Attorney General James Delivers Restitution to New Yorkers Cheated by Auto Dealership

 

Queens Dealership Targeted Chinese-speaking Community 

New Yorkers Affected Should Contact the OAG at 1-800-771-7755

Attorney General Letitia James today delivered justice and restitution for New Yorkers who were targeted and conned by a Bayside car dealership. Star Auto Sales of Bayside, Inc., d/b/a Star Toyota of Bayside, used fraudulent, deceptive, and unlawful practices to sell and finance used vehicles to Chinese-speakers who lacked English language skills and who were not familiar with typical auto sales practices.

“Stealing from our immigrant communities by taking advantage of language barriers is not only illegal, but downright shameful,” said Attorney General James. “New York values its immigrant communities, and we will not stand idly by while they are targeted. I look forward to returning hard-earned money back into the pockets of consumers, and I am proud to be able to fight for the rights of all New Yorkers.”

Star Toyota advertised in Chinese-language publications, inviting consumers to come in and meet with the dealership’s Chinese-speaking sales representatives. The sales staff built a trusting relationship with customers and reassured them that they could trust them because of their common language.

Instead, the auto dealership preyed upon the unsuspecting customers by having them sign contracts to purchase their vehicles at higher costs than agreed to during Chinese-language negotiations. Additionally, the sale representatives increased the consumers’ total costs by adding unwanted aftermarket products to customers’ contacts without the customers’ knowledge or consent; a practice called “jamming.” The aftermarket items jammed into the contracts included unwanted supplemental warranties, service contracts, and theft insurance policies. Additionally, the dealership often failed to provide buyers with copies of the sales or lending contracts, which prevented the consumers from discovering how the dealership had increased their final costs. Star Toyota then regularly submitted inflated or made up personal financial information to their lenders to secure loans that the customers struggled to pay. Finally, the sales reps would take advantage of these consumers’ lack of familiarity with domestic auto sales practices by demanding tips or taking cash from consumers for expenses that were already included in their transactions.

The initial consumer complaints were received from U.S. Representative Grace Meng’s office.

“I thank and commend Attorney General James for investigating the complaints that were referred by my office,” said U.S. Representative Grace Meng. “I’m pleased that these cases were pursued, and that restitution is being delivered to those who were duped into shelling out additional and unnecessary funds for their vehicles. Taking advantage of customers, particularly those with limited English proficiency, is unconscionable and shameful. Unfortunately, this is not uncommon in immigrant communities where cultural and language barriers exist. But these cases should serve as a warning to others who seek to swindle vulnerable individuals out of their hard-earned money. Ripping off consumers will not be tolerated and those who do will face the consequences of their actions.” 

“Queens lauds Attorney General Letitia James for securing substantial restitution for the customers duped by this unscrupulous dealership,” said Queens Borough President Sharon Lee. “This also sends a strong message to other businesses: such deceptive practices, especially ones that prey upon vulnerable populations and take advantage of non-English speakers, will be checked. Thank you, Representative Meng and General James for protecting and fighting for consumers." 

“It's truly reprehensible that a car dealer would use the native language of hardworking, trusting consumers to prey on and cheat them out of hard-earned money,” said State Senator John Liu. “Unfortunately, this is not the first time we have worked on this scam, but hopefully it will be the last thanks to the vigorous efforts of Attorney General Letitia James.” 

The Office of the Attorney General alleged that Star Auto Sales of Bayside violated Executive Law 63(12) for fraud or illegality in the conduct of business and GBL 349 for engaging in deceptive business practices. A consent order resolving these allegations was granted in New York Supreme Court, Queens County and signed by Hon. Richard G. Latin. The order awards $100,000 in civil penalties to the state of New York and $186,855 in restitution to 21 known consumers. A notice of this settlement will also be publicized in a local Chinese publication, allowing additional claimants to come forward to claim restitution during a 90-day window.

Attorney General James encourages any Chinese-speaking consumers who believe they were deceived by Star Toyota of Bayside from January 1, 2014 to March 1, 2018, to file a complaint online at https://ag.ny.gov/star-toyota-of-bayside-settlement or via telephone at 1-800-771-7755.

