New York City Council Speaker Adrienne Adams and Members of the Black, Latino, and Asian Caucus Highlight Legislative Efforts That Support Black Communities, All New Yorkers

 

New York City Council Speaker Adrienne Adams and members of the Council’s Black, Latino and Asian Caucus (BLAC) held a press conference to celebrate legislation passed during the 2022-2023 session that support Black New Yorkers and other communities of color. The bills, which focus on housing, public health, equitable opportunity, and public safety, have helped expand community-based mental health programs, remove barriers to city housing vouchers, require greater police transparency to increase trust towards improving public safety, banned the use of solitary confinement, established a program to provide doula services and other efforts that confront maternal health disparities, and more.

“Our historic representation as a majority-women and most diverse Council has empowered us to prioritize the people who make up the backbone of our city and sit at the intersection of multiple marginalized communities,” said Speaker Adrienne Adams. “By centering Black communities and other communities of color, we’ve been able to confront the longstanding inequities facing all New Yorkers, and especially as it relates to affordable housing, public health, public safety, and educational and economic opportunities. We have pursued holistic solutions to promote healthier and safer communities, including an all-of-the-above approach to public safety that recognizes police transparency and accountability are key to community trust. The well-being of all New Yorkers depends on the implementation of these laws, and the Council remains committed to ending the discriminatory practices that harm Black and other communities of color.”

Improving Public and Mental Health:

•   Passed 11-bill legislative package to address persistent disparities in maternal and birthing health that disproportionately impacts the health and safety of Black and Latina women and birthing people (2022).
•   Passed a bill to confront the historic racial disparities in treatment of sickle cell disease that primarily affects people of African descent and other health equity issues (2023).
•   Enacted legislation to increase access to blood pressure machines by requiring DOHMH to post on its website where blood pressure machines in NYC are located, make at-home blood pressure machines available at no cost to the public at federally qualified health centers in 5 high-need areas (2023).
•   Released the Mental Health Roadmap, first in May, to address existing challenges in the City’s mental healthcare landscape and strengthen the infrastructure and investments in evidence-based solutions to improve mental health outcomes for New Yorkers (2023).
•   Passed several bills to address pollution and improve clean air, with a focus on Environmental Justice communities.
  •   Passed legislation to expedite the phase out of oil grade No. 4, the most harmful heating oil still used in city buildings, to create cleaner air and reduce negative health outcomes that are especially felt in environmental justice communities (2023).
  •   Enacted legislation to require the city’s first redesign of its truck route network in over four decades, with the goals of improving safety and health outcomes, increasing visibility, and reducing traffic congestion (2023).
•   Passed legislative package that expand education on and access to menstrual products in city facilities and change terminology to be gender inclusive with the goal of making the city safer, healthier, and more just for every New Yorker who menstruates (2023).

Addressing the Housing and Homelessness Crisis:

•    Passed Speaker Adams’ Fair Housing Framework Legislation, establishing targeted housing production goals for each Community District to help hold every neighborhood accountable for their role in equitably addressing the city’s housing crisis, with a focus on affordable housing.
•   Passed legislation to create the Office of the Homeowner Advocate within the Department of Housing Preservation and Development (HPD) to support homeowners through City services, resources, and information (2023).
•  Passed historic legislation to confront child, family, and youth homelessness by removing barriers to rental assistance programs:
  •   Passed CityFHEPS bill package that removes barriers to the rental assistance program that helps move people out of the shelter system more expeditiously and prevent evictions to keep people in their homes during eviction and homelessness crises (2023).
  •   Passed legislation requiring the Department of Homeless Services to report on families with children living in shelters, providing data on types of shelter, average length of stay, number of families exiting shelter for permanent housing, and metrics on school enrollment and attendance (2023).
  •   Passed legislation to require the Department of Homeless Services and Department of Youth and Community Development to report on the number of LGBTQIA+ and runaway homeless youth who receive city services, and the number of shelter beds reserved for them (2023).
  •   Passed legislation to require drop-in centers to participate in the intake process for runaway and homeless youth to transition into adult shelters (2023).
•   Passed legislation to promote housing stability for older adults and increase transparency on encampment sweeps
  •   Passed legislation to provide fulllegal representation in eviction proceedings in housing court for people 60 years or older, and establish a housing support program for older adults 60 years or older at risk of eviction or foreclosure (2023).
  •   Passed legislation to require reporting on removals of people experiencing homelessness from a public space and the outcomes of those removals (2023).

