Acting Manhattan U.S. Attorney Settles Race Discrimination Lawsuit Against New York City

City Agrees to Pay Over $1.3 Million to Individual Employees to Resolve Lawsuit Alleging a Pattern or Practice of Racial Discrimination at the New York City Department of Transportation

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the United States settled a federal civil rights lawsuit alleging that the CITY OF NEW YORK (the “City”), and specifically the NEW YORK CITY DEPARTMENT OF TRANSPORTATION (“NYCDOT”), violated Title VII of the Civil Rights Act of 1964 (“Title VII”) by engaging in a pattern or practice of racial discrimination and retaliation in its Fleet Services unit (“Fleet Services”). The consent decree was approved yesterday by U.S. District Judge John G. Koeltl.

Acting U.S. Attorney Joon H. Kim said: “For almost a decade, in clear violation of federal law, supervisors in New York City’s Department of Transportation engaged in a pattern and practice of discrimination against racial minorities. They tolerated the use of racial epithets, systematically excluded racial minorities from preferred assignments, and discriminated against minority candidates for promotions. When the discrimination was brought to the attention of the Department of Transportation’s management, they inexcusably failed to take proper corrective action, and retaliated against those brave enough to speak out. This type of workplace discrimination is unacceptable, plain and simple, not now, not ever. This settlement reflects the Office’s continued commitment to vigorously enforcing our nation’s civil rights laws.”

The Complaint, which was filed in Manhattan federal court on January 18, 2017, alleges that from at least October 2007 through May 2016, Fleet Services management engaged in a pattern or practice of racial discrimination in violation of Title VII. Fleet Services is a unit within NYCDOT that employs approximately 200 individuals in a range of trades, such as machinists, auto mechanics, electricians, blacksmiths, and engineers. Specifically, the Complaint alleges that:

As of October 2007, all personnel within Fleet Services reported to an individual (“Executive Director I”) who routinely and openly used racial epithets, such as “monkey,” “nigger,” and “gorilla” to describe African American employees. In addition to overseeing all of Fleet Services operations, Executive Director I also served as the Equal Employment Opportunity (“EEO”) counselor to whom complaints of discrimination were directed. One illustrative example of Executive Director I’s conduct involved an incident where, in response to an African American employee’s request for a cell phone, Executive Director I stated, “that nigger gets nothing.”

In October 2009, NYCDOT’s EEO Office (“NYCDOT EEO”) received a complaint alleging that Executive Director I had engaged in race discrimination. In the course of investigating the complaint, NYCDOT EEO interviewed numerous current NYCDOT employees who stated that Executive Director I had routinely used racial epithets to describe African Americans. Following its investigation, NYCDOT EEO recommended that Executive Director I be demoted, suspended, and removed from his responsibilities as a NYCDOT EEO counselor. In response, Executive Director I chose to voluntarily retire. However, the Deputy Commissioner overseeing Fleet Services then promoted the individual who had been Executive Director I’s second-in-command (“Executive Director II”), who was complicit in the discrimination, to serve as the Executive Director of Fleet Services.

Beginning in 2010, and throughout his tenure, Executive Director II routinely and systematically excluded minorities from preferred assignments and special projects. Executive Director II instead exclusively chose white candidates for the assignments that would provide the best opportunity for further advancement within Fleet Services. Furthermore, at some point in 2010, and then again in 2013, NYCDOT took steps to promote auto mechanics to supervisory positions. In spite of a large number of minority applicants, including minority applicants who were already serving in a supervisory capacity within NYCDOT, only one minority candidate was ever selected for promotion. Rather, NYCDOT management actively took steps that discriminated against minority applicants and promoted the candidacy of white applicants. These steps included imposing new pretextual requirements for promotion and removing from decision-making those supervisors who advocated for minority candidates.

Throughout all time periods relevant to the Complaint, individuals who spoke out against the discriminatory practices at Fleet Services were subjected to retaliatory conduct by Executive Director II. Such retaliatory conduct included Executive Director II threatening to take an African American Fleet Services employee outside to “kick” his “fucking ass” when the employee complained about the discrimination in the promotion selection process. Several other members of Fleet Services’ executive leadership witnessed that threat and yet failed to take any action to discipline Executive Director II.

Under the consent decree approved by the Court, the City has agreed to offer monetary compensation to 14 individuals who the City agrees are entitled to relief. These individuals are entitled to back pay and compensatory damages awards ranging from $60,000 to in excess of $168,000. In addition, the City has agreed to pay the complainant who brought this case to the attention of the Equal Employment Opportunity Commission (the “Complainant”) a total of $150,000 in compensatory damages and attorney’s fees. The City will also offer the Complainant and two other minority candidates, all of whom were promoted by the City after the U.S. Attorney’s Office informed the City of its investigation, retroactive seniority benefits commensurate with having been promoted during the time period relevant to the Complaint. The consent decree also requires the City to take steps to ensure that it complies with Title VII in its future promotional selection processes.

As part of the consent decree, the City also stipulates to admissions of fact relating to the allegations in the Complaint. These admissions include that:

1. During a 2009 investigation into allegations of racial discrimination, employees reported to the City that Executive Director I had used racial epithets to describe African American employees and had taken personnel actions that were motivated by racial animus.

• At the time of his retirement, Executive Director I had never been subject to any formal disciplinary sanctions imposed by the City.
• During the time he served as the Executive Director of Fleet Services, Executive Director II instructed the Complainant’s direct supervisor to reassign Complainant’s supervisory duties to a non-minority auto mechanic who had fewer years of experience as an auto mechanic than Complainant. Executive Director II gave this instruction over the expressed preference of Complainant’s direct supervisor.
• During Executive Director II’s tenure, non-minority applicants were selected for promotion over minority applicants, even when the minority applicants had more years of automotive experience and had been serving in a supervisory capacity without commensurate compensation or title.
• When management employees challenged Executive Director II’s promotional decisions, they were removed from the promotional decision-making process. Moreover, when a non-management employee accused Executive Director II of discriminating against racial minorities within Fleet Services, Executive Director II verbally threatened the employee, including a threat of physical violence. This verbal threat of physical violence was made in the presence of several other supervisory personnel within Fleet Services.
• Up until June 2, 2016, the date on which the City was informed that the U.S. Attorney’s Office had conducted an investigation regarding the allegations in the Complaint, Executive Director II continued to serve as the Executive Director of Fleet Services.
  Mr. Kim thanked the Equal Employment Opportunity Commission for its initial investigation of the Complaint.

Twelve Alleged Gang Members Variously Charged With Conspiracy and Attempted Murder in Bushwick Turf War

Defendants Shot at Rivals on Busy Streets, Sometimes in Broad Daylight;

Innocent Bystanders Struck, Others Narrowly Escaped Harm in 10 Shooting Incident

  Acting Brooklyn District Attorney Eric Gonzalez, together with New York City Police Commissioner James P. O’Neill, today announced that 12 alleged members of the Bushwick- based street gang True Bosses Only have been variously charged in a 59-count indictment with conspiracy to commit murder, attempted murder, weapons possession and other charges in connection with 10 separate shootings that left seven people injured.

Acting District Attorney Gonzalez said, “This indictment describes a terrifying mix of deadly force and mindless obsessions with turf, leading to serious consequences for innocent bystanders. We will never stop fighting against gun violence and this kind of senseless disregard for the safety of our children and neighbors.

The Acting District Attorney further said, “Many of these territorial disputes, in this and other cases, revolve around New York City Housing Authority developments. To that end, I have recently launched a Public Housing Crime Suppression Unit that will work to reduce crime in housing developments using data-driven intelligence focusing on the drivers of crime. The Unit will work closely with resident associations, community members, NYCHA and the NYPD to proactively suppress crime and violence, maintain safety and develop trust.”

Commissioner O’Neill said, “Today’s charges allege a series of shootings in Bushwick, among other things, that left several injured. Today’s arrests and indictment will continue helping reduce violence that have helped make our City the safest big city in America.”

The Acting District Attorney said that nine of the defendants were arraigned last week and this week before Brooklyn Supreme Court Justice William Miller and Brooklyn Supreme Court Justice Guy Mangano and variously held on bail. Three of the defendants are awaiting arraignment. All of the defendants are charged with second- and fourth-degree conspiracy. They are variously charged with second-degree attempted murder, first-degree criminal use of a firearm, first- and second-degree attempted assault, second-degree criminal possession of a weapon, second-degree assault, and first-degree reckless endangerment. The defendants face up to 25 years in prison on the top conspiracy count. (See defendant addendum).

The Acting District Attorney said that, according to the indictment, the defendants, who now range in age from 17 to 26, are alleged to be members of True Bosses Only (“TBO”).  TBO is alleged to be a violent street gang operating within the confines of the 83rd Precinct, bordering the 73rd and 81st Precincts. TBO’s purported territory extends north and south approximately between Broadway and Wyckoff Avenue, and east and west approximately between Cooper Street and Madison Street.

Between July 2015 and the present, the indictment alleges, members of TBO have been feuding with three other violent street gangs: Elm Street Piru, which operates within the 83rdPrecinct just west of TBO territory, approximately between Palmetto Street and DeKalb Avenue; Loot Gang, which operates out of the New York City Housing Authority Ocean Hill Houses, to the south of TBO territory within the confines of the 73rd Precinct; and 900 Gang, which operates largely out of the NYCHA Sumner Houses within the confines of the 79thPrecinct.

During the course of the conspiracy the defendants allegedly agreed to commit crimes, including murder and assault, in order to maintain their dominance over their claimed geographic area.  Gang members are accused of using social media to direct their acts of violence toward rival gang members, as well as take credit after crimes occurred. At other times the defendants taunted their rivals by taking photos and videos of themselves in rival territory and posting them on Facebook and YouTube. They allegedly made use of so-called “community guns,” which were made available to various TBO members for the purpose of shooting at rivals.

Furthermore, according to the indictment, in addition to the struggle for geographical control, much of TBO’s violent activity was driven by the desire to retaliate for prior shootings targeting TBO members, particularly the September 27, 2013 shooting death of TBO member Bashiek Reddick, a.k.a., Bless.

Among the acts of violence charged in the conspiracy are the following:

• - On July 8, 2015, at approximately 9 p.m., Hector Lleras and other TBO members were in front of the Hi-Mango Market at 341 Knickerbocker Avenue, in Elm Street Piru territory, when Lleras allegedly fired shots across the street, missing his target. The bullet went through window of a car parked in the vicinity, narrowly missing a man sitting in the front seat.
• - On October 30, 2015, defendant Gilbert Arciliares was in front of 180 Wyckoff Avenue, in Elm Street Piru territory, at approximately 2:40 p.m., when he allegedly fired three shots. One of the shots struck an MTA bus, shattering a window and narrowly missing a passenger, who suffered cuts to her forehead from the broken glass.
• - On September 11, 2016, at approximately 9:30 p.m., in the vicinity of 290 Central Avenue, Gilbert Arciliares, who was with another TBO member, allegedly fired a .380 caliber pistol multiple times at rival Elm Street Piru members, striking instead two innocent women who were walking in the area.
• - On March 1, 2017, at approximately 4:20 p.m., at the intersection of Myrtle Avenue and Harman Street, defendant Gilbert Arciliares allegedly fired shots down Myrtle Avenue at two Piru gang members on bicycles. Arciliares missed his targets, but struck an innocent bystander in the torso and sent passersby, including children, running to escape the gunfire.

Additionally, three alleged rival gang members were shot and injured during the course of the conspiracy.

The investigation was conducted by New York City Police Department Detectives Shane Maynard and Robert Nelson, of the Gun Violence Suppression Division, under the supervision of Sergeant Andrew Dunton and the overall supervision of Assistant Chief James Essig.

The case is being prosecuted by Assistant District Attorneys Owen Sucoff and James Slattery, of the District Attorney’s Violent Criminal Enterprises Bureau, under the supervision of Assistant District Attorney Jonathan R. Sennett, Deputy Chief of VCE and Assistant District Attorney Nicole Chavis, Chief, and the overall supervision of Patricia McNeill, Deputy Chief of the District Attorney’s Investigations Division.

An indictment is merely an accusation and not proof of a defendant’s guilt.

DEFENDANT ADDENDUM:

1. - Carlos Lucas, a.k.a., Skrap, 22, of Ocean Hill, Brooklyn.
2. -  Hector Lleras, a.k.a., Kash, 26, of Fort Greene, Brooklyn.
3. - Gilbert Arciliares, a.k.a., Gilly, 22, of Bedford-Stuyvesant, Brooklyn.
4.  - Patrick Tucker, a.k.a., Holly, 25, of Canarsie, Brooklyn.
5. - Tyrece Findlay, a.k.a., Preme, 20, of West Farms, Bronx.
6. - Malik Cherry, a.k.a., Euros, 20, of Gravesend, Brooklyn.
7. - Anthony Gooding, a.k.a., Gunna, 21, of Bushwick, Brooklyn.
8. - Yasin Shearin, a.k.a., Ya-Ya, 19, of Graniteville, Staten Island.
9. - Jamar Lovander, a.k.a., Headache, 26, of Arverne, Queens

Statements by City Council Housing and NYCHA Chairs on TRUMP PICK TO HEAD LOCAL FEDERAL HOUSING PROGRAMS

STATEMENT BY COUNCIL MEMBER WILLIAMS 

  "This is yet another sorry, and potentially dangerous, appointment coming out of the Trump Administration. 

 

"As chair of the Council's Committee on Housing and Buildings, it is extremely concerning that a person without zero experience in housing or government sectors is being charged with overseeing how billions of tax payer dollars are spent for federal housing programs, including the struggling New York City Housing Authority (NYCHA). How these dollars are spent, or not spent, has an impact on millions of families across New York and New Jersey. People are relying more and more on government to help fill the gap between what they come home with and what they're able to afford for housing expenses.  Housing to this Administration is clearly more of a play thing, than a serious resource that so many communities are being starved of.

 

"This appointment is just the latest example of why the job of local legislators and leaders is especially important now. We cannot trust that the people placed to lead critical offices, such as HUD, will be effective or competent in addressing the needs of the people. It's time we step up.

 

"It is not lost on me that this is yet another example of the insulting belief that the housing agency is more of a place to store Trump's melanin rich allies,  than a place to seriously contemplate and address issues of critical concern."

A.G. Schneiderman Announces $350,000 Settlement With Sham Breast Cancer Charity

“Breast Cancer Survivors Foundation” Fundraisers Pocketed 92 Cents Of Every Dollar Donated For Themselves – While Misleading Donors With Fictional Medical Services For Breast Cancer Patients

AG’s “Operation Bottomfeeder” Targets Shell Charities That Exploit Popular Causes To Line Professional Fundraisers’ Pockets

Settlement Shuts Down Charity; $350,000 Will Be Directed To Legitimate Breast Cancer Organizations

  Attorney General Eric T. Schneiderman today announced a settlement with the Breast Cancer Survivors Foundation, Inc., (“BCSF”), and its President and Founder Dr. Yulius Poplyansky. For years, BCSF and its fundraisers painted the picture of an organization that was providing medical services to breast cancer patients and those at risk of breast cancer. Instead, as the Attorney General’s investigation found, BCSF was a shell charity created and run by its primary outside fundraiser, Mark Gelvan, in order to line the pockets of Gelvan, his companies, and his business associates – who pocketed 92 cents of every dollar donated to BCSF.

As part of the settlement, BCSF will shut down its operations nationwide and pay nearly $350,000, which will be directed to legitimate breast cancer organizations.

“There are few things more galling than pretending to help cancer patients, when you’re really just lining your own pockets. But that’s exactly what those behind the Breast Cancer Survivors Foundation did – siphoning millions in profits for themselves and sending less than four cents of every dollar raised to medical clinics,” said Attorney General Schneiderman. “As our Operation Bottomfeeder has shown, too often these shell charities exploit popular causes to enrich professional fundraisers. I’m committed to using the full power of my office to stop those who take advantage of people’s generosity to make a quick buck.”

Click here to view video of the Attorney General discussing this settlement.

Today’s settlement is part of the Attorney General’s Charities Bureau’s “Operation Bottomfeeder,” which targets a pervasive business model of shell charities that exploit popular causes, the professional fundraisers who take the lion’s share of donations and make misrepresentations, and other entities that facilitate the abuses. In August 2016, the Charities Bureau shut down the American Foundation for Disabled Children (AFDC), a shell charity that claimed to provide “resources to schools, shelters and other agencies providing long and short term care to special children,” but in fact served mainly as a source of money for its fundraisers. In November 2016, the Attorney General announced a settlement with the National Vietnam Veteran’s Foundation and its founder and president, John T. Burch, which also resulted in that charity’s shuttering, the payment of damages, and the issuance by Burch of a public apology. Also as a result of the Attorney General’s exposure of Burch’s actions at the charity, Burch was recently indicted by the Department of Justice for wire fraud. 

BCSF was founded in 2010 and began soliciting in New York shortly thereafter. By 2014, BCSF was raising on average $3 million a year nationwide from its telemarketing and direct mail campaigns. 

The Attorney General’s investigation found that Dr. Poplyansky started BCSF at the encouragement of Mark Gelvan, a professional fundraiser and longtime family friend whose relationship with Poplyansky’s family dated back to the 1970s.  Dr. Poplyansky had no training or experience in managing or leading any type of charitable enterprise. He and the other board members of BCSF allowed Mark Gelvan to run BCSF and turn it into a cash cow for Gelvan and his businesses.  Mark Gelvan has been barred from the professional fundraising industry in New York since 2004, following litigation brought by the Attorney General. 

As set forth in the findings in the settlement document, which Dr. Poplyansky admits are true, Mr. Gelvan suggested that Dr. Poplyansky start a breast cancer charity because it is a proven charitable moneymaker. Mr. Gelvan even provided Dr. Poplyansky with seed money to start the charity. Mr. Gelvan then used BCSF to fuel his own economic interests by ensuring that his fundraising companies and business associates were hired to provide services for BCSF. 

Mr. Gelvan also controlled BCSF’s operations by inserting himself into nearly every aspect of the charity’s operations, despite having no official role in the charity.  Gelvan oversaw financial reporting, attended board meetings and prepared board minutes, responded to media inquiries, and even organized and prepared the response to the Attorney General’s investigative subpoenas. Mr. Gelvan went so far as to tell BCSF’s outside accountants that Dr. Poplyansky “speaks very little English”- a completely false statement - so they would deal directly with him.

The investigation also found that Mr. Gelvan was instrumental in developing and authorizing BCFS’s charitable solicitations, which contained false and misleading statements about BCSF’s program activities.  These solicitations contained fictional accounts of doctor and patient interactions, descriptions of non-existent forums for breast cancer survivors, and international pharmaceutical programs – and left the donor with the distinct impression that BCSF was a medical facility providing medical services. In reality, BCSF had no medical staff, performed no medical services, had no real office, and provided no direct value to breast cancer patients or those at risk of developing breast cancer.  BCSF made only a few modest grants to clinics; those grants were, on average, only 3.5% of the funds it raised in the last four years that BCSF reported to the Attorney General.  

Dr. Poplyansky was not compensated for his role at BCSF.  Nonetheless, he had legal responsibilities to BCSF, which he repeatedly failed to honor.  Dr. Poplyansky has admitted to his wrongdoing and will cooperate with the Attorney General’s ongoing investigations into BCSF’s fundraisers and associated legal and accounting professionals.  BCSF and Dr. Poplyansky have also agreed to dissolve BCSF under the Attorney General’ s direction so that the charity can no longer be used as a shell company to direct monies to its fundraisers. Dr. Poplyansky will also be subject to a permanent nationwide bar on access to charitable assets or decision-making. On behalf of BCFS and himself, Dr. Poplyansky issued an apology to the donors of the Foundation and to the individuals and families that have been impacted by breast cancer. 

BCSF and Dr. Poplyansky also admitted that BCSF had made false filings with the Charities Bureau, including failing to disclose the identity of the fundraisers that operated on its behalf in New York, and all fees associated with its fundraising activities.

The full text of the admissions of BCSF and Dr. Poplyansky, and Dr. Poplyansky’s apology, are available here. 

This investigation into BCSF highlights the importance of the Attorney General’s Charities Bureau’s annual Pennies for Charities report, which reveals that charitable donations obtained by many professional fundraisers are largely spent on fundraising and administrative expenses, with only a small fraction left for charitable work. The latest Pennies for Charities report may be accessed here. 

The AG’s Tips for Charitable Giving are available here.

More information about the Attorney General’s Charities Bureau and organizations regulated by the Bureau may be found at www.charitiesnys.com.

A.G. Schneiderman Files Suit Against Paving Company; Alleges Fraudulent, Deceptive Conduct

Tri-State Paving Allegedly Baited Consumers With Low Prices, Performed Shoddy Work, And Demanded More Money

Judge Orders Tri-State Paving To Stop All Work While Lawsuit Is Pending

A.G. Schneiderman Provides Tips For Consumers When Choosing A Home Improvement Contractor

  Attorney General Eric T. Schneiderman today announced a lawsuit against Tri-State Paving and its principals, Richard Attenborough, III and Stevee Paige Castle-Lagerquist. The suit alleges that they defrauded homeowners with a deceptive paving scheme and failed to comply with New York’s home improvement contractor laws. Based upon the evidence submitted to the court, Supreme Court Justice James P. McClusky issued a temporary restraining order prohibiting the company from conducting or soliciting any paving business while the lawsuit is pending.

The Attorney General alleges that Tri-State and Attenborough have a longstanding pattern of deceiving homeowners. In a classic bait-and-switch scheme, Attenborough or another Tri-State employee are alleged to have falsely told consumers that they have “leftover” paving material from a nearby job, and then offered to pave all or a portion of the homeowner’s driveway at a low price or with no price estimate at all. Tri-State then performed substantially more work than what was agreed upon. The work was often substandard, or created paving issues for the homeowner, requiring more work. Afterward, the company demanded payment of much more money than discussed or agreed-upon.

The Attorney General’s investigation was initiated in the summer of 2016, after complaints were filed by homeowners in the North Country. Tri-State and Attenborough subsequently moved their operations to other regions, and it is alleged that they had been most recently deceiving homeowners in the greater Binghamton area.

“People’s homes are often their most valuable asset; the culmination of years of dreaming, planning, saving, and hard work,” Attorney General Schneiderman said. “We will keep fighting to hold unscrupulous contractors accountable and ensure that hardworking New Yorkers do not fall victim to these scams.”

In support of the lawsuit, sworn statements from five victims of Tri-State’s predatory practices were submitted, together with records from multiple law enforcement agencies that have had contact with Attenborough for the same or similar conduct over a period of many years. In one instance, after being deceptively solicited by Tri-State, a homeowner agreed to have the company pave a four-foot section of his driveway, but Tri-State is alleged to have refused to provide a price quote. The company then proceeded to pave the entire driveway and demand payment of $9,200. In another case, the company is alleged to have deceptively solicited a homeowner to pave a driveway at a cost of $3,000. While the homeowner was still talking to the Tri-State representative and refusing all work, employees had already begun paving the driveway without his knowledge or authorization. Tri-State refused to remove the material put down, and demanded payment.

In New York, home improvement contractors—such as paving companies—are required to use contracts for any job that costs the homeowner more than $500. The contract must be signed by both parties and contain: proposed starting and completion dates; a description of the work to be completed; materials to be provided; total cost of the contract; and include a notice to the consumer of their unconditional three-day right to cancel the contract without penalty, among other items. Tri-State Paving compounded their illegal behavior by failing to use contracts in compliance with state law.

Home Improvement Fraud ranked eighth on the Office of the Attorney General’s top ten list of consumer frauds for 2016, with 1,606 complaints statewide. Rooting out and resolving these fraud cases is a top priority for Attorney General Schneiderman.

When planning to use a home improvement contractor, Attorney General Schneiderman urges consumers to consider the following tips:

• Never agree to have work done on the spot, especially when potential contractors are marketing door-to-door.
• Determine exactly what you want done, then look for a qualified contractor.
• Shop around; get at least three estimates from reputable contractors that include specific information about the materials and services to be provided.
• Ask for references: check with the Better Business Bureau, banks, suppliers, and neighbors.
• Always contact any references provided to you.
• Insist on a written contract that includes the price and description of the work needed.
• Do not pay unreasonable advance sums; negotiate a payment schedule tied to the completion of specific stages of the job.
• Never pay the full price up front.
• Remember that you have three days to cancel after signing a home improvement contract, but all cancellations must be in writing.

Additional information on how to avoid fraudulent home improvement contractors can be found on the Attorney General’s Website.

The lawsuit seeks a permanent injunction against Tri-State, Attenborough, and Castle-Lagerquist, prohibiting them from operating as home improvement contractors in New York State, restitution for the homeowners they defrauded, and penalties and costs to the state. A hearing is scheduled for June 26, 2017.

The Attorney General thanks the New York State Police for their assistance on this case.

On World Elder Abuse Awareness Day, A.G. Schneiderman Launches New Elder Fraud Prevention Initiative

New Section Of AG Website – “Smart Seniors: Resources For Older Adults” – Gives New York Seniors The Tools They Need To Protect Themselves

A.G. Offers Smart Seniors Presentations, Tips For Seniors To Avoid Becoming Victims

  To mark World Elder Abuse Awareness Day, Attorney General Eric T. Schneiderman today announced the launch of a dedicated portion of his office’s website, titled “Smart Seniors: Resources for Older Adults,” that will provide easily accessible safety tips, alerts and information that seniors can use to stay safe in their daily lives.       

“Today and every day, my office is committed to combatting and raising awareness of elder abuse,” said Attorney General Schneiderman.  “We will continue to hold accountable those who take advantage of our seniors – and provide senior citizens easy access to information so they can protect themselves from abuse and scams.”

Elder financial fraud is a serious and growing problem. Just yesterday, Attorney General Schneiderman announced a lawsuit against a Queens’ investment advisor for allegedly defrauding 58 elderly New Yorkers out of millions of dollars of their retirement savings. A recent study estimated the annual financial loss by victims of elder financial abuse in New York State to be at least $1.5 billion dollars per year. The Grandparent Scam, IRS Scam, and similar phone and internet-based scams are pernicious, and the resulting harm to consumers can be devastating. Often, victims are instructed to purchase gift cards or pre-paid debit cards and provide the serial number on the back of the card to the scammer – which allows the funds to be transferred without a trace. In many cases, consumers end up losing a significant portion of their savings.

The new ‘Smart Seniors: Resources for Older Adults’ webpage will include tips on a variety of consumer, health, and civil rights issues and will enable older adults to stay up-to-date on the latest scams that are targeting them. Having these resources aggregated in one place will enable seniors to more easily obtain the information they need to protect themselves. Seniors will also be able to report scams to the Attorney General’s office, and victims will be able to file complaints online.  The resources are available in a friendly format that is easier for those who are visually impaired.

In addition to launching the new web resources the Attorney General’s office is proud to participate in World Elder Abuse Awareness Day programs at the JSPOA Theodora G. Jackson Adult Center in Jamaica, NY, the Alpha Phi Alpha Senior Center in Cambria Heights, NY, the Hudson Area Library in Hudson, NY, and the World Elder Abuse Awareness Day Summit in Washington, D.C.

Smart Seniors Presentations

To spread the word about senior safety, presenters from the Attorney General’s office regularly visit senior centers, assisted living facilities, libraries, houses of worship, senior clubs, and other locations to teach seniors about the most common scams, the techniques perpetrators commonly use, and who to alert if they identify a scam or are victimized. Seniors are also informed of how to protect their physical safety at home and in other common day-to-day situations. Senior groups are encouraged to book a “Smart Seniors” presentation by calling the Attorney General’s office at 1-800-771-7755. Upcoming events include:

            June 23 – Leisure Knoll in Ridge, NY with County Legislator Sarah Anker

June 29 – Bridgehampton Senior Center in Bridgehampton, NY with County Legislator Bridget Fleming

August 22 – Lewisboro Library in Lewisboro NY

September 18 – Woodland Pond in New Paltz, NY

September 25 – Hillburn Senior Citizens Organization in Hillburn, NY

October 17 – “Senior Law Day” at the Westchester County Center in White Plains, NY

Tips To Avoid Falling Victim

Scam artists are always devising new schemes to defraud consumers, so it is important for consumers to learn how to protect themselves by taking some basic precautions.

If the caller is a stranger, you should be on alert:

• Never give out personal information to a stranger on the phone, even if they claim to be a representative from your bank, credit card company, or any other company with which you’ve done business.
• Never wire money to a stranger through Western Union, MoneyGram, or any other wire service.
• Never purchase gift cards for the purpose of providing the gift card numbers to a stranger or someone who claims to be a loved one; gift cards are not a legitimate form of payment.

If you have an elderly parent or loved one:

• Pass along these tips to them and don’t assume that they can’t be victimized.
• Consider seeking their permission to be involved in their finances, including asking credit card companies to alert you when they make an unusually large purchase.
• Assure them that they should check with you before making a payment or purchase, especially if a caller has instructed them not to.
• Encourage them to immediately contact you and/or the police if they get a call like those described here.

Attorney General Schneiderman reminds New Yorkers that in addition to being vigilant consumers, they should also report instances of fraud to his office. Consumers are encouraged to file complaints by visiting the Office’s website or calling 1-800-771-7755.

For specific health-related instances of fraud, consumers are encouraged to contact the Office’s Health Care Bureau Helpline at 1-800-428-9071 or file a complaint online.

Protection Against Nursing Home Abuse And Neglect

In addition to protecting seniors from financial abuse, the Attorney General’s Medicaid Fraud Control Unit (MFCU) investigates and prosecutes people who have directly harmed elderly nursing home residents, as well as nursing home managers and owners who tolerated or covered up abuse and neglect. No one is above the law when it comes to the special duty that New York requires of people entrusted with the care of our seniors.

In recent years, the Attorney General’s MFCU has brought charges involving homicides through neglect, injuries from violence and from negligent care, and crimes that include stealing narcotics and falsely reporting that a patient needed the opioids for pain, as well as posting “selfies” or videos of disabled or distressed patients online for amusement. MFCU has ensured that fake nurses are not treating patients, greedy managers are out of business, and sex abusers are behind bars.

Since 2011, 262 persons have been brought to justice by the Attorney General’s MFCU for committing crimes against nursing home residents. Seventeen of those defendants stole valuables or money from the people who were in their care.

Please report suspected neglect or abuse of nursing home residents to the NYS Department of Health Nursing Home Complaint hotline at 888-201-4563 and to the Attorney General’s Office at 800-771-7755. Suspicious activity can also be reported online at www.ag.NY.gov.

A.G. Schneiderman Announces Felony Conviction Of Fake Brooklyn Attorney

Michael Perlov Sentenced To 6 Months In Jail, 5 Years On Probation, And Ordered To Pay An Additional $28,000 In Restitution

Schneiderman: New Yorkers Seeking Legal Counsel Deserve To Know That The Professionals They Hire Will Defend Them – Not Take Advantage When They’re Most Vulnerable 

   Attorney General Eric T. Schneiderman today announced the felony conviction of Mikhail Perlov, of Brooklyn, NY for posing as an attorney and defrauding multiple victims of tens of thousands of dollars in legal fees. On May 4, 2017, Perlov pled guilty to Criminal Possession of a Forged Instrument in the Second Degree (Class D felony), five counts of Grand Larceny in the Third Degree (Class D felony), two counts of Grand Larceny in the Fourth Degree (class E felony), one count of Practicing or Appearing as Attorney-at-Law Without Being Admitted and Registered (class E felony), two counts of None but Attorneys to Practice in the State (class E felony), and two counts of Scheme to Defraud in the First Degree (class E felony). Today, Kings County Supreme Court Justice Elizabeth A. Foley sentenced Perlov to six months in jail and five years on probation, as well as ordered him to pay additional restitution totaling $28,150.

The Attorney General’s investigation revealed that Perlov illegally practiced law as an unlicensed attorney in Brooklyn from 2013 to 2016. Perlov later admitted to making court appearances on behalf of his clients who believed that he was a registered attorney and paid him over $68,000 in legal fees to represent them. Despite entering into a Consent Order and Judgment with the Attorney General’s Office in September 2015, which permanently banned him from misrepresenting himself as an attorney, Perlov continued illegally practicing law in Brooklyn.

“Brazenly continuing to operate an illegal law practice after being shut down by my office was the last strike for this defendant; now he’s going to jail and paying additional restitution,” said Attorney General Schneiderman. “New Yorkers seeking legal counsel deserve to know that the professionals they hire will defend them – not take advantage when they’re most vulnerable.”

Pursuant to the 2015 Order and Judgment, Perlov disclosed the names of 51 of his clients and was ordered to pay over $40,000 in restitution to his victims and $10,000 in penalties. As part of his sentence today, Perlov was ordered to pay over $28,000 in additional restitution to the victims.

Perlov claimed to have a wide expertise and extensive experience practicing in New York, New Jersey, and Florida courts, and offered legal services related to criminal defense, commercial disputes, accidents, domestic violence, real estate and immigration matters. Perlov admitted that he maintained a law office and advertised legal services using the title “attorney” despite not having a license and not being admitted to practice law even after the 2015 Order and Judgment.

Additionally, Perlov admitted to defrauding his victims out of thousands of dollars. The Attorney General’s investigation revealed that in one instance, Perlov promised an elderly man that he would win him millions of dollars in a non-existent civil lawsuit. Perlov not only failed to ever file a lawsuit, but on occasion, Perlov himself used the victim’s ATM card to withdraw money directly from the victim’s bank account. The OAG’s investigation also revealed that in another instance, following a request from a divorce case client to freeze her husband’s bank account, Perlov provided the client with a forged letter from Chase bank.

As a reminder, attorneys must be licensed in the State of New York by the New York State Unified Court System, Office of Court Administration. If possible, before meeting or retaining an attorney, consumers should confirm his or her license on the OCA website:http://iapps.courts.state.NY.us/attorney/AttorneySearch.

If you are seeking legal representation outside of New York State, contact that state’s licensing authority to confirm that the person is in fact licensed to practice in that jurisdiction.

Nice Job of Milling Manhattan College Parkway

  Yesterday I was one of the unfortunate drivers or other people who use Manhattan College Parkway from Broadway to any point towards the Henry Hudson Parkway. That is because a private contractor for the Department of Transportation closed all of Manhattan College Parkway to mill the street in one day. The only problem was that nobody knew about this as only a few signs were posted the day before, and not the required forty-eight hours notice. I am sure the residents of Fieldston who use Manhattan College Parkway to get into the semi secluded area of Fieldston were not to happy about the entire stretch of the street being closed. One Fieldston resident told me that signs went up late the day before, and that she could not use her driveway which was on the road because of the milling. Some photos are below, but I have to say that there were no broken curbs like that on Riverdale Avenue when another contractor ripped up the asphalt and broke much of the curbs between West 231st and West 239th Street in March of 2016. The merchants are still waiting for the curbs to be fixed, especially since a car went into a storefront at a section of broken curb. 

Above - what a driver saw at various intersections that were on Manhattan College Parkway, cones blocking off the street,

Below - The road next to Manhattan College, the crew must have missed placing asphalt around this sewer cover that sticks up.

Above - The milling crew had to be careful of gas mains, sewers, and underground electrical transformers such as above.

Below - You can see how asphalt is removed from a street.

Above - When it came to an intersection the milling crew had to place a temporary asphalt filling to make the drop from the street easier.

below - You can see a DOT supervisor on scene writing down what needs to be done by the contractor before he leaves the street that was milled.

Probably the only complaint could be the lack of notice to those who use Manhattan College Parkway, and the residents of the area. The new Bronx DOT Commissioner Nivardo Lopez appears to be doing a good job. It is expected that the street will be repaved in two weeks I was told by the DOT supervisor. That is down from the usual 4 - 6 weeks in the past.