Monday, February 13, 2017

CITY COUNCIL PASSES LEGISLATION CO-SPONSORED BY COUNCIL MEMBER COHEN, EXTENDING INCOME ELIGIBILITY REQUIREMENTS FOR THE SCRIE/DRIE PROGRAMS



 The New York City Council unanimously passed legislation co-sponsored by Council Members Andrew Cohen and Margaret Chin, to extend income eligibility requirements for those who qualify for the Senior Citizen Rent Increase Exemption and Disability Rent Increase Exemption programs through the year 2020.  An expansion in 2014 raised the annual income eligibility from $29,000 to $50,000, providing rent freezes to tens of thousands more individuals, but due to a technicality, these vital protections could have been lost in the absence of this legislation.
   
“There is no question that housing costs are rising dramatically in New York City,” said Council Member Andrew Cohen. “The SCRIE/DRIE income threshold must keep pace with the times, or we risk jeopardizing the housing security of our most vulnerable populations. This legislation extends the current income eligibility limits to ensure that our seniors and New Yorkers with disabilities continue to be protected from future rent increases.”

The NYC Rent Freeze Program was established to protect low-income seniors and tenants with disabilities from the rent increases that otherwise are imposed for rent-regulated housing. New Yorkers who meet the income requirements are eligible for benefits under the Rent Freeze Program if they rent an apartment regulated by the State Division of Housing and Community Renewal or within a Mitchell-Lama Development, and spend more than one-third of their monthly household income on rent. For those who qualify, rent is frozen at time of application approval, protecting participants from future increases, and participating landlords receive a property tax credit to cover the increase in rent.

