The AG's office says (emphasis ours):

The agreement with CVS is the result of the Attorney General's statewide, undercover investigation of all major drug store chains in New York State. The probe uncovered an egregious pattern at two of the largest chains: CVS and Rite Aid. Statewide, the Attorney General's investigation revealed that 142 CVS and 112 Rite Aid stores in over 41 counties sold expired products. This reflects 60 percent of the CVS stores visited and 43 percent of the Rite Aid stores visited. At the CVS stores, undercover investigators found that some items were being sold more than two years past their expiration dates.

Subsequent inspections by the Attorney General revealed that both CVS and Rite Aid continued to sell expired products even after the Attorney General's advisory.

CVS also agreed to refrain from selling expired products, commit to procedures designed to prevent the sale of expired products, obtain approval from the Attorney General before making material changes to such policies and procedures, and train CVS employees in identifying and removing expired products from store shelves. There will also be signs posted in aisles containing over-the-counter drugs, infant formula, milk, and eggs warning consumers to check the expiration dates.

ATTORNEY GENERAL CUOMO REACHES $875,000 SETTLEMENT WITH CVS OVER THE SALE OF EXPIRED PRODUCTS ACROSS NEW YORK STATE [NYAG]
(Photo:bubble dumpster)

From the NY AG's office:

"Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market," said Attorney General Cuomo. "Intel's actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices. These illegal tactics must stop and competition must be restored to this vital marketplace."

To obtain exclusive agreements, Intel paid hundreds of millions of dollars annually - and in some years billions of dollars - in so-called "rebates" to individual computer makers. These rebates were actually just payoffs with no legitimate business purpose that Intel invented to disguise their anticompetitive nature. Intel also attempted to erase the most obvious traces of its anticompetitive scheme by eliminating crucial but flagrantly objectionable provisions from written agreements or by camouflaging language about illegal guaranteed market shares with terms like "volume targets."

As for how this affects you, the consumer, the AG's office says that "Intel repeatedly pressured computer makers to guarantee it specified market shares of their sales, which prevented computer makers from responding to consumer demand."

The AG's office quotes some internal emails from Dell, HP and Intel in which alleged "anti-trust" activity is discussed. For example this is from an internal e-mail from HP executive in June 2004 after HP defied Intel and launched an AMD product: "Intel has told us that HP's announcement on Opteron [AMD's server chip] has cost them several $B [Billions] and they plan to ‘punish' HP for doing this."

And here's another one in which a HP executive discusses the possible repercussions for using another company's products:
"If you do and we get caught (and we will) the Intel moneys (each month is gone (they would terminate the deal). The risk is too high. Without the money we do not make it financially."

Here's the breakdown of how the AG's office says different computer makers were paid off by Intel to guarantee market share and keep businesses from using their competitor's products:

Dell

* In 2006, Intel paid Dell almost $2 billion in "rebates," and in two quarters of that year, rebate payments exceeded Dell's reported net income
* From 2001 to 2006, Intel granted Dell a privileged position vis-à-vis other computer makers in return for Dell's agreement not to market any products from Advanced Micro Devices ("AMD") (NYSE: AMD), Intel's major competitor
* Intel and Dell collaborated to market microprocessors and servers at prices below cost in order to deprive AMD of strategically important competitive successes

HP

* Intel threatened HP that it would derail development of a server technology on which HP's future business depended if HP promoted products from AMD
* Intel paid HP hundreds of millions of dollars in rebates in return for HP's agreement to cap HP's sales of AMD-based products at 5% of its business desktop PCs
* In 2006, Intel and HP entered into an broader, company-wide agreement to pay HP $925 million to increase Intel's shares of HP's sales at AMD's expense

IBM

* Intel paid IBM $130 million not to launch an AMD-based server product
* Intel threatened to pull funding for joint projects that benefited IBM if IBM marketed AMD-based server products
* Intel pressured IBM to launch another AMD-based server only on an "unbranded" basis

The NYT says that Cuomo's suit is the "first formal antitrust action against Intel by any government agency in the United States in more than a decade."

ATTORNEY GENERAL CUOMO FILES ANTITRUST LAWSUIT AGAINST INTEL CORPORATION, THE WORLD'S LARGEST MAKER OF MICROPROCESSORS [NY AG]
Full Complaint (PDF) [NY AG]
(Photo:hanapbuhay)

Brett lives in upstate New York, and sent this letter to NY Attorney General Andrew Cuomo, copying Consumerist.

Dear Mr. Cuomo:

I am filing a formal complaint against EVT America for failure to respond to a glaring defect in a vehicle I purchased from them. This is despite several attempts on my part to discuss the matter directly with them, a judgment in my favor by the New York State Lemon Law process, and a demand letter from my personal lawyer.

A little over a year ago I purchased an all electric motor scooter from Miami-based EVT America via Oakland-Based dealer Electric Motosport. I purchased this vehicle because:

1. It is all electric which would allow me to save energy and be more "green."

2. It was the only all electric motor scooter at the time that claimed to have a speed of 40-45mph. There are multiple all electric scooters that have a maximum speed of 30mph, at which and below a motorcycle license is not required.