Advancing Public Safety for New Yorkers:

•   Passed the “Support Survivors” package during Domestic Violence Awareness Month, two pieces of legislation requiring city agencies to establish a housing stability grant assistance program for crime survivors and create an online portal and resource guide for survivors (2022).
•   Created a new Speaker’s Initiative of $5.1 million in Council funding – Community Safety and Crime Victims Services Initiative – to provide each Council district with $100,000 to expand crime victim services and community safety programs (Began in 2022).
•    Established New York State’s first four Trauma Recovery Centers in New York City to support underserved victims of crime and stop cycles of crime in neighborhoods experiencing high rates of violence (Began in 2022).
•    Passed seven police transparency laws, including the How Many Stops Act, that provide more complete data, facilitate increased community trust, and enhance accountability to improve public safety (2023).
•   Passed the Fair Chance for Housing Act, which prohibits housing discrimination on the basis of criminal history in New York City (2023).
•   Enacted transparency measures for homeless encampment sweeps and mandated reporting on services offered to individuals forcibly removed from encampments (2023).
•    Approved several pieces of legislation addressinggun violence, examining the flow of illegal firearms, requiring City training, evaluations, and operational support for violence prevention programs in the Crisis Management System, and evaluation of criminal justice programs (2022).
•    Passed legislation that would ban solitary confinement in city jails and require that all people in city custody have at least 14 hours of out-of-cell time in shared space (2023).
•   Approved several bills with the goal of safely reducing the population of individuals detained on Rikers Island, ensuring people make it to court so lengths of stay aren’t inflated, protecting TGNCNBI detainees, and increasing transparency and access to programming (2023).

Expanding Equitable Opportunities:

•    Passed legislation to expand access to Civil Service careers by establishing a Civil Service Ambassador Program, codifying the Public Service Corps, andcreating pipelines to the civil service for marginalized communities and populations, including for justice-involved New Yorkers (2022 and 2023).
•    Passed Pay Equity Package to address pay disparities across the municipal workforce by providing key data and analysis on inequity among City employees and enact practices that confront occupational segregation and promote workforce diversity (2023).
•   Passed a 5-bill package to increase thediversity of FDNY’s firefighters through recruitment and retention policies that support women and people of color being firefighters – the strongest effort to date by the City to address historic discrimination and lack of diversity in the FDNY (2022).
•   Passed legislation requiring SBS to provide information on Community Development Financial Institutions, which can provide M/WBEs with access to capital (2023).
•   Passed Industrial Development Strategic Plan Law to require creation of a citywide plan for investing in the industrial sector to cultivate its growth for our city to achieve its green energy goals and expand equitable economic opportunities for New Yorkers. People of color make up 80 percent of the industrial workforce (2023).
•    Passed legislation to provide information onreduced fare programs to people issues a summons for fare evasion (2023).
•   Passed legislation to requireanti-racism and discrimination trainings for employees, independent contractors, and human service workers (2023).
•   Expanded education and youth support through legislation and budget investments.
  •   Passed legislation to help diversify employment options for Summer Youth Employment Program (SYEP) participants by increasing collaboration with government agencies, community-based organizations, and private businesses (2023).
  •   Passed legislation to help high school students access IDNYC municipal identifications, providing them with information on the program, enrollment, and application form (2023).
  •    Passed legislation to post information on the Department of Education (DOE) website informing people on how to establish after-school programs (2023).
  •    Passed legislation to expand data captured by Department of Education (DOE) reports to include special education services, students in foster care and temporary housing (2023).
  •   Passed legislation to include financial empowerment components in the Department of Youth and Community Development’s youth and runaway and homeless youth programs (2023).
•  Passed four bills related to citywide swim access and safety, following through on a proposal outlined in the Speaker’s most recent State of the City address. The bills established water safety instruction to New York City’s public school children at no cost and mandated a DOHMH report on drowning deaths in the city, among other things. (2023).

Joint Statement from Speaker Adrienne Adams and Public Safety Chair Yusef Salaam on the Mayor’s Veto of Police Transparency Bill

 

In response to Mayor Adams vetoing Int. 586 of the How Many Stops Act that would require public reporting of basic data on investigative police stops, Speaker Adrienne Adams and Public Safety Chair Yusef Salaam released the following joint statement.

