Tag Archives: california attorney general

Government

Attorney General Kamala D. Harris Issues Consumer Alert Regarding Reports of Price Gouging During Wildfires

Kamala Harris Attorney General State of California
Kamala Harris Attorney General State of California

California Attorney General Kamala D. Harris today issued a consumer alert on reports of price gouging by businesses, namely hotels, during the devastating wildfires that have swept our state. The Attorney General also issued a warning that the California Department of Justice is prepared to investigate and prosecute those that attempt to wrongfully profit from the destructive fires that are driving Californians out of their homes.

“As first responders fight to save communities from raging wildfires and thousands of Californians face devastation and hardship, it is exploitative and also unlawful for businesses to engage in price gouging,” said Attorney General Harris.

California’s anti-price gouging statute, Penal Code Section 396, becomes effective immediately after the Governor or a local official declares a state of emergency. Governor Jerry Brown declared a state of emergency in Calaveras and Amador counties on September 11, 2015, and in Lake and Napa counties on September 13, 2015.

California law generally prohibits charging a price that exceeds, by more than 10%, the price of an item before the declaration of emergency. This law applies to those who sell food, emergency supplies, medical supplies, building materials, and gasoline.  The law also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations, and rental housing.  Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials have increased for the business.

Violations of the price gouging statute are subject to criminal prosecution that can result in one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $5,000 per violation, injunctive relief and mandatory restitution.  The Attorney General and local district attorneys can enforce the statute.

Anyone who has been the victim of price gouging, or who has information regarding potential price gouging, is encouraged to immediately file a complaint with the Attorney General’s Office by going to theAttorney General’s website or by calling (800) 952-5225.

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Real Estate

Northern California Man Gets 42 Year Prison Sentence for Real Estate Ponzi Scheme

 

1910 police mugshot of Charles Ponzi, the namesake of the scheme Photo credit http://en.wikipedia.org/wiki/Ponzi_scheme
1910 police mugshot of Charles Ponzi, the namesake of the scheme       Photo credit http://en.wikipedia.org/wiki/Ponzi_scheme

Attorney General Kamala D. Harris announced a 42-year prison sentence for a Northern California man who ran a Ponzi scheme that defrauded more than 400 investors, most of them elderly, out of more than $90 million.

James Koenig, 60, of Redding, owned Assent Real Estate Corporation (AREI) from 1999 to 2008. The company specialized in the acquisition, management and resale of commercial property and elder care facilities. Most victims of his Ponzi scheme were elderly individuals from the Bay Area.

In May, Koenig was found guilty of 35 felony counts, including conspiracy, use of a scheme to defraud in connection with sales of securities, sales of securities by means of false statements, and residential burglary relating to the sales of fraudulent investments. The jury also found special enhancements for “great takings” because of the large amount of loss involved.

The company’s early losses were managed by using the funds of new investors to pay off the original investors. By 2007, AREI had accumulated $163 million in debt that was unsecured or significantly under-secured and required monthly payments of more than $1.8 million to maintain. In April 2007, AREI stopped making payments to investors, while continuing to solicit and sell securities to new investors. The Ponzi scheme finally failed in the spring of 2008.

The case was based on 32 of the more than 400 victims, whose losses exceeded $8 million – $3.8 million of which came from investments made after April 2007 – when AREI stopped paying its current investors. At the time of sentencing, the total losses by victims were reported to be in excess of $90 million.

Koenig was sentenced in Shasta County Superior Court on Friday. A restitution hearing will occur at a later date.

Source: California Attorney General 

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Real Estate

Protect Yoursef Aganist Mortgage Fraud

California Attorney General Kamala D. Harris
California Attorney General Kamala D. Harris

5 Tips to Avoid Being Scammed

  1. Don’t pay up-front fees. Foreclosure consultants are prohibited by law from collecting money before services are performed.
  2. Don’t ignore letters from your lender or loan servicer. Responding to those letters is your best bet for saving your house.
  3. Don’t transfer title or sell your house to a “foreclosure rescuer.” Beware! This is a scam to convince homeowners they can stay in the home as renters and buy their home back later. It might also be part of a fraudulent bankruptcy filing. Either way, a scammer can then evict the victim and take the home.
  4. Don’t pay your mortgage payments to anyone other than your lender or loan servicer. Mortgage consultants often keep the money for themselves.
  5. Never sign any documents without reading them first. Many homeowners think that they are signing documents for a loan modification or for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership of their home to someone who is now trying to evict them.

Where Do I Report Fraud or File a Complaint?

File a complaint with the California Attorney General’s Office.

File a complaint with the Federal Trade Commission.

If your complaint is against a real estate broker, visit the Department of Real Estate website.

If your complaint is against an attorney, visit the State Bar of California website.

You may also wish to consider filing a Small Claims Court action. These are informal courts where disputes are resolved quickly and inexpensively by a judge. You can recover up to $7500 in Small Claims Court. You represent yourself and can request a judgment for monetary damages. Visit the California Courts Self-Help Center for further information.

Source: Attorney General of California

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Business

Swiss Bank UBS AG Pays $90.8 Million Settlement for Fraudulant Conduct

The banks keep on trying to get our money one way or another.  It’s great when the government goes after these guys. After all, don’t forget that the mess we are in with our economy is due strictly to our illustrious banks and Wall Street.

A press release from the California  Attorney General’s Office announced on May 4, 2011 the following:

“Attorney General Kamala D. Harris  announced a $90.8 million national settlement, which includes some $6.3 million for California agencies, with the multinational Swiss bank UBS AG over allegations of anticompetitive and fraudulent conduct in the municipal bond derivatives industry.

“This financial fraud harmed school districts, cities, state agencies, and non-profit groups,” Attorney General Harris said. “The multi-million dollar settlement provides restitution to those victimized and sends a strong warning to anyone contemplating similar scams.”

California participated with federal agencies and 24 other states in the negotiations that led to today’s settlement. In addition to the approximately $6.3 million in restitution, California will be entitled to a share of the $2.5 million civil penalty and $5 million in investigation costs that UBS has agreed to pay.

Under the settlement, UBS agreed to pay back a total of $90.8 million to local and state agencies nationwide, as well as to non-profit groups, that had municipal bond derivative contracts with UBS, or used UBS as a broker, between 2001 and 2004. That restitution is part of a $160 million settlement package that includes federal agencies.

Municipal bond derivatives are contracts that tax-exempt issuers use to reinvest the proceeds of bond offerings until the funds are needed, or to hedge interest rate risk.”

So what