Phone Scams, Springsteen Ticket Gouging & More

Protecting New Yorkers Against Phone Scams

Following an uptick in reports of telephone scammers, the Attorney General released tips to defend against these fraudsters. New Yorkers have recently reported scammers posing as officials from the Internal Revenue Service and the Attorney General’s Office. The scammers typically target seniors, students and first generation Americans, and are often looking to uncover personal information. New Yorkers should remember to never give out personal information when receiving an unsolicited call, and to always be suspicious of those who ask to keep the conversation private. And remember, the safest thing to do is always to say “no” and hang up. Those who believe they have been the victim of fraud should contact the office immediately.

Standing Up For Religious Liberty

The Attorney General sent a letter to leading civil rights and Muslim advocacy groups reiterating his commitment to enforce all laws protecting religious liberty and equality. While some have chosen to exploit fear and anger by targeting certain religious minorities, the Attorney General emphasized that his office stands ready to enforce all state and federal civil rights laws protecting the liberty and equality of people of all religions. Anyone who is aware of potential violations should contact the office’s Civil Rights bureau at (212) 416-8250 or Civil.Rights@ag.ny.gov. This is just the latest step the Attorney General has taken to protect religious liberty. In 2011, his office launched the Religious Rights Initiative, which is dedicated to addressing religious discrimination claims and ensuring that anti-discrimination laws are aggressively enforced. The Attorney General has also reached an agreement with a municipal healthcare organization to safeguard all employees' rights to religious accommodations in 2012. And this past February, the Attorney General’s office joined a coalition of states in filing a friend-of-the-court brief with the US Supreme Court in support of a Muslim woman who had been denied employment at an Abercrombie & Fitch store because she wore a hijab.

Cracking Down On Foreclosure Rescue Scam Advertisements

This week the Attorney General announced an innovative partnership with state media associations to stop rampant and unlawful advertising of foreclosure rescue scams. Scammed homeowners have frequently reported that they were lured by ads the scammers placed in local media outlets, as these trusted outlets are often used as vehicles to target vulnerable New Yorkers. To combat this, the Attorney General’s is partnering with the New York News Publishers Association, New York Press Association and the New York State Broadcasters Association to help local outlets scrutinize advertisements to identify possible scammers. These scams are particularly repugnant because they take victims of the housing crash and make them victims again, and the Attorney General thanks the media associations for working to ensure that scammers cannot exploit New Yorkers. 

Holding Restaurant Owners Accountable For Wage Theft

The owner of a restaurant in Westchester has pleaded guilty for failing to pay minimum wage and overtime to workers. Elisa Parto hired cooks, cleaners and cashiers who were all owed the minimum wage for hours worked, as well as overtime at one and one half times their regular rate of pay for all hours worked in excess of 40 hours per week. As part of the plea, Parto will be required to pay $47,000 in unpaid wages, which will be distributed to six former employees. The Attorney General has consistently taken a firm stance on the minimum wage and overtime violations, and protecting the livelihoods of hardworking New Yorkers will continue to be a priority for his office. 

Preventing The Use Of Forged Narcotic Prescriptions

The Attorney General announced the arrest of a Schenectady nurse for allegedly obtaining narcotics by presenting prescriptions with the forged signature of a physician assistant at the hospital. It is alleged that Kristie Clemovich presented seven prescriptions to Rite Aid and Walmart pharmacies that were issued in the names of relatives of Clemovich and which bear the forged signature of a physician assistant. The alleged forged alleged prescriptions were discovered as a result of New York’s I-STOP Prescription Monitoring Program, an online database that enables doctors and pharmacists to report and track controlled narcotics in real time. This case shows that I-STOP is working as envisioned, and the Attorney General will continue to root out prescription drug abuse epidemic that has ruined lives and ripped families apart across our state. 

Stopping Medicaid Fraud

The Attorney General announced the guilty pleas of two Schenectady personal care aides for submitting false time sheets to an area Physicians Health Plan. The false submission caused more than $1,000 each in theft of Medicaid funds, as the duo failed to provide in-home personal care that they claimed to perform.