I purchased this scooter (model Z20b) over the internet from Electric Motor Sports and had it delivered to my home in March 2008. I completed the requirements for a motorcycle license in the state of New York and hold a current, valid license.

I discovered after riding the scooter for a couple months that its top speed is actually only 32mph, while at the same time the speedometer reads 45mph. I discovered this by having a car follow me, as well as roadside speed guns which say "your speed is ___."

After multiple attempts to get the dealer and EVT America to rectify this situation, I was told "you cannot send it back, you have already bought it." This prompted a successful petition to the New York State Lemon Law authority in which a hearing was held and judgment in my favor rendered. I have still heard nothing from EVT America, nor received my refund.

I have no further recourse except to spend more of my own money to recapture the $2800 I spent on the vehicle. This will take a lengthy legal process as the company is based in Miami, Florida not in New York State.

Please help.

The attorneys general of New York and Florida claim that they aren't able to help Brett collect on his judgment from EVT America, and have told him that he's on his own, and that it's time to hire a lawyer.

Have you had luck getting a refund from an unresponsive company, and do you have any advice for Brett?

RELATED:
What Is "Lemon Law?"

"This company stole the address books and identities of millions of people," said Attorney General Cuomo. "Consumers had their privacy invaded and were forced into the embarrassing position of having to apologize to all their email contacts for Tagged's unethical – and illegal – behavior. This very virulent form of spam is the online equivalent of breaking into a home, stealing address books, and sending phony mail to all of an individual's personal contacts. We would never accept this behavior in the real world, and we cannot accept it online."

Tagged made their invitational emails appear to have been sent directly from members' personal email accounts, instead of from Tagged.com. The emails falsely stated that "[name] sent you photos on Tagged." If a member had added a personal image to the website, Tagged also included that picture in these fraudulent email solicitations. Many consumers were unaware that Tagged accessed their email contact lists.

The Attorney General's lawsuit would seek to stop Tagged from engaging in these fraudulent practices and would seek fines from the company. Tagged temporarily suspended its email marketing campaign in June, in response to user complaints and criticism, but had already sent over 60 million of the deceptive emails to consumers worldwide.

It's nice to see government taking action against unethical social media Web site actions. There's social networking, and then there's outright deception.

PREVIOUSLY:
Tagged.com Will Spam Your Friends And Family

ATTORNEY GENERAL CUOMO ANNOUNCES LEGAL ACTION AGAINST SOCIAL NETWORKING SITE THAT RAIDED EMAIL ADDRESS BOOKS, STOLE IDENTITIES, AND SPAMMED MILLIONS OF AMERICANS [Press Release]

Not everyone was happy with this deal. U.S. Rep. Steve Israel (D-Huntington) says the half-price refund offer isn't fair. "It's only half a solution," Israel said. "People paid $100 for these [Thursday] tickets and they should be fully repaid."

Throughout the morning Friday, lawyers in the attorney general's office studied the inclement weather policy and pointed out weaknesses in it.

Fay acknowledged that he had heard vigorous complaints from fans after the Thursday round was called off after only 3 hours, 16 minutes. "We understand that our ticket policy is both vague and rigid," Fay said, "and I think some people were upset with the vagueness of it and some people were upset with the rigidity."

He indicated that the USGA had been in talks with representatives for Cuomo and Gov. David Paterson, who was at the course Friday.

U.S. Open tickets cost $100 and up. If it rains again tomorrow, the USGA plans to refund half the ticket's value.

No Refund or Exchange to 42,500 With Tickets [The New York Times]
No refunds or rain checks for U.S. Open ticketholders [Golf.com]

According to Cuomo's office, Chase will be refunding $4.4 million in fees to their customers, but according the Chase, they'll be refunding $3.3 million. Chase also says they're relenting not because of the fear that Andrew Cuomo strikes into the heart of Corporate America, but because of customer feedback.

We can't recall the last time Chase did something good in response to customer feedback, so we'll just say, Thanks, Andrew Cuomo!

Cuomo also says that he's taken a look at the "independent legal analysis" that concluded that contracts prevented AIG from getting out of paying the bonuses:

"AIG now claims that it had no choice but to pay these sums because of the unalterable terms of the plan. However, had the federal government not bailed out AIG with billions in taxpayer funds, the firm likely would have gone bankrupt, and surely no payments would have been made out of the plan. My Office has reviewed the legal opinion that AIG obtained from its own counsel, and it is not at all clear that these lawyers even considered the argument that it is only by the grace of American taxpayers that members of Financial Products even have jobs, let alone a pool of retention bonus money. I hope the Committee will take up this issue at its hearing tomorrow."

Here's the full letter:

Honorable Barney Frank Chairman,
House Committee on Financial Services
United States House of Representatives
2129 Rayburn House Office Building
Washington, DC 20515

Re: AIG 2008 Retention Bonuses

Dear Chairman Frank:

I am writing to provide you and your Committee with information regarding an ongoing investigation my Office has been conducting of executive compensation at American International Group ("AIG"). I hope this information will be useful to the Committee at its hearing on AIG tomorrow.

