Government Enforcement Actions

March 12, 2015

The New Jersey Bureau of Securities obtained a default judgment totaling more than $23 million in restitution, disgorgement, and civil penalties against Branded Marketing LLC (also known as 1800tarjetas.com), its successor company Branded Marketing, Inc., and its President and CEO, Richard Jackowitz, and affiliated company IT Connect, Inc., for their role in an investment scam that raised more than $4 million from unsuspecting investors. NJ

March 12, 2015

Florida Attorney General Pam Bondi announced the plea of a Gadsden County Home Health Care Provider, Melissa Simmons, for defrauding the Florida Medicaid program out of more than $13,000. The charges originated from the receipt of an anonymous tip through the Florida Medicaid Fraud Hotline. FL

March 11, 2015

The FTC charged DIRECTV, the country’s largest provider of satellite television services, with deceptively advertising a discounted 12-month programming package because it failed to clearly disclose that the package requires a two-year contract. In addition, DIRECTV did not clearly disclose that the cost of the package will increase by up to $45 more per month in the second year, and that early cancellation fees of up to $480 apply if consumers cancel the package before the end of the two-year period. FTC

March 11, 2015

Olufemi Afuape and Oluyemisi Afuape, owners of Zion Rehab Services, were ordered to pay $1,407,325.50 in restitution to the Georgia Department of Community Health for billing the Georgia Medicaid program for physical, occupational and speech therapy without regard to whether the services were medically necessary and without regard to whether the services were actually delivered. GA

March 9, 2015

New York Attorney General Eric T. Schneiderman announced that Mental Health Association of Rockland County, Inc. agreed to pay $304,000 to resolve claims its managers and employees altered records in advance of a Medicaid audit so that the records would appear to support claims that were submitted by MHA Rockland to New York State’s Medicaid program. The allegations originated in a whistleblower lawsuit filed by two former MHA Rockland employees under the qui tam provisions of the New York False Claims Act, who will receive an undisclosed portion of the settlement. NY

March 9, 2015

Two former employees of the Mental Health Association of Rockland County, Inc. will receive an undisclosed whistleblower award from the $304,000 settlement resolving allegations MHAR violated the New York False Claims Act through its managers and employees altering records in advance of a Medicaid audit so the records would appear to support claims MHAR submitted to New York State's Medicaid program.   NY

March 6, 2015

Florida Attorney General Pam Bondi announced the arrest of three men for their alleged involvement in an $11 million multi-state drug diversion ring which involved the purchase of millions of dollars of medications on the black market, primarily from Medicaid recipients in Miami and Newark, and their resale to pharmacies in the Northeast, including North Philly Pharmacy in Philadelphia and Lu Puja Pharmacy in Chicago. FL

March 5, 2015

A direct marketing company, Allstar Marketing Group, LLC, selling “as-seen-on-TV” type products such as Snuggies and the Magic Mesh door cover, has agreed to pay $7.5 million to the FTC for consumer restitution to settle charges in connection with its deceptive “buy-one-get-one-free” promotions. The FTC’s settlement was reached alongside a separate action by the New York State Office of the Attorney General. FTC

March 5, 2015

Florida Attorney General Pam Bondi’s Office announced the filing of four complaints involving deceptive marketing and sales of computer software and tech support services to Florida consumers, many of whom are senior citizens. The call centers allegedly used deceptive marketing, such as pop up ads warning of viruses or other malware, to lead consumers to call these companies who were then directed through scare tactics to pay for unnecessary computer repairs and support services. Consumers typically paid from $99 to $600 to resolve non-existent computer issues. The companies involved included ASAP Tech Help, LLC, E-Racer Tech, LLC, Protech Support, LLC (d/b/a Rapid Tech Support), and Techfix USA, LLC (d/b/a PC Smart Support and First Class Tech Support). FL

March 5, 2015

New York Attorney General Eric T. Schneiderman along with the Federal Trade Commission announced an $8 million settlement with Allstar Marketing Group, LLC that requires the direct marketing firm to stop using allegedly deceptive and misleading advertising and ordering processes when selling a variety of products, such as the Snuggie, the Perfect Brownie Pan and the Magic Mesh screen. According to NY, Allstar ran misleading infomercials that featured attractively priced offers for products to lure consumers to place orders and then used deceptive and confusing ordering processes, that resulted in consumers being charged excessive and unauthorized fees and charges. NY