A.G. Schneiderman Announces Settlement With Synergy Fitness Clubs For Deceptive And Illegal Practices; Highlights Tips For Consumers

Settlement Reached With Health Club With Six Locations In NYC & Nassau County

    Attorney General Eric T. Schneiderman today announced a settlement with nine Synergy Fitness health clubs located in New York City and Nassau County to resolve his investigation of their compliance with the state’s Health Club Services Law.  The office received numerous consumer complaints against Synergy alleging the health clubs improperly billed consumers for memberships, misrepresented and unfairly applied their cancellation policies, charged fees that were not part of the contract and were unresponsive to consumer complaints. The health clubs agreed to modify their contracts to comply with New York State law and to pay $60,000 in penalties and fines. 

 “Consumers join health clubs to get fit, not to spend energy avoiding improper fees or dealing with harassing collection calls concerning lawfully cancelled contracts,” said Attorney General Schneiderman.  “We won’t tolerate companies that employ opaque and illegal practices to line their pockets at the expense of New Yorkers.”

The complaints the office received from consumers about Synergy included allegations that:

• Synergy billed them without their consent or after the expiration or cancellation of their membership term. 
• Synergy’s collection agent harassed them seeking collection on contracts that were cancelled years earlier.   
• Synergy misrepresented their cancellation policies and failed to honor consumers’ valid cancellation requests. 
• Synergy added fees not provided for in their Membership Agreement.   

In addition, Synergy’s Membership Agreement contained provisions and terms that permitted automatic renewals without the consent of the consumer and failed to use the language mandated by statute for notice of cancellation without penalty in violation of the Health Club law.  Synergy also failed to post notices informing customers whether the facility filed a bond with the Secretary of State and how the consumer may obtain proof of the club’s compliance with the law. 

Three of the settling health clubs are no longer in operation.  The six in operation are:

• Synergy Fitness Astoria, Inc., 23-35 Broadway, Astoria, NY 11106
• 1781 Fitness Corp., 1781 Second Avenue, New York, NY 10128
• Pekic Fitness, Inc., 184 Lexington Avenue, New York, NY 10016
• Garden City Fitness Corp., 190 Broadway, Garden City, NY 11040
• Farm Fitness, Inc., 410 Conklin Street, Farmingdale, NY 11735
• ABDO Fitness Corp., 244 East 14^thStreet, New York, NY 10003

Under the terms of the settlement, in addition to complying with the terms of the Health Club law, the Synergy Clubs agreed to, among other things:

• Permit consumers to cancel their Membership by providing reasonable notice to Synergy according to the terms of the contract.  
• Verify all outstanding balances before they are sent for collection to a third party and transmitting proof of any outstanding balances to the third party collection agency.
• Cease and desist from engaging in harassing debt collection practices or in any collection activity, including referring to a debt collector, for any services provided after a contract has been cancelled.
• Establish a review procedure to investigate complaints received from consumers.   

The clubs will also have to provide restitution to consumers who can demonstrate that since January 1 2014, they paid for health clubs services after cancelling their membership. Consumers who seek restitution should contact the club with which they contracted or file a complaint online with the Attorney General’s office or call 1-800-771-7755 by December 1, 2016.

The Attorney General previously reached settlements with nearly 100 health clubs requiring them to modify their contracts to comply with New York law.

Attorney General Schneiderman offered the following tips to consumers when considering a health or fitness club:

• Before enrolling, ask about fees and when they must be paid, hours of operation, variety and frequency of classes and ability to use multiple locations.
• Do not give in to high pressure sales tactics or feel obligated to sign a contract immediately.  Tell the health club representative you need time to think about joining the club and ask for free passes to determine if the club is right for you. Talk to other members.
• If a health club requires you to pay a down payment or pre-pay your dues, ask if it is bonded or has filed the proper financial security to protect you against losses of pre-paid membership dues.  A notice indicating whether it is bonded must be posted conspicuously at the club’s entrance.  (A health club is exempted from this requirement under certain limited circumstances.) To verify a club's compliance with this requirement, consumers can call (518) 474-4429, fax (518) 473-6648 or write to the New York State Department of State, Division of Licensing Services at 84 Holland Avenue, Albany, New York 12208.
• Look for health clubs that allow members to make monthly dues payments and permits cancellation for any valid reason
• Make sure you can afford the monthly payments.  Monthly gym fees add up and after any introductory periods are over, the price could jump higher than your budget can handle.
• Read the contract carefully and make sure that all verbal promises made by the salesperson are included.