We learned over the weekend that AIG had, last Friday, distributed more than $160 million in retention payments to members of its Financial Products Subsidiary, the unit of AIG that was principally responsible for the firm's meltdown. Last October, AIG agreed to my Office's demand that no payments be made out of its $600 million Financial Products deferred compensation pool. While this was a positive step, we were dismayed to learn after the fact that AIG had made multi-million dollar payments out of its separate Financial Products retention plan on Friday.
AIG now claims that it had no choice but to pay these sums because of the unalterable terms of the plan.

However, had the federal government not bailed out AIG with billions in taxpayer funds, the firm likely would have gone bankrupt, and surely no payments would have been made out of the plan. My Office has reviewed the legal opinion that AIG obtained from its own counsel, and it is not at all clear that these lawyers even considered the argument that it is only by the grace of American taxpayers that members of Financial Products even have jobs, let alone a pool of retention bonus money. I hope the Committee will take up this issue at its hearing tomorrow.

Furthermore, we know that AIG was able to bargain with its Financial Products employees since these employees have agreed to take salaries of $ I for 2009 in exchange for receiving their retention bonus packages. The fact that AIG engaged in this negotiation flies inthe face of AIG's assertion that it had no choice but to make these lavish multi-million dollar bonus payments. It appears that AIG had far more leverage than they now claim.

AIG also claims that retention of individuals at Financial Products was vital to unwinding the subsidiary's business. However, to date, AIG has been unwilling to disclose the names of those who received these retention payments making it impossible to test their claim. Moreover, as detailed below, numerous individuals who received large "retention" bonuses are no longer at the firm. Until we obtain the names of these individuals, it is impossible to determine when and why they left the firm and how it is that they received these payments.

If AIG were confident in its claim that those who received these large bonuses were so vital to the orderly unwinding of the unit, one would expect them to freely provide the names and positions of those who got these bonuses. My Office will continue to seek an explanation for why each one of these individuals was so crucial to keep aboard that they were paid handsomely despite the unit's disastrous performance.

As you may know, my Office yesterday subpoenaed AIG for the names of those who received these bonuses, and we plan to do everything necessary to enforce compliance. American taxpayers deserve to know where their money is going, and AIG's intransigence and desire to obscure who received these payments should not be tolerated. Already my Office has determined that some of these bonuses were staggering in size.

For example:

• The top recipient received more than $6.4 million;
• The top seven bonus recipients received more than $4 million each;
• The top ten bonus recipients received a combined $42 million;
• 22 individuals received bonuses of $2 million or more, and combined they received more than $72 million;
• 73 individuals received bonuses of $1 million or more; and
• Eleven of the individuals who received "retention" bonuses of $1 million or more are no longer working at AIG, including one who received $4.6 million;

Again, these payments were all made to individuals in the subsidiary whose performance led to crushing losses and the near failure of AIG. Thus, last week, AIG made more than 73 millionaires in the unit which lost so much money that it brought the firm to its knees, forcing a taxpayer bailout. Something is deeply wrong with this outcome. I hope the Committee will address it head on.

We have also now obtained the contracts under which AIG decided to make these payments. The contracts shockingly contain a provision that required most individuals' bonuses to be 100% of their 2007 bonuses. Thus, in the Spring of last year, AIG chose to lock in bonuses for 2008 at 2007 levels despite obvious signs that 2008 performance would be disastrous in comparison to the year before. My Office has thus begun to closely examine the circumstances under which the plan was created.

I look forward to continuing to cooperate with the Committee in any way possible to ensure that taxpayer funds are not misspent on unjustified bonuses or otherwise misused.

Andrew M. Cuomo ,
Attorney General of the State of New York

Re: AIG 2008 Retention Bonuses (PDF) [New York Attorney General's Office]

"We had given AGI up to 4 o'clock today to provide the information on the latest round of bonuses that they paid out," Cuomo told reporters. "Four o'clock has come and gone."

[Bizjournals] (Thanks, Tim!)

March 16, 2009

Edward M. Liddy, Chairman & CEO American International Group, Inc.
70 Pine Street New York, NY, 10270

Re: AIG Compensation Investigation

Dear Mr. Liddy:

The Office of the New York Attorney General has been investigating compensation arrangements at AIG since last Fall. We were disturbed to learn over the weekend of AIG's plans to pay millions of dollars to members of the Financial Products subsidiary through its Financial Products Retention Plan. Financial Products was, of course, the division of AIG that led to its meltdown and the huge infusion of taxpayer funds to save the firm. Previously, AIG had agreed at our request to make no payments out of its $600 million Financial Products deferred compensation pool.

We have requested the list of individuals who are to receive payments under this retention plan, as well as their positions at the firm, and it is surprising that you have yet to provide this information. Covering up the details of these payments breeds further cynicism and distrust in our already shaken financial system.

