Attorney General James Announces Settlement With Star Exemption Advisor For Scamming Thousands Of Homeowners Seeking Property Tax Rebates

STAR Exemption Advisor and Owner Arie Gal Charged Homeowners for Simply Forwarding Basic STAR Exemption Applications To Nassau County Assessor’s Office 

 Attorney General Letitia James announced a settlement with STAR Exemption Advisor, YCA Corp. and its business owner Arie Gal for scamming thousands of new homeowners by charging them excessive fees to enroll in the Basic STAR Exemption Program, which is otherwise free.   

“Taking advantage of New Yorkers by manipulating a tax exemption program created to help homeowners is illegal and immoral,” said Attorney General Letitia James. “We should be doing all we can to support homeowners, not prey upon them and steal their hard-earned savings. This settlement is a continued reminder that my office will pursue any individual who tries to deceive New Yorkers.”  

Terms of the settlement include $920,000 in damages, the dissolution of STAR Exemption and YCA Corp, the recision of all consumer contracts with STAR Exemption, the cancelation of all outstanding billed/unbilled accounts, the permanent barring from offering any property tax rebate services in the State of New York, and the vacating of all small claims court judgments. 

The New York State School Tax Relief (“STAR”) Program provides a partial exemption from school property taxes for primary residences that are owner-occupied with a total household income of $500,000 or less. To receive the exemption, new homeowners must file an application with their local assessor’s office by January 2 each year in order for the exemption to be applied to the upcoming and subsequent years’ tax bills.  

The Attorney General’s office sued following its investigation of Mr. Gal and his business after receiving numerous complaints from homeowners who alleged that his company had substantially overcharged them for filing an otherwise free application that the homeowners had completed themselves. The Supreme Court of Nassau County found Gal and his business liable for fraudulent and deceptive business practices and false advertising, as homeowners were unaware that they were doing business with a private company, since they believed they were sending their Nassau County application forms to the County, not an intermediary.  

Mr. Gal used an official-sounding name like “Star Exemption Advisor” to scam thousands of homeowners out of tax savings that rightfully belonged to them. His company sent misleading mailers that looked like official government agency documents, tricking homeowners into signing up with them to apply for the Basic STAR exemption for a fee. The respondents used official-looking envelopes to make homeowners think that the mailers were coming from a government agency. Moreover, the company charged homeowners an exorbitant fee that was 100 percent of the total tax savings for the first year, even though applying for the Basic STAR exemption costs nothing and can be accomplished without professional help.  

Once homeowners were approved for the exemption, the company sent them invoices. If payment was not remitted immediately or homeowners disputed the charges, Mr. Gal sued them in Small Claims Court. Mr. Gal even sued homeowners for applications the homeowners had personally filed with the Department of Assessment. Upon receiving a Small Claims Court notice from Mr. Gal, most homeowners settled to avoid litigation. Homeowners who went to their scheduled court date were shocked to see so many other homeowners in the same predicament.  

Attorney General James Announces Restitution And Penalty Payments From Multiple Energy Service Companies For Consumer Fraud

Energy Plus Issued $700,000 in Payments to Current and Former Customers Following a 2017 Settlement 

Ambit Energy Required to Change Practices and Pay $1.5 Million in Penalties for Deceptive Practices

   New York Attorney General Letitia James announced that refund checks are being issued to consumers of Energy Plus Holdings LLC and Energy Plus Natural Gas LLC (collectively, “Energy Plus”) as a result of a 2017 settlement with the Office of the Attorney General. Attorney General James also announced a settlement with Ambit Energy Holdings, LLC, Ambit Marketing, LLC and Ambit New York, LLC (collectively, “Ambit”). Both engaged in deceptive practices that resulted in consumers paying more for energy services when they were promised savings. 

“Thousands of New Yorkers will get their money back after they were deceived into paying for more expensive energy services,” said Attorney General Letitia James. “Energy Plus and Ambit are just two of the multiple unscrupulous energy service companies that the Attorney General’s Office has challenged in our ongoing effort to protect consumers. We have zero tolerance for companies seeking to defraud New Yorkers out of their hard-earned money.”  

Over $700,000 in payments are being distributed to eligible current and former customers of Energy Plus stemming from a 2017 settlement with the Office of the Attorney General. As part of its investigation, the Office found that the company engaged in a number of deceptive practices that resulted in consumers paying more for their energy service than they would have paid to their local utilities.   