A.G. Schneiderman Announces $100 Million Multi-State Settlement With Barclays Over Role Artificially Manipulating Interest Rates

  Manipulated Interest Rates Hurt Government And Not-For-Profit Entities In New York And Across The Country 

   Attorney General Eric T. Schneiderman today announced a $100 million, 44-state settlement with Barclays Bank PLC and Barclays Capital Inc. for fraudulent and anticompetitive conduct involving the manipulation of U.S. Dollar (USD) LIBOR (the London Interbank Offered Rate) and other benchmark interest rates. Benchmark interest rates affect financial instruments worth trillions of dollars and have a widespread impact on global markets and consumers because LIBOR may determine how much they will be paid on their investments. New York and Connecticut led the working group of State Attorneys General investigating Barclays.  

“There has to be one set of rules for everyone, no matter how rich or how powerful, and that includes big banks and other financial institutions that engage in fraud or impair the fair functioning of financial markets,” said Attorney General Schneiderman. “As a result of Barclays’ misconduct, government entities and not-for-profits were defrauded of funds that otherwise could have been used to benefit the people of New York.”

During the relevant time period, a panel of 16 banks made USD LIBOR submissions that were supposed to reflect borrowing rates in the interbank market. A daily LIBOR rate was calculated by averaging the middle eight submissions. The investigation found that, at times during the financial crisis period, roughly from 2007-2009, Barclays managers told LIBOR submitters to lower their LIBOR settings to avoid the appearance that Barclays was in financial difficulty and needed to pay more than some of its competitors to borrow money. The LIBOR submitters complied with the instructions and suppressed their LIBOR submissions. Also, from 2005 to 2007 and continuing at least into 2009, Barclays’ traders at times asked Barclays’ LIBOR submitters to change their LIBOR settings in order to benefit the traders’ positions, and the submitters often followed through on the requests, instead of setting LIBOR based on Barclays’ borrowing costs. Barclays also believed that other banks’ LIBOR submissions likewise did not reflect their true borrowing rates, and that therefore, published LIBOR did not reflect the cost of borrowing funds in the market, as it was supposed to do.

Government entities and not-for-profit organizations in New York and throughout the U.S., among others,  were defrauded of millions of dollars when they entered into swaps and other financial contracts with Barclays without knowing that Barclays and other banks on the USD-LIBOR-setting panel were manipulating LIBOR—a price component -- and, at times, colluding with other banks.

These entities with LIBOR-linked swaps and other investment contracts with Barclays will be notified if they are eligible to receive restitution from a settlement fund of $93.35 million. The balance of the settlement fund will be used to pay expenses of the investigation and for other uses consistent with state law.

Barclays is the first of several USD-LIBOR-setting panel banks under investigation by the State Attorneys General to resolve the claims against it, and Barclays has cooperated with the investigation from the outset. The Attorney General’s Office benefits from the information and evidence provided by corporations that choose to cooperate with the Attorney General’s investigations. Such cooperation can facilitate civil enforcement efforts, including restitution for victims of the offense.

Other states joining New York in the Barclays settlement include: Alabama, Alaska, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin & Wyoming. The investigation into the conduct of several other USD LIBOR-setting panel banks is ongoing.

The New York Attorney General’s investigation into LIBOR manipulation is led by Antitrust Deputy Bureau Chief Elinor R. Hoffmann, Assistant Attorney General Emily Granrud, Volunteer Assistant Attorney General Alex Cohen and Legal Assistant Arlene Leventhal of the Antitrust Bureau, and Senior Enforcement Counsel Roger Waldman and Assistant Attorney General Desiree Cummings of the Investor Protection Bureau.  Director of Economics, Guy Ben-Ishai, also provided valuable assistance. The Antitrust and Investor Protection Bureaus are part of the Economic Justice Division, which is led by Executive Deputy Attorney General for Economic Justice Manisha M. Sheth.

JASA's upcoming advocacy trainings and seminars

Learn -- Then Act! Register for JASA's Advocacy Trainings & Seminars JASA empowers older adults to advocate for issues of importance to themselves, their peers,  and generations to follow.  CLICK HERE TO REGISTER! Institute for Senior Action (IFSA) Workshops IFSA is a comprehensive education, leadership, and advocacy training program.   Advanced Life Planning  Tuesday, August 23 Presentation by NY Legal Assistance Group (NYLAG) Long Term Care and Supplemental Needs Trusts Tuesday, August 30 Presentation by NYLAG Senior Housing and Tenant Rights Monday, September 19 Presentation by Met Council on Housing Benefits and Entitlements + Supplemental Nutrition Assistance Program  Friday, October 7  Presentation by NYC Human Resources Administration The Senior Initiative: Legal Issues and Resources Thursday, December 15  Presentation by JASA Legal Services IFSA takes place from 10:00 - 11:30 am at JASA Cooper Square, 200 East 5th Street, Manhattan Fee: $30 for the full series (or $7 per class), includes light refreshments Navigate New York Seminars: Inside the Government Offices that Make NYC Tick Engage in meaningful dialogue with the leaders and government agencies who have significant impact in our City. Michael J. Ryan, New York City Board of Elections  Thursday, September 29  The BOE is responsible for conducting fair and honest elections, enfranchising all eligible New Yorkers to register to vote and to practice those rights, and voter outreach and education. Brian McCullough, New York City Civilian Complaint Review Board Friday, November 18  CCRB is an independent agency empowered to receive, investigate, mediate, hear, make findings, and recommend action on complaints against New York City police officers.  Seminars take place from 10:00 - 11:30 am at UJA-Federation of New York, 130 East 59th Street, Manhattan Fee: $15 for each seminar, includes breakfast  FREE Medicare Seminar Everything you need to know during the open enrollment period.  Presentation by Eric Hausman, Consultant to the New York City Department for the Aging Health Insurance Information Counseling and Assistance Program Thursday, December 1 10:00 - 11:30 am  at UJA-Federation of New York, 130 East 59th Street, Manhattan RSVP required for all programs -- Click Here For more information contact ifsa@jasa.org, 212.273.5353, or visit www.jasa.org

KLEIN ANNOUNCES $100,000 IN FUNDING FOR INNOVATIVE CULTURAL PROGRAM TO EDUCATE YOUTH

State Senator Jeff Klein, joined by Assemblyman Marcos Crespo and the Afro Latin Jazz Alliance, hosted a free concert, featuring the world-renowned Arturo O’Farrill and the Afro Latin Jazz Ensemble, at Soundview Park on Thursday.

The concert launched a partnership between the Afro Latin Jazz Alliance and local school children. Senator Klein announced $100,000 in state funding to the group which will provide musical education to students in the area and bring cultural entertainment to the community.

“I’m so proud that with my $100,000 in funding our children will benefit from the Afro Latin Jazz Alliance which will bring music and heritage into the classroom. These resources will help our youngsters become proficient in musical instruments, learn about musical theory, and study the rich culture and ancestry of Afro Latin Jazz music.  Our local families will enjoy cultural entertainment throughout the year as well,” said Senator Jeff Klein.

“I applaud Senator Jeff Klein leading the way in securing the important funding to expand arts and music education throughout our communities.  This initiative responds to the pleas of the parents and more importantly the needs of our children, giving them a fuller educational experience and enhancing their academic outcomes,” said Assemblyman Crespo.

“On behalf of the Board of Directors of the Afro Latin Jazz Alliance we thank you and acknowledge Senator Jeff Klein for his contribution to ALJA for programming in the Bronx.   The Afro Latin Jazz Alliance is dedicated to preserving the music and heritage of Afro Latin jazz, supporting its performance for new audiences and educating young people in the understanding and performance of this important cultural treasure. We are honored to consider Senator Klein a partner in our efforts to ensure the organization’s mission and long-term goals to move the Latin jazz genre forward. Thank you again for supporting the Afro Latin Jazz Alliance,” said Marietta Ulacia, Executive Director, Afro Latin Jazz Alliance.

The funding, secured by Senator Klein, will be used to provide students with musical instruments, as well as exciting classes focused on Afro Latin Jazz, musical theory, and more. The Afro Latin Jazz Alliance was founded in 2007 by Grammy-award winning, pianist and composer Arturo O’Farrill. This organization’s mission is to preserve the music and heritage of big band Latin Jazz.

(l-r): Arturo O’Farrill, Assemblyman Marcos Crespo, and Marietta Ulacia join with Senator Jeff Klein as he announced $100,000 in funding for the Afro Latin Jazz Alliance.

ENGEL ACCEPTING DONATIONS OF SCHOOL SUPPLIES FOR HOMELESS CHILDREN AT BRONX OFFICES

   Congressman Eliot Engel and the Coalition for the Homeless are once again working together to help New York City's homeless children get ready for school by taking part in "Project: Back to School," a drive to collect school supplies for the more than 23,000 school age children living in the city's homeless shelters.

Donations will be accepted from August 10^th to August 31^st at Congressman Engel's Riverdale office, located at 3655 Johnson Avenue, Bronx, NY 10463, and at the Congressman's Co-op City office, located at 177 Dreiser Loop, Room 3, Bronx, NY 10475. The Coalition for the Homeless is collecting supplies for students grades K-12. More information can be found on the project's website atwww.coalitionforthehomeless.org/backtoschool

"As a former school teacher this great initiative is particularly close to my heart, and I am so proud to support it once again," Congressman Engel said. "My office teams up with the Coalition for Project: Back to School every year, and I am always blown away by the response from the community. The people in my district are incredibly giving and it is through their kindness that so many under privileged kids are given the tools to succeed in the classroom. I have no doubt this year’s drive, much like last year’s and the year before, will be a big success."

Items being collected for this year’s drive include:

Early Years (Pre-K to 1st Grade)

• Backpack

• #2 Pencils

• Hard Pencil Case

• Crayons

• Washable Markers

• Elmer’s Glue

• Glue Stick

• Composition Book

• Eraser

• Safety Scissors

Elementary School (2nd to 5th Grades)

• Backpack

• # 2 Pencils

• Pencil Sharpener

• Soft Pencil Case

• Glue Stick

• Composition Notebook

• Colored Pencils

• Crayons

• Eraser

• Safety Scissors

• Ruler

Middle School (6th to 8th Grades)

• Backpack

• # 2 Pencils

• Pencil Sharpener

• Glue Stick

• Composition Notebook

• 1” Binder

• Eraser

• Safety Scissors

• Ruler

• Pocket Folders

High School (9th to 12th Grades)

• Backpack

• Composition Notebook

• 1.5” Binder

• Ruled Paper

• Scissors

• Ruler

• Pocket Folders

• Scientific Calculators

NYCC Eastern Championships of Cosplay Returns to New York Comic Con 2016

RETURN OF THE NEW YORK COMIC CON EASTERN  CHAMPIONSHIPS OF COSPLAY

NYCC Hosts the Largest and Most Prestigious Costume  Contest on the East Coast October 8

 The NYCC Eastern Championships of Cosplay will return to the Big Apple Saturday, October 8, presented by Autodesk©. The Eastern Championships of Cosplay is the most prestigious costume contest on the east coast and is the 10th stop in ReedPOP’s 2016 Global Championships of Cosplay circuit. Thousands of NYCC Fans will watch in person while Fans from around the world will tune in via the Official NYCC Livestream to cheer on their favorite cosplayers. The winner of the NYCC Eastern Championships of Cosplay will win cash and prizes as well as a trip to Chicago for C2E2 April 21-23, 2017to compete in the C2E2 Crown Championships of Cosplay, the last stop in the Global Championships of Cosplay. 

The Global Championships of Cosplay includes cosplay competitions taking place at ReedPOP events across the globe including France, Australia, India, Austria, Singapore, Indonesia and China. Each regional champion will win a trip to compete in the C2E2 Crown Championships of Cosplay in 2017, the final stop in the Global Championships of Cosplay. There, international cosplay champions will battle it out with local competitors on stage in front of thousands of Fans for ultimate cash prizes as well as the title of Global Champion of Cosplay 2017. 

Competitors participating in the NYCC Eastern Championships of Cosplay will be evaluated on four skill categories for the competition including Needlework, Armor, FX and Larger than Life. Their full cosplay will be assessed regardless of which category competitors select in the application.

• Needlework – Cosplay constructed primarily through sewing, stitching, embroidery, etc. 
• Armor – Cosplay constructed primarily by molding and shaping its outer layers using acrylic, EVA foam, Worbla, Wonderflex, cardboard, etc.
• FX – Cosplay that primarily features animatronics, optical effects, mechanical effects, special effects makeup, prosthetics, etc.
• Larger than Life – Cosplay that encloses the maker and extends their limbs by at least 1ft in length.  A costume that is REALLY FREAKING BIG.  

“Cosplay is an amazing part of our events and the NYCC Eastern Championships of Cosplay is one of the biggest stages where competitors can show off their unique and incredible skills,” said Lance Fensterman, Global Senior Vice President of ReedPOP. “We are excited to give these cosplayers a chance to be rewarded for all their talents while giving the Fans, both on-site and online, the opportunity to watch in awe and admire these talented individuals.”

The NYCC Eastern Championships of Cosplay is a celebration of the cosplay community’s passion for pop culture. It is a craftsmanship award show with a pre-judging session and a stage display. All entries must represent a character or element from the pop culture realm. Each entrant will submit an application to be reviewed by the NYCC team.  Entrants may only enter one costume into the competition. Accepted contestants will be pre-judged for craftsmanship off stage and then battle it out on the Main Stage for cash prizes and ultimate bragging rights as the NYCC Eastern Champion of Cosplay.

Click on the button below to submit your online application for the NYCC Eastern Championships of Cosplay. Submissions will close on Friday, September 9, 2016 at 11:59 PM EST.

Ready to apply? 

Read the complete rules and entry form for the NYCC Eastern Championships of Cosplay 

Apply for the NYCC Eastern Championships of Cosplay 

STATEMENT FROM HECTOR RAMIREZ CAMPAIGN AFTER WINNING LEGAL BATTLE TO STAY ON THE BALLOT FOR ASSEMBLY DISTRICT 86

   “After fighting yet another attempt by the gatekeepers of the deplorable status quo that keeps impoverishing our neighborhoods by denying the people of District 86 to select their representation to the New York State Assembly, we are happy to inform you that on September 13 Democrat Hector Ramirez will be on the ballot. Despite all the dishonest tactics and effort to keep manipulating the system to benefit a fraudulent incumbent, the Board of Elections and The Supreme Court decided that Ramirez’s signatures are valid, allowing him to move ahead with his candidacy and attempts, once again, to give the voice that the district deserves in Albany. This is a resilient community and we will not rest until we allow the voters of the district to select its own leaders by demanding and participating in fair and free elections.”

The Democratic Primary will be held on September 13, 2016.

News From Attorney General Eric T. Schneiderman

   

Stopping Zika Prevention Scams

Attorney General Schneiderman issued cease and desist letters to 7 companies for deceptively marketing products as “Zika preventive” that do not prevent or protect consumers against Zika virus or mosquitoes. The AG urged New Yorkers to only use products that contain ingredients, such as DEET, that are proven to be effective. 

Less than 24 hours after the Attorney General commenced action, six of the seven companies removed misleading advertising or completely removed their products online. 

Delivering Justice to Sandy Victims 

On Monday, AG Schniederman charged an engineering company with a 50-count indictment for allegedly altering assessment of damage reports of residential properties from Superstorm Sandy. Additionally, the Attorney General released a report that identified fundamental flaws in the National Flood Insurance Program and offered recommendation for reforms to ensure a more transparent insurance claims process for homeowners.

Have a question, comment, or complaint? Click here. You can also learn more about the various initiatives of the Attorney General's office by visiting our website at ag.ny.gov. You can also call our General Hotline: 800-771-7755.