Attorney General James Stops Three Amazon Sellers from Price Gouging Hand Sanitizer and Recoups Funds for New Yorkers

 

Sellers to Pay More Than $52,000 in Penalties and Nearly $23,000 in Consumer Restitution

AG James Reminds Sellers Price Gouging is Unlawful During Pandemic

New York Attorney General Letitia James today announced that she has stopped three Amazon sellers from price gouging hand sanitizer during the coronavirus disease 2019 (COVID-19) public health crisis, and that she will help deliver tens of thousands of dollars back into the pockets of defrauded New Yorkers. Three sellers — Yvette Chaya d/b/a Northwest-Lux (Northwest-Lux), Mobile Rush, Inc. d/b/a Best_Deals_27 (Mobile Rush), and EMC Group, Inc. d/b/a Supreme Suppliers (EMC) — will pay the state of New York more than $52,000 in penalties and reimburse consumers almost $23,000 for overcharging for hand sanitizer during the pandemic.

“Price gouging on necessary consumer supplies during an unprecedented public health emergency is absolutely unconscionable and will not be tolerated,” said Attorney General James. “Instead of ensuring individuals could protect themselves from the coronavirus, these businesses operated with dirty hands by charging exorbitant prices on hand sanitizer and other cleansing products. My office will continue to clean up this unlawful practice by using all of the tools at our disposal to prevent price gouging during this pandemic.”

From March 1, 2020 to March 6, 2020, Northwest-Lux sold approximately 1,168 units of PURELL® hand sanitizer on its Amazon storefront at prices that grossly exceeded the price at which the same or similar products were readily obtainable in the trade area. Specifically, Northwest-Lux charged consumers $79.99 to $129.99 for 2-liter bottles of PURELL®, which typically sell for $20.87 to $35.00, and $69.99 for 2-packs of PURELL® 20-ounce bottles, which typically sell for $14.88 to $35.10. As part of this agreement, Northwest-Lux will pay $20,000 in penalties, fees, and costs to the state of New York, as well as $5,717.13 in restitution to consumers who purchased hand sanitizers at exorbitant prices. Northwest-Lux consumers will receive partial refunds — ranging from $13.78 to $209.27 — depending on the product purchased, amount paid, and quantity ordered. 

From February 10, 2020 to March 11, 2020, Mobile Rush sold approximately 3,037 units of hand sanitizer on its Amazon storefront at prices that grossly exceeded the price at which the same or similar products were readily obtainable in the trade area. Mobile Rush sold six types of Germ-X and PURELL® hand sanitizer products, ranging in price from $19.99 to $159.99. For example, Mobile Rush charged consumers $19.99 to $29.99 for single 8-ounce bottles of Germ-X hand sanitizer, which typically sell for $1.00 to $3.00. As part of this agreement, Mobile Rush will pay $17,500 in penalties, fees, and costs to the state of New York, and an additional $9,113.00 in restitution to consumers who purchased these six hand sanitizer products at exorbitant prices. Mobile Rush consumers will receive partial refunds — ranging from $3.16 to $1,477.40 — depending on the product purchased, amount paid, and quantity ordered. 

From February 10, 2020 to March 4, 2020, EMC sold approximately 1,884 units of hand sanitizer on its Amazon storefront at prices that grossly exceeded the price at which the same or similar products were readily obtainable in the trade area. EMC sold seven types of PURELL® hand sanitizer products, ranging in price from $22.45 to $299.95. For example, EMC charged consumers $35.98 to $52.99 for 8-packs of PURELL® 1-ounce bottles, which typically sell for $12.00 to $22.00. As part of this agreement, EMC will pay $15,000 in penalties, fees, and costs to the state of New York, and an additional $8,113.77 in restitution to consumers who purchased these seven hand sanitizer products at exorbitant prices. EMC consumers will receive partial refunds — ranging from $6.10 to $403.67 — depending on the product purchased, amount paid, and quantity ordered. 

Consumers do not need to do anything to receive restitution. Under the terms of the agreement, the companies are required to automatically issue partial refunds to the credit card, debit card, or bank account that consumers used to make their original purchases. Consumers should see the credit to their account within one or two billing cycles or may have already received a credit. In addition to paying a combined $52,500 in penalties, fees, and costs and $22,943.90 in consumer restitution, the companies have agreed to comply with New York state’s price gouging statute going forward.

Attorney General James has been focused on protecting consumers and vulnerable communities since the onset of the pandemic and these agreements with Northwest-Lux, Mobile Rush, and EMC are part of a broader investigation by the Office of the Attorney General (OAG) into price gouging during the COVID-19 pandemic. The OAG has already issued more than 1,800 cease-and-desist orders to businesses that stand accused of violating New York’s price gouging law. Additionally, Attorney General James filed a lawsuit against Hillandale Farms in August — one of the nation’s largest producers and wholesale distributors of eggs — for illegally gouging the prices of eggs during the coronavirus pandemic. 