In a separate instance, a Rochester nurse has been arrested for allegedly stealing nearly $5,000 from the Medicaid program. Erica Viverette allegedly repeatedly billed Medicaid for the care of four medically fragile individuals, which she never performed.  When individuals exploit the Medicaid program’s flexibility and a patient’s vulnerability, it takes away from those who are in need of basic health care services.

Dean Skelos and Son Adam Found Guilty on All Eight Counts

  Last week former Assembly Speaker and now former Assemblyman Sheldon Silver was found guilty on all seven counts in the indictment by U.S. Attorney Preet Bharara.

  Today it the State Senate's turn as former State Senate Majority Leader, and now former State Senator Dean Skelos along with his son Adam Skelos were both found guilty on all eight counts in the indictment by U.S. Attorney Preet Bharara. It was not disclosed just how much time either Skelos would be facing in jail, but that will be decided at the sentencing that will be announced soon.

  The U.S. Attorney has the following statement on the conviction of both Dean and Adam Skelos.

 “The swift convictions of Sheldon Silver and Dean Skelos beg an important question – how many prosecutions will it take before Albany gives the people of New York the honest government they deserve?” 

  The only question now is -Who will be next?

Bronx Assemblyman Michael Blake to Join Hilltop Public Solutions Consulting Firm

  Politico is reporting that current 79th A.D. Assemblyman Michael Blake will become a partner at Hilltop Public Solutions a political consulting firm. Politico also says that Hilltop never mentioned the fact that Blake is a current sitting New York State Assemblyman or if Blake would leave his position as a New York State assemblyman. They do mention that Hilltop is home to several political consultants who are close advisors to Mayor Bill de Blasio such as Hilltops founder Nick Baldick, Bill Hayes from de Blasio's 2013 campaign, and Rebecca Katz also from the de Blasio campaign team and then administration.  

  It was Ms. Katz Politico continues who said that Assemblyman Blake would not be stepping down from the New York State Assembly after joining Hilltop. Assemblyman Blake told Politico that his work for them would be of a national or international nature, having nothing to do with New York State. The entire Politico article can be found here.

Santa Claus Is Coming to Bronx County

State Senator Rev Ruben Diaz has invited Santa Claus to come to the Bronx with toys for the children of the South Bronx. 

This visit of Santa Claus will take place on Tuesday, December 15, 2015 at 4:00 PM in the auditorium of Public School IS 216, Rafael Hernandez, located at 977 Tiffany Street (between Westchester Avenue and East 163rd Street). 

The organizers of this event State Republican Chair Ed Cox and Bronx Community Leader Rafael Salamanca, together with Senator Diaz announced that: “Santa Claus will have free toys for the first 1,000 children between the ages of 1 – 9 who arrive at the school.” 

All parents are invited to bring their children and join us to help make our children happy during this Christmas Season. 

For further information, please contact the Office of Senator Diaz at (718) 991-3161. 

The Passing of NBA Legend Dolph Schaye

STATEMENT FROM BOROUGH PRESIDENT DIAZ

RE: The Passing of NBA Legend Dolph Schayes

“I would like to send my condolences to the family of NBA legend and Hall of Famer Dolph Schayes, who passed away today at the age of 87.

“I had the pleasure of meeting Mr. Schayes this year, when we inducted him into the Bronx Walk of Fame, for having revolutionized the game of basketball. As an avid fan of the sport of basketball, it was a great honor to meet someone who meant so much to the game from his days at DeWitt Clinton High School through his time in the NBA. Dolph Schayes changed how big men played the game – appearing in 12 All-Star Games, scoring more than 19,000 points and grabbing more than 11,000 rebounds. His tremendous career earned him a selection to the NBA's All-Time 50th Anniversary Team.

“I had the opportunity this spring to talk with Mr. Schayes about the intricacies of the game and how basketball has changed since his playing days. As an avid fan of the sport, I will always cherish those insights.

“Mr. Schayes will not only be missed by the his basketball fraternity in the NBA but also by those in The Bronx who appreciate the history of the game and everything he accomplished as a Bronxite playing at the sport’s highest level,” said Bronx Borough President Ruben Diaz Jr.