In particular, the investigation found that Energy Plus: 

• Lured consumers with false promises of savings, then swindled them into paying much higher bills;   
• Failed to disclose material terms such as conditions for receiving cash back;  
• Deceptively implied that cancellations could be processed immediately.    

The Better Business Bureau Serving Metropolitan New York administered the Attorney General’s restitution program based on claims submitted by consumers who were Energy Plus customers prior to the settlement. Approximately 2,800 residential consumers and small businesses will receive payments.  

The payment distribution for Energy Plus customers comes on the heels of a settlement the Office of the Attorney General reached in December with another ESCO - Ambit Energy Holdings, LLC, Ambit Marketing, LLC and Ambit New York, LLC (collectively, “Ambit”). Ambit’s settlement, which resulted in a $1.5 million penalty, stemmed from an investigation that found that Ambit: 

• Misrepresented that consumers would achieve savings;   
• Signed up consumers with Ambit without their consent;   
• Switched consumers to a more expensive energy plan without adequate notice;   
• Promised its marketers high incomes that were not generally achieved.   

Because Ambit previously agreed to provide more than $20 million in refunds to its customers in a class action settlement, the Attorney General did not seek restitution in that case. 

The Attorney General’s settlements also required Energy Plus and Ambit to take measures to prevent deceptive practices in the future, including adequate training of customer service representatives, refraining from misleading advertising about savings, and implementing appropriate disciplinary procedures for violations of the law.  

Energy service companies (or “ESCOs”) often purchase energy on the open market and then sell it to consumers. Utilities still deliver the energy to consumers, but consumers can choose to purchase their energy directly from the utility or through an ESCO.  The Attorney General’s ongoing investigation into ESCOs has returned more than $5 million to consumers, including nearly $2 million to customers of Columbia Utilities Power LLC and more than $1 million to customers of HIKO Energy, LLC.    

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

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

FORMER EXECUTIVE DIRECTOR OF BAYCHESTER YOUTH COUNCIL SENTENCED FOR STEALING FEDERAL FUNDS

Earnestine Russell Stole Thousands of Dollars Meant For Middle-School Children

 Bronx District Attorney Darcel D. Clark today announced that Earnestine Russell, a former, longtime director of a Bronx youth group, has been sentenced after pleading guilty to Grand Larceny. 

 District Attorney Clark said, “The defendant stole money that was meant to support after school programs for middle school children in our Bronx community. The defendant, who led the Baychester Youth Council since the 1980s, has now been held accountable for her actions.” 

 New York State Comptroller Thomas P. DiNapoli said, “Earnestine Russell took public money intended to give children a safe and nurturing place to go after school, but spent it on personal trips and electronic equipment for herself. I thank Bronx County District Attorney Clark for working with us to hold Ms. Russell accountable.”

 District Attorney Clark said that Russell, 69, of 1930 Schieffelin Avenue, pleaded guilty today to third-degree Grand Larceny and was sentenced by Bronx Supreme Court Justice Robert Neary to one year in jail with a $61,098.00 order of restitution by civil judgment. The defendant also waived her right to appeal.

 According to the investigation by the Bronx District Attorney’s Office and the State Comptroller’s Office, Russell stole money from a federally funded grant administered by the New York State Education Department between December 19, 2009 and July 7, 2011.

 District Attorney Clark thanked Comptroller DiNapoli's Division of Investigations and Bureau of State Expenditures, and the New York State Police.

FIRST BRONX INDICTMENT UNDER ‘SEX TRAFFICKING OF A CHILD’ LAW

Bronx Man Allegedly Brought 14-Year-Old Girl to Motel for Sex With “John;” Authorities Rescued Teen At Motel After She Was Reported Missing

  Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been charged under the new state law of Sex Trafficking of a Child for allegedly promoting the prostitution of a 14-year-old girl. 

 District Attorney Clark said, “The defendant allegedly discussed pricing and received money for the prostitution of a 14-year-old girl who had been reported missing by her mother. This is the first Bronx case charging Sex Trafficking of a Child, a law which better reflects the realities of sexual exploitation of youngsters. This indictment makes clear that our office takes these cases very seriously.” 

 District Attorney Clark said the defendant, George Hinton, 27, of 3635 Bronxwood Avenue, was arraigned today on Sex Trafficking of a Child; first-degree, second-degree, third-degree and fourth-degree Promoting Prostitution; and Endangering the Welfare of a Child before Bronx Supreme Court Justice George Villegas. Bail was continued at $250,000 cash/$250,000 bond and the defendant is due back in court on May 15, 2019. 