Sunday, February 12, 2017

Comptroller Stringer Releases “ClaimStat 2.0” Report and Annual Claims Report


Comptroller’s Office enters into partnerships with DEP, DCAS, DOT, and DSNY

  The number of claims filed against New York City dropped from 33,531 in Fiscal Year 2015 to 32,640 in Fiscal Year 2016, buoyed by progress at the NYPD, which saw 861 fewer claims than in the previous year, according to two reports released today by New York City Comptroller Scott M. Stringer. The reports, “ClaimStat 2.0” and the Comptroller’s Annual Claims Report, highlight strategies the Comptroller’s Office has implemented to reduce claims and limit the cost of settlements, which reached over $1 billion last year.
Launched in 2014 by Comptroller Stringer, ClaimStat is a data-driven initiative that identifies practices or policies that generate costly or preventable lawsuits against the City. By addressing these claims hotspots, City agencies can act to save the City money and provide better, safer services for New Yorkers.
“There will always be claims against New York City. The question is how we use data to be smarter in our approach.  Every agency should be working to reduce claims, and we believe a numbers-driven approach can help,” New York City Comptroller Scott M. Stringer said. “Over the last two years, the police department has made great strides — and I thank the men and women of the NYPD for all of their hard work.”
In 2014, shortly after the launch of ClaimStat, the Comptroller’s Office entered into a real-time data sharing agreement with the NYPD. Since then, tort claims against the department have fallen 20.3% — upending an eight-year trend of rising claims filed against the NYPD. This year, that progress has filtered down to the precinct level. In 2016, 65% of precincts saw fewer personal injury claims per 100 crime complaints than in the previous year. The department’s progress can be attributed to new policies, procedures, and training — in addition to the NYPD’s utilization of Comptroller-provided data.
For example, the 44th Precinct in the South Bronx — which in 2015 led the City with 17.04 police action claims per 100 crime complaints — reported only 8.7 claims per 100 crime complaints this year, a drop of nearly 50%. Despite these successes, some precincts — especially those concentrated in the South Bronx, Upper Manhattan, and Central Brooklyn — still show a high rate of police action claims, even after adjusting for crime rates.
The Comptroller’s Office has entered into similar data-sharing agreements over the last two years with four additional agencies: the Department of Citywide Administrative Services, the Department of Transportation, the Department of Environmental Protection, and the Department of Sanitation. These partnerships will allow the agencies and the Comptroller’s Office to share critical information, and work together to reduce claims and settlement costs in the short-term and the long-run.
Released today, the Comptroller’s Annual Claims Report for Fiscal Year 2016 highlights the drop in claims filed in Fiscal Year 2016. In FY 2016, 26,800 personal injury and property damage claims — known as tort claims — were filed, representing a decline of 2% from FY 2015.  Yet, tort claim settlements and judgments resulted in payouts totaling $629.5 million — nearly a 7% jump from FY 2015 payouts.  This marks the fourth consecutive year of rising settlement and judgment costs.  In FY 2016, the number of non-tort claims filed — such as contract disputes, equitable claims, and refund claims — decreased to 5,840, a 5% drop from FY 2015.  Non-tort claim settlements and judgments rose to $380.9 million, a 3% increase from FY 2015. The Comptroller’s Office also continued its strategy of settling meritorious high-exposure claims before costly court cases. Pre-litigation settlements in FY 2016 included wrongful conviction claims by Roger Logan ($3.8 million) and Shabaka Shakur ($3.6 million), and claims by the Estate of Eric Garner ($5.9 million).
“That the number of claims is declining is encouraging, and although it may take several years to realize, the reduction in current claims filed should reduce costs down the road. Right now, we are settling old cases that are driving up current payouts, which is one factor increasing the overall cost,” Comptroller Stringer said. “The work we’re doing will ultimately save taxpayer dollars in the long-term, and we’re going to continue to collaborate with agencies to equip them with the tools they need to address these challenges. These new partnerships will build on that model, and help us continue to rein in claims and settlement costs.”
Additional data in ClaimStat 2.0
NYPD Claims Dropped for the Second Year
  • The number of claims filed against the NYPD dropped by 10% in Fiscal Year 2016, falling from 8,423 to 7,562.
  • Since 2014, the number of claims filed against the department has decreased by 20.3% — effectively bucking an eight-year trend.
  • In 2016, 65% of precincts saw fewer personal injury claims per 100 crime complaints. Despite these successes, some precincts still show a high rate of police action claims, even after adjusting for crime rates.
Additional Data in FY 2016 Annual Claims Report
Decline in Settlements and Judgments for Claims that Occurred Before 2007
Settling claims that were filed before 2007 cost the City $40.7 million in FY 2016, down from $60.6 million paid out for older legacy claims in FY 2015. The City also settled a number of historical claims against the NYPD. These high-exposure claims, in many of which the underlying crime or action occurred more than a decade ago, caused a spike in the NYPD’s settlement outlays. Roughly one-third of the total cost of NYPD settlements – more than $85 million – came from these claims, including:
  • Actions filed by the families of murder victims from the 1980s and 1990s, alleging involvement of the “Mafia Cops.” These cases settled for $13.5 million;
  • Five wrongful conviction claims from the 1995 “Soundview Murders,” which settled for a combined total of $40 million;
  • Alan Newtown’s $12.1 million wrongful conviction settlement involving a rape and assault that occurred in 1984; and
  • Attorneys’ fees for the “Stop and Frisk” litigation (Floyd v. City of New York), which totaled $11.3 million.
Pre-litigation Settlements Helped Avoid Costly Litigation and Trials
  • In FY 2016, the Comptroller’s Office continued its strategy of settling high-exposure claims before litigation starts to avoid the risks of high verdicts and judgments. This conserves the City’s legal resources, saves taxpayers money, and provides quicker resolution for claimants.
  • Two wrongful incarceration cases were settled in FY 2016, awarding Roger Logan and Shabaka Shakur $3.8 million and $3.6 million, respectively.
  • The Comptroller’s Office also reached a pre-litigation settlement with the Estate of Eric Garner for $5.9 million. 
Sidewalk Claims Filed and Payouts Drop 
  • In FY 2016, sidewalk claims filed decreased to 2,378, down from 2,559 claims in FY 2015. Sidewalk claims paid out in FY 2016 fell to $31.8 million, a 20% drop from FY 2015.
Department of Correction Claims continued to surge
  • In Fiscal Year 2016, the number of claims filed against DOC jumped 25%, surging from 3,462 to 4,321.
  • The DOC has faced a steady increase in claims since 2013. In just three years, the number of claims filed has jumped 97%. 
Health + Hospital Claims dropped, but malpractice claims rose
  • There were 885 claims filed against NYC Health + Hospitals in FY2016, down from 905 the year before.
  • While the overall number of claims decreased, the number of medical malpractice claims filed against acute care hospitals increased by 6%.
Claim Trends by Borough
  • In a borough-by-borough breakdown of tort claims filed in FY 2016, the Bronx had the most claims filed with 7,546 and Staten Island had the fewest tort claims filed with 1,224.
  • In FY 2016, the Bronx had 6,351 personal injury claims filed, the most of any borough; Queens had 2,114 property damage claims filed, the most of any borough. The total number of tort claims filed by borough in FY 2016 were:
  • The Bronx with 6,351 personal injury claims filed and 1,195 property damage claims filed.
  • Brooklyn with 4,726 personal injury claims filed and 1,946 property damage claims filed.
  • Manhattan with 3,568 personal injury claims filed and 1,476 property damage claims filed.
  • Queens with 2,514 personal injury claims filed and 2,114 property damage claims filed.
  • Staten Island with 608 personal injury claims filed and 616 property damage claims filed.
To read the full “ClaimStat 2.0” report, click here.
To read the full Annual Claims report, click here.