Above - Dolph Schayes as he arrives to the Bronx Week Parade celebration in May of this year.

Below Mr. Schayes sits on the reviewing stand during the Bronx Day Parade. Here BP Diaz cracks a joke to him. 

Visit Santa and the Grinch this Saturday in Marble Hill!

Marble Hill Holiday Trolley of Fun Event Saturday, December 12, 2015 1-4pm 225th Street and Broadway This event is shaping up to be awesome!  Check out the Map/Flyer below for details and click here for a larger version.

DISTRICT 12’S ‘OPERATION CLEANER STREETS’ TAKES PLACE SATURDAY, DECEMBER 12, IN WILLIAMSBRIDGE

Residents of the Northeast Bronx will join the Office of NYC Council  Member Andy King on Saturday,  December 12th, for Operation Cleaner Streets, a program headed up by Council Member King, which strives to encourage community residents in the 12th District to pick up trash in front of their homes, bus stops and subway stations and heavily trafficked streets.

Residents will be cleaning in the business corridor of East Gun Hill  Road, between Bronxwood and Colden avenues, Bronx, starting at 10:30 a.m.

In the past, Operation Cleaner Street has tackled business corridors along Gun Hill Road, White Plains Road, Boston Road, East 233rd Street and Dyre Avenue.

WHAT: OPERATIONS CLEANER STREETS

WHEN: SATURDAY, DECEMBER 12, 10:30 a.m. to 12:30 p.m.

WHO: OFFICE OF COUNCIL MEMBER ANDY KING AND LOCAL RESIDENTS

WHERE: Gun Hill Road, Between Colden and Bronxwood avenues, Bronx.

Senator Klein, Assemblyman Sepulveda & Councilwoman Palma host Herbalife Round Table in area with highest concentration of ‘Nutrition Clubs’

Bronx victim who lost $50K steps forward to expose Herbalife scam

State Senator Jeff Klein, Assemblyman Luis Sepulveda, Councilwoman Annabel Palma, and Community Board #9 Chairman Rogier van Vlissingen hosted an Herbalife round table on Wednesday warning residents of the dangers of the get-rich-quick scheme.

In The Bronx, Herbalife Nutrition Clubs are clustered in predominantly Hispanic communities, where distributors encourage friends, family and neighbors to sign-up for a dream-like business opportunity. Ultimately, victims of the scam pump thousands of dollars into health supplements that they cannot sell and are then encouraged to recruit more members in order to turn a profit.

Six Herbalife Nutrition clubs do business in Community Board #9, the largest concentration of clubs in any board in The Bronx. In total 26 Nutrition Clubs operate in the borough and 60 exist across the city.

“Herbalife’s potions and powders do not make its recruits into millionaires as promised. Instead Herbalife’s pyramid scheme robs victims of their savings by preying on their entrepreneurial hopes and dreams. I’ve met and heard from victims who have lost as much as $100,000 to this scam, while Herbalife International turns a blind eye to the false claims being made inside its franchises. These products are sold through lies — telling people that these supplements contain miracle cures for cancer, diabetes and rare diseases, all while promising distributors that they will get rich. This is wrong and my legislation will hold companies that do direct-marketing, like Herbalife International, accountable for what is going on inside its franchises,” said Senator Klein.

“Targeting low-income communities with pyramid schemes, and hoodwinking people into investing in magic potions, is a cruel but old-as-the hills ploy. Make no mistake about it. The people behind the Herbalife scam have targeted Bronx communities. We must expose their fraudulent practices, educate the public, and put an end to this scourge,” said Assemblyman Sepulveda.

“It is my hope that today's roundtable discussion will inform Bronxites — and ultimately help them avoid — the unscrupulous business practices of pyramid schemes that seek to prey on the financially insecure with promises of generating income predicated on unsustainable business models. Our communities deserve better than to be used as a tool for exploitation,” said Councilmember Palma.