In addition, we also now request a description of each individual's job description and performance at AIG Financial Products. Please also provide whatever contracts you now claim obligate you to make these payments. Moreover, you should immediately provide us with a list of who negotiated these contracts and who developed this retention plan so we can begin to investigate the circumstances surrounding these questionable bonus arrangements. Finally, we demand an immediate status report as to whether the payments under the retention plan have been made.
We need this information immediately in order to investigate and determine:

(l) whether any of the individuals receiving such payments were involved in the conduct that led to AIG's demise and subsequent bailout;
(2) whether, as you claim, such individuals are truly required to unwind AIG Financial Product's positions;
(3) whether such contracts may be unenforceable for fraud or other reasons; and
(4) whether any of the retention payments may be considered fraudulent conveyances under New York law.

Taxpayers of this country are now supporting AIG, and they deserve at the very least to know how their money is being spent. And we owe it to the taxpayers to take every possible action to stop unwarranted bonus payments to those who caused the AIG meltdown in the first place.

If you do not provide this information by 4:00 p.m. today, we will issue subpoenas and seek, if necessary, to enforce compliance in court.

Andrew M. Cuomo
Attorney General of the State of New York
cc: AIG Board of Directors

Re: AIG Compensation Investigation (PDF) [Office of the Attorney General of New York]

"What I am going to try to do is get a decision written in the next week or less," the judge said as the hearing ended.

Bank of America is arguing that by revealing the compensation numbers they are divulging a corporate secret — and by betraying their employee's privacy scary foreign banks will be able to swoop in and steal all their "top talent."

New York Attorney General Andrew Cuomo thinks that's a load of crap.

"Imagine, tomorrow in the Daily News, 200 names and their compensation," [a lawyer for Bank of America] said. "Americans care about their privacy. That matters to us because if we don't try to protect it and succeed in protecting it, we'll lose them to foreign banks."

So, does that mean the foreign taxpayers will have to pay their bonuses then, or how will that work?

Merrill Bonus Recipients May Be Named Within a Week (Update2) [Bloomberg]
(Photo:epichrmus)

The letter is very direct. Here it is:

March 9, 2009

Kenneth D. Lewis Chairman, Chief Executive & President
Bank of America Corporation
100 Tryon Street Charlotte, North Carolina 28201
c/o Cleary Gottlieb Steen & Hamilton

Re: Bonus Information

Dear Mr. Lewis:

We write to demand on behalf of taxpayers that Bank of America immediately disclose individual bonus data for all individuals at Merrill Lynch and Bank of America who received 2008 bonus awards of $1 million or more.

We believe that as a matter of transparency and disclosure, taxpayers have a right to know where their tax dollars go once received by TARP recipients. Accordingly, all TARP recipient institutions should disclose individualized executive bonus information to taxpayers.

As you know, late last year Merrill Lynch moved up its planned date to allocate bonuses and then richly rewarded many of its executives. Merrill Lynch did this knowing full well that they were going to suffer huge losses for the fourth quarter and the year. At the time of the bonus awards, Merrill was in the process of being acquired by Bank of America, a TARP recipient. Moreover, Merrill Lynch also knew at the time that they had received a credit line of billions of dollars, in TARP funds.

As a result of Merrill's huge losses, taxpayers were forced to help Bank of America acquire Merrill by providing billions of additional TARP funds as well as insurance against losses from Merrill's toxic portfolio. In short, the combined Bank of America-Merrill Lynch entity received $45 billion in taxpayer funds as well as $188 million in taxpayer-funded insurance.

Despite this massive infusion of taxpayer money, Merrill Lynch paid out bonuses totaling approximately $3.6 billion and Bank of America distributed a pool of more than $3.3 billion.

Taxpayers who are footing the bill obviously demand accountability and want to know who received these funds and why.

Our mutual goal is to stabilize and enhance our country's financial institutions and system. The taxpayers of this country have given mightily to that cause. They deserve to know where their money is going and how it is being spent. Furthermore, we all agree that trust and confidence in our financial system must be restored. Transparency and disclosure are the building blocks of that trust and confidence.

Your refusal to reveal compensation information fuels distrust and cynicism at a most sensitive time.

Very truly yours,

Andrew Cuomo
Attorney General of the State of New York

Barney Frank
Attorney General of the
Chairman, House Financial
Services Committee
U.S. House of Representatives

CUOMO - FRANK LETTER TO KENNETH LEWIS REGARDING BONUSES PAID AT MERRILL LYNCH/BofA [New York Attorney General]

"Bank of America has made the decision they don't want to turn that information over to us and we, therefore, tonight served Bank of America with a subpoena to turn over that information," said Special Assistant to the New York Attorney General Benjamin Lawsky Thursday evening, "and we intend to get that by whatever means is necessary going forward."

Ken Lewis, CEO of Bank of America, told the media that he was fully cooperative when he met with the NY AG, but ABC News says that New York officials are telling a different story.

New York officials told ABC News the session with Lewis was ugly and combative. They accused Lewis and the bank of stonewalling, saying they refused to provide a list of which executives got what of the billions in bonuses.