STATEMENT FROM BP DIAZ RE: 'Right to Counsel'


  “A 'right to counsel' for tenants in housing court has long been a priority of my administration. Today’s announcement is a victory for the elected leaders and advocates who have made the case that providing tenants with legal representation will help level the playing field between them and their landlords and, most importantly, keep New Yorkers in their homes.

“Research shows this proposal would be cheaper than funding shelter beds and other services for tenants who might otherwise become homeless. With several major rezonings under consideration across the five boroughs, including the administration’s proposal for the Jerome Avenue corridor, it is imperative that we provide tenants with the tools they need to stay in their communities during times of transformation. Recognizing a tenant’s 'right to counsel' in housing court is a tremendous step towards increased stability in our neighborhoods.

“I would like to especially congratulate Council Member Mark Levine, the prime sponsor of ‘right to counsel’ legislation, for his efforts to bring this program to New York City. I look forward to working with Council Member Levine and others on the implementation of this program,” said Bronx Borough President Ruben Diaz Jr.

EDITOR'S NOTE:

I often wonder why only certain borough presidents are mentioned in press releases from Mayor Bill de Blasio, and not once do I see the name of Bronx Borough President Ruben Diaz Jr.  That is why in press releases from the mayor you will not find on this blog names of only certain elected officials. 

That is also why Bronx Borough President Ruben Diaz Jr. has to put out his own statements such as this.

Mayor Bill de Blasio why will you not include statements from Bronx Borough President Ruben Diaz Jr. in your press releases, when you include statements from other borough presidents? 


MAYOR DE BLASIO AND SPEAKER MARK-VIVERITO RALLY AROUND UNIVERSAL ACCESS TO FREE LEGAL SERVICES FOR TENANTS FACING EVICTION IN HOUSING COURT


Additional $93 million provides all NYC tenants facing eviction access to free legal advice and low-income tenants with full legal representation

Biggest city to offer universal access, available at the City’s Housing Court and through 311

   Mayor Bill de Blasio and City Council Speaker Melissa Mark-Viverito today announced that, for the first time, the City will fund universal access to legal services for tenants facing eviction in New York City Housing Court. A $93 million allocation doubles the Administration’s existing funding for tenant legal services. Legal services have proven effective at reducing unlawful evictions and preventing displacement. Since beginning an unprecedented expansion of tenant legal aid two years ago, evictions have dropped by 24 percent.

“We are the biggest city in the country to level the playing field between tenants and landlords in housing court. To anyone being forced out of their home or neighborhood, we are fighting for you. This is still your city,” said Mayor Bill de Blasio

“Bringing more justice to vulnerable New Yorkers is a hallmark of this City Council,” said Speaker Melissa Mark-Viverito. “Since passing landmark legislation in 2015 to create the Office of the Civil Justice Coordinator, the Council has tirelessly worked to figure out how to best provide legal representation to all low-income New Yorkers facing eviction. Today, we're closer than ever to realizing this goal. The groundbreaking legislation outlined by the City Council and the Mayor will ensure that no low-income New Yorker is forced from their home without legal representation.