“This proposal by Senator Jeff Klein and Public Advocate Letitia James is a breath of fresh air, coming on top of an apparent new sense of urgency at the FTC, as shown in the recent Vemma case. We should all remember that Madoff stole from the wealthy, but pyramid schemes steal from those who don’t have the money to start with, and it needs to change. The deceptive health claims are par for the course of these scams,” said Community Board #9 Chairman van Vlissingen.

Bronx residents Francisco Payano, who lost $50,000 to Herbalife, and Maria David, who lost $15,000 to the scam, spoke out about their experiences.

Payano and his ex-wife were approached by a woman on the street who spoke to them about the wonders of Herbalife and the riches that could come out of selling the supplements. They soon signed up and began purchasing the product to distribute from their home, until Payano realized that the business was a scam.

“We couldn’t afford a storefront to open a nutrition club and she decided to do it in our house. I tried to convinced her that this business was a pyramid scheme. She was so into it and I was very worried and tired since I would have people ringing my doorbell at 5 a.m. to get shakes. This was very much affecting the life of my children and my marriage. One day I exploded and told her to choose between Herbalife and me and she, blinded by their lies, chose them. I filed for divorced and she took me to court to accuse me of being a bad father and said all types of lies. I explained to the judge that my children were living in hell with her Herbalife obsession. Herbalife ruined my family,” Payano said.

David and her three co-workers were attracted to Herbalife’s weight loss products. A Nutrition Club opened next to David’s job and she and her friends began going each morning for shakes and tea. Soon, the manager convinced the women to chip in and open their own Nutrition Club.

“We decided to open a small nutrition club and figured between all four of us we could manage and cover expenses. We tried for almost two years. It was very hard to recruit members, and according to our recruiter that’s where the big bucks were. One day I was very frustrated because we had to keep buying so much product. I decided to count how many servings I could get out of the protein powder. I discovered that you can only make $15 out of it and it cost $34 to buy. We all decided that it was time to stop doing business with Herbalife,” David said.

In October, Senator Klein and New York City Public Advocate Letitia James released, “The American Scheme: Herbalife’s Pyramid ‘Shake’down.’ Undercover investigators caught distributors saying that sellers could make $20,000 a month, that sellers should recruit at least five people, and that the products could cure rare diseases.

Herbalife International is structured so that its products can only be purchased from a distributor. These distributors are not Herbalife employees and peddle products at their own prices to family, friends and neighbors.

Distributors receive discounted rates on nutrition shakes, supplements and elixirs if they buy the product in bulk. Though prospective recruits are told an Herbalife start-up kit costs $60 to $100, they often spend much more after being encouraged by a recruiter to stock up on product to climb the ladder. They are persuaded to recruit others, who they will profit from when they buy products. On average, a new member spends $1,800, though some make an initial investment as high as $10,000.

Senator Klein has introduced legislation in the State Senate to increase oversight, require full financial disclosure by direct-marketing companies, like Herbalife, and will also strengthen protections for prospective sellers. Key provisions include:

• Mandates that health product franchisors in the state file an annual financial disclosure statement written in plain English and Spanish for the Attorney General to review before submitting to prospective franchisees. The statement includes the number of franchisees in the state, average income claimed by franchisees, percentage of franchisees that fall within various amount parameters as determined by the Attorney General, and the reported turnover rate of franchisees.  

 

• Requires that prospective franchisees receive their offering prospectus in the primary language of the prospective franchisees.

• Requires that any pamphlets, circular, form letter, advertisement or other sales literature of advertising communication intended for prospective health product franchises be approved by the Attorney General.

• Calls for health product franchisor engage in supervision of its franchisees to ensure compliance with the law to prevent fraudulent and deceptive acts by the franchisees.        

Above - Victims Francisco Payano (left) and Maria David (center) sit with a translator to answer questions from Senator Klein and later reporters.

Below - Community Board 9 Chairman Rogier van Vlissingen with CB 0 District Manager William Rivera.

Above - Part of the undercover video shown to prove the misleading facts here about Herbalife.

Below - a photo of the elected official, community Board 9 Chairman and District Manager, and Herbalife victims Francisco Payano and Maria David.