Mike DeWine today announced a lawsuit against a

Zanesville man who did business as Alan Able Heating and Cooling for failing

to deliver promised services to consumers.

Filed in the Muskingum County Common Pleas Court, the lawsuit accuses

Alan Vohs of violating the Ohio Consumer Sales Practices Act.

http://www.ohioattorneygeneral.gov/Media/News-Releases/January-

2015/Attorney-General-DeWine-Seeks-Consumer-Restitu-%281%29

January 22, 2015

Attorney General Mike DeWine Announces Ohio Charity Agrees to

Dissolve After Raising Money for Alleged Pyramid Scheme

Ohio Attorney General Mike DeWine and the Ohio Department of Commerce

today announced a settlement with northwest Ohio residents who were

accused of using their charity to solicit funds for Profitable Sunrise — an

alleged international pyramid scheme.

Under the agreement, filed in the Williams County Court of Common Pleas,

Nancy Jo Frazer, of Bryan, and Albert Rosebrock, of Sherwood, agree not to

hold a position with a charitable organization and not to sell securities in

Ohio.

They also agree to dissolve their charity, most recently known as Defining

Vision Ministries Inc., and to turn over charitable assets to the Ohio Attorney

General's Office to be used for charitable purposes.

http://www.ohioattorneygeneral.gov/Media/News-Releases/January-

2015/Ohio-Charity-Agrees-to-Dissolve-After-Raising-Mone

27

OHIO CON’T

January 14, 2015

Attorney General DeWine Seeks Consumer Restitution from Home

Improvement Contractor

Ohio Attorney General Mike DeWine today announced a lawsuit seeking consumer restitution and other relief from a Northeast Ohio home improvement contractor accused of failing to deliver promised services to

consumers. The lawsuit, filed in the Summit County Common Pleas Court, accuses Dean

Jones of Westlake, doing business as Premier Contractor Services, of committing multiple violations of Ohio’s consumer protection laws.

http://www.ohioattorneygeneral.gov/Media/News-Releases/January-

2015/Attorney-General-DeWine-Seeks-Consumer-Restitution

January 8, 2015

Attorney General Mike DeWine Announces Storm-Chasing Home Repair

Contractor Sentenced to Prison

Ohio Attorney General Mike DeWine today announced that an Illinois man

has been sentenced to prison for operating a traveling home repair scam that

cost 35 Ohio victims more than $140,000.

Leo Patrick Richard Jr., who operated All Seasons of Kentucky, was

sentenced today in the Lawrence County Common Pleas Court to three years

in prison. In late September, he pleaded guilty to 36 felony counts, including

attempted engaging in a pattern of corrupt activity, theft, and theft from the

elderly.

His wife and All Seasons of Kentucky co-owner, Carol Richard, was sentenced

in October 2014 to serve four years of community control and was ordered to

pay $143,426.98 — the total amount of restitution both she and her husband

are responsible to pay.

http://www.ohioattorneygeneral.gov/Media/News-Releases/January-

2015/Storm-Chasing-Home-Repair-Contractor-Sentenced-to

28

OKLAHOMA

January 30, 2015

Attorney General Scott Pruitt Announces Home Repairman is Sentenced;

Must Pay Restitution

An Oklahoma City home repairman was sentenced Thursday after pleading

guilty to two counts of home repair fraud, Attorney General Scott Pruitt said. Alan B. Holcombe, 54, was sentenced in Cleveland County District Court to a

10-year suspended sentence and must pay $64,900 in restitution. Holcombe must continue Gambler's Anonymous and pay the Victims Compensation Assessment fund $50 per count.

The restitution is for six victims after an investigation by the Attorney General's Public Protection Unit found Holcombe had accepted payments from

homeowners for promised home repairs and never provided the service.

http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258&article_id=15359

VERMONT

January 6, 2015

Attorney General General William Sorrell Settles Consumer Protection

Lawsuit Against Dollar Tree

Dollar Tree Stores, Inc., will permanently keep all jewelry off its shelves in

Vermont and pay the State $42,500 in settlement of a lawsuit filed by the

Vermont Attorney General’s Office in July 2014. The suit alleged that Dollar

Tree, a national discount chain based in Chesapeake, Virginia, violated a prior

settlement with the State to minimize children’s exposure to toxic substances

by refraining from selling jewelry in Vermont. Vermont Attorney General

William H. Sorrell noted that the new settlement “reflects my continued

commitment to keeping products that may contain toxic substances out of the

hands of Vermont’s children.”