“This historic access to counsel program builds on the work done to protect tenants since 2014 though the Office of Civil Justice at the Department of Social Services, which has already increased the number of tenants protected by a lawyer in Housing Court from 1 percent to 27 percent and helped reduce evictions by 24 percent,” said Department of Social Services Commissioner Steven Banks.

The new funds are on top of the City’s unprecedented $62 million-a-year commitment to expand legal services for tenants, which launched in 2014. The new funds will be phased in over the next five fiscal years, starting with $15 million in Fiscal Year 2018, to reach $93 million by 2022. At full implementation, the City’s investment in anti-eviction legal services will total $155 million.

The City Council will memorialize the program in legislation.

Since January 2014, Administration-funded legal service programs have served more than 34,000 households and assisted more than 100,000 New Yorkers.

The number of tenants in Housing Court with legal representation has risen to 27 percent, up from 1 percent in 2013. Evictions by City Marshals have decreased 24 percent, representing more than 20,000 New Yorkers who were able to stay in their homes in 2015.


Universal access will provide free legal representation in court to New Yorkers with household incomes below roughly $50,000 (200 percent of the federal poverty level for a family of four), and legal counseling to those earning more. The City estimates 400,000 New Yorkers will be served under the program every year at full implementation.


The expanded tenant protection initiative comes on the heels of Mayoral announcements this past week to boost the creation of affordable housing for lower income seniors, veterans and working families under Housing New York, the plan to build or preserve 200,000 units of affordable housingin 10 years. The Mayor is also pushing in Albany for a Mansion Tax on the sale of luxury homes to fund rental help for more than 25,000 seniors struggling to pay their rent each month.

Saturday, February 11, 2017

NARCOTICS DEALER CHARGED IN MANHATTAN FEDERAL COURT FOR OVERDOSE DEATH


   Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent-in-Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a complaint charging VICTOR PETERSON, 54, with selling fentanyl-laced heroin that resulted in the death of a 39-year-old Upper West Side man.

The complaint alleges that, on or about October 20, 2016, PETERSON distributed heroin laced with fentanyl that resulted in the death of Kevin Coombs, age 39, of Manhattan. The complaint also alleges that PETERSON sold heroin and crack cocaine to undercover NYPD officers on other occasions. PETERSON was arrested this morning and will be presented today before United States Magistrate Judge James L. Cott. PETERSON faces a mandatory minimum term of 20 years in prison.

Manhattan U.S. Attorney Preet Bharara said: “The opioid abuse epidemic has claimed far too many lives, and 39-year-old Kevin Coombs was one such life cut short. As alleged, Victor Peterson sold the fentanyl-laced heroin that tragically killed Kevin Coombs. Thanks to the outstanding partnership with the DEA and the NYPD, we continue to combat the deadly opioid crisis one alleged drug dealer at a time.”
DEA Special Agent-in-Charge James J. Hunt said: “Last year the CDC announced that there were over 52,000 fatal drug overdoses in the US; here in NYC, three people died everyday as a result of a drug overdose. DEA is focusing our enforcement efforts on major heroin and fentanyl distribution organizations, in addition to investigating and arresting the street dealers who sell the fatal dose that takes the life of another.”
Commissioner James P. O’Neill said: “The defendant in this case is facing the possibility of life in prison for allegedly selling fentanyl-laced heroin to a 39-year-old man who died of an overdose. Law enforcement is committed to investigating overdoses like this to hold those who sell these deadly opioids criminally responsible. I want to thank the NYPD detectives, DEA agents, and US Attorney Preet Bharara for their work that led to today’s arrest.”
According to the allegations in the Complaint[1] filed in federal court:
Kevin Coombs was found unresponsive by NYPD officers and paramedics on the afternoon of October 21, 2016. Coombs was transported to the hospital, but later died from an overdose of heroin and fentanyl. Prior to Coombs’s death, Coombs composed, but did not send, a text message to PETERSON in which Coombs stated, “Man that shit is so good. I literally just finished the last o[n]e.”

An NYPD undercover officer subsequently contacted PETERSON by cellphone and arranged to purchase narcotics. PETERSON sold the undercover officer crack cocaine on three occasions and heroin on one occasion in December 2016 and January 2017.