Attorney General James reminds sellers of goods and services vital to and necessary for the health, safety, and welfare of consumers or the general public that New York’s price gouging statute is still applicable and in effect as the coronavirus pandemic remains ongoing. Sellers should be aware that New York revised its price gouging statute, effective June 6, 2020, to impose increased penalties against those who price gouge essential items during a pandemic.

The OAG wishes to thank Amazon for its assistance with this investigation and looks forward to continued cooperation with the company.  

BRONX DA DARCEL D. CLARK RELEASES REPORT ON FATAL SHOOTING OF KAWASKI TRAWICK BY POLICE

 

42-Page Report Outlines Public Integrity Bureau’s Investigation and Finding of No Criminality in Death

 Bronx District Attorney Darcel D. Clark today released the report on the investigation into the fatal shooting of Kawaski Trawick inside his apartment by a member of the New York City Police Department on April 14, 2019, as well as video of the shooting and the events leading up to it.

 The investigation found no criminality on the part of the responding police officers, but revealed the responders lacked information that would have been helpful when they encountered Mr. Trawick in his apartment, as well as a gap in communication with the non-profit supportive housing facility where he resided at 1616 Grand Avenue. The investigation also revealed the need for a thoughtful review of police procedures and training techniques for these types of interactions.

 District Attorney Clark said, “Once again, we have a death that painfully illustrates that changes are needed in the response to those in mental health crisis, and that we as a community must do better to provide appropriate assistance for residents of supportive housing in the City. There must be treatment and services readily available to prevent persons from reaching a point where they may cause harm to themselves or others. I continue to encourage a productive conversation about how to better approach calls to help people in crisis to avoid an escalation resulting in a fatality.

 District Attorney Clark said, “Once again, we have a death that painfully illustrates that changes are needed in the response to those in mental health crisis, and that we as a community must do better to provide appropriate assistance for residents of supportive housing in the City. There must be treatment and services readily available to prevent persons from reaching a point where they may cause harm to themselves or others. I continue to encourage a productive conversation about how to better approach calls to help people in crisis to avoid an escalation resulting in a fatality.

The family of Mr. Trawick and their advocates met with the Public Integrity Bureau today. District Attorney Clark thanked the Public Integrity Bureau for its scrupulous investigation.

 The complete 43 page report by the Bronx District Attorney's office can be found HERE.

Comptroller Stringer Releases FY 2021 First Quarter Revenue Update and Budget Outlook

 

Additional revenues—including $834 million in tax revenues above projection for the first quarter of FY 2021—reduce risks to balance in FY 2021

 New York City Comptroller Scott M. Stringer released a first quarter revenue update for fiscal year (FY) 2021 showing that tax revenues are running $834 million ahead of the City’s projections.  While potential State budget cuts continue to present a sizable risk to the City’s budget condition and a robust Federal stimulus package is essential to the City’s recovery, Comptroller Stringer said that the higher-than-expected tax revenues provide a path to closing the City’s budget gap next year. Existing resources include debt service savings from refinancing of outstanding City bonds, a Revenue Stabilization Fund that would allow access to nearly $500 million in General Fund balances, surplus revenues from fiscal year 2020, and tapping into reserves. Comptroller Stringer said that New York City Mayor Bill de Blasio is now in a position to present an updated Financial Plan in November that provides a clear path to a balanced budget for FY 2022 without cuts to essential services, layoffs of city workers, or borrowing to support operating expenses.

“While we should not underestimate the scale of the challenge before us, with thoughtful leadership, there is a clear path to financial stability,” said Comptroller Stringer. “If we get the support we need from Washington, the resources we have available give us a strong start on a balanced budget for FY 2022 and beyond without impacting critical city services, laying off City employees, or borrowing against decades of future investments in education, housing and other vital city services.”

Since FY 2021 budget was adopted in July 2020, a number of factors have changed that merit an update in advance of the November Plan. As adopted, the FY2021 budget was balanced, and projected a $4.2 billion gap for next year (FY 2022). Since then, additional resources have become available to help address the gap:

• The Comptroller’s Office and OMB together have refinanced outstanding bonds, resulting in $610 million in debt service savings ($469 million this year and $141 million next year).  Additional refinancings are expected during the course of the year that will add to this total.
• FY 2020 tax revenues were $1.019 billion more than projected;
• State legislation authorized the City to access $493 million in fund balances for gap-closing purposes through creation of a Revenue Stabilization Fund (a rainy day fund);
• Through September, this year’s tax revenues are running $834 million ahead of projections:

State and Federal Risks 

This is not to say that the budget picture is without further risks.  The most significant risk is the State’s budgetary situation, which as of the Division of the Budget’s Mid-Year Update, continues to rely on $8 billion in cuts in local aid for balance.  A 20% reduction in local aid to New York City is approximately $3 billion, two-thirds of which would fall on the Department of Education.

