A MESSAGE FROM ATTORNEY GENERAL LETITIA JAMES

Letitia James

Funds Recovered for New York State

Holding Powerful Organizations and Individuals Accountable

Ensuring Donald Trump and the Trump Organization Play by the Same Rules as Everyone Else  

In September, Attorney General James sued Donald Trump, the Trump Organization, and its senior management, including three of his children, for years of financial fraud. The lawsuit alleges that Trump falsely inflated his net worth by billions of dollars, enriching himself and cheating lenders, insurers, the government, and the public. Among other remedies, Attorney General James seeks to remove the Trumps from their leadership roles at the Trump Organization, ban them from leading other New York state companies, and force them to return at least $250 million they obtained illegally through fraud.  

Attorney General James secured a preliminary injunction to prevent Trump from restructuring his company to escape her lawsuit while the case is pending. In addition, the judge granted Attorney General James’ request and appointed an independent monitor to oversee compliance with the court’s order. Attorney General James will continue pursuing this effort to hold Trump accountable because no one, no matter how powerful, should get to play by different rules. 

Holding Powerful Organizations and Individuals Accountable

Holding Steve Bannon Accountable for Defrauding Donors

Holding Powerful Organizations and Individuals Accountable

Securing Nearly $65 Million From an Illegal Drug Monopoly’s Former CEO  

In January, Attorney General James, in partnership with the Federal Trade Commission, secured $64.6 million from Martin Shkreli, also known as the “pharma bro.” The court ruled in favor of Attorney General James, finding that Shkreli violated both federal and state laws by engaging in illegal conduct to protect his company’s monopoly profits on Daraprim. The life-saving drug is used to treat toxoplasmosis, a parasitic disease common in HIV-positive individuals. Until recently, Daraprim was the only FDA-approved source of this medication. Shkreli and his company, Vyera Pharmaceuticals (previously known as Turing Pharmaceuticals), raised the price of Daraprim more than 4000 percent in a single day, from $13.50 to $750 per pill. The company also changed its distribution methods to make it harder for other companies to make generic versions of the drug. As a result of Attorney General James’ legal victory, Shkreli must not only pay the significant financial penalty, but is banned from the pharmaceutical industry for life. 

Holding Powerful Organizations and Individuals Accountable

Pursuing the NRA for Mismanagement and Fraud 

The Attorney General’s Office is responsible for supervising charitable organizations in New York state to protect donors and beneficiaries of those charities from unscrupulous practices, and to assure proper use of charitable assets. In accordance with this responsibility, in 2020 Attorney General James filed a lawsuit against the National Rifle Association (NRA), Executive Vice President Wayne LaPierre, and other top executives that alleges that the NRA and its management failed to responsibly manage the organization’s funds and did not follow numerous laws — or even the NRA’s own bylaws and policies. As a result of its illegal mismanagement, the NRA engaged in improper financial transactions valued in the tens of millions of dollars. Attorney General James’ suit seeks to secure the funds that top executives plundered from their own nonprofit, to remove the senior executives involved, and to require a monitor to oversee the NRA’s financial affairs going forward. This past year, courts rejected the NRA’s multiple attempts to block Attorney General James’ lawsuit against the nonprofit. Attorney General James will continue fighting to ensure that the NRA and its leaders are held accountable for their self-dealing, waste, and mismanagement.  

HOLDING POWERFUL ORGANIZATIONS AND INDIVIDUALS ACCOUNTABLE

Securing $30.5 Million From CBS and Leslie Moonves for Insider Trading and Hiding Sexual Assault Allegations 

In November, Attorney General James secured $30.5 million from CBS and former CBS President and CEO Leslie Moonves for concealing sexual assault allegations against Moonves and engaging in insider trading. Attorney General James’ investigation found that the company’s senior leadership knew about, and intentionally covered up, multiple sexual assault allegations made against Moonves. Company executives misled investors about the allegations for months and one senior executive who knew about the allegations sold millions of dollars of CBS stock weeks before the allegations became public. The company’s cover up included secret meetings with a Los Angeles Police Department captain to ensure that a criminal complaint against Moonves would be kept quiet. These actions constituted insider trading and violated New York state’s investor protection laws. In addition to the financial penalty that CBS and Moonves will pay, the company must also reform its practices for addressing sexual harassment and submit compliance reports to the Attorney General’s Office.  For the next five years, Moonves must also obtain written approval from Attorney General James before accepting an executive or officer position at a public company doing business in New York state. 

