State AG Monitor

State AGs in the News

By Bernard Nash , Divonne Smoyer , and Ann-Marie Luciano on Posted in Consumer Protection, Mortgages/Foreclosures

Consumer Protection

Arkansas Attorney General Sues Five Florida Telemarketing Companies

  • Last week, Arkansas Attorney General Dustin McDaniel filed suit in federal court against five Florida-based companies for allegedly engaging in telemarketing tactics in violation of federal and state law.
  • The lawsuit alleges that the companies used illegal automated calling tactics to contact Arkansas consumers to offer them reduced interest rates on credit cards that the companies never intended to provide. The Attorney General has asked the court to order the companies to stop their allegedly illegal telemarketing tactics and to provide restitution to affected consumers, as well as civil penalties and costs.

Missouri Attorney General Sues Five Companies Over Violations of State’s No-Call Law

  • Missouri Attorney General Chris Koster recently announced that his office has filed suit against five companies for alleged violations of the Missouri no call law.
  • The lawsuit is based on allegations that the companies called consumers to claim they could lower their credit card interest rates or to try to sell home security systems. The Attorney General seeks civil penalties and injunctive relief.

California Attorney General Sues to Seek Removal of Veterans Charity Officers and Directors and Recovery of $4.3 Million in Funds

  • California Attorney General Kamala Harris announced last week that her office has filed a lawsuit against the California charity “Help Hospitalized Veterans” seeking general and punitive damages, restitution, civil penalties and the removal of certain officers and directors based on allegations that the charity engaged in self-dealing, paid excessive executive compensation and engaged in fraudulent fundraising and other unlawful activities.
  • The lawsuit alleges that approximately $4.3 million in funds that were supposed to help veterans and active-duty military instead were diverted for the personal benefit of the charity’s officers and fundraisers through, for example, excessive compensation and golf memberships. In addition, the lawsuit claims that the charity allegedly used accounting tricks to obfuscate the amount of money spent on veteran services versus fundraising.

Monster Beverage Announces Attorney General Investigation Into Its Energy Drinks

  • Last week, Monster Beverage Corp. announced in its Form 10-Q quarterly report filed with the Securities and Exchange Commission that the company had received a subpoena from an unnamed State Attorney General investigating the company’s advertising, marketing, promotion, ingredients, usage and sale of its energy drinks.
  • The company stated that the investigation was in its early stages and it was unknown what action the Attorney General may take against the company or the relief that may be sought.

Mortgages/Foreclosures

Virginia Attorney General Settles With Mortgage Loan Modification Company Over Alleged Illegal Fees

  • Virginia Attorney General Ken Cuccinelli announced last week that his office has reached a settlement with Chesapeake mortgage loan modification company R.L. Brad Street, LLC and its sole member/manager over allegations that the company charged illegal advance fees before performing foreclosure rescue services.
  • The settlement resolves a lawsuit the Attorney General filed last year against the company for alleged violations of the Virginia Foreclosure Rescue law, which prohibits advance charges for foreclosure avoidance or prevention services, as well as the Virginia Consumer Protection Act. As part of the settlement, the company has agreed to pay $32,900 in restitution to consumers as well at $25,000 in civil penalties and $5,000 to reimburse the state’s attorneys’ fees and costs.

Nevada Attorney General Obtains $43,000 in Restitution to Alleged Victims of Loan Modification Scam

  • Nevada Attorney General Catherine Cortez Masto announced last week that the co-managers and an employee of “Save Your House” were ordered by the court to pay $43,772 in full restitution to the alleged victims of a home loan modification scam.
  • The defendants were prosecuted by the Attorney General for allegedly conspiring to knowingly and falsely promote Save Your House as a foreclosure defense firm and for collecting payments for work that was never performed.