PETERSON, 54, of New York, New York, has been charged with one count of narcotics distribution resulting in the death of another, which carries a maximum sentence of life in prison, and a mandatory minimum sentence of 20 years in prison. PETERSON has also been charged with four counts of narcotics distribution, each of which carries a maximum sentence of 20 years in prison.

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.

Mr. Bharara praised the outstanding work of the NYPD and DEA’s Tactical Diversion Squad for their investigative efforts and ongoing support and assistance with the case. The Drug Enforcement Administration's Tactical Diversion Squad (Group TDS-NY) comprises agents and officers from the U.S. Drug Enforcement Administration (DEA), the New York City Police Department, the New York State Police, and NYC Health and Hospitals Office of the Inspector General.

The prosecution of this case is being overseen by the Office’s Narcotics Unit. Assistant U.S. Attorney Andrew Thomas is in charge of the case.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
 

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.

Heroin Trafficker Sentenced To 12 Years For Heroin Overdose Deaths


   Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROOSEVELT WILLIAMS, a/k/a “Mumsie,” 59, was sentenced to a term of 12 years in prison, and forfeiture of over $100,000 in drug proceeds and property, for his extensive heroin dealing in and around Poughkeepsie, New York. As set forth in WILLIAMS’s plea agreement, and the materials submitted in connection with sentencing, the distribution of that heroin resulted in both fatal and non-fatal overdoses. He was sentenced today in White Plains federal court by U.S. District Court Judge Nelson S. Román. On November 10, 2016, Tony Reynolds, 58, was sentenced, also by Judge Román to a term of 13 years in prison, and to forfeit $5,000 in drug proceeds, for his role in distributing heroin with WILLIAMS.
U.S. Attorney Preet Bharara stated: “Roosevelt Williams sold what became notorious in and around Poughkeepsie as a highly potent brand of heroin. And even as overdoses from Williams’s heroin grew, he continued to sell. For his cold-hearted drug dealing that contributed to the devastation of heroin abuse in our communities, the Court has handed down a stiff sentence of 12 years in prison. We hope this prosecution gives some measure of closure and comfort for the victims’ families, and we thank the Drug Enforcement Administration and our many local law enforcement partners for their extraordinary efforts on this case.”
According to the Complaints and Information filed in White Plains federal court, as well as statements made in connection with the plea and sentencing proceedings:
Over the course of several months, WILLIAMS and Reynolds conspired to sell significant quantities of a highly potent brand of heroin, dubbed “Empire” by a stamp on each bag sold, which had a devastating impact on users in and around Poughkeepsie, New York. The Empire brand became notorious among heroin users in the area as being particularly strong and posing a high risk of overdose. Even as this reputation and the number of overdoses grew, the defendants continued to sell significant quantities of Empire heroin virtually every day.

From at least in or about November 2015 through December 2015, law enforcement engaged in controlled purchases of Empire heroin on five occasions. Each of these sales was made by either WILLIAMS or Reynolds. Law enforcement recovered over $100,00 in cash and two firearms from WILLIAMS’s residence.

A.G. Schneiderman Announces Settlement Of Martin Act Case Against Former AIG CEO Maurice R. Greenberg And Former AIG CFO Howard I. Smith