 According to the investigation, the girl was reported missing in late December 2018, and the Federal Human Trafficking Task Force and the NYPD’s Bronx Vice Squad began a joint operation to find her. An Undercover NYPD Officer, posing as a John, contacted a phone number associated with the defendant and during the phone conversation, the defendant allegedly told the Undercover Officer that he would have to pay $100 for 30 minutes of sexual intercourse. They arranged to meet at the El Rancho Motel at 3701 White Plains Road. On the night of January 4, 2019, in front of the motel, the Undercover Officer was greeted by Hinton, who was with the young victim. After the Undercover paid $100, the defendant was arrested inside the motel lobby and the girl was rescued.

 District Attorney Clark thanked Detective Bekim Vucetaj, Detective Adrian Ramos, and Sergeant Donald Gannon, all of the Bronx Vice Squad, for their work on the case. District Attorney Clark thanked her Detective Investigator Jennifer Garcia, and Assistant District Attorney Stephen Knoepfler, Supervisor in the Criminal Enterprise Bureau, as well as Assistant District Attorney Jacqueline Wood and Trial Prep Assistant Davewin Meade, also of the Criminal Enterprise Bureau, for their assistance in the case. 

An indictment is an accusatory instrument and not proof of a defendant’s guilt

Woodlawn Town Hall Meeting by Dinowitz, Biaggi, Cohen, and Engel

  A Woodlawn Town Hall meeting with elected officials Councilman Andrew Cohen, State Senator Alessandra Biaggi, Assemblyman Jeffrey Dinowitz, and Congressman Eliot Engels went smoothly until there was a question about recently passed state legislation called the Reproductive Health Act. The RHA now allows for a fetus to be aborted much closer to the time of birth than before, which was part of the Progressive agenda by Governor Andrew Cuomo and the new Democratic controlled State Senate. 

  Abortion has long been a controversial point to many, especially in conservative areas such as Woodlawn. When the question came up State Senator Biaggi tried to explain the new law, but a woman then a man stood up to shout her down about killing babies now. For a short period of time Senator Biaggi had to stop as the pair kept interrupting her. Senator Biaggi was finally allowed to finish her comments, and then a well prepared Assemblyman Dinowitz read five points which he said was the new law. After that the Town Hall meeting returned to normal with local issues written on cards being read by Assemblyman Dinowitz's Chief of Staff Ms. Randi Martos. 

  Other questions were about the new LED street lights, local parks, immigration, schools, traffic, other new legislation recently passed in Albany, taxes, land use matters, and the upcoming state budget. 

Above - State Senator Alessandra Biaggi talking about the Reproductive Health Act.

Below - A woman holding a video tape of an abortion, and a man holding a bible kept interrupting Senator Biaggi claiming that babies would be aborted right before they were to be born. Senator Biaggi had to wait until their outbursts were over to continue.

Above - Assemblyman Dinowitz a veteran of many Town Hall meeting came well prepared as he spoke about the five points of the new Reproductive Health Act, and other topics that were asked.

Below - While most questions did not require an answer from Congressman Engel, his Chief of Staff Bill Weitz was well equipped to answer a question about immigration. 

MAYOR DE BLASIO ANNOUNCES NEW VISION ZERO ACTION PLAN TO MAKE MOST DANGEROUS STREETS SAFER

Using latest crash data, City to target 424 miles of streets where nearly half of pedestrian fatalities occur

  Mayor Bill de Blasio today released DOT’s new Borough Pedestrian Safety Plans, which target the next wave of streets and intersections the City will make safer for pedestrians, cyclists and drivers. The plans use the latest crash data, showing that just 7 percent of the city’s streets – 424 miles – are responsible for nearly half of all pedestrian fatalities. By the end of 2019, the City will change traffic signals on all the newly added corridors to discourage speeding, and give pedestrians exclusive crossing time at 300 intersections to prevent crashes. The new priority streets and intersections are the roadmap for future Vision Zero safety projects and enforcement – ensuring tools like speed cameras, police enforcement and re-engineering are applied where they’ll save the most lives.

The first Borough Pedestrian Plans, released in 2015, saw an average decline in pedestrian fatalities at targeted sites of 36 percent, driving the City’s record fatality declines. The City has addressed nearly all locations from the plans with some protective measures, and will continue to deepen those in the years ahead to keep driving down injuries and fatalities.