For this reason it is imperative that another federal stimulus package be enacted that includes relief for families, workers, and businesses – but also for state and local governments that, by taking the appropriate measures to protect public health, have lost billions in tax revenues.

The risks from insufficient federal aid and state budget cuts makes it all the more urgent to begin work now to bring the City’s budget into balance and better position the City to face future uncertainties.

State Senator Biaggi Throggs Neck Turkey Giveaway

 

NEW YORK CITY FILES A LAWSUIT AGAINST BROOKLYN LANDLORDS ACCUSED OF EGREGIOUS AND ILLEGAL EVICTION, HARASSMENT OF TENANTS DURING THE COVID-19 PANDEMIC

 

The City of New York filed a lawsuit today against landlords Gennaro Brooks-Church and Loretta Gendville, joint owners of 1214 Dean Street, a residential property in Brooklyn, as it takes steps to help tenants facing unlawful eviction. The lawsuit represents the Administration’s emphasis on enforcing the laws that protect tenants and is an example of how the City will not tolerate harassment during this unprecedented crisis.    

  

“This Administration will not tolerate landlords who illegally evict and harass tenants out of their homes, and we will take forceful action like today’s lawsuit to make that very clear,” said Ricardo Martínez Campos, Deputy Director for the Mayor’s Office to Protect Tenants.  “For landlords who think they can rely on these tactics and make them part of their business model, know that you are on notice, and we will not hesitate to bring you to Court.”   

 

“Our Office would like to thank the City’s Law Department for working closely with us to bring this case, as well as the tenants of 1214 Dean Street who recounted their difficult stories for us time and again. It is our hope that this case will have implications that reach beyond 1214 Dean Street and will make clear that tenants should be treated with dignity and respect, and that their rights under the law must be observed,” said Greta Aiken, Outreach and Engagement Coordinator for the Mayor’s Office to Protect Tenants. 

 

"Ensuring New Yorkers have a safe, quality home and protecting renters from harassment and illegal eviction is more important now than ever," said Deputy Mayor for Housing and Economic Development Vicki Been. “This action serves as a warning: If you violate tenants' rights, we will take action.”  

 

“Home should be where you feel you can put your head on your pillow and rest easy. In a time of pandemic, it should be the place you feel most safe”, said NYC Corporation Counsel James E. Johnson. “Today, we’re filing suit to ensure that safety and hold landlords accountable for their illegal and heartless acts. We have the tools to dismantle these egregious schemes and we will aggressively use them.”   

 

“Inflicting additional trauma onto those struggling to stay afloat during a pandemic by threatening eviction without process is not only immoral, but illegal," New York State Attorney General Letitia James said. "No one should fear having their home taken away at a time when their very life depends on social distancing and staying home; and no one should live in fear of reprisal from their landlord for asserting their lawful rights. Our investigation, working in tandem with the City’s lawsuit, will hold these landlords accountable for any illegal actions and will place other landlords on notice that they will be held accountable for unlawful eviction. "    

 

In July of this year, Brooks-Church and Gendville blatantly harassed the tenants of 1214 Dean Street, illegally evicting at least four tenants during the COVID-19 pandemic. The City’s Law Department responded with a Cease and Desist letter sent to the landlords on July 10^th.     

 

Today, the Law Department, working with the Mayor’s Office to Protect Tenants (MOPT), sued Gendville and Brooks-Church. The City seeks civil penalties for violations of the NYC Unlawful Eviction Law, a finding of Tenant Harassment against defendants, correction of construction code violations that include unpermitted construction and illegal conversion, and civil penalties for those violations.   

 

By seeking civil penalties, the City seeks to reverse any windfall that landlords may receive from their bad acts, and to broadcast a message that other landlords think twice before illegally displacing tenants.     

The City is also working with the New York State Office of the Attorney General, who also have an active investigation into the actions of the Brooks-Church and Gendville. 

 

“In this time of extreme hardship, we’re going to be there for tenants and we’ve made it clear that tenant harassment will not fly under the radar of this Administration,” said HPD Commissioner Louise Carroll. “I thank all of our city and state partners for working together to hold landlords accountable and to protect New York City tenants in the middle of the pandemic, and every other day.” 