Greenberg Admits To Initiating, Participating, And Approving Two Fraudulent Transactions Committed By AIG While CEO
Greenberg And Smith Agree To Return Multi-Million Dollar Bonuses They Received While The Frauds Were On AIG’s Books
When Combined With Previous SEC Settlement, Greenberg Will Have Disgorged Nearly Every Dollar In Bonuses He Received During The Period Of The Fraud
   The Office of Attorney General Eric T. Schneiderman announced today that it has reached a settlement of the Office’s securities fraud suit under the Martin Act against Maurice R. (“Hank”) Greenberg, the former CEO of American International Group, Inc. (“AIG”), and Howard I. Smith, AIG’s former Chief Financial Officer.  The lawsuit, People v. Maurice R. Greenberg and Howard I. Smith, Index No. 401720/05 (New York County Supreme Court), was brought by Attorney General Eliot Spitzer in 2005, following the admission by AIG that the company had engaged in certain improper reinsurance transactions while Mr. Greenberg was the company’s CEO and Mr. Smith the CFO, including two sham deals--known as the GenRe and Capco transactions--that materially misrepresented AIG’s loss reserves and misstated its underwriting results, respectively, during the period 2000 to 2004.  
Attorney General Schneiderman said, “Today's agreement settles the indisputable fact that Mr. Greenberg has denied for twelve years: that Mr. Greenberg orchestrated two transactions that fundamentally misrepresented AIG's finances. After over a decade of delays, deflections, and denials by Mr. Greenberg, we are pleased that Mr. Greenberg has finally admitted to his role in these fraudulent transactions and will personally pay $9 million to the State of New York.” 
Mr. Greenberg’s and Mr. Smith’s full statements can be found here and here.
AIG was also an original defendant in the Attorney General’s suit. In 2006, AIG reached a prompt settlement with the Attorney General’s Office, and paid $1.6 billion to settle the matter. Mr. Greenberg and Mr. Smith, however, refused to settle or to acknowledge any personal responsibility for the transactions.
For over twelve years, Messrs. Greenberg and Smith refused to admit that the GenRe and Capco transactions were improper, or that they were responsible for the transactions.  Attorney General Schneiderman took the case against Greenberg and Smith to trial in September 2016, and the defendants were compelled to testify about these matters in open court.  Now, Mr. Greenberg acknowledges that he personally initiated, participated in and approved these transactions. Mr. Smith admits to having played a similar role. In addition, they have agreed to give up over $ 9.9 million that they received as performance bonuses from 2001 through 2004, the period when these sham transactions were reflected on AIG’s books. Combined with Mr. Greenberg’s previous settlement with SEC, Mr. Greenberg’s $9 million payment under today’s agreement will require him to relinquish virtually every dollar paid to him in bonuses during that time.
From 2005 until 2016, Mr. Greenberg and Mr. Smith delayed a trial of the State’s claims against them by engaging in extensive motion practice and eight pre-trial appeals. They maintained for over a decade that the Attorney General’s office lacked the legal authority to pursue the claims against them, and that there was insufficient evidence of their involvement in the reinsurance transactions to even warrant a trial. Over time, their arguments were substantially rejected by the New York Supreme Court, the New York Supreme Court Appellate Division, First Department and the New York Court of Appeals. In the process, the courts have confirmed that New York’s Martin Act is not preempted by federal securities laws, and that the Attorney General has the power to obtain disgorgement by corporate executives of money they have received as a result of frauds committed by their companies, when the executives participated in or had knowledge of the frauds. 
Beginning in September 2016, after the Court of Appeals rejected the second of defendants’ appeals to that Court, the Attorney General’s Office began the trial of its case before Justice Charles E. Ramos. After Messrs. Greenberg and Smith testified, the trial was recessed to allow the parties to explore a final, non-appealable resolution of the case with the assistance of mediators Kenneth Feinberg and Camille Biros. Through that process, the parties reached a final settlement. As part of the settlement, Mr. Greenberg acknowledges that he personally initiated, participated in and approved these transactions. Mr. Smith admits to having played a similar role. They also have acknowledged that the effect of the transactions was to inaccurately portray AIG’s true financial results, and that AIG correctly restated the GenRe transaction upon finding that it did not transfer risk – a point Mr. Greenberg has vigorously disputed for years. In addition, they have agreed to give up $9.9 million that they received as performance bonuses from 2001 through 2004, the period when these sham transactions were reflected on AIG’s books. When combined with Mr. Greenberg’s previous settlement with SEC, Mr. Greenberg’s $9 million payment under today’s agreement will disgorge virtually every dollar paid to him in bonuses during that time.

A.G. Schneiderman Announces Settlements With Mobile App Developers For Failure To Disclose Data Collection Practices


AB Mobile LLC And Bizness Apps Inc. Agree To Post Privacy Policies And Disclose Data Collection Practices
Schneiderman: New Yorkers Have A Right To Know If A Company Collects And Uses Their Personal Information
  Attorney General Eric T. Schneiderman today announced settlements with mobile application (“apps”) developers AB Mobile Apps LLC and Bizness Apps LLC for their failure to disclosure their data collection practices in a privacy policy.  Both companies have agreed to clearly inform users in a privacy policy about their policies and procedures with respect to user information, among other reforms.
“New Yorkers have a right to know if a company collects and uses their personal information,” said Attorney General Schneiderman. “In an age where data itself has become a commodity, companies must post privacy policies in a way that clearly and conspicuously discloses their data collection practices.”
The purpose of a privacy policy is to inform users about what, if any, personal information is collected, used and disclosed in the use of a product or service. This information aids consumers in making informed decisions about companies with whom they entrust their personal information.
Both companies responded promptly to the NYAG investigation and added a privacy policy to its apps, or otherwise removed the apps from the Apple and Google platforms so that they are no longer available to download.
Both companies also agreed clearly inform users in a privacy policy about the policies and procedures with respect to user information for each of its apps. Such policies and procedures may be appropriate to the nature and scope of its activities and the sensitivity of the covered data, and make explicit, at a minimum, what user information is collected; how it is stored and for how long; whether it will be disclosed to third parties and under what circumstances; what safeguards are in place to protect the information from unauthorized disclosure; how updates to the privacy policy will be communicated to the customer; and whether the customer has the option to opt-out of the collection of the user information, or review, edit or delete the information.
The NYAG did not find that these developers misused their customers’ personal information or disclosed it to third parties.  However, failure to disclose how a company collects, uses and discloses customers’ personal information in a privacy policy is a deceptive trade practice, New York Executive Law § 63(12) and New York General Business Law § 349.
AB Mobile Apps, LLC
AB Mobile Apps, LLC (“AB Mobile”) is a Michigan limited liability company owned by Wendell Adams.  AB Mobile develops apps on its own, or at the request of clients, which can be downloaded for free on Apple iTunes App Store and/or the Google Play Android App Store.  The NYAG determined that the following AB Mobile apps lacked a privacy policy or any statement as to how AB Mobile collects, uses, or discloses a user’s personal information: “Ask a Lawyer: Legal Help,” “Ask a Criminal Defense Lawyer,” “My Lawyer: Legal Advice,” “Ask a Personal Injury Lawyer,” “Insurance Help,” “Insurance Quotes and Questions,” “Trucker App & GPS for Truckers,” “Couple Counseling & Chatting,” “Teacher App & Grade Book,” “Chiropractic Help,” “Quit Smoking: Learn to Stop Smoking Today!,” “Stop Smoking: A free quit smoking program,” “Flowchart by Hapman,” “Deburring by CLM Vibetech,” “Buy Local,” “The Grotto at Capone’s,” “Home Design by Jacks,” “Home Improvement: Culver,” “AutoCare” (or, on the iTunes App Store, “com.absmallbusinessmarketing.autoCare”), “Pirates: The Pirate Game,” “Text Timer,” “Write Music by Stedman,” “Foreign Car Services,” “Falling Zombies,” “8 Bit Birds,” “Drink Mixer,” “Clear Messenger,” “Great Lakes Pondscapes,” “Traveler: Travel App & Helper,” and “Popcorn Popper!” Additionally, the NYAG determined that while apps “Recipes by Ingredients,” “Diet Plan(s),” and “Stock Screener: Stock Analyst” contained a hyperlink to a privacy policy, the policy failed to contain specific information as to what information is collected, used and disclosed.
Bizness Apps, Inc.
Bizness Apps, Inc. (“Bizness Apps “) is a California corporation owned by Andrew Gazdecki with a similar business to AB Mobile.  The NYAG determined that the following apps lacked a privacy policy or any statement as to how Bizness Apps collects, uses, or discloses a user’s personal information: “Seattle Pipeline,” “My Mechanic,” “Bizness Apps Preview App,” “Top Flight Elite Basketball,” “The Lost Friends,” “Tacolicious,” “Mobilize Reseller Conference,” “Mobile Lounge,” “Leslie Norman & Associates,” “Papa Fotis,” “El Burito Redlands,” and “Gutergrund-OPG8.” Another app, “Vacation Valley Cabin Rentals,” was available in two versions on Google/Android and only one version displayed a privacy policy.