“We will never stop working towards our goal of Vision Zero and saving lives across the city,” said Mayor Bill de Blasio. “Using our data-driven approach, we have identified hotspots around the city that are driving the majority of traffic fatalities, and are implementing targeted plans there and across the city that will make our streets safer for all. After our success last year with the safest year on record, we will continue building towards a safer and fairer city for all.”

“Over the last four years, DOT’s groundbreaking Borough Pedestrian Safety Plans have enabled us to target our resources where they will save the most lives,” said DOT Commissioner Polly Trottenberg. “In these updated plans, we have used the freshest data to identify new crash-prone corridors and intersections most in need of our full menu of safety interventions.”

New Priority Locations

Using crash data, new Priority Corridors were added to the new Borough Safety Plans, including:

• Bronx: Westchester Avenue (3rd Avenue to Bronx River Avenue), Boston Road - 3rd Avenue to Bronx Park East, Soundview Avenue – (White Plains Road to Bruckner Boulevard)
• Brooklyn: Linden Blvd (Flatbush Av to Sapphire St), 8th Avenue – (39th Street to 73rd Street), Surf Avenue – (Ocean Parkway to Atlantic Avenue), Bedford Avenue – (Manhattan Avenue to Flatbush Avenue).
• Manhattan: Columbus Avenue (9th Avenue to Morningside Drive), York Avenue – (Sutton Place to the FDR), 10th Avenue (West Street to 59th Street)
• Queens: Rockaway Boulevard (Eldert Lane to 3rd Street), 37th Avenue – (114th Street to Woodside Avenue), 21st Street (50th Avenue to 20th Avenue)
• Staten Island: Targee Street - (Van Duzer Street to Richmond Road), Bradley Avenue – (Watchogue Rd to Brielle Avenue), Lincoln Avenue – (Richmond Road to Father Capodanno Boulevard)

In February 2015, DOT compiled data on crashes, deaths and serious injuries on our streets to create the Borough Pedestrian Safety Plans. These detailed, data-driven plans provided a new road map for Vision Zero, by identifying the most dangerous areas, intersections and corridors in the city. Since then, the Administration has made these areas the focus of its Vision Zero efforts. DOT has now addressed 90 percent of those intersections and 86 percent of the street-miles targeted in 2015 – leading to a 36 percent drop in pedestrian deaths at these locations, which is driving the downward trend in citywide traffic fatalities.

Using new data, DOT is identifying new Priority Locations around the city. Some locations are receiving more in-depth interventions than they had previously, while new locations will receive critical safety upgrades. Places where crashes declined by the greatest margins will continue to be closely monitored.

As part of the lookback on first half-decade of Vision Zero and the first installment of borough plans, DOT evaluated which treatments to keep a focus on while adding several new actions for 2019.

New Actions for 2019

• Add exclusive pedestrian crossing time (LPIs) at every feasible intersection on all new Priority Corridors by the end of 2019
• Modify signal timing to reduce speeding on all feasible new Priority Corridors by the end of 2019
• Launch Integrated Data-Driven Speed Reducer Program (speed humps & speed cushions)
• Track Vision Zero Violations at the Priority Corridors, Intersections, and Areas
• Launch a High Visibility Enforcement Program on Priority Corridors
• Launch a targeted Corridor Outreach Program
• Launch a Driveway Safety program to address issues with vehicles crossing sidewalks
• Conduct a comprehensive study of senior pedestrian injuries
• Collaborate with the Business Integrity Commission to improve the safety of commercial waste fleets

Actions To Be Maintained

• Implement at least 50 Vision Zero safety engineering improvements annually on the updated Priority Corridors, Intersections, and Areas citywide
• Add exclusive pedestrian crossing time to all feasible new Priority Intersections by the end of 2019
• Prioritize targeted enforcement on Priority Corridors, Intersections, and Areas annually
• Expand a bicycle network that improves safety for all road users
• Install expanded speed limit signage on all new Priority Corridors in 2019
• Target child and senior safety education at Priority Corridors and Priority Areas
• Coordinate with MTA to ensure bus operations contribute to a safe pedestrian environment

The borough plans helped direct the $1.6 billion in Vision Zero resources to targeted areas: new engineering, including safety projects, protected bike lanes and pedestrian head-starts; new education efforts, including work by Vision Zero Street Teams and visits to schools and senior centers; and new enforcement, including a record number of traffic summonses issued by NYPD officers and the addition of school-zone speed cameras.