http://ago.vermont.gov/focus/news/vermont-attorney-general-settles-

consumer-protection-lawsuit-against-dollar-tree.php

29

MULTISTATE CASES AND SETTLEMENTS

January 22, 2015

Attorneys General of Maryland and Massachusetts Secures Settlement in

Mortgage Title Company Kickback Scheme

Wells Fargo, JPMorgan Chase will pay more than $11 million in restitution

Attorney General Brian E. Frosh today announced a settlement with Wells

Fargo Bank and JPMorgan Chase Bank (Chase) to resolve allegations that the

financial firms illegally steered customers to a now-defunct Maryland-based

title company in exchange for marketing services that increased their

customer base.

From 2009 to 2013, Genuine Title, LLC, allegedly provided marketing leads,

direct-mail letters and other costly services to loan officers from Wells Fargo

and Chase, which increased the number of loans that the banks originated or

refinanced, thereby boosting their commissions. In exchange, the loan officers

referred consumers to Genuine Title for settlement services. The arrangement,

which was investigated by the Attorney General's Consumer Protection

Division and the Consumer Financial Protection Bureau (CFPB), violated the

federal Real Estate Settlement Procedures Act and the Maryland Consumer

Protection Act.

http://www.oag.state.md.us/Press/2015/012215.html

Attorneys General Pam Bondi Along With Eight Other Attorneys General Reach Settlement With Zappos Over Data Breach (January 7, 2015)

Attorney General Pam Bondi, along with eight other attorneys general, today announced a settlement with Nevada-based online retailer Zappos.com, Inc.

The settlement resolves allegations that Zappos placed consumers’ personal data at risk by allegedly failing to protect financial information during a data breach that occurred in 2012. Zappos has agreed to pay $106,000 to the

states and must take certain actions intended to better protect consumers’ information.

http://myfloridalegal.com/__852562220065EE67.nsf/0/F12E26235A23E577

85257DC60063AEE9?Open&Highlight=0,zappos

30

Attorneys General of California, Colorado, Florida, Kentucky and Ohio Announces $22 Million Settlement with Davita Regarding Illegal Kickbacks (January 5, 2015)

Colorado Attorney General John Suthers today announced five states have

reached a $22 million settlement with DaVita Healthcare Partners, Inc., of which Colorado will recover more than $3 million. The settlement resolves allegations that between 2008 and 2013, DaVita entered into a number of

transactions with physicians and/or physician groups in which the company would buy or sell shares in dialysis clinics at prices that were manipulated to

make the transactions financially attractive for the physicians and generate patient referrals to its dialysis centers.

http://www.coloradoattorneygeneral.gov/press/news/2015/01/05/colorado_attorney_general_announces_22_million_settlement_davita_regarding_ill

31

MEDICAID FRAUD CASES AND SETTLEMENTS

ALABAMA

January 28, 2015

Attorney General Luther Strange Announces Indictment of Pharmacist

For Medicaid Theft Of Over $50,000.

Pharmacist conspired with the mother of a terminally ill child to bill the

Alabama Medicaid Agency for expensive medications that the child required but

were not dispensed by the Pharmacist.

Attorney General Luther Strange announced the arrest of Alan Bruce Connell,

68, a Bessemer pharmacist and former owner of Westlake Pharmacy in

Bessemer, on four counts of filing false claims with the Alabama Medicaid

Agency and one count of first-degree theft of property.

The Attorney General’s Medicaid Fraud Control Unit presented evidence to the

January 2015 term of the Montgomery County grand jury, resulting in an

indictment* charging Connell with filing numerous false claims for payment to

the Alabama Medicaid Agency totaling over $50,000.

http://www.ago.state.al.us/News-589

FLORIDA

Attorney General Pam Bondi Announces Six Arrested In Leon County For More Than $170,000 In Medicaid Fraud; The Defendants Allegedly

Submitted False Claims Attorney General Pam Bondi’s Medicaid Fraud Control Unit, with the assistance from the Tallahassee Police Department and the Leon County Sheriff’s Office, arrested six former Targeted Case Managers of DS

Connections, Inc. for more than $170,000 in Medicaid fraud. DS Connections is a targeted case management company headquartered in Winter Park, Fla. with offices in Clermont and Tallahassee.