“It is deeply disappointing that the Mayor is sending the message that Black and Latino communities do not deserve transparency regarding interruptions to their daily lives from investigative police stops. At a time when one out of every four stops made by the Mayor’s new police unit has been found to be unconstitutional, and civilian complaints are at their highest level in more than a decade, the Mayor is choosing to fight to conceal information from the public. Rather than focusing on governing our city, the Mayor and his administration have sought to mislead and incite fear through a propaganda campaign, wasting government resources and creating division. These actions only raise questions about why this administration fears sharing data with New Yorkers about the use of their tax dollars. NYPD officers and our entire city deserve better.

“The false narrative that we cannot have transparency is bad for our city, and belies the fact that accountability is vital to improving public safety by increasing trust. The Mayor’s veto betrays his stated goal of public safety and harms the Black and Latino communities that bear the brunt of these stops. The Council remains committed to honest dialogue about policy, and we are prepared to override this veto to ensure that New Yorkers receive a more accurate accounting from their city that can make our neighborhoods safer.”

Justice Department Seeks to Shut Down Colorado Tax Return Preparer Filing False and Fraudulent Tax Returns for Customers

 

The United States filed a civil complaint in the U.S. District Court for the District of Colorado against Denver-area tax return preparer Daniel Mattison. The complaint seeks to enjoin Mattison from owning or operating a tax return preparation business and from preparing federal income tax returns for others.

The complaint alleges that Mattison prepared thousands of federal income tax returns for paying customers between 2018 and 2023 through his business, DCM Financial Inc. Mattison allegedly advertises his business as the “one-stop solution” for people’s tax needs, promising to help his customers and future customers get their taxes done “right.” But the complaint alleges that Mattison fails on this promise by filing tax returns for customers that are riddled with errors, fabrications and fraudulent entries. Mattison allegedly claims false tax credits, fabricates business schedules, creates bogus income and changes tax return information without the customer’s consent or knowledge to reduce taxable income and inflate refunds improperly and illegally. As the complaint states, Mattison continued to prepare and file improper and fraudulent tax returns despite repeated warnings from the IRS about Mattison’s unlawful conduct, the assessment of civil penalties against him and the temporary suspension of his Electronic Filing Identification Number (EFIN) for failing to comply with filing and payment requirements.

By repeatedly understating his customers’ tax liabilities, the complaint alleges that the United States has been harmed by Mattison’s conduct resulting in the significant loss in tax revenue of an estimated $1.99 million in 2018 and 2019 alone.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers.

In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

Private Sector Employment Up 5,800 Jobs in December 2023

 

Labor Force Participation Rate Decreases Slightly Over the Month to 61.6%

According to preliminary seasonally adjusted figures released today by the New York State Department of Labor, the number of private sector jobs in New York State increased over the month by 5,800, or 0.1%, to 8,261,500 in December 2023. The number of private sector jobs in the U.S. also increased by 0.1% in December 2023.

New York State's private sector jobs (not seasonally adjusted) increased by 49,200, or 0.6%, over the year in December 2023, which was less than the 1.6% increase in the number of private sector jobs in the U.S.

New York State's seasonally adjusted unemployment rate increased from 4.3% in November to 4.5% in December 2023. At the same time, New York State's labor force (seasonally adjusted) decreased by 7,500. As a result, the statewide labor force participation rate decreased from 61.7% in November to 61.6% in December 2023.

The number of private sector jobs in New York State is based on a payroll survey of New York businesses conducted by the U.S. Department of Labor’s Bureau of Labor Statistics (BLS). Monthly payroll employment estimates are preliminary and subject to revision as more complete data become available the following month. The BLS calculates New York State’s unemployment rate based partly upon the results of the monthly Current Population Survey (CPS) of approximately 3,100 households in the State.

Note: Seasonally adjusted data provide the most valid month-to-month comparison. Non-seasonally adjusted data are valuable in year-to-year comparisons of the same month – for example, December 2022 versus December 2023.

Statewide Industry Employment

December 2023 – Seasonally Adjusted

• On a net basis, the total number of nonfarm jobs in the state increased by 8,300 over the month, while private sector jobs increased by 5,800 in December 2023.
• At the same time, the total number of nonfarm jobs in the nation increased by 216,000, while private sector jobs increased by 164,000.

