State AG Monitor

State AGs in the News

By Bernard Nash , Divonne Smoyer , and Ann-Marie Luciano on Posted in Consumer Protection, Environment, Medicaid Fraud

Consumer Protection

Colorado AG Obtains Final Agency Order for Over $10 Million in Civil Penalties for Unlawful Debt Management Practices

  • Colorado AG John Suthers announced that his office has obtained a final agency order for civil penalties against Credit Solutions of America, LLC and its president for unregistered and unlawful debt management practices.
  • The settlement is based on the allegations that Credit Solutions continued to operate in Colorado without renewing its registration and violated various provisions of the Colorado Debt Management Services Act.
  • The final agency order requires the company and its president to pay $3,830,149 in restitution to the Colorado consumers who contracted with the company for debt management services.

Florida AG Settles with 411-PAIN for False and Misleading Advertising Practices

  • Florida AG Pam Bondi recently announced her office’s settlement of a lawsuit it had filed against 1-800-411-PAIN Referral Services, for alleged misrepresentations to consumers in its advertisements regarding the amount of money consumers could receive for injuries and lost wages as a result of accidents.
  • The consent judgment prohibits the company from advertising any specific amount of monetary reward or lost wages or using a dollar amount in any advertising that proposes more than $10,000 in Personal Injury Protection benefits. In addition, the company is barred from depicting a police officer in an advertisement without indicating that the officer is a “Paid Actor.” As part of the settlement, 411-PAIN also has agreed to make a $550,000 charitable contribution to benefit trauma patients.

Environment

Illinois AG Brings Lawsuit Against Owners of Wood River Refinery

  • Illinois AG Lisa Madigan brought a lawsuit last week against WRB Refining LP, ConocoPhillips, and Shell Oil (the current and former owners of the Wood River Refinery, respectively) for violating the Illinois Environmental Protection Act.
  • The lawsuit claims that the owners had allegedly allowed hazardous waste, gasoline, oil, and other contaminants to enter the groundwater under the refinery. In addition to reimbursement costs to the Illinois EPA for the case and cleanup, the lawsuit seeks civil penalties of $50,000 per violation and $10,000 for each day the alleged violations occurred.

New Hampshire AG Settles with Concord Hospital for Hazardous Waste Violations

  • New Hampshire AG Michael Delaney announced a settlement with a Concord Hospital to resolve allegations that the hospital failed to properly identify, handle, and ship certain hazardous waste.
  • The AG alleges that the hospital failed to identify pharmaceutical wastes as hazardous waste, shipped the waste to facilities not authorized to accept such materials, and failed to identify certain waste for recycling.
  • Under the terms of the settlement, the hospital must pay a penalty of $205,000, of which $50,000 will be credited to the hospital if it provides free, state-approved training relating to the management of pharmaceutical waste.

Medicaid Fraud

Connecticut AG Brings Lawsuit for $24 Million Medicaid Fraud Scheme

  • Connecticut AG George Jepsen recently announced that the office has filed an action against 28 individuals, dental practices, and corporations as a result of allegations that the defendants engaged in an illegal scheme of $24 million in fraudulent Medicaid claims over two years.
  • The lawsuit alleges that the individuals and companies engaged in a scheme to allow a former convicted felon dentist to continue practicing dentistry despite his exclusion from doing so and without any disclosure of his identity to patients or Medicaid. In addition, the complaint alleges that the defendants created false statements and records, duplicated billings and reimbursements for Medicaid services, and submitted Medicaid claims and requests for reimbursement for services that were not rendered.
  • The lawsuit is the first case the State has brought under the Connecticut False Claims Act. In addition, the State brought claims under the Connecticut Unfair Trade Practices Act. The complaint seeks restitution, treble damages, civil penalties, and a permanent injunction against defendants.