ABCNews also took an opportunity to make fun of Lewis' mode of transportation — a $50 million private jet. Hey, lighten up, maybe he bought it off Starbucks used.

Stonewalling in Style: Bank of America Subpoenaed [ABCNews]

NY AG Andrew Cuomo is seeking to force John Thain, former CEO of Merrill Lynch, to release the names of the Merrill executives who shared over $3.6 billion in bonuses before the merger with Bank of America. Thain is refusing, and said this about the bonuses:

"Bonuses were determined based upon the performance and the retention of people, and there is nothing that happened in the world or the economy that would make you say that those were not the right thing to do for the retention and the reward of the people who were performing," Thain said, according to the transcript.

Mr. Cuomo's office recently released information that suggests that Merrill Lynch may have moved up the bonuses in order to pass the cost on to tax payers, and claims that the bonuses were not spread evenly throughout the organization — but were structured in such a way as to enrich the top Merrill executives. Cuomo says that the top four bonus recipients received a combined $121 million, and that 696 individuals received bonuses of $1 million or more.

Cuomo said the bonuses were set Dec. 8 and not adjusted later when it turned out pretax losses were $7 billion more than expected. Merrill reported Jan. 16 that it lost $15.31 billion in the fourth quarter and $27 billion for the year.

Thain was dismissed in January by Bank of America chief executive officer Kenneth D. Lewis. The move came after disclosure of the bonuses and Merrill's unexpectedly large fourth-quarter loss.

Cuomo Seeks to Force Thain to Reveal Merrill Bonuses (Update2) [Bloomberg]

As you probably know, Merrill Lynch posted a $15.31 billion loss in the 4th quarter, which forced taxpayers to help Bank of America acquire the firm.

Cuomo writes:

One disturbing question that must be answered is whether Merrill Lynch and Bank of America timed the bonuses in such a way as to force taxpayers to pay for them through the deal funding. We plan to require top officials at both Merrill Lynch and Bank of America to answer this question and to provide justifications for the massive bonuses they paid ahead of their massive losses. As you know, my Office recently issued subpoenas seeking the testimony of former Merrill Lynch CEO John Thain, as well as the testimony of Bank of America Chief Administrative Officer J. Steele Alphin. I expect we will also be seeking the testimony of other top executives at these firms.

In addition, the AG goes on to bust the myth that Merrill's hefty bonuses were spread out among a wide swath of employees, and were therefor actually quite modest. It turns out that while they did pay bonuses to some 39,000 employees, Merrill made 700 employees millionaires overnight. Cuomo says, "the vast majority of these funds were disproportionately distributed to a small number of individuals."

Cuomo writes:

Bearing in mind that Merrill moved up its bonus payments in advance of its announced $15 billion quarterly loss and $27 billion annual loss, we have determined that Merrill Lynch made the following bonus payments:

• The top four bonus recipients received a combined $121 million;
• The next four bonus recipients received a combined $62 million;
• The next six bonus recipients received a combined $66 million;
• Fourteen individuals received bonuses of $1 0 million or more and combined they received more than $250 million;
• 20 individuals received bonuses of $8 million or more;
• 53 individuals received bonuses of $5 million or more;
• 149 individuals received bonuses of $3 million or more;
• Overall, the top 149 bonus recipients received a combined $858 million;
• 696 individuals received bonuses of $1 million or more.
  Again, these payments and their curious timing raise serious questions as to whether the Merrill Lynch and Bank of America Boards of Directors were derelict in their duties and violated their fiduciary obligations.

You can read the full letter here. (PDF)

In the letter, AIG says they are "extremely grateful" for the support they have received from taxpayers, and as their way of showing how "prudently" they are acting, they will not be giving bonuses to their top seven executives. The rest will get bonuses, but won't be getting a raise this year.

They also promise that they are "developing" a way to insure that no taxpayer dollars are used for bonuses for the top 60 executives in the future.

Cuomo reacted favorable to the news, says ABC.

We believe AIG's step is a positive step," Cuomo said on a media conference call following the release of the letter. "I enocurage other Wall Street firms to wake up to the new reality on Wall Street and follow AIG's steps quickly."

Letter To Cuomo (PDF) [ABCNews]

The AG also said that the stations were engaging in false advertising by only listing the lower cash prices on signs, leading to nasty surprises for consumers once they parked at the pump.

“With drivers hitting the road this weekend and gas prices through the roof, the last thing New York City drivers need are gas stations hitting them with exorbitant prices for paying with a credit card,” said Attorney General Cuomo. “Drivers across New York City need to be on the guard for gas stations that engage in deceptive practices to squeeze every last dollar out of their customers. Our investigation revealed that New York City is rife with gas stations that engage in deceptive practices where they display one price as a way to lure customers - and then charge them more at the pump."

Consumers who see gas stations prominently advertising the cash-only price on primary signage and then indicating at the pump that credit card customers will be charged more are urged to contact the Attorney General’s Consumer Helpline at 1-800-996-4630.

For more information about how credit card surcharges work, click here. Remember, your state laws will vary.