According to the investigation, the defendants did not meet required minimum

criteria for providing targeted case management services to persons.

32

Additionally, the defendants allegedly caused false claims to be submitted to Florida Medicaid in various ways including, but not limited to, improperly

billing for mileage, multiplying one trip by the number of recipients at an address, and billing for services of individuals that never required targeted

case management services. http://www.myfloridalegal.com/newsrel.nsf/newsreleases/AA770526B074F84585257DD3006602EA

MASSACHUSETTS

January 30, 2015

Attorney General Maura Healey Announces Billerica Pharmacy to Pay

$1.5 Million Over Claims of Operating an Unauthorized Automatic Refill

Program

A Billerica pharmacy will pay more than $1.5 million to settle allegations that

it improperly billed and received payments from the state’s Medicaid program

when it automatically refilled prescription medications that were not

specifically requested by MassHealth patients or caregivers, Attorney General

Maura Healey announced today.

Under the terms of the settlement, Neighborhood Diabetes, Inc. will pay more

than $1.5 million in restitution to the Commonwealth for the overpayments,

and be subject to additional reporting requirements to ensure compliance in

the future.

http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-

01-30-neighborhood-diabetes-settlement.html

33

MASSACHUSETTS CON’T

January 20, 2015

Attorney General Martha Coakley Announces South Shore Physician

Hospital Organization to Pay $1.77 Million Over Alleged Kickbacks for

Patient Referrals

State-Federal Agreement Alleges Defendants Operated Unlawful Grant

Program; Massachusetts to Receive $620,000

The South Shore Physician Hospital Organization in South Weymouth has

agreed to pay a total of $1.77 million to settle allegations of operating a

recruitment grant program through which it paid kickbacks to its physician

members in exchange for patient referrals, Attorney General Martha Coakley

announced today. Massachusetts will receive a total of $620,000.

In a consent judgment, and related settlement agreement, entered today

against South Shore Physician Hospital Organization, Inc. (SSPHO) and its

member organizations, South Shore Hospital, Inc. and Physicians

Organization of the South Shore, Inc. (POSS), AG Coakley alleges that SSPHO

paid kickbacks in the form of cash grants via a recruitment grant program.

Over the course of the program, from 2001 to 2010, SSPHO allegedly

approved 103 separate grants to 33 different physician groups.

http://www.mass.gov/ago/news-and-updates/press-releases/2015/2015-

01-20-south-shore-cj.html

MISSOURI

January 30, 2015

Attorney General Chris Koster Announces Settlement With Medicaid

Provider For Allegedly Submitting False Claims To Missouri’s Medicaid

Program

Attorney General Chris Koster announced today that his office reached a

settlement with Jennifer Kirchhoff, a Cape Girardeau counselor, for allegedly

submitting false claims to Missouri’s Medicaid program, MO HealthNet. As

required by the settlement agreement, Kirchhoff has paid the state $25,000.

An investigation by Koster's Medicaid Fraud Control Unit revealed that

34

MISSOURI CON’T

Kirchhoff billed Medicaid for therapy services she did not provide and that she

repeatedly billed Medicaid multiple times for one single family-therapy

session. Kirchhoff received $8,062 from MO HealthNet for these claims. Under

the terms of the settlement agreement, Kirchhoff has paid $8,062 in

restitution, $14,438 in damages and civil penalties, and $2,500 for

investigative costs. Kirchhoff also agreed to refrain from any future

participation in MO HealthNet.

http://ago.mo.gov/newsreleases/2015/AGKoster_announces_settlement_Cap

e_MedicaidProvider/

January 30, 2015

Attorney General Chris Koster Announces Adult Daycare Provider

Submitted Claims to Medicaid for Services That Were Not Provided;

$29,000 Will Be Returned To Missouri Medicaid

Attorney General Chris Koster today announced a settlement with B & D

Adult Daycare, LLC, of St. Louis County, and its owner-operator, Bryan

Sanders, Sr. The agreement requires Sanders and his company to pay

$29,000 to the state's Medicaid program.