HOLDING POWERFUL ORGANIZATIONS AND INDIVIDUALS ACCOUNTABLE

Catching a County Clerk Who Covered Up for a Mafia Member 

HOLDING POWERFUL ORGANIZATIONS AND INDIVIDUALS ACCOUNTABLE

Ensuring That Corrupt Officials Are Held Accountable 

In July, Attorney General James announced the sentencing of two high-profile public officials who exchanged bribes. For over three years, former Erie County Democratic Committee Chair G. Steven Pigeon bribed former New York State Supreme Court Justice John A. Michalek with sports tickets and jobs for Michalek and his family in exchange for judicial decisions. Following Attorney General James’ prosecution of the case, Michalek was sentenced to one year and four months in jail and a $5,000 fine while Pigeon was sentenced to one year in jail and a $5,000 fine.  

Preserving Reproductive Rights

Launching a Task Force to Protect Reproductive Rights 

In May, when a draft U.S. Supreme Court opinion overturning Roe v. Wade was leaked, Attorney General James leapt into action to protect abortion access by convening a pro-bono task force comprising the nation’s top law firms and leading reproductive rights organizations. 

After the U.S. Supreme Court overturned Roe v. Wade in June, the task force launched a hotline and website to help New Yorkers and people visiting New York state who are seeking reproductive health care. These resources provide “know your rights" legal information, as well as referrals for patients in or traveling to New York state for an abortion, people and organizations supporting these patients, and health care providers. 

Preserving Reproductive Rights

Fighting to Protect National Access to Emergency Abortion Care  

Attorney General James leapt into action to combat a wave of abortion bans that arose in other states after Roe v. Wade was overturned. In August, Attorney General James co-led a multistate coalition of attorneys general helping to defend emergency abortion procedures in Idaho and Texas. These states’ bans can prevent emergency health care workers from performing abortion procedures, even to save a patient’s life or protect their health. The coalition filed amicus briefs in three cases arguing that limiting abortion access in emergency care violates the Emergency Medical Treatment & Labor Act (EMTALA) and endangers pregnant patients’ lives and health. In addition, these limitations would force patients from Texas and Idaho to travel or be transferred to other states for care, overwhelming the emergency workers there. Later in August, a federal judge temporarily blocked Idaho from enforcing its abortion ban when pregnant people require emergency care. 

Preserving Reproductive Rights

Ensuring Access to Abortion Clinics  

This year, Attorney General James continued to fight on the front lines in the battle to secure access to abortion clinics, protect patients and health care providers against harassment and blockades, and ensure all New Yorkers are able to obtain the full range of reproductive health care they need and deserve. When clinics contacted Attorney General James to alert her to an anticipated wave of activity at clinics marking the “40 Days for Life” campaign, she immediately mobilized, conducting investigations at clinics experiencing problems with violent, harassing, or obstructionist protesters; coordinating with local and state law enforcement; and advising clinic directors and security staff on how to strengthen their safety protocols. 

Preserving Reproductive Rights

Demanding Truthful Google Search Results for Individuals Seeking Abortion Care 

Preserving Reproductive Rights

Defending Access to Reproductive Health Care at Major Pharmacies  

Pharmacies have a responsibility to safeguard New Yorkers’ health, including by providing reproductive health care medications and products. When Attorney General James heard that employees at CVS and Walgreens in other states were denying customers contraceptives and other reproductive health products, she acted swiftly. She warned both corporate giants that it is illegal for their employees to deny customers these products, or harass or shame them, at any of their more than 1,000 New York state locations. Policies permitting employees to refuse customers’ requests based on moral or religious reasons — such as one at Walgreens — violate New York state’s public health and civil rights laws and pharmacists’ professional duties. Attorney General James made it clear that, if these laws are violated, she will act immediately to protect New Yorkers’ reproductive rights.

public safety

Keeping New Yorkers Safe From Unwanted Guns  

public safety

Taking Down Violent Crime Rings 

This past year, Attorney General James’ Organized Crime Task Force (OCTF) continued its work of dismantling violent criminal organizations. Over the course of the year, OCTF broke up five gun and drug trafficking rings in 13 counties throughout New York state, secured indictments of 88 individuals, and convicted more than 140 individuals for their crimes. As a result of the Attorney General James’ work with law enforcement partners around the state, significant amounts of illegal drugs and guns were seized over the course of the year: 179 firearms, 0.5 kilograms of heroin, 3.6 kilograms of fentanyl, 94,000 fentanyl pills, 29 kilograms of cocaine, thousands of mixed prescription pills, and 85 pounds of marijuana.  

In December, Attorney General James worked with local, state, and federal law enforcement partners to secure a 438-count indictment charging three individuals with allegedly operating a major gun trafficking operation. The crime ring illegally brought firearms, including ghost guns, into New York state and also sold rapid-fire modification devices, silencers, high-capacity magazines, and hundreds of rounds of ammunition. In total, the investigation recovered 57 firearms, 51 of which were ghost guns. 

public safety

Defending New York’s Gun Safety Laws in Court 

On multiple occasions over the past year, Attorney General James defended New York state’s gun safety laws in court. In June, New York state passed the Concealed Carry Improvement Act (CCIA), which updates requirements for concealed carry permits and storage, prohibits guns in sensitive locations, prohibits carrying firearms onto others’ private property without consent, and requires background checks on all ammunition purchases. Several groups have attempted to block portions of the law from being implemented, but Attorney General James continues to vigorously defend the CCIA in court.   

In similar fashion, Attorney General James successfully defended New York state’s gun-related public nuisance law in federal court. The law, which was passed in 2021, allows Attorney General James, localities, and individuals in New York state harmed by gun violence to bring civil liability actions against gun manufacturers and sellers. Attorney General James can now use this crucial law to protect New Yorkers by holding gun manufacturers and distributors accountable for the gun violence they help spread. 

Responsible gun laws save lives. Attorney General James will continue to tirelessly safeguard the constitutionality of our laws in order to protect New Yorkers. 

public safety

Targeting Ghost Guns at the Source 

Homemade, untraceable guns, known as ghost guns, are fueling an epidemic of gun violence. In June, Attorney General James filed a landmark lawsuit against 10 gun distributors for allegedly selling New Yorkers gun parts that were used to make ghost guns. Attorney General James’ lawsuit details how these businesses repeatedly broke the law and flooded New York’s streets with illegal ghost guns that harmed New Yorkers. The lawsuit marks the first time that Attorney General James invoked New York state’s recently enacted gun-related public nuisance law to hold gun distributors accountable for fueling the crisis of gun violence.  

public safety

Keeping Guns Away From Dangerous Individuals  

In October, Attorney General James and Governor Kathy Hochul announced a major effort to enhance New York state’s extreme risk protection order law. Also known as the red flag law, the statute prevents individuals who show signs of being a threat to themselves or others from purchasing or possessing any kind of firearm. With $4.6 million in new funding from Governor Hochul, the Attorney General’s Office will hire dozens of staff to represent New York State Police officers in court when dangerous individuals are flagged. This will bolster Attorney General James’ efforts to collaborate with law enforcement partners in obtaining extreme risk protection orders, thereby protecting New Yorkers against gun violence.  

public safety

Making Gun Sales More Transparent 

public safety

Shutting Down Retail Crime Rings 

In the past year, Attorney General James continued her efforts to tackle fraud and theft so that all New Yorkers can feel secure. In May, Attorney General James and New York City Mayor Eric Adams announced the takedown of a massive retail theft operation in New York City that stole and resold millions of dollars in goods. Forty-one people were charged for stealing luxury clothing and goods and drugstore items and reselling them on eBay. During the three-year investigation, law enforcement seized more than $3.8 million worth of stolen items, more than $300,000 in cash, and over 550 stolen gift and cash cards.  

In October, Attorney General James and the New York City Police Department shut down a crime ring that used stolen credit card and personal information to steal expensive vehicles. Members of the ring allegedly moved the vehicles to Florida, where their associates transported them to West Africa to be resold. They also used fake identifications to buy thousands of dollars of goods and services at luxury hotels and clothing stores in New York City. 

Combating the Opioid Crisis 

Securing $523 Million From Top Opioid Manufacturer Teva Pharmaceuticals 

Combating the Opioid Crisis 

Leading National Efforts to Hold Opioid Manufacturers, Distributors, and Retail Pharmacies Accountable 

Over the course of the year, Attorney General James continued to play a leading role in holding to account the various actors who profited while perpetuating the opioid crisis. In June, Attorney General James secured up to $58.5 million from Mallinckrodt plc, one of the largest opioid manufacturers in the country, after the company emerged from bankruptcy. Subsequently, in November, Attorney General James co-led a coalition of attorneys general to negotiate a $3.1 billion multistate settlement with Walmart, resolving allegations that the company contributed to the nationwide opioid crisis by failing to properly dispense opioid prescriptions at its stores. New York state will receive up to $139 million as part of this settlement. Finally, in December, Attorney General James co-led a coalition of attorneys general in negotiating a $10.7 billion settlement with CVS and Walgreens for the pharmacies’ role in the opioid crisis. New York state will receive up to $458 million as part of the $5 billion that CVS and the $5.7 billion Walgreens will pay. In addition to monetary relief, Attorney General James’ agreement will require the pharmacies to implement robust oversight to identify and prevent fraudulent or suspicious opioid prescriptions. 

Combating the Opioid Crisis 

Distributing the First Funds from Historic Opioid Settlements 

This year, $184 million was distributed to communities across New York state to help address the ravages of the opioid crisis. These funds are the first payments from the more than $2.6 billion Attorney General James has secured from settlements with opioid manufacturers, distributors, and pharmacies. These communities will continue to receive money to combat the opioid epidemic in the coming years. These funds were secured as a result of Attorney General James’ efforts and were dispersed in part by a national trust.  

FIGHTING AGAINST HATE AND DISCRIMINATION

Tackling Long Island Realtors’ Discriminatory Practices  

Efforts to discriminate against any New Yorker's fair access to housing cannot, and will not, be tolerated. That is why, in August, Attorney General James forced three Long Island real estate brokerages that were discriminating against homebuyers of color to fix their discriminatory practices. Following a report by Newsday, Attorney General James launched an investigation that found that the firms’ agents steered customers of color away from predominantly white neighborhoods and subjected them to different requirements than white homebuyers. Documents revealed that some agents were recorded demonstrating preferential treatment to white homebuyers, disparaging neighborhoods of color, and directing homebuyers of color to homes in communities of color. The settlement requires these brokerages to dedicate more than $115,000 to fixing their discriminatory practices and to undertake fair-housing trainings. 

FIGHTING AGAINST HATE AND DISCRIMINATION

Standing Up for Transgender Rights Across the Country

In October, Attorney General James led a coalition of 18 attorneys general in filing an amicus brief supporting efforts to promote equal access to health care in North Carolina. The plaintiffs, a group of transgender individuals and parents of transgender individuals, have been denied coverage for gender-affirming health care under the North Carolina State Health Plan for Teachers and State Employees. Attorney General James and the coalition argued that, by denying gender-affirming health care, the state’s health plan is violating the Equal Protection Clause of the 14th Amendment. Similarly, in December, Attorney General James led a coalition of 16 attorneys general in filing an amicus brief supporting efforts to promote equal access to health care in West Virginia. The plaintiffs, two transgender individuals, are unable to obtain Medicaid coverage for gender-affirming surgical care by the West Virginia State Medicaid Program. Attorney General James and the coalition argued that, by denying gender-affirming surgical care, the state’s Medicaid Program is also violating the Equal Protection Clause of the 14th Amendment.  

FIGHTING AGAINST HATE AND DISCRIMINATION

Protecting Transgender Students

When a school district in Indiana barred a transgender male student from entering the boys’ bathroom, Attorney General James co-led a group of 22 attorneys general that stood up to protect that student’s basic rights. Preventing a student from using a bathroom consistent with their gender identity violates Title IX of the Education Amendments of 1972, the group argued in its amicus brief. Transgender youth already face overwhelming levels of discrimination, violence, and harassment. Protecting these vulnerable students from discrimination provides many benefits to all students without decreasing anyone’s privacy or safety.  

In a similar vein, in November, Attorney General James co-led a coalition of 17 attorneys general in filing an amicus brief in the case of A.M. v. Indianapolis Public Schools. The brief supported a challenge to an Indiana statute that bans transgender female students from participating in girls’ sports in K-12 schools. In addition, the brief urged the court to affirm a lower court ruling that allowed A.M. to continue participating on the sports team corresponding to her gender identity. The court made this ruling on the basis that the Indiana statute likely violates Title IX of the Education Amendments of 1972, as it denies transgender girls access to the same athletic opportunities that other boys and girls have.  

Leading the Fight to Protect Our Environment 

Reaching an Agreement to Clean Up Long Island’s Public Water Supply  

For decades, Northrop Grumman’s Bethpage facility leaked toxic chemicals into Long Island’s only drinkable water source. In July, Attorney General James and Governor Hochul secured a binding consent decree requiring Northrop Grumman to carry out a comprehensive plan to contain and clean up the groundwater plume in Bethpage. This historic effort will fully contain the groundwater plume to prevent the further contamination of water supplies in neighboring communities. Northrop Grumman also agreed to pay a natural resources damage settlement of $104.4 million of which $29 million will go to the Bethpage Water District, $12.5 million to the South Farmingdale Water District, and $40.9 million to additional cleanup efforts.   

Leading the Fight to Protect Our Environment 

Securing a Record Penalty From an Unlawful Oil Well Operator  

Attorney General James is committed to taking decisive action to protect our state’s drinking water. In August, Attorney General James and the New York State Department of Environmental Conservation won a $2 million penalty against James Lee and his companies for violating regulations for operating oil wells in Steuben and Cattaraugus counties. For years, Lee and his companies operated hundreds of wells without plugging them, potentially poisoning supplies of drinking water and releasing methane into the air. Meanwhile, Lee benefited financially — by at least $1 million — by ignoring New York state’s environmental laws. By prevailing in court, Attorney General James secured the largest ever financial penalty for well-plugging violations and ensured that Lee will bring his oil wells into full compliance with New York state laws.   

Leading the Fight to Protect Our Environment 

Suing Bus Companies for Polluting in New York City’s Low-Income Communities

In a similar vein, in October, Attorney General James announced a settlement with Hoyt Transportation, Inc., a Bronx-based school bus company, ending its alleged practice of excessive idling at bus yards. The company agreed to implement an extensive anti-idling training program for drivers, engage a manager to monitor idling behavior, and pay at least $38,850 in penalties. Funds from the settlement will be used to support projects to fight pollution and improve air quality in overburdened communities in New York City.  

Leading the Fight to Protect Our Environment 

Holding the Postal Service Accountable for Purchasing Polluting New Trucks  

Leading the Fight to Protect Our Environment 

Fostering Sustainability and Green Spaces in Albany's South End  

In October, Attorney General James and the New York State Energy Research and Development Authority announced over $1.2 million in joint funding for a model energy efficiency project at Steamboat Square, an Albany Housing Authority residential complex in Albany’s South End neighborhood. The South End comprises predominantly low- and moderate-income households that face large challenges related to public health, environmental pollution, and climate change. The investments at Steamboat Square will significantly improve residents’ comfort by providing each apartment with air conditioning and giving each unit control over its own temperature settings, among other benefits. The project also seeks to bring new natural spaces to the Steamboat Square community, which can help reduce air pollution and mitigate extreme heat.  

Leading the Fight to Protect Our Environment 

Taking Action to Prevent Legionnaires’ Disease 

Legionnaires’ disease is often deadly and can be spread by failure to properly maintain building cooling towers. In June, Attorney General James announced an agreement with Verizon to ensure that the company takes swift and comprehensive action to prevent Legionnaires’ disease in New York state. An investigation by the Attorney General’s Office found that since 2017 there were at least 225 alleged violations of local and state laws at 45 of Verizon’s cooling tower locations throughout New York state. The company failed to conduct testing, address positive test results, and clean and inspect the cooling towers by required deadlines. As part of the agreement with Attorney General James, Verizon adopted official policies and procedures to ensure full, ongoing compliance with the law, and paid a $118,000 penalty for the violations, which will be used by the Attorney General’s Office to address the health impacts of air pollution. 

Defending Workers

Fighting for Bar Employees Subjected to Sexual Harassment, Discrimination, and Wage Theft 

Defending Workers

Delivering $900,000 to NYCHA Construction Workers Denied Fair Pay 

Attorney General James joined forces with the New York City Department of Investigation (DOI) to fight wage theft at Lintech Electric. In some industries, the hourly rate that must be paid to employees working on a government contract is set by the wage paid to most workers in a particular area. This is called the prevailing wage. Over three years, Lintech ignored the prevailing wage rate and underpaid construction workers by hundreds of thousands of dollars at New York City Housing Authority projects. In April, Attorney General James and DOI reached an agreement in which Lintech agreed to pay more than 200 cheated workers nearly $900,000. In addition, the agreement bars Lintech from any New York state public works contracts for five years.  

Defending Workers

Securing Millions From Home Health Agencies for Cheating Workers and Medicaid  

A joint investigation by Attorney General James and federal prosecutors found that two home health agencies — All American Homecare, Inc. (All American), and Crown of Life Care NY LLC (Crown) — cheated their home health aides of wages and benefits and submitted false Medicaid claims. In March, Attorney General James and the U.S. Attorney’s Office for the Eastern District of New York reached an agreement with the agencies, requiring All American to repay $4 million to Medicaid while Crown must repay $1.4 million to Medicaid and pay more than $1.5 million to employees deprived of their wages.  

Similarly, in December, Attorney General James announced two agreements with White Glove Community Care, Inc. (White Glove), a Brooklyn-based home health agency, for causing false claims to be submitted to Medicaid and cheating employees out of hard-earned wages. Under the agreements, White Glove will return $2 million in unpaid wages to workers and pay $1.2 million to Medicaid. 

DEFENDING WORKERS

Standing Up for Immigrant Laundry Workers 

DEFENDING WORKERS

Protecting Nurses From Illegal Labor Practices  

In September, Attorney General James forged a second settlement with Albany Med Health System (Albany Med) for hiring nurses from overseas with an illegal provision in their contracts. The hospital recruited nurses from foreign nations, most often the Philippines, under visa arrangements. The nurses’ contract illegally required the employees to pay thousands of dollars if they resigned or were fired within the first three years of employment. After learning of this illegal hiring practice, Attorney General James in 2021 recovered more than $90,000 for seven former employees of Albany Med. Following that event, more former Albany Med nurses came forward to report similar treatment. Attorney General James’ new settlement returns more than $24,000 to eight nurses who paid illegal repayment fees to Albany Med and brings the total amount Albany Med will pay to $114,000.  

Protecting Consumers

Securing Millions for Defrauded Veterans  

Protecting Consumers

Taking on Google’s Dishonest Practices  

As part of a coalition of 40 attorneys general, in November Attorney General James secured $391.5 million from Google for misleading millions of users about its location data tracking. Google failed to notify users that location tracking services were automatically turned on for web and app activity. Millions of consumers who used Google’s apps, such as Google Maps and Google Chrome, were unaware that their location was being tracked. The company told consumers they could turn off location tracking in their “Location History” settings but failed to notify consumers that their “Web & App Activity” setting also collected location data even if “Location History” was turned off. As a result of the historic agreement, New York state will receive more than $20 million and Google must also reform its practices to be more transparent with consumers.  

PROTECTING CONSUMERS

Canceling Illegal Student Debt and Securing Debt Relief for Thousands of Student Loan Borrowers 

Protecting Consumers

Delivering More Than $140 Million for Millions of Americans Deceived by TurboTax 

Protecting Consumers

Suing a Cryptocurrency Platform for Operating Illegally and Defrauding Investors 

In New York state, entities engaging in the offer, purchase, or sale of securities or commodities, including cryptocurrency platforms, must register with the Attorney General’s Office if they are operating within the state or offering their products to New Yorkers. When entities skirt that responsibility, Attorney General James holds them accountable. In September, Attorney General James joined seven state securities regulators in suing cryptocurrency companies Nexo, Inc., and Nexo Capital, Inc. (Nexo), for failing to register with New York state as securities and commodities brokers or dealers and for lying to investors about their registration status. The coalition ultimately secured up to $24 million from Nexo, including $1.9 million for New York state. In addition, Nexo will be banned from the securities industry in New York state for five years and must notify all its U.S. investors, including roughly 3,000 New Yorkers, to withdraw their assets from the platform. 

Protecting Consumers

Safeguarding Consumers From Self-Dealing Energy Companies 

Attorney General James has zero tolerance for deceptive and unlawful practices by energy service companies that hurt New Yorkers. In March, she secured more than $2 million for New Yorkers deceived by dishonest energy resellers. Family Energy, which offers retail gas and electricity services, lured consumers with false promises of savings, and then charged them large fees to get out of their contracts. Many consumers did not even realize that they had been enrolled with Family Energy, since sales representatives falsely claimed to represent the consumers’ utility provider and even enrolled consumers without their consent. Family Energy will pay nearly $2.15 million to the affected customers and end their deceptive marketing practices. 

Less than two weeks later, Attorney General James secured more than $555,000 from energy provider and repeat offender Columbia Utilities. In 2014, the company was ordered to stop engaging in door-to-door marketing without first getting approval from the Attorney General’s Office. Nevertheless, the company violated this order in November 2020 when it resumed door-to-door sales, signing up hundreds of New Yorkers for gas and electric contracts. In addition to a $500,000 penalty for violating the previous settlement, Columbia must pay nearly $60,000 in restitution to the affected consumers. 

Protecting Consumers

Keeping Personal Data Private and Secure  

In October, Attorney General James secured $1.9 million for New York state from Zoetop Business Company, Ltd. (Zoetop), an e-commerce retailer. Zoetop mismanaged a data breach that compromised millions of consumers’ personal information and lied to consumers about the scope of the breach. The company, which owns and operates popular e-commerce brands Shein and Romwe, had a data breach in which 39 million Shein accounts and seven million Romwe accounts were compromised. More than 800,000 New Yorkers’ accounts were affected. In addition to a significant financial penalty, Attorney General James’ agreement requires Zoetop to strengthen its cybersecurity measures to protect consumers’ information. 