NYS Equals Nation in Job Growth

Over-the-Month % Change in Total Nonfarm & Private Sector Jobs, November – December 2023

Total Nonfarm and Private Sector Jobs Increased in December 2023 Total Nonfarm and Private Sector Jobs (in 1000s), January 1990 – December 2023 Statewide Unemployment December 2023 – Seasonally Adjusted The statewide unemployment rate increased from 4.3% in November to 4.5% in December 2023. New York City’s unemployment rate increased from 5.3% to 5.4%. Outside of New York City, the unemployment rate increased from 3.5% in November to 3.8% in December 2023. The number of unemployed New Yorkers increased over the month by 15,400, from 420,600 in November to 436,000 in December 2023. NYS Unemployment Rate Increased Over the Month Labor Force Statistics, December 2022, November – December 2023 Labor Force Decreased and Number of Unemployed Increased in December Total Labor Force & Number of Unemployed, January 2009 – December 2023 Unemployment Rate Increased in NYC and Balance of State Unemployment Rate, NYC & BOS, January 2009 – December 2023 Substate and Industry Employment  December 2023 – Not Seasonally Adjusted New York State Gains Private Sector Jobs Over the Year Over-the-Year Change in Total Nonfarm & Private Sector Jobs, December 2022 – December 2023 Note: The sum of sub-state area job estimates will usually differ from the New York State total. This is because the State total is calculated separately from the sub-state areas and is estimated based on an independent sample. Private Education & Health Services Jobs Increased by 5.7% Over the Year Over-the-Year Change in Jobs by Major Industry Sector, December 2022 – December 2023 *Government includes public education and public health services. Note: The responsibility for the production of monthly estimates of state and metro area nonfarm employment by industry moved from the NYS Department of Labor’s Division of Research and Statistics to the U.S. Bureau of Labor Statistics (BLS), starting with the March 2011 estimates. More detailed information on the change is available on the BLS web site. Many economic data series have a seasonal pattern, which means they tend to occur at the same time each year (e.g., retail jobs usually increase in December). Seasonal adjustment is the process of removing seasonal effects from a data series. This is done to simplify the data so that they may be more easily interpreted and help to reveal true underlying trends. Seasonal adjustment permits comparisons of data from one month to data from any other month. In New York State, payroll jobs data by industry come from a monthly survey of business establishments conducted by the U.S. Bureau of Labor Statistics. Data are preliminary and subject to revision. Jobs data by industry do not include agricultural workers, the self-employed, unpaid family workers, or domestic workers in private households. Labor force statistics, including the unemployment rate, for New York and every other state are based on statistical regression models specified by the U. S. Bureau of Labor Statistics. The state’s unemployment rate is based partly upon the results of the Current Population Survey, which contacts approximately 3,100 households in New York each month. Jobs and Unemployment Fact Sheet This fact sheet conveys important technical information that will contribute to a better understanding of labor force data (“household survey”), including resident employment/unemployment rates, and jobs by industry data (“business survey”), which are presented in the New York State Department of Labor’s monthly press release. State Unemployment Rates Based on Regression Model Beginning with data for January 1996, unemployment rates for New York State and all other states (as well as New York City and the City of Los Angeles) have been estimated using time-series regression statistical models developed by the U.S. Bureau of Labor Statistics (BLS). Advantage of Regression Model Use of a time-series regression model reduces the month-to-month variation in unemployment rates and resident employment by reducing variation caused by sampling errors and other components of statistical noise (irregularities). Benchmarking of Estimates Once each year, labor force estimates, such as civilian labor force and the unemployment rate, are revised to reflect updated input data including new Census Bureau populations controls, newly revised establishment jobs data and new state-level annual average data from the Current Population Survey (CPS). As part of this procedure, all state figures are reviewed, revised as necessary and then re-estimated. This process is commonly referred to as “benchmarking.” Changes in Methodology Labor force estimates are now produced with an improved time-series regression model, which utilizes “real-time” benchmarking. “Real-time” benchmarking reduces end-of-year revisions, which also means that major economic events will be reflected in a more timely manner in state labor force estimates. In addition, the new methodology includes an updated way of estimating for sub-state areas (e.g. counties, metro areas) the number of unemployed who are new entrants or re-entrants into the labor force. This change in methodology will result in lower unemployment rates in some areas and increased rates in others. Unemployed and UI Beneficiaries The estimate of the number of unemployed includes all persons who had no employment during the reference week (the week including the 12th of the month), were available for work, except for temporary illness, and had made specific efforts to find employment sometime during the 4-week period ending with the reference week. Unemployment insurance (UI) beneficiaries include those who apply for and qualify for UI benefits. Consequently, the estimate of the number of unemployed and the number of UI beneficiaries do not necessarily move in tandem. Jobs Data Jobs data are obtained from a separate joint federal-state survey of business establishments. The survey, called the Current Employment Statistics of Establishments, has a sample size of 18,000 establishments in New York State. It excludes self-employed workers, agricultural workers, unpaid family workers and domestic workers employed by private households. This data represents a count of jobs by place of work. Data for each month is revised the following month as more complete information becomes available. The New York State Department of Labor is an Equal Opportunity Employer/Program.