Koster said his Medicaid Fraud Control Division conducted an investigation

into the billing practices of B & D Adult Daycare. The investigation revealed

that in multiple instances from January 2011 through April 2013, B & D

Adult Daycare submitted claims to Medicaid for services that were not

provided, either because the recipients were found not to have been in the

facility at that time or were receiving personal care services at their homes. B

& D Adult Daycare denied the allegations.

http://ago.mo.gov/newsreleases/2015/AGKoster_announces_MedicaidFraud

Settlement/

35

MISSOURI CON’T

January 29, 2015

Attorney General Chris Koster Announces Judgment Against St. Louis

County Woman Submitting False Claims To Medicaid

Attorney General Chris Koster announced today that a consent judgment

against Loretta Baskin, 53, of St. Louis County, for submitting false claims to

Missouri’s Medicaid program.

Koster's Medicaid Fraud Control Unit conducted an investigation into

Compassionate Care in Home Health Care, LLC, and discovered issues

regarding employment overlap by Baskin, the manager/owner of

Compassionate. Baskin billed Medicaid multiple times for services during

times she was actually working a separate job at a different location.

http://ago.mo.gov/newsreleases/2015/AGKoster_StLouisCounty_woman_Me

dicaidFraud/

January 13, 2015

Attorney General Chris Koster Charges Home Care Service Company with

Fraud for Submitting False Claims to MO HealthNet

Attorney General Chris Koster announced today that he has reached a

settlement with Victor's Home Care Services, LLC, of St. Louis, for submitting

false claims to MO HealthNet, Missouri's Medicaid program. The agreement

required Victor's to pay $50,000 to the state’s Medicaid fraud reimbursement

fund.

Koster said that Victor's provides services to Medicaid participants under two

of MO HealthNet's in-home programs. An investigation by Koster's Medicaid

Fraud Control Unit revealed the company failed to ensure that the personal

care attendants employed by the company were actually providing the

services to the Medicaid participants as they claimed. In some instances,

Victor's billed for services to Medicaid participants in their homes during

times when those participants were actually hospitalized or in a nursing

home.

http://ago.mo.gov/newsreleases/2015/AG_Koster_announces_MedicaidFrau

d_settlement/

36

NEW JERSEY

January 13, 2015

Acting Attorney General John J. Hoffman Announces Former Home

Health Aide Admits to Falsely Billing Medicaid 178 Times

Acting Attorney General John J. Hoffman and the Office of the Insurance

Fraud Prosecutor (OIFP) announced that a former employee of a home health

agency yesterday pleaded guilty to charges that he caused bills to be

submitted to the Medicaid program for services that were never provided.

Naum Lavnevich, 57, of Oakland, pleaded guilty to one count of second-

degree health care claims fraud before Bergen County Superior Court Judge

Edward A. Jerejian. As part of the plea agreement, the State recommended

that he serve three years in state prison and pay restitution in the amount of

$5,614. His sentencing is scheduled for April 10.

http://nj.gov/oag/newsreleases15/pr20150113a.html

NEW YORK

January 8, 2015

A.G. Schneiderman Announces Arrest Of Dentist In Medicaid Theft

Defendant Charged With Filing False Dental Services Claims For Patients He

Never Treated

Attorney General Eric T. Schneiderman today announced the arrest of a

Manhattan dentist for filing false claims and stealing $11,479 from Medicaid.

Howard Rothenberg, 64, of West Nyack, NY, allegedly claimed to have

provided services to patients he never met or who he treated only in prior

years. The defendant is a licensed, practicing dentist with an office located at

205 East 111th Street in Manhattan.

http://www.ag.ny.gov/press-release/ag-schneiderman-announces-arrest-

dentist-medicaid-theft

37

VIRGINIA

January 8, 2015

Attorney General Mark Herring Announces Provider of Home Health Care

Services and Spouse Sentenced for Medicaid Fraud

Over a four year period they orchestrated a massive false billing scheme

W. Wayne Perry, Jr., 56, and his wife Angela Perry, 52, formerly of Suffolk,

Virginia, were sentenced today for charges including health care fraud, false

statements relating to health care matters, alteration of records and

aggravated identity theft to W. Wayne Perry, Jr. was sentenced to 63 months

in prison, followed by three years of supervised release. Angela Perry was

sentenced today to 25 months in prison, followed by three years of supervised

release. In addition, together they are to pay $1,459.451.08 in restitution.

http://www.oag.state.va.us/index.php/media-center/news-releases/427-

january-8-2015-provider-of-home-health-care-services-and-spouse-

sentenced-for-medicaid-fraud

38

CONSUMER ADVOCACY

COLORADO

January 7, 2015

Attorney General John Suthers Warns Consumers To Beware Of Fake

Debt Collectors

The Colorado Attorney General’s Office is warning people to beware of a debt

collection scam in which people pose as law enforcement officials or

government agencies. Consumer complaints to the Attorney General reveal a

sharp increase in Coloradans receiving threatening phone calls and emails

from this particular fraudulent debt collector scam. By using personally

identifiable information, including Social Security Numbers, the caller

attempts to collect on alleged payday loan debt. Complaints about this scam

have increased by 1350% between 2013 and 2014.

Fictitious payday lender names being invoked include ACS Inc., ACS Legal

Group, Ace Cash Services, Ace Cash Advance, Advance Cash Service and

American Cash Advance. The familiarity of these names, along with strong-

arm language like “you are in violation of federal banking regulations,” and

use of official sounding agencies such as “United States of attorney” and

“state investigation department,” are the most common elements found in the

complaints.

http://www.coloradoattorneygeneral.gov/press/news/2015/01/07/colorado_

attorney_general%E2%80%99s_office_warns_consumers_beware_fake_debt_co

llectors

39

CONNECTICUT

January 29, 2015

Attorney General George Jepsen Warns Consumers to Avoid Companies

Offering Student Loan Debt Relief for a Fee

The Department of Consumer Protection, the Department of Banking, and the

Office of the Attorney General are warning residents with student loan debt to

avoid companies that promise to provide student loan debt relief, but for a fee.

Student loan debt is an increasing financial hardship for Connecticut

residents. Some unscrupulous companies take advantage of borrowers who

are trying to manage or lessen their debt, often charging high up-front fees

and not offering any services beyond what borrowers can get at no cost by

contacting their loan servicers or the U.S. Department of Education.

http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=560124

January 26, 2015

Attorney General George Jepsen, DCP Remind Residents that Price

Gouging on Consumer Items, Energy Resources Prohibited

Attorney General George Jepsen and state Department of Consumer

Protection Commissioner Jonathan A. Harris are reminding residents and

retailers that state law prohibits price gouging on consumer items and energy

resources during the current civil preparedness emergency in Connecticut.

Governor Dannel P. Malloy has declared a civil preparedness emergency in

Connecticut in advance of the incoming storm. While an emergency period is

in effect, consumer items cannot be priced higher than they would be during

the normal course of business. Violations are considered an unfair or

deceptive trade practice and violators are subject to fines.

http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=559982

40

CONNECTICUT CON’T

January 15, 2015

Attorney General George Jepsen: Don’t Pay for Financial Aid Forms or

Information

The Department of Consumer Protection, Department of Banking and the

Office of the Attorney General are warning high school seniors and college

students applying for college financial aid to steer clear of companies charging

fees for financial aid forms. These services, which falsely imply that they will

improve an applicant’s chances of success, often end up charging students as

much as $1,000 for materials that are available at no cost.

http://www.ct.gov/ag/cwp/view.asp?A=2341&Q=559488

KANSAS

January 30, 2015

Attorney General Derek Schmidt Issues Consumer Alert: Be Wary Of Fake

Invoice Scams

Kansas Attorney General Derek Schmidt today warned consumers to be on

the lookout for fake invoices for services or products not ordered. They are

likely being generated from disreputable companies perpetrating fraud.

Schmidt’s office has received more than 150 complaints from school districts

and other entities across the state about fraudulent invoices being sent from

an organization doing business as American Yellow Group, Inc., American

Yellow Corporation, Inc., and American Yellow Distribution, Inc. The invoices

are purportedly for “directory listing” and demand $496.95 for a one-year

listing or $685.95 for a two-year listing. The geographical origin of the invoices

include San Diego, Calif., Dallas, Texas, New York, N.Y., and Varna, Bulgaria.

http://ag.ks.gov/media-center/news-releases/2015/01/30/consumer-alert-

be-wary-of-fake-invoice-scams

41

KANSAS CON’T

January 7, 2015

Attorney General Derek Schmidt: Kansas to Back Consumers In U.S.

Supreme Court Natural Gas Price-Fixing Case

The State of Kansas next week will ask the U.S. Supreme Court to preserve

state authority to protect consumers from antitrust violations that increase

the retail price of natural gas, Kansas Attorney General Derek Schmidt said

today.

The U.S. Supreme Court granted Kansas’ request to participate in oral

argument in the case, even though the state is not a party, because the

outcome could determine whether Kansas and other states’ consumer

protection laws are preempted by a federal law on the transportation and sale

of natural gas. Solicitor General Stephen McAllister will argue on behalf of

Kansas and the amici states in the case to be heard January 12 at the Court.

http://ag.ks.gov/media-center/news-releases/2015/01/07/ag-schmidt-

kansas-to-back-consumers-in-u.s.-supreme-court-natural-gas-price-fixing-

case

MAINE

January 26, 2015

Attorney General Janet T. Mills Issues Consumer Warning: Scams Target

Taxpayers As Filing Season Gets Underway

Tax season may just be getting started, but tax scammers have been hard at

work already. The Maine Attorney General’s Office and the Federal Trade

Commission (FTC) have gotten thousands of complaints about one kind of

scammer in particular — IRS imposters.

Here’s how they work: Scammers posing as IRS officials call and say you owe

taxes. They threaten to arrest you, or deport you, or revoke your license, or

even shut down your business if you don’t pay right away. They may know

your Social Security number — or at least the last four digits of it — making

you think it really is the IRS calling. They also can rig caller ID to make it look

like the call is coming from Washington, DC.

http://www.maine.gov/ag/news/article.shtml?id=636296

42

NEW YORK

January 28, 2015

A.G. Schneiderman Announces Commitment By Citibank To Eliminate

Barriers That Unfairly Keep Low-Income Americans From Opening

Checking And Savings Accounts

Policy Changes Will Expand Access To Bank Accounts For Previously Excluded

Consumers

Attorney General Eric T. Schneiderman today announced that Citibank, N.A.

has agreed to adopt new policies governing its use of ChexSystems, a

consumer reporting agency that screens people seeking to open checking or

savings accounts. Citibank’s new policies are expected to allow thousands of

additional New Yorkers and consumers nationwide to open bank accounts by

March 15, 2015. The change comes amid concerns that screenings by

ChexSystems and other consumer reporting agencies, which are used by most

of the nation’s banks, adversely affect lower-income applicants and force them

to turn to high-cost alternative financial services like check-cashing outlets.

With today’s agreement, Citibank now joins Capital One as the second bank

to commit to overhaul its use of ChexSystems.

http://www.ag.ny.gov/press-release/ag-schneiderman-announces-

commitment-citibank-eliminate-barriers-unfairly-keep-low

January 27, 2015

A.G. Schneiderman Warns Consumers Against Scammer Posing As

Official From Attorney General’s Office

Scammer Threatening Consumers Across New York State With False Claim Of

Lawsuit And Arrest

Attorney General Eric T. Schneiderman today announced that his office has

been alerted to a scam involving an individual posing as a representative of

the Attorney General’s Office. The scammer is threatening consumers with a

lawsuit and possible arrest and instructs consumers to call 347-779-0198, a

number that is associated with other phone scams nationwide. One Syracuse

area consumer reported that the scammer told him that he was going to be

arrested in connection with a lawsuit and needed to call the provided number

to communicate about the litigation. The voicemail associated with this

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NEW YORK CON’T

number falsely purports to be that of Attorney Sam Wilson from the Attorney

General’s Office.

http://www.ag.ny.gov/press-release/ag-schneiderman-warns-consumers-

against-scammer-posing-official-attorney-general%E2%80%99s

January 15 2015

A.G. Schneiderman Proposes Bill To Strengthen Data Security Laws,

Protect Consumers From Growing Threat Of Data Breaches

New Legislation Would Impose Data Security Standards To Protect Personal

Information; Broaden Scope Of Information Subject To Existing Notification

Laws; And Encourage Companies To Meet

Attorney General Eric T. Schneiderman announced today that he would

propose legislation in Albany to overhaul New York State’s data security law

and require new and unprecedented safeguards for the personal data of

consumers. Currently, New York State does not have a law directly requiring

entities to institute data security ‎measures to protect consumer information.

Moreover, in the event of a data breach or unauthorized disclosure,

companies are merely required to notify affected individuals if “private

information” is compromised—which does not include email addresses and

passwords, security questions, medical history and health insurance

information, among other categories. Attorney General Schneiderman’s bill

would broaden the scope of information that companies would be responsible

for protecting; require stronger technical and physical security measures for

protecting information; and create a safe harbor for companies who meet

certain security standards, incentivizing them to adopt tough measures to

protect personal data.

http://www.ag.ny.gov/press-release/ag-schneiderman-proposes-bill-

strengthen-data-security-laws-protect-consumers-growing

44

OKLAHOMA

January 30, 2015

CONSUMER ALERT: AG Pruitt Warns Oklahomans of Phone Scam

Caller Claims to Be From Attorney General's Office

Oklahoma Attorney General Scott Pruitt issued a scam warning Friday after

concerns were raised that someone may be calling consumers claiming to be

with the Attorney General’s Office.

According to complaints to the AG’s Public Protection Unit, the caller is falsely

telling Oklahomans they will be arrested if money is not wired to the Attorney

General’s Office for various reasons, such as debt. The phone calls originate

from the number: (206) 512-1480.

http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=258

&article_id=15365

WASHINGTON

January 13, 2015

Attorney General Bob Ferguson Cracks Down On Patent Trolls As Part Of

2015 Legislative Agenda

Protects businesses from bad faith predatory claims of patent infringement;

gives Attorney General’s Office legal enforcement authority

Washington State Attorney General Bob Ferguson has proposed the Patent

Troll Prevention Act to protect the rights of legitimate patent holders and

crack down on deceptive and predatory patent troll practices.

“Patent trolls target and swamp small businesses with deceptive demand

letters,” said Ferguson. “The Patent Troll Prevention Act will protect small

businesses and provide my office with enforcement authority to hold

fraudulent trolls accountable.”

http://www.atg.wa.gov/pressrelease.aspx?&id=32517#.VMZkLC4sCDM

45

WASHINGTON CON’T

January 12, 2015

Attorney General Bob Ferguson Targets Wage Theft As Part Of 2015

Legislative Agenda

Proposes legislation to prohibit wage theft violators from doing business with

the state

Washington State Attorney General Bob Ferguson has proposed bipartisan

legislation that would prohibit businesses that have repeatedly or willfully

violated the state’s wage payment laws during the past three years from doing

business with Washington state.

“Wage theft hurts workers and honest businesses that want to compete for

government contracts,” said Ferguson. “Government contracts and taxpayer

dollars should go to companies that follow the law. Washington won’t do

business with those that unlawfully withhold wages from employees.”

http://www.atg.wa.gov/pressrelease.aspx?&id=32512#.VMZjwC4sCDM

January 07, 2015

Attorney General Bob Ferguson Calls For Enhanced Data Security Law To

Protect Consumers As Part Of 2015 Legislative Agenda

30-day notification required for all data breaches

Washington State Attorney General Bob Ferguson has introduced bipartisan

legislation that will strengthen Washington’s data breach notification law to

help Washingtonians protect their personal information.

“Identity thieves are using increasingly sophisticated methods to hack into

consumer databases and steal financial information,” said Ferguson. “We

must update our laws to help consumers better protect themselves in the

digital age.”

http://www.atg.wa.gov/pressrelease.aspx?&id=32508#.VMZjQS4sCDM

46

WEST VIRGINIA

January 29, 2015

Attorney General Patrick Morrisey Cautions Citizens About IRS Tax

Refund Email Scam

Attorney General Patrick Morrisey is warning taxpayers to be aware of an

email scam claiming to be from the Internal Revenue Service that targets

consumers’ financial information.

Morrisey said the email often has a subject line that reads “Tax Refund

Notification.” The sender claims to be from the IRS and says the consumer is

entitled to receive a tax refund. The consumer is directed to a third-party

website, where he or she is asked to provide vital personal and financial

information.

http://www.ago.wv.gov/pressroom/2015/Pages/Attorney-General-Patrick-

Morrisey-Cautions-Citizens-About-IRS-Tax-Refund-Email-Scam.aspx