Dramatic Reduction in Fatalities and Severe Injuries

The DOT plans saw dramatic reductions in the numbers of pedestrians killed or seriously injured (KSI) in areas that received Vision Zero treatments. Among the dozens of streets cited were the following examples.

Bronx: 50 percent reduction in pedestrian KSI from Baychester Ave, from Hammersley Ave to Hoxie Street (2 miles)

• Improvements included: Upgraded markings, New Pedestrian Crossings, Painted Curb Extensions, Pedestrian Refuge Islands, One-Way Conversion, Signal Timing Changes, Turn Bays, Turn Bans

Brooklyn: 50 percent reduction in pedestrian KSI on Bushwick Ave, from Maspeth Avenue to Jamaica Avenue (3.6 miles)

• Improvements included: Bike Friendly Parking Lane, Upgraded markings, New Sidewalk, Painted Median, Pedestrian Refuge Islands, Signal Timing Changes

Manhattan: 40 percent reduction in pedestrian KSI on Adam C Powell Blvd from Central Park North to W 155th Street (2.4 miles)

• Improvements included: Concrete Median Tips, Traffic-calming road diet which included the addition of bicycle lanes

Queens: 30 percent reduction in pedestrian KSI on Hillside Ave, from Myrtle Ave to Langdale Street (7.7 miles)

• Improvements included: Concrete Curb Extension, Concrete Medians, Concrete Triangle, Lane Removal, Signal Timing Changes, Turn Bays

Staten Island: 18 percent reduction in pedestrian KSI on Richmond Ave, from Morningstar Rd to Fresh Kills Br (4.4 miles)

• Improvements included: Bike Friendly Parking Lane Stripe, Concrete Median, Upgraded markings, Painted Median, Pedestrian Refuge Islands, Turn Ban

“The data for traffic injuries and fatalities due to traffic crashes has been surprisingly high as we begin 2019. I thank Mayor De Blasio and DOT Commissioner Trottenberg for focusing on expanding traffic safety measures throughout the five boroughs to enhance the safety of pedestrians and cyclists when encountering busy intersections, and overall reduce the speed of vehicles and limit traffic fatalities. These street improvements will positively impact all residents. We must continue to move forward to meet our City’s Vision Zero goals by 2030 and as Chair of the Council’s Transportation Committee, I remain committed to that effort,” said Council Member Ydanis Rodriguez.

Another Violation to my Civil Liberties and Constitutional Rights

WHAT YOU SHOULD KNOW
By Councilman,  Rubén Díaz Sr.
District 18 Bronx County, New York

You should know that for more than 16 years I have written a column called “What You Should Know”.   I write this column as a way to keep my constituents and community at large informed on my point of view regarding pieces of legislation, actions and events that may in one way or another our community especially my constituents.  

For more than 15 years I sent out my column using the email address assigned to me by The New York State Senate. However, when I became a New York City Councilmen in 2018 that changed.  

At the City Council, I was assigned a new email address, as are all members of the city council.   Those e-mail addresses are a privilege granted to all members to help us communicate with our constituencies.    As soon as I got to the City Council the first thing launched at me was an investigation, due to a complaint filed by an “unknown” source.     I was then prevented from using my City Council e-mail as a way to communicate with my constituents which I did through my “What You Should Know Column”.  

I was then forced to use my own funds to enter into a contract for a private email server.   So I entered into a contract with a private e-mail company called “Mailchimp.com” and acquired my private e-mail.

Now, ladies and gentlemen, someone got to them, and again through “unknown” sources filed complaints which have led “mailchimp.com” to cancel my contract, blocking my ability from emailing my column.     Clearly, I am being censored.   This is in violation of my civil liberties, and constitutional rights to free speech, freedom of expression, and religious freedom.

It is important for you to know that stipulated at the bottom of all my emails there is an “unsubscribe” option.   Any recipient can “unsubscribe” and will never receive another one of my emails by simply clicking on the“unsubscribe” option.   So why file a complaint to shut me down?

Meanwhile, we have people, who without impunity, can use social media, emails, tweets, and even their City Council email addresses to spew their venom instigating violence against me, again without impunity but that’s ok.  

Time after time my life has been placed in danger, my constitutional rights, and civil liberties are and have been violated, and my words taken so out of context that even friends have joined my adversaries.   

I will not dwell on their actions.   May God’s blessings be upon them.   Meanwhile, I know that I will continue to be the subject of these abuses because I will not be a part of “group think” and I will not sell out on my beliefs and principles.