DASHBOARD UPDATE: NYC Comptroller Releases New Monthly Data on Department of Correction Operations

 

The New York City Comptroller’s Office released its monthly update to the Department of Correction (DOC) Dashboard, available here.

Key monthly DOC metrics show:

• As of January 1st, the number of people housed in DOC jails was 6,019, a decrease of 129 from the previous month as more individuals were released compared to last month.
• This represents a 2.1% decrease, not seen since January 2023.
• People admitted to the jail decreased to 1,613 in December, 206 fewer people were admitted than in November. People discharged decreased to 1,754, fewer by 71 month-over-month.
• As of the most recent update, incarcerated people missed medical appointments 14,118 times in October, an increase of 508 individuals from September, continuing an upward trend for all of 2023.
• The total number of officers on sick leave increased to 425, an increase of 13 officers from the previous month. This is the first increase since November 2022.
• Violence indicators mostly decreased in December.
• Assaults on staff decreased to 36, a decrease of 14 from November.
• Fights decreased to 458, a decrease of 50 from November.
• Slashings and stabbings increased to 30, an increase of 7 since November.

The Comptroller’s dashboard, first published in August 2022, monitors pervasive issues in the City’s jails, including staff absenteeism, missed medical appointments, and incidents of violence among detained people and staff. It also tracks the jail population every month and length of stay. The Comptroller’s office publishes data to this dashboard monthly to provide increased transparency and accountability over the City’s jail system.

View the DOC Dashboard here.

D.A. Bragg, DOI Commissioner Strauber Announce Charges Against Man Who Allegedly Possessed $115k Of Stolen Encrypted Radios from City Garbage Trucks

 

Manhattan District Attorney Alvin L. Bragg Jr. and New York City Department of Investigation (“DOI”) Commissioner Jocelyn Strauber today announced the indictment of RAMON MUNOZ, 42, for possessing dozens of stolen encrypted two-way radios worth more than $115,000 from New York City Department of Sanitation (“DSNY”) garbage trucks. MUNOZ is charged in a New York State Supreme Court indictment with one count of Criminal Possession of Stolen Property in the Second Degree.1 

“As alleged, Ramon Munoz possessed more than $115,000 worth of stolen radios from New York City Department of Sanitation garbage trucks across four different boroughs. As ‘New York’s Strongest,’ the Department of Sanitation helps our city run smoothly, and Ramon Munoz threatened its effectiveness with his actions,” said District Attorney Bragg. “I thank the Department of Investigation for their partnership in investigating this major theft.”

DOI Commissioner Jocelyn E. Strauber said, “This defendant is charged with possessing 37 two-way radios that were stolen from City Sanitation trucks. These devices, worth over $115,000 in total, facilitate critical employee communication, including during storms. I want to thank the City Department of Sanitation for reporting the missing radios to DOI and the Manhattan District Attorney’s Office for its commitment to protect the City’s critical technology from misuse.”

According to court documents and statements made on the record, between March 3, 2019, and October 10, 2022, dozens of two-way radios each valued at over $3,000 were reported stolen from garbage trucks stored in 11 DSNY garages in Manhattan, the Bronx, Queens, and Brooklyn.

DOI and the Manhattan D.A.’s Office jointly investigated and learned that MUNOZ had sold a number of stolen radios to buyers in online marketplaces such as eBay and Facebook.

An undercover investigator purchased two stolen DSNY radios directly from MUNOZ. After a final theft of 10 DSNY radios on October 10, 2022 detectives searched MUNOZ’s apartment and recovered three additional stolen radios, including radios from both the very first and last thefts, as well as related computer and radio equipment.

Digital forensic analysis revealed that MUNOZ possessed an additional 15 stolen DSNY radios. In all, the D.A.’s Office was able to directly link 37 stolen DSNY radios to MUNOZ, totaling $118,997.92 stolen from the City of New York. 

D.A. Bragg thanked the New York City Department of Investigation.

1 The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. All factual recitations are derived from documents filed in court and statements made on the record in court. 

 

Former Fiscal Officer for Non-Profit Company Pleads Guilty to Stealing Nearly $2.3 Million from Brooklyn Charity

Marcia Joseph pleaded guilty at the federal courthouse in Brooklyn,  to wire fraud in connection with her embezzlement of approximately $2.3 million from her employer, a non-profit organization that provides employment and education services for those in need.  Joseph was arrested in October 2023.  Today’s proceeding was held before United States District Judge Eric N. Vitaliano. When sentenced, Joseph faces up to 20 years’ imprisonment.

Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), announced the guilty plea.

“With her guilty plea today, the defendant admitted that she failed in her duty to serve a non-profit organization by stealing millions of dollars for personal expenses that were meant to be spent in its mission helping vulnerable members of the community,” stated United States Attorney Peace.  “When she is sentenced, the defendant will learn the penalty for her dishonesty and greed.”

“This defendant created a company for the sole purpose of siphoning $2.3 million from the City-funded nonprofit where she worked.  She took valuable funds meant for the educational and employment needs of economically disadvantaged New Yorkers for her personal profit. DOI thanks our federal partners, the U.S. Attorney’s Office for the Eastern District of New York and the FBI, for their commitment to protecting precious public funds that help those in need,” stated DOI Commissioner Strauber.

According to the complaint, court filings, and facts presented during the plea hearing, Joseph was the senior fiscal officer of Company-1, a 501(c)(3) non-profit organization located in Brooklyn, New York that provides comprehensive services to support employment opportunities for persons with emotional, developmental, and/or physical disabilities, and those who are economically disadvantaged.  Joseph set up a company called Prestige Business Services (“Prestige”), which purported to provide specialized services to other companies on behalf of Company-1.  In truth, Prestige performed no work, and was used by Joseph for the exclusive purpose of embezzling more than $2.3 million from Company-1 over a 16-year period.  Joseph used the money paid by Company-1 to Prestige to pay for numerous personal expenses, including approximately $235,000 in mortgage payments; $207,000 in credit card payments; $98,000 in car payments; $45,000 in Amazon expenses; and various other personal items, such as home remodeling, spa treatment, landscaping expenses, and luxury goods.  Joseph also withdrew nearly $100,000 in cash,

United States Settles Suit Against Lead Generator for Assisting and Facilitating Illegal Robocalls

 

Response Tree LLC and its president and managing member Derek Thomas Doherty have agreed to a court order resolving allegations that they violated the Telemarketing Sales Rule (TSR) by assisting and facilitating illegal telemarketing campaigns by operating as an unlawful lead generator and consent farm. Lead generators collect, aggregate and sell consumer information — or “leads” — for profit. Consent farms sell those leads coupled with consumers’ purported consent to receive certain types of telephone calls.

The stipulated order, which was entered by the U.S. District Court for the Central District of California, prohibits Response Tree and Doherty from violating the TSR and from collecting or selling covered information — including consumers’ names, addresses, contact information, gender and age — in connection with lead generation. The order also imposes a $7 million civil penalty judgment, which is suspended based on the defendants’ inability to pay.

According to the complaint filed on Jan. 2, Response Tree and Doherty obtained consumer information and purported consent to receive certain telephone calls, including telephone calls that deliver a prerecorded message (otherwise known as robocalls) and calls made to telephone numbers on the National Do Not Call Registry. The defendants allegedly did so by operating over 50 websites that deceptively induced consumers to disclose personal information by, for example, purporting to provide mortgage refinancing services. According to the complaint, the defendants then sold the consumer data to sellers of goods and services who then inundated American consumers with illegal robocalls based on the consumers’ invalid consent. Those robocalls delivered prerecorded marketing messages, and many of them were delivered to numbers listed on the National Do Not Call Registry.

“This order is a victory in the Justice Department's efforts to protect American consumers from illegal robocalls and to stop others, including those who operate unlawful consent farms, from enabling those calls,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to work with the Federal Trade Commission to enforce the Telemarketing Sales Rule.”

“Response Tree fueled millions of illegal telemarketing calls by tricking consumers into turning over their personal information and selling that information to telemarketers,” said Director Samuel Levine of the Federal Trade Commission's (FTC) Bureau of Consumer Protection. “The FTC will continue to target every corner of the illegal telemarketing ecosystem to protect consumers and hold wrongdoers accountable.” 

The case was handled by attorneys in the Civil Division’s Consumer Protection Branch, including Trial Attorney Rowan Reid and Assistant Director Rachael Doud, in conjunction with staff in the FTC’s Division of Marketing Practices. 

For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov