STATEMENT FROM MAYOR DE BLASIO ON STATE ASSEMBLY PASSAGE OF DESIGN-BUILD AUTHORITY FOR NYCHA

  “Speaker Heastie and the State Assembly have the backs of NYCHA tenants. Today, they passed a bill giving NYCHA full design-build authority that will speed up critical repairs by more than a year. The rest of Albany needs to follow the Assembly’s lead: stop playing games and promoting gimmicks. Deliver the key investments and reforms NYCHA tenants are waiting for.”

EDITOR'S NOTE:

  It seems that NYC Mayor Bill de Blasio has no idea how Albany runs. He as Mayor of NYC can not get things done in Albany by demanding that the State Senate and Governor Cuomo do what the State Assembly have done. That is not how things are done up there. 

  We only hope that the mayor has this same attitude when it comes to the renewal of Mayoral Control of the public schools. If so we can probably say good-bye to mayoral control, because Mayor de Blasio has shown all the reasons why it should be ended. 

COUNCIL MEMBER WILLIAMS PLEADS NOT GUILTY FOLLOWING DEPORTATION PROTEST

 Today at the New York County Criminal Court,

Council Member Jumaane D. Williams pleaded not guilty to charges of obstructing an emergency  medical vehicle stemming from the January 11 protest of the detention and imminent deportation of immigrant rights activist Ravi Ragbir.

Williams appeared before a judge today alongside sixteen other protesters who were arrested with the Council Member for their roles in the protest. Council Member Ydanis Rodriguez, who was also arrested during the protest, had his own court appearance at the end of February and pleaded guilty to disorderly conduct, a violation rather than a crime. The other protesters accepted an ACD (Adjournment in Contemplation of Dismissal) in the courtroom, while informing the court of their intention to continue to protest actions they find unjust. 

Council Member Williams pleaded not guilty, maintaining that his actions  were in opposition to the immoral deportation of Ravi Ragbir. The arrest and detention of Ragbir was later ruled unconstitutional by Judge Kathleen Forrest, who compared ICE's actions to "regimes we revile as unjust; regimes where those who have long lived in a country may be taken without notice...and sent away." Ravi's removal has currently been scheduled for May 11th, pending adjudications in multiple items of federal litigation pertaining to his removal order and ICE's retaliation against him. 

After his appearance, the Council Member joined his fellow protesters and Ragbir himself to speak out about the importance not only of elevating Ravi's case and the circumstances surrounding it, but also the cases of  immigrants across the nation who have not received the same level national attention. He intends to continue to raise issues of immigrant rights, deportation, ICE abuses, and sanctuary cities throughout the legal process.

In addressing the court, attorney Rhiya Trivedi said, in part "On January 11, 2018, at 26 Federal Plaza, not 6 blocks from where we stand today, Immigration and Customs Enforcement arrested nationally recognized immigrant rights activist Ravi Ragbir...These 17 individuals, among countless others, recognized what was happening to Ravi, for the grave injustice and illegality that is was. And so they stood up."

The Council Member is set to next appear at court on May 8th.

"I am proud today to stand with Ravi Ragbir and all immigrants under threat, as I stood with them in protest on January 11th. Today, we as advocates were joined by our friend, Ravi Ragbir. If we had not protested his immoral detention and deportation, this would not have been possible. Those of us with a public position and voice  have a moral obligation to defend communities who are disadvantaged and attacked." said Council Member Jumaane D. Williams. "My legal process will take place out in the open, a right that is often denied to immigrants who face immoral deportations. ICE operates in darkness. It is my hope that my case will shed light on ICE practices, the plight of immigrants who are being targeted by the Trump administration, and how we can be a sanctuary city and state. As voices across the city have risen to defend and support Ravi, we should not criminalize actions of protest taken in his defense." 

"I stand with my friend and colleague Jumaane Williams as he boldly moves forward with taking his case to trial. The fight for immigrant rights and their dignity did not end the day we were arrested in January. It continues every day. We will continue to raise our voices for immigrants, lift up their contributions to this country, and resist the denial of the long history of immigration that has shaped the United States," said Council Member Ydanis Rodriguez.

EDITOR'S NOTE:

We are sure that if an EMS vehicle was coming to a response from Councilman Williams that he would not want any EMS vehicle to be delayed or impeded by anyone. 

Councilman Williams should be an example for the citizens of his district and the city, and not have to be arrested for obstructing an Emergency Vehicle as he was. The same goes for Councilman Rodriguez. 

News From Councilman and candidate for Lt. Governor Jumaane Williams

WILLIAMS' STATEMENT RE: CORRUPTION TRIAL VERDICT

  "Today is a sad and unfortunate day for those of us in government and public service. Each time a government official is found guilty of corruption, it erodes the confidence of our citizenry. The truth is, there are far many more in government who serve with honor and professionalism each and every day than the few who lose their way. Effective governance by honorable public servants relies on maintaining public trust, and that trust has been greatly diminished in our state."

"The jury has spoken, and I don't believe this is an opportunity to score cheap political points at the expense of someone else's pain. However, I will say there are some lessons to learn from this far-too-long season of corruption that assails our government. There is a culture of corruption in Albany that has become too acceptable. The discussion regarding progressive government reform, transparency and accountability must continue with the sense of urgency it demands."

"I am reminded of the ancient Roman emperor and philosopher Marcus Aurelis, who was reported to have a servant whisper 'just a man' when he received adulation and applause. It is a cautionary lesson that each elected official would do well to take to heart."

GOVERNOR CUOMO TOURS NYCHA HOUSING

  "I am glad that the Governor was finally able to see a NYCHA development. Still, what NYCHA tenants who are struggling everyday need is not a photo op, it is crucial funding from the state. Touring a  NYCHA complex for the first time in recent memory, after seven years in office, he spoke today of the 'neglect' toward the housing, and it is certainly clear that NYCHA has been neglected. It is clear that the city's performance has been substandard, with many questions unanswered. It is also clear that for years, the state could have been a better partner and provided much needed support. NYCHA desperately needs the financial support of state government to provide relief for thousands of New Yorkers who are living in abhorrent and unsafe conditions. It does not need political games and one-upsmanship- in all of the jockeying for position, tenants in need are left behind. This is a course that must be corrected for the safety, well-being, and dignity of New Yorkers." 

"Here in New York City and across the state, we are facing an affordable housing and homelessness crisis, and meaningful solutions which provide homes with satisfactory living conditions will require a level of investment that the Governor has been unwilling to commit in the past. There are real, concrete steps that the state can take, including releasing millions in allocated funds, and expediting work on projects that have already been funded, or simply allowing the use of design build. New York State can and must be a real partner in improving NYCHA, but NYCHA funding directly from the state has fallen significantly under this Governor. I truly hope that the next time an elected official takes a publicity tour, they also bring with them a check."

EDITOR'S NOTE: 

While Councilman Williams seems to be minding the business of one former aide to the Governor, and questioning the Governor's intent towards NYCHA, we must remind Councilman Williams that he should be worried about the city with a mayor who is now traveling across the country to bolster his political ambitions on the backs of the NYC taxpayers. We also did not hear anything form Councilman Williams during that period where the 'Agents of the City' were being investigated, with the former U.S. Attorney stating that there was not enough evidence to indict the current mayor of NYC. 

As for the Governor's visit to a NYCHA complex in the Bronx, we wonder why there was no mention of Bronx Borough President Ruben Diaz Jr. While the mayor and Councilman Williams ignore the NYCHA problems in the Bronx, BP Diaz Jr. is trying to get the much needed help for the Bronx NYCHA tenants.

Mount Vernon Man Pleads Guilty To String Of Livery Cab Armed Robberies

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ALLANMON MAVUMKAL pled guilty today to four counts of Hobbs Act robbery in connection with a spree in which he threatened livery cab drivers and robbed the drivers of cash, personal items, and their cabs.  MAVUMKAL pled guilty today in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As he admitted today, Allanmon Mavumkal terrorized four livery cab drivers with a knife, robbing them of their money and cars.  Now Mavumkal is facing significant prison time for his violent acts.” 

According to the Complaint, Superseding Indictment, and other statements made in open court:

On September 21, 2017, MAVUMKAL hailed a livery cab in the Bronx, and directed the driver to a particular destination.  After arriving at the drop-off location, MAVUMKAL threatened the driver with a large knife, which was captured on video footage from the cab, ordered the driver out of the cab, and then drove away in the cab.  The day before, on September 20, 2017, MAVUMKAL robbed three other livery cab drivers in the Bronx and Mt. Vernon in a similar fashion.

MAVUMKAL, 30, of Mount Vernon, New York, pled guilty to four counts of Hobbs Act robbery, each of which carries a maximum sentence of 20 years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman praised the efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New York City Police Department in this case.

Virginia Man Sentenced To Two Years In Prison For Scheme To Manipulate The Market For Fitbit Stock

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ROBERT WALTER MURRAY was sentenced today to 24 months in prison for manipulating the market for the stock of Fitbit, Inc. (“Fitbit”), by filing a sham tender offer with the Securities and Exchange Commission (“SEC”) in November 2016.  MURRAY’s sham tender offer resulted in a temporary change in Fitbit’s market capitalization of over $100 million.  MURRAY pled guilty on November 7, 2017, before U.S. District Judge Katherine B. Forrest, who imposed today’s sentence.

U.S. Attorney Geoffrey S. Berman said:  “Robert Murray manipulated the market in Fitbit stock by making a false filing with the SEC about a tender offer.  Hoping to take a quick profit from trading in Fitbit stock options, Murray’s attempt to game the system has instead earned him a federal prison sentence.” 

According to allegations in a Complaint and Indictment filed in Manhattan federal court, as well as previous court filings and statements made in public court proceedings:

On November 8, 2016, MURRAY, falsely purporting to be an officer at a China-based entity called ABM Capital, created an account on the SEC’s Electronic Data Gathering, Analysis, and Retrieval (or “EDGAR”) system.  The next day, MURRAY submitted a filing on EDGAR that reported that ABM Capital had offered to purchase Fitbit for approximately $12.50 a share, a significant premium to the price of Fitbit stock at the time.  This filing was made public on November 10, 2016, and, when it was, Fitbit’s stock temporarily increased in response to the news.  While Fitbit’s stock had closed at approximately $8.55 a share on November 9, 2016, it reached a high of approximately $9.27 per share, with significantly increased trading volume, after MURRAY’s fake tender offer filing was made public.  This resulted in a temporary increase of Fitbit’s market capitalization of around $100 million.  The tender offer that MURRAY filed, however, was entirely fictitious, and was instead meant only to increase the value of options in Fitbit stock that MURRAY had purchased just days earlier. 

MURRAY also took significant steps to hide his connection to the tender offer filing.  For example, he created a separate email account to register with the SEC and to file the sham tender offer, and took efforts to disguise his IP address when accessing that account. 

In addition to the prison sentence, MURRAY, 25, of Chesapeake, Virginia, was sentenced to two years of supervised release.  The Court further ordered MURRAY to forfeit a sum of $3,914.08. 

Mr. Berman praised the exceptional work of the Office’s criminal investigators, and thanked the U.S. Postal Inspection Service and the Securities and Exchange Commission for their assistance. 

Former Cocoa Company Executives Plead Guilty In Manhattan Federal Court To Defrauding Lenders Of $400 Million

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that PETER G. JOHNSON and PETER B. JOHNSON pled guilty today to defrauding a group of lenders (the “Banks”) by submitting false “borrowing base” reports designed to secure and maintain a $400 million line of credit for their cocoa trading company, Transmar Commodity Group Ltd. (“Transmar” or the “Company”).  The defendants each pled guilty before U.S. District Judge Jed S. Rakoff.                                               

U.S. Attorney Geoffrey S. Berman said:  “As they admitted today, Peter G. and Peter B. Johnson, executives of a cocoa company that supplied some of the world’s largest chocolate companies, defrauded lenders out of hundreds of millions of dollars by continuously and repeatedly lying about the collateral According to the allegations in the Indictment and other documents filed in federal court, as well as statements made in public court proceedings:           

Transmar was a closely held, family-run cocoa commodity trading company.  PETER G. JOHNSON was Transmar’s president and chief executive officer.  PETER B. JOHNSON, the son of PETER G. JOHNSON, was an officer of Transmar, as well as responsible for the operations of Transmar affiliate Euromar Commodities GMBH (“Euromar”). 

From at least 2014 through at least December 2016, Transmar maintained a credit facility from the Banks that varied from approximately $250 million to approximately $400 million.  To secure and maintain these hundreds of millions of dollars in credit, PETER G. JOHNSON, PETER B. JOHNSON, and others schemed to misrepresent material information about Transmar’s finances, making it appear that Transmar had far more credit-eligible collateral than it actually had.

The scheme centered on periodic “borrowing base” reports (“BB Reports”) that the Banks required Transmar to submit, sometimes as frequently as weekly, as a condition to continued credit extension.  The BB Reports were supposed to accurately reflect and quantify those portions of Transmar’s collateral that qualified for financing under the terms of credit agreements between Transmar and the Banks. 

Beginning no later than 2014, Transmar employees, acting with the knowledge and at the direction of PETER G. JOHNSON and PETER B. JOHNSON, manipulated the BB Reports and related documents to give the false impression that Transmar had sufficient eligible collateral to support the amount of credit the Banks were extending.  The manipulation involved, among other devices, counting inventory that Transmar had already sold or was otherwise ineligible for inclusion, counting accounts receivable for which Transmar had already received payment, recording fake accounts receivable, and arranging “circle” transactions through which amenable third-party intermediaries agreed to “buy” goods from Transmar with Transmar’s own money, funneled to the third parties through Euromar. 

The defendants acknowledged their manipulative devices in internal Transmar correspondence.  For example, on or about July 31, 2015, PETER G. JOHNSON sent an email to PETER B. JOHNSON discussing the use of “multiple circles” or “borrowing games” in connection with the BB Reports, and suggesting that Transmar “clean the book of these in due course and before they get questioned and exposed.”  On June 14, 2016, PETER B. JOHNSON responded to an email regarding a circle transaction by lamenting, “this is the problem with fake circles and non-existent last minute intermediary deals, there is never a payment to settle them.”  PETER B. JOHNSON then suggested that Transmar “reissue the invoices (ie change the date of issuance” because “[t]here isn’t going to be an audit [of the BB Report] for a year and its [sic] causing huge problems to keep writing up fictitious contracts and paperwork.” 

Transmar filed for bankruptcy in December 2016.  At that time, the Company owed the Banks approximately $360 million.

PETER G. JOHNSON, 69, of Harding Township, New Jersey, PETER B. JOHNSON, 38, of Morristown, New Jersey, each pled guilty to one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution.  That offense carries a maximum prison term of 30 years.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

The defendants are scheduled to be sentenced by Judge Rakoff on August 6, 2018.

Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation. 

NEWS FROM THE NEW YORK CITY COUNCIL

Council to vote on first pieces of legislation under Speaker Corey Johnson’s leadership

  The New York City Council will vote on a package of legislation to better serve the needs of runaway and homeless youth. In addition, the Council will vote on legislation that clarifies the requirements for becoming construction site safety providers. Next, the Council will vote on a resolution calling on the New York State Legislature to amend the penal law to include individuals in police custody as being categorically incapable of consenting to sexual conduct with a police officer. Finally, the Council will vote on land use items covering Manhattan and Brooklyn.

Runaway and Homeless Youth Package:

Developing a Plan to Serve All Runaway and Homeless Youth

Introduction 410-A, sponsored by Speaker Corey Johnson, would require the Department of Youth and Community Development (DYCD) to report annually on runaway and homeless youth. The bill would also require that DYCD to develop a plan to provide shelter to all runaway and homeless youth who request shelter.

“There are few crises more heartbreaking than that of youth homelessness. Sadly, this is a crisis that disproportionately impacts the LGBTQ community, of which I am a proud member. We must do everything we can to help all of our young people. My bill, Introduction 410-A, will require the City to produce a plan to provide shelter to every youth who needs a bed. Every young person who needs shelter deserves access to youth-specific services and this plan will set the framework for getting us there. I’d like to thank Youth Services Committee Chair Debi Rose for her leadership and my colleagues who have lent their support to this legislation,” said Speaker Corey Johnson. 

Extending Time Limits for Runaway and Homeless Youth

Introduction 490-A, sponsored by Council Member Vanessa Gibson, would require that runaway and homeless youth be permitted to remain in runaway and homeless youth shelters for extended time limits, doubling the permitted time in a crisis shelter from 30 days to 60 days and extending the time in a transitional independent living facility from 18-24 months.

“By extending shelter time limits, we are giving runaway and homeless youth much needed stability and providing them with an opportunity to make the good and healthy choices that will keep them on the pathway to success. These are young people who are alone, abandoned, and often fleeing abusive situations at home. It is our fundamental responsibility to remove every barrier to young people’s success; this legislation is a common sense measure that will allow us to better serve our children,” said Council Member Vanessa Gibson.

Expanding Youth Shelter Services to Homeless Young Adults

Introduction 556-A, sponsored by Council Member Ritchie Torres, would require the Department of Youth and Community Development (DYCD) to include shelter services for homeless young adults, youth ages 21 – 24, as part of its continuum of runaway and homeless youth services.

“I’m convinced that expanding the safety net of shelter to those in greatest need from 21 to 24 years old will have a real impact in saving lives. Homelessness leaves runaway youth vulnerable to commercial sexual exploitation, contact with the criminal justice system, STDs and, worst of all, suicide. This bill, once enacted into law, will have lasting impact on runaway homeless youth across the City. I thank Speaker Johnson for his partnership and making this issue a priority in the Council,” said Council Member Ritchie Torres.

Calling on the NYS Legislature to Include Individuals in Police Custody as Being Categorically Incapable of Consenting to Sexual Conduct with a Police Officer

Resolution 177, sponsored by Council Member Mark Treyger, calls on the New York State legislature to amend Penal Law section 130.05, related to lack of consent for sexual acts, to add persons in police custody to the list of persons deemed incapable of consenting to a sexual act when it is with a police officer.

“There can be no meaningful consent given without coercion when an individual is in the custody of a law enforcement official. Our state penal code acknowledges this dynamic in circumstances involving corrections officers and prisoners and parole officers and their parolees. My resolution calls on the state to do the same for law enforcement officials. I thank Speaker Johnson and my colleagues for supporting my push to align our laws with basic common sense and human decency,” said Council Member Mark Treyger.

The City Council will also vote on the following land use item(s)…

 Interborough Rapid Transit Company Powerhouse, Manhattan

The Council will vote to landmark the Interborough Rapid Transit (IRT) Company Powerhouse, located in Council Member Helen Rosenthal’s district. The IRT opened in 1904 to power the pioneering IRT Subway and was the largest generating station constructed up to that time. The immense powerhouse represents a unique integration of 20th century engineering and classical architectural expression. This vote comes after receiving overwhelming support from the community.

Empire State Dairy Company Buildings, Brooklyn

The Council will vote to landmark Empire State Dairy Company Buildings, located in Council Member Rafael Espinal’s district. This vote comes after much input from the community.

827-831 Broadway Buildings, Manhattan

The Council will vote to landmark 827-831 Broadway Buildings, located in Council Member Carlina Rivera’s district. The decision to landmark the property received unanimous support from the community.

A.G. Schneiderman Releases Top Ten Frauds Of 2017, Warns NY Consumers To Beware Of Scammers

Top New York Frauds Reported To A.G.’s Office Include Internet, Automobile, Consumer Services, Housing, And Utilities

Schneiderman Provides Tips To Avoid Scams, Urges New Yorkers To Report Fraud At 1-800-771-7755

  To mark National Consumer Protection Week, Attorney General Eric T. Schneiderman released the list of the top ten consumer fraud complaints received by his office in 2017. Attorney General Schneiderman also offered a variety of tips for New Yorkers on how to avoid future scams.

“The best weapon against fraud is an informed consumer,” said Attorney General Schneiderman. “Fraudsters will always look for new ways to line their pockets at the expense of unsuspecting consumers. I encourage New Yorkers to educate themselves – and to continue reporting scams to my office, so that we can continue to crack down on scammers seeking to take advantage of New York consumers.”

The Attorney General’s office analyzed the consumer complaints received statewide throughout 2017. For the twelfth year in a row, Internet-related complaints topped the list with 5,153 complaints. This category covered a range of issues, including child safety, privacy, civil rights, spyware, spam, consumer fraud, and free speech. Internet-related complaints were followed by 3,188 Automobile complaints, which involved sales, services, financing, rentals, and repairs. Consumer-related services ranked third with 2,463 complaints, which included complaints concerning alarm companies, dry cleaners, furniture repair and refinishers, restaurants, hair and nail salons, movers, watch repairs, and other services for personal household use. Consumer-related services was followed by 1,961 Landlord/Tenant complaints such as rent security deposit issues and allegations of tenant harassment. Rounding out the top five, there were 1,827 Utilities-related complaints, which included reports on cable and satellite companies, energy services and suppliers, and wireless and residential phone carriers.

The following is the 2017 list of the top ten consumer complaints by category:

CATEGORY	NUMBER OF COMPLAINTS
1. Internet (internet services & service providers; data privacy & security; child safety; consumer frauds)	5,153
2. Automobile (buying; leasing; repair; service contracts; rentals)	3,188
3. Consumer-Related Services (security systems; restaurant/catering services; tech repairs)	2,463
4. Landlord/Tenant Disputes (security deposit releases; tenant harassment)	1,961
5. Utilities (wireless and residential phones; energy services & suppliers; cable and satellite)	1,827
6. Credit (debt collection; credit card billing; debt settlement; credit repair; credit reporting agencies; identity theft)	1,436
7. Retail Sales (any sale of goods for personal household use: food, clothing; rent-to-own)	1,285
8. Home Repair/Construction (home improvement services not delivered or done poorly)	982
9. Mail Order (purchases made online or from a catalog)	850
10. Mortgage (mortgage modifications; mortgage and loan broker fraud; foreclosures)	799

The Attorney General also offered a list of tips all consumers should use to protect themselves and their families:

1. Internet: It’s important to ask the right questions when choosing an Internet plan that’s appropriate for your needs and to ensure you are getting the Internet speeds you were promised. If you are not receiving the speed you are paying for, call your Internet service provider to find out why. Remember to refrain from conducting any transactions that involve personal, financial, or credit card information while using an open and unsecured Wi-Fi connection – identity thieves often stake out open networks seeking victims. Scammers also use variants of a known company’s Internet address to try and lure users into visiting fake websites. Learn more about common online scams here.
2. Automobile: New York’s New and Used Car Lemon Laws provide a legal remedy for buyers or lessees of new cars that turn out to be lemons. You may be entitled to a full refund if your car does not conform to the terms of the written warranty and the manufacturer or its authorized dealer is unable to repair the car after a reasonable number of attempts. The law allows consumers to shop around for the best deal when leasing a car, set limits on early termination, and gives the Attorney General’s Office jurisdiction to resolve excess wear-and-tear disputes. To file a new or used car “lemon law” complaint, click here and here.
3. Consumer-Related Services: We rely on a range of services in our day-to-day living, from home repair to snow-removal to party planning. Make sure to use a written contract for all services that clearly defines restrictions and obligations of both the consumer and service-provider. Consumers should shop around, get estimates from at least three vendors, and check with the Better Business Bureau and other references to confirm the company is reliable and reputable. File a complaint online here.
4. Landlord/Tenant Disputes: The Attorney General’s Tenant Harassment Task Force investigates situations where landlords and management companies are suspected of using construction as a means to harass tenants. Incidents of harassment include: landlords operating without proper permits; construction projects operating in violation of stop work orders; and landlords who openly ignore requirements for tenant protection plans in order to contain the spread of lead and/or asbestos which may be exposed during renovation. Tenants may lodge complaints by completing and submitting a Tenant Rights Complaint Form or calling 1-800-771-7755. Learn more about housing issues here.
5. Utilities/Wireless and Residential Phone Service: A common complaint with long-term wireless service contracts involves the sometimes hefty price for cancellation. If you are unsure exactly what plan best fits your calling habits – and want to avoid paying a large termination fee – it might be best to avoid an extended contract. Regardless of the length of your contract, remember to carefully read and understand all terms before signing it. File a complaint online here.
6. Credit: Debt collection is the most common type of credit fraud, and consumers must know their rights. Debt collectors may not harass or abuse consumers, nor provide misleading information – for instance, claiming to represent a government agency. Debt collectors cannot sue on debts outside the applicable statute of limitations, the time frame established for the enforcement of legal rights. Consumers have the right to demand verification of the debt. Anyone with credit problems should contact credit counseling agencies licensed by the New York State Department of Financial Services for assistance in managing the situation and avoiding collection scams. Learn more here.
7. Retail Sales: Check return and refund policies. The law requires all merchants to post their refund policies. A store that fails to do so must give consumers 30 days to get a refund in the manner that the purchase was made. Be especially vigilant of “final sales” or “cash-only – final sale” notices, as you will have little or no recourse if the merchandise proves to be defective. Some stores require the original packaging and charge a hefty restocking fee for returned items. Learn more here.
8. Home Repair/Construction: Before entering into a contract, shop around for estimates, check in with the Better Business Bureau, banks, suppliers, and neighbors for references. Insist on a written contract that includes the price and description of the work needed and negotiate a payment schedule tied to the completion of specific stages of the jobs. Never pay the full price up front. You have three days after signing a home improvement contract to cancel it. Learn more here.
9. Mail Order: Whether ordering online or from a catalog, make sure the company has an operating customer service line and lists a real street address. Companies operating on a ‘fly-by-night’ basis often have no working customer service number and list only a P.O. Box. Learn more here.
10. Mortgage: Mortgage rescue scams prey on homeowners in their greatest time of need. Look out for offers that claim to stop or delay foreclosure payments for an upfront fee or make payments on your behalf. Beware of companies that suggest a government affiliation or claim to be with the government, or those that work with attorneys but do not provide legal services. The Attorney General’s Homeowner Protection Program (HOPP) funds a network of more than 85 trusted partners dedicated to providing homeowners with free, qualified mortgage assistance relief services across New York. To find a nearby HOPP provider, call the Attorney General’s hotline at 1-855-HOME-456 or visit www.agscamhelp.com.

Tips for other common scams: 

Although not in the top ten, the Attorney General’s office continues to receive consumer complaints about two common phone schemes known as the IRS scam and the Grandparent scam.

IRS scams: 

In the IRS scam, the caller poses as a U.S. Treasury Department, IRS, or other government official, demanding payment for unpaid taxes and threatening consumers with arrest if they do not pay up. These scammers often use fake government logos in their email and caller ID spoofing so that the victim’s caller ID box says “Internal Revenue Service” or displays the phone number of the Internal Revenue Service. 

Beware of scammers posing as government officials via phone calls or emails. The IRS will never demand immediate payment or payment information over the phone. Do not engage this type of caller or provide any personal information and report the call to our office by submitting a complaint here or calling our consumer hotline at 1-800-771-7755. Scams should also be reported to the U.S. Treasury Inspector General for Tax Administration at 800-366-4484.

Grandparent scam: 

In the Grandparent scam, a grandparent receives a call from someone posing as a grandchild claiming that he or she is traveling and facing an urgent need for money – to make bail, pay a fine, or pay for automobile repairs or medical expenses. The caller begs the grandparent not to tell their parents. The victims are then given instructions to send funds to the scammers. Scam artists are now instructing grandparents to buy certain gift cards and then provide the scammer with the information on the back of the card so they cannot be traced.

Be suspicious of anyone who calls claiming to be your grandchild and asks you to immediately wire money or buy large dollar amounts of gift cards. Grandparents should verify any supposed emergency by calling friends and family before wiring money or buying gift cards. Learn more about common scams targeting senior citizens here.

Student Debt: 

Beware of phony student debt relief companies that claim to lower or eliminate student loan debt. Do not pay up-front fees. Scammers often use official sounding names to make it sound like they are a government agency, and, in many cases, fail to provide promised services or merely submit paperwork for a free debt relief program offered by the federal government. Students should contact their loan servicer themselves to see if any relief is available. For federal student loans such as Stafford or PLUS loans, students should ask if they are eligible for an income-based payment plan or if they qualify for deferment or forbearance.

Health Care Fraud: The Attorney General will soon be releasing a separate report about health care fraud complaints that it received in 2017. In 2017, the Health Care Bureau Helpline received 5,565 complaints. Of these complaints, the Helpline investigated and resolved 2,515 individual consumer cases and provided another 3,050 consumers with information or referrals to the agency most appropriate for the inquiry. Along with other consumer relief discussed in the report for 2017, the Helpline secured approximately $1,936,997 for consumers in restitution and savings resulting from (i) incorrect medical billing; (ii) wrongful rejection of health insurance claims; and (iii) health plans’ failures to properly process insurance claims. 

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 to the Attorney General’s office by submitting a Consumer Bureau Online Complaint Form or calling 1-800-771-7755.