ATTORNEY GENERAL CUOMO ISSUES CONSUMER ALERT FOR NYC DRIVERS AFTER INVESTIGATION REVEALS NEARLY 25% OF NYC AREA GAS STATIONS INSPECTED ENGAGED IN DECEPTIVE PRACTICES [NY AG]
(Photo: whatatravisty )

The AG says:

...the Attorney General’s investigation has so far uncovered that 142 CVS and 112 Rite Aid stores in over 41 counties sold expired products. This reflects 60 percent of the CVS stores visited and 43 percent of the Rite Aid stores visited.

At these locations, undercover investigators were able to purchase more than 600 expired products, including milk, eggs, medicines and baby formula. Several of the expired products were over one-year-old.

Cuomo's office has announced that they intend to commence with litigation against both chains.

“My ongoing investigation has uncovered a shameful disregard for public health in these stores,” said Attorney General Cuomo. “Families across New York State buy products from these establishments assuming that they’re coming from a safe, reputable source. However, when the products pass their expiration dates, they become ineffective and potentially unsafe, threatening to put our loved ones at risk. These companies allowed personal profit to get ahead of their customers’ health. I am committed to protecting New York consumers and we will continue to investigate this troubling practice.”

In addition to publishing two letters sent to Rite Aid and CVS, the AG's office also published the results of their investigation. You can check it out here (PDF).

ATTORNEY GENERAL CUOMO TAKES LEGAL ACTION AGAINST CVS AND RITE AID FOR SELLING EXPIRED PRODUCTS ACROSS UPSTATE NEW YORK [NYAG]
(Photo: Danquella Manera )

In addition, the judge also found that Dell Financial Services "has engaged in repeated misleading, deceptive and unlawful business conduct, including false and deceptive advertising of financing promotions, fraudulent, misleading and deceptive practices in credit financing and improper debt collection practices."

NY's Attorney General, Andrew Cuomo, sued Dell and Dell Financial Services for depriving consumers of the technical support they were entitled to under their warranty or service contract by:

• repeatedly failing to provide consumers who purchased service contracts promising “onsite” and expedited service with timely onsite repair;

• for pressuring consumers, including those who purchased service contracts promising “next day onsite” repair, to remove the external cover of their computer and remove, reinstall, and manipulate hardware components;
• discouraging consumers from seeking technical support; those who called Dell’s toll free number were subjected to long wait times, repeated transfers, and frequent disconnections;
• for using defective “refurbished” parts or computers to repair or replace consumers’ equipment.

The lawsuit also accused Dell's financing operation of luring customers into high interest rate financing deals by using a "bait-and-switch" tactic. Dell advertised "no interest" or "no payment" financing, but according to the lawsuit, "the vast majority of consumers, even those with very good credit scores, were denied these deals. "

In addition, the lawsuit also alleged that Dell incorrectly billed customers on canceled orders, returned merchandise or on accounts that were fraudulently opened. The AG's office says that "Although many consumers repeatedly contacted Dell and/or DFS to advise them of the errors, DFS did not suspend its collection activity and Dell failed to expeditiously credit consumers’ accounts, even after assuring consumers it would do so. As a result, many consumers have been subjected to harassing collection calls for months on end and have had their credit ratings harmed."

For more information about how this lawsuit affects Dell customers in New York state, please click here. According to the Wall Street Journal, Dell has no comment at this time.

Decision and Order in NY vs Dell (PDF)[NY AG]

PREVIOUSLY: Help New York Sue Dell By Filling This Complaint Trough
NY Sues Dell For So-Called "Award-Winning Service"

From the New York Attorney General's office:

Under the United insurers' health plans, members pay a higher premium for the right to use out-of-network doctors. In exchange, the insurers promise to cover up to 80% of either the doctor's full bill or of the "reasonable and customary" rate depending upon which is cheaper.

The Attorney General's investigation found that by distorting the "reasonable and customary" rate, the United insurers were able to keep their reimbursements artificially low and force patients to absorb a higher share of the costs.

"Getting insurance companies to keep their promises and cover medical costs can be hard enough as it is," said Attorney General Andrew Cuomo. "But when insurers like United create convoluted and dishonest systems for determining the rate of reimbursement, real people get stuck with excessive bills and are less likely to seek the care they need."

Cuomo's investigation also found a clear example of the scheme: United insurers knew most simple doctor visits cost $200, but claimed to their members the typical rate was only $77. The insurers then applied the contractual reimbursement rate of 80%, covering only $62 for a $200 bill, and leaving the patient to cover the $138 balance.

CUOMO ANNOUNCES INDUSTRY-WIDE INVESTIGATION INTO HEALTH INSURERS' FRAUDULENT REIMBURSEMENT SCHEME [NY AG]

From the AG's office:

Today's announcement marks the latest expansion of Cuomo's industry-wide investigation of mortgage fraud. Last week, Cuomo filed suit against First American Corporation (NYSE: FAF), and its subsidiary eAppraiseIt, one of the nation's largest real estate appraisal management companies, for colluding with Washington Mutual to inflate the appraisal values of homes.

"In order to fulfill their duty to consumers and investors, Fannie Mae and Freddie Mac must ensure that Washington Mutual's mortgages have not been corrupted by inflated appraisals," said Attorney General Cuomo. "Our expanding investigation into the mortgage industry has uncovered that Washington Mutual improperly pressured appraisers to provide inflated values that best served the lender's interest. Knowing this, Fannie Mae and Freddie Mac cannot afford to continue buying Washington Mutual mortgages unless they are sure these loans are based on reliable and independent appraisals."

WaMu sold $27.7 billion dollars in loans to Frannie Mae and Freddie Mac in 2007, according to the AG.

"The integrity of our mortgage system depends on independent appraisers," said Cuomo. "Washington Mutual compromised the fairness of this system by illegally pressuring appraisers to provide inflated values. Every company that buys loans from Washington Mutual must be sure that the loans they purchased are not corrupted by this systemic fraud."

The President of the Appraisal Institute offered a quote for the AG's press release:

"I wish I could say I am shocked by the discoveries made by the Attorney General and his staff. Sadly, what allegedly happened between First American and Washington Mutual is not an isolated incident. Rather, it is symbolic of a problem that has plagued the appraisal industry for years," said Terry Dunkin, President of the Appraisal Institute. "As the allegations against First American show, the mortgage industry's dirty secret has been that banks exert tremendous pressure to extort appraisers."

NEW YORK ATTORNEY GENERAL CUOMO SENDS LETTERS OF NOTICE AND DEMAND TO FREDDIE MAC AND FANNIE MAE (Press Release) [NY AG]

WaMu is accused of providing First American with a list of "Proven Appraisers" who had a track record of bringing in more expensive appraisals. According to law, real estate appraisals are supposed to be independent in order to avoid the obvious conflict of interest between lender and appraiser. Cuomo says internal emails prove the company knew that their actions were illegal, but caved to pressure from WaMu in order to secure future business from the lender.

"The independence of the appraiser is essential to maintaining the integrity of the mortgage industry. First American and eAppraiseIT violated that independence when Washington Mutual strong-armed them into a system designed to rip off homeowners and investors alike," said Cuomo in a statement. "The blatant actions of First American and eAppraiseIT have contributed to the growing foreclosure crisis and turmoil in the housing market. By allowing Washington Mutual to hand-pick appraisers who inflated values, First American helped set the current mortgage crisis in motion."

The emails the AG's office quotes in the statement are damning. Here they are:

• 
  
• On February 22, 2007, in response to a description of the WaMu "Proven Appraiser" program as one in which "we will now assign all Wamu's work to Wamu's 'Proven Appraisers'... [and] Performance ratings to retain position as a Wamu Proven Appraiser will be based on how many come in on value," eAppraiseIT's president told senior executives at First American: "we have agreed to roll over and just do it..."
  
• On April 4, 2007, eAppraiseIT's executive vice president stated in an e-mail to First American: "we as an AMC [Appraisal Management Company] need to retain our independence from the lender or it will look like collusion... eAppraiseIT is clearly being directed who to select. The reasoning... is bogus for many reasons including the most obvious - the proven appraisers bring in the values."
  
• On April 17, 2007, eAppraiseIT's president wrote an e-mail to First American explaining why its conduct was illegal: "We view this as a violation of the OCC, OTS, FDIC and USPAP influencing regulation."
  
• E-mail evidence also shows that WaMu pressured EA to inflate appraisals as a condition for doing future business together:
  
• On September 27, 2006, First American's vice chairman reported that a WaMu executive told him: "if the appraisal issues are resolved and things are working well he would welcome conversations about expanding our relationship..."

(Photo:meghannmarco)

Cuomo's investigation found that Verizon marketed the plans as "unlimited," when in fact common uses such as downloading movies and playing games were prohibited.

Rather than offering unlimited internet service, Verizon abruptly cut off users who reached a undisclosed usage limit. These users were not able to use their accounts and were not offered refunds.

"This settlement sends a message to companies large and small answering the growing consumer demand for wireless services. When consumers are promised an 'unlimited' service, they do not expect the promise to be broken by hidden limitations," said Attorney General Andrew Cuomo. "Consumers must be treated fairly and honestly. Delivering a product is simply not enough - the promises must be delivered as well."

Verizon has agreed to reimburse all users nationwide for the cost of their wireless cards and will pay $150,000 in fines to New York State. They also stated, "Verizon Wireless fully and voluntarily cooperated with the Office of the Attorney General throughout this inquiry. Since April of 2007, Verizon Wireless has voluntarily ceased cutting off customers based on their data usage and no longer prohibits common internet uses."

VERIZON WIRELESS AGREES TO SETTLE DECEPTIVE MARKETING INVESTIGATION [NY AG](Thanks, Lisa!)
(Verizon Face By: chickee510)

Missouri doctors cited numerous objections to the pilot program, which was halted and is being redesigned. For example, most faculty members of the Washington University School of Medicine in St. Louis were initially excluded from the quality rankings because university-based care is generally more expensive. Doctors in major specialties were ranked by cost alone.

Tyler Mason, a spokesman for UnitedHealthcare, said the company had been meeting with the attorney general's staff. He said: "We share their commitment to looking at cost and quality. That's exactly what this is about. The assertion in the letter that sometimes higher cost equals higher quality is actually not what experts nationwide find. Sometimes lower cost means higher quality."

N.Y. Attorney General Objects to Insurer's Ranking of Doctors by Cost and Quality [NYT]
(Photo: Waldo Jaquith)

• Dating services can't ask for more than $1,000, or sign customers to a contract longer than two years.
• Dating services can't require the purchase of any ancillary services.
• If a contract costs more than $25 per month, the dating service must provide a minimum number of referrals each month. Customers can cancel with a full refund if the minimum is missed for two consecutive months, though a reasonable cancellation fee is allowed.

• Customers can tell the dating service how far they are willing to travel to meet someone; the dating service can't refer anyone farther away.
• The contract must include provisions that address moving outside of the dating service's area of coverage.
• Customers have the right to sue the dating service if any of the contract's provisions are violated.

Cuomo had accused It's Just Lunch of signing lonely customers to consecutive six-month contracts, each costing $1,500. For their transgressions, It's Just Lunch will pay a $47,000 fine and promise to end their cheating ways.

Online Dating Service Attracts Cuomo's Attention [NYT]
"It's Just Lunch" Dating Service Overcharged Customers; Settles With Attorney General Cuomo [NYS Attorney General]
Dating Service Consumer Bill of Rights (PDF)
(Photo: shane o mac)

"What criteria are they using in the underwriting of these loans?" Mr. Cuomo asked. "Parental income? Student income? Student creditworthiness? How about the school you attend? How is that weighted?"

While lenders have the right to consider a borrower's credit record, he said, "there are also civil rights and legal ramifications to what criteria they use, and that's what we're looking at."

He suggested that students at historically black institutions were sometimes charged higher interest rates and fees than other students.

Cuomo Plans to Broaden Student-Lending Inquiry [NYT]
(Photo:AP)

In related news, the financial aid director of USC Catherine C. Thomas, has announced her retirement today. USC said in a statement, "that Ms. Thomas' actions were "inconsistent with USC's conflict of interest policy" and that it was continuing to investigate."

The financial aid directors are still dropping like flies... —MEGHANN MARCO

Columbia Settles Student Loan Case [NYT via Gothamist]
(Photo:James Estrim/ NYT)

PREVIOUSLY: College Financial Aid Directors Are Dropping Like Flies

If you've ever experienced a problem with Dell, fill out a complaint here.

Cuomo seeks restitutions for consumers, civil penalties for Dell, and end of their deceptive business practices.

The website also has more info on the lawsuit particulars. — BEN POPKEN

Form for Complaints on Dell [NYAGDELL] (Thanks to Liam!)

The suit seeks an injunction against Dell and unspecified damages for consumers.

Dell replied to the accusations saying, "We are confident that our practices will be found to be fair and appropriate... "While even one dissatisfied customer is too many, the allegations in the Attorney General's filing are based upon a small fraction of Dell's consumers."

The complaints listed here and elsewhere put that statement into question. — BEN POPKEN

Dell Hell: Computer Giant Faces Consumer Lawsuit [ABC] (Thanks to pangeloni!)

Good news for New Yorkers, as long as Cuomo follows his bark up with a bite. — BEN POPKEN

Cuomo Releases Report Showing Verizon Fails To Make Timely Repairs 35% Of The Time [Press Release] (Thanks to Matt!)

(Photo: Mr Wabu)

The revelations are the latest as the scope of NY Attorney General Andrew Cuomo's investigation into the conflicts of interest between colleges and loan companies expands.

Students often do not comparison shop and rely heavily on the lender recommendations made by their schools.

Yesterday The National Association of Student Financial Aid Administrators said it, "believes it would be inappropriate for a school to place a lender on a preferred lender list in exchange for shares of stock.." — BEN POPKEN

College Officers Profited by Sale of Lender Stock [NYT]

The universities in cahoots with Citibank include New York University, University of Pennsylvania, Syracuse University, St. John's, St. Lawrence University, Long Island University, and the State University of New York.

And this is only the beginning. Coumo's office is currently "in negotiations" with around 60 other schools, and with other lenders.

Such arrangements create conflicts of interest, and harm consumers.

"Going to college is hard enough. Students shouldn't have to worry about being exploited when they take out student loans," said Sen. Edward Kennedy (D-MA) — BEN POPKEN

Millions to Be Repaid After College Loan Inquiry [NYT] (Thanks to Molly!)

This happened to me last week. 2 people came to my door from IDT, impersonating ConEd.

I called the Attorney General's office at 212-416-8000 and they said this was the first they had heard of it. They need more complaints about IDT in order to start an investigation.

If IDT Energy attempted to slam you or someone you know, be sure to call and register the complaint. Obviously, not enough people. Then again, Andrew Cuomo's team is in there now. Maybe Elliot Spitzer's team didn't just leave good notes. — BEN POPKEN