 

"Tenants deserve safe, legal housing, and should not be forced from their homes - not now, not ever, and certainly not during a pandemic," said DOB Commissioner Melanie La Rocca. "New Yorkers look out for their neighbors, and that's what we're doing here. We are proud to work alongside our partner agencies to protect the rights of tenants and help to build a fairer city for all." 

 

The City Unlawful Eviction Law affords the City the ability to advance tenants’ rights even where tenants themselves are unable or too intimidated to bring their own action before a Court. This lawsuit reaffirms City policy and values that no one should be removed from their home without required legal process.   

The 1214 Dean Street litigation is the result of sustained efforts by the current administration to strengthen tenant protection work across its agencies.   

 

Mayor Bill de Blasio created the Mayor’s Office to Protect Tenants (MOPT) in 2019 to coordinate the City’s range of tenant protection efforts. HPD expanded its tenant protection work with the establishment of its Anti-Harassment Unit in 2019, and the Law Department’s Affirmative Litigation Division assembled a special tenant protection team also in 2019.    

 

The Office of the Tenant Advocate was established at the Department of Buildings in 2017. DOB and HPD ensure buildings are safe and living conditions habitable, and together with the Law Department and MOPT, they work to counter illegal landlord harassment.    

Food Giveaway at Parkside Houses and Senior Center

People lined up to receive a large bag of canned goods and fresh produce Monday afternoon at the Parkside Houses located on Adee Avenue in the Bronx Park East section of the Bronx. On hand were Assemblywoman Nathalia Fernandez and State Senator Jamaal Bailey, with several helpers to bring the bags of food from the delivery truck to the people, and the Senior Center at the Parkside Houses.

On Monday November 23rd from 1 - 4 PM Senator Jamaal Bailey will be hosting his annual Turkey Giveaway for Thanksgiving at his district office located at 959 East 233rd Street, between Paulding and Edenwald Avenues. You must RSVP to Senator Bailey's office at 718-547-8854, or SENATORJBAILEY@NYSTATE.GOV 

Above - The truck loaded with bags of groceries and produce 

Below - The bags of food were brought to the people waiting on line from the delivery truck.

Above - Assemblywoman Fernandez directed traffic by lining people up for those who were bringing the bags of food.

Below - State Senator Jamaal Bailey arrived at the food giveaway speaking with Assemblywoman Fernandez and some of the helpers.

After all the people received their bags of food the extra bags were placed in the senior center for anyone who may not have gotten a bag.  

Joint Statement from Council Speaker Corey Johnson and Education Committee Chair Mark Treyger

 

“In this time of great uncertainty, there is one thing we do know: many students, including our youngest and most vulnerable school populations, are in desperate need of in-person learning and support services. We know this from hours and hours of testimony from educators, experts, parents and teachers at Council oversight hearings held in September and October.

“We also know that there is credible scientific evidence that young students are less likely to transmit COVID-19, and leading health experts have expressed confidence that schools can operate safely if safety measures are resourced and followed.

“Our City is in a dangerous position right now with rising COVID rates. But we owe it to students and families – and all New Yorkers who care about the future of this city – to try everything we can to keep schools open to provide in-person services while also prioritizing safety and equity. This is especially important for families who rely on our government to be the great equalizer. 

“One option that should be under serious consideration right now is the phased-in schools proposal crafted in July by Education Chair Mark Treyger. It would begin by initially offering in-person learning five days a week for early childhood and elementary students, as well as for our most vulnerable student populations: students with learning disabilities, multi-lingual learners, families experiencing homelessness, and others who are not being adequately served. Remote learning would also be offered for those families who do not want to participate in person and the Department of Education (DOE) must ensure that every child from every zip code receives the appropriate technology and internet they need.

“Prioritizing in-person learning for younger students and our most vulnerable student populations is important because we know that their academic and developmental progress is the most dependent on the social environment and consistency of in-person education. We also know they benefit the most from the resources and individualized attention that are in many cases impossible to get remotely, due to staffing constraints. In March, as our city shifted to full remote, we also opened up regional enrichment centers (REC) to provide emergency childcare services to children of essential workers. This proposal builds on the REC model by adding education services and expanding the pool of eligibility to include our city’s vulnerable kids. 

“These are difficult times for our city and tough decisions must be made. Let’s follow the science, think creatively and be guided by our mutual goals of safety and equity for all New Yorkers – including the children whose continued progress and success should be our ultimate concern.”