PROTECTING CONSUMERS

Securing Refunds for Consumers Unfairly Charged for Expedited COVID-19 Tests 

PROTECTING CONSUMERS

Returning More Than $1.1 Million to New Yorkers for Canceled Events  

Protecting Consumers

Holding an Online Travel Agency Accountable for Deceptive Marketing Practices 

Attorney General James will not tolerate attempts to trick consumers and will always fight to protect every penny that belongs to New Yorkers. That is why, in March, Attorney General James collected $2.6 million from an online travel agency for lying to millions of consumers to sell its products. Attorney General James’ investigation discovered that Fareportal, Inc. (Fareportal), which operates travel-related websites and mobile platforms, including CheapOair.com and OneTravel.com, often falsely advertised that airline tickets or hotel rooms were quickly selling out to pressure customers into making purchases. Attorney General James’ agreement requires Fareportal to pay $2.6 million to New York state and display accurate, real-time information to consumers. 

Expanding Access to Safe and Affordable Housing

Securing $5.1 Million From a Notorious Buffalo Landlord to Fund Childhood Lead Poisoning Prevention  

In November, Attorney General James won a lawsuit and secured $5.1 million from Angel Elliot Dalfin, a Buffalo-area landlord whose violations of lead safety laws resulted in more than two dozen reported cases of childhood lead poisoning. Dalfin and his rental housing operation owned and managed more than 150 single- and two-family homes in predominantly low-income communities of color. Seven properties experienced multiple cases of childhood lead poisoning. Dalfin was ordered to pay $5.1 million in restitution and penalties, which will fund ongoing programs administered by the City of Buffalo and Erie County to prevent childhood lead poisoning, as well as efforts to eliminate lead hazards in homes. 

Expanding Access to Safe and Affordable Housing

Arresting the Operators of a New York City Deed Theft Ring 

No one should face the nightmare of having their home stolen from them without any warning, knowledge, or reason. That is why Attorney General James makes it a priority to tackle deed theft, which occurs when someone takes the title to someone’s home without the homeowner’s awareness or approval. In December, Attorney General James announced the indictment of five members of a deed theft ring for allegedly stealing three homes worth more than $1 million in total from elderly, vulnerable homeowners in Queens. The defendants impersonated the real homeowners of these properties by using forged driver's licenses and social security cards. They then used that forged information at contract signings and closings on the properties and forged the real owners’ signatures on deeds and real estate contracts. Attorney General James will continue fighting deed theft across New York state to protect homeowners from this vicious scourge that unlawfully deprives New Yorkers of their property.   

Expanding Access to Safe and Affordable Housing

Taking Down Slumlords Who Ran an Unlawful Short-Term Rental Operation 

Expanding Access to Safe and Affordable Housing

Recouping $4 Million From an Illegal Kickback Scheme 

In August, Attorney General James secured $4 million from 29 New York City landlords after uncovering an illegal kickback scheme by the management companies they employed. The landlords, affiliated with Sentinel Real Estate Corporation, employed two now-defunct property management firms to fraudulently deregulate hundreds of rent-stabilized apartments in New York City. The landlords accomplished this by inflating and falsely stating renovation costs for rent-stabilized units. In exchange for repeatedly awarding renovations to certain contractors, the now-defunct property management firms’ employees received more than $1 million in kickbacks from contractors in exchange for hiring them on renovation jobs. 

Expanding Access to Safe and Affordable Housing

Shutting Down a Syracuse Landlord That Exposed Children to Lead Poisoning 

Lead paint exposure is a dangerous scourge on New York’s communities that disproportionately impacts communities of color. Attorney General James will not stand by when unprincipled landlords disregard their duty to ensure their properties are free of lead hazards. In 2021 she sued John Kiggins and his company, Endzone Properties, Inc. (Endzone), for failing to protect children from lead paint hazards in Syracuse. The lawsuit alleged that Kiggins and Endzone endangered the health of its tenants, primarily children, by repeatedly violating lead paint laws and failing to properly address related hazards. As a result, at least 18 children residing in 17 different properties owned or managed by Endzone experienced lead poisoning. In June, Attorney General James announced an agreement resolving her lawsuit against Kiggins and Endzone. The agreement, negotiated in partnership with Onondaga County and the City of Syracuse, permanently bans Kiggins and Endzone from managing or owning residential rental properties in New York state and also requires Kiggins and Endzone to pay $215,000 that will be used to prevent the exposure of children to lead paint and to provide assistance to the families affected by lead poisoning. 

Expanding Access to Safe and Affordable Housing

Stopping New York City Landlords From Harassing Rent-Stabilized Tenants 

In August, Attorney General James secured up to $2.15 million from Ink LLC (Ink) for violating rent-stabilization laws and illegally harassing tenants. Ink bought dozens of rent-stabilized buildings in low-income communities of color, planning to illegally deregulate affordable housing for profit. Through a variety of illegal activities, Ink then forced out rent-stabilized tenants so their units could be offered at market rate. Ink also submitted false documents to financial institutions, lying about rents and occupancy to obtain loans. Attorney General James’ settlement requires Ink to pay up to $1.75 million to preserve affordable housing and over $400,000 to tenants. In addition, the company will bring dozens of illegally deregulated apartments back into rent stabilization and be monitored by the Attorney General’s Office.  

Expanding Access to Safe and Affordable Housing

Taking on a Landlord for Creating Unsafe Living Conditions for Syracuse Residents

In February, Attorney General James found that a Syracuse property-management firm repeatedly ignored state and local housing-code requirements, creating unsafe living conditions. Green National owns and manages more than 1,000 Syracuse-area apartments, rented mostly by elderly people who earn modest or fixed incomes, have health challenges, or receive government aid. Attorney General James’ investigation into Green National’s properties uncovered unsanitary conditions, criminal activity, and repeated code violations, including broken door locks and infestations. After Attorney General James’ intervention, Green National agreed to correct all the outstanding code violations, pay $300,000 in costs and penalties, and comply with housing codes. Subsequently, in October, Attorney General James sued Green National for failing to fully comply with the agreement. In December, a court ruled in her favor by ordering Green National to correct all code violations at their properties, install a monitor, and pay penalties for violating their agreement. 

EXPANDING ACCESS TO SAFE AND AFFORDABLE HOUSING

Suing a Brooklyn Property Owner for Cheating Chinese Immigrant Families

In November, Attorney General James sued Xi Hui Wu for defrauding at least 22 Chinese immigrant families of more than $5 million. Wu, his ex-wife, Xiao Rong Yang, and his companies illegally sold the families “condominiums" that had not yet been created and collected fraudulent monthly “mortgage” payments and building fees. Wu never provided the purchasers with deeds to the properties they bought from him and used their deposits and monthly payments for his own personal expenses, including construction costs and loan payments. Attorney General James’ lawsuit seeks to recover all the money stolen from the families and permanently ban Wu and Yang from conducting realty business in New York state. 

EXPANDING ACCESS TO SAFE AND AFFORDABLE HOUSING

Recouping Illegally Withheld Security Deposits for Brooklyn Tenants 

Protecting New Yorkers’ Health and Wellbeing

Seeking Solutions for the Mental Health Crisis 

In June, Attorney General James held a public hearing to examine the provision of intensive health care options for New Yorkers struggling with serious mental illness. Since the beginning of the COVID-19 pandemic, roughly 1,050 acute inpatient psychiatric beds were eliminated or converted to COVID-19-related or general medical use, or simply taken off-line and never reinstated. Across New York state, fewer than 5,000 beds are available for adult short-term psychiatric use while the number of state-run hospital psychiatric beds for children has plummeted by a third in the past decade. Reduced access to inpatient psychiatric care has contributed to more New Yorkers becoming homeless, incarcerated, or hospitalized, while many patients who require intensive psychiatric services are forced to turn to overburdened emergency departments. By hearing hours of public testimony from government officials, health care providers, community organizations, and impacted New Yorkers, Attorney General James sought to understand the many and varied aspects of the mental health crisis. The hearing revealed many factors contributing to the mental health crisis in New York state, including a shortage of psychiatric beds, generalized stigma of mental health issues, criminalization of mental illness, inadequate Medicaid reimbursement rates, a lack of long-term care options, hospital mergers and closures, and long wait times for those seeking care. This hearing was just the first step in Attorney General James’ endeavor to fully illuminate the causes of New York state’s mental health crisis so that she can work with partners to recommend and advance badly needed solutions. 

Protecting New Yorkers’ Health and Wellbeing

Refusing to Let a Powerful Corporation Harm Safety Net Hospitals 

Protecting New Yorkers’ Health and Wellbeing

Securing Relief for Patients Illegally Charged by an Ambulance Company 

No one should hesitate to call an ambulance during a medical emergency. That is why Attorney General James pursued legal action against Mobile Life Support Services, Inc. (Mobile Life), an Orange County ambulance company that illegally billed patients for the difference between what their insurance plans paid and what the company charged. This unlawful practice is known as “balance billing.” Mobile Life also referred some unpaid accounts to a debt collector. In October, Attorney General James announced a settlement with the company that requires Mobile Life to pay full restitution plus interest to affected patients, request closure of all relevant accounts with debt collectors, update its billing practices, and pay a $100,000 penalty. 

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Note: All criminal charges against defendants are merely accusations and the defendants are presumed innocent unless and until proven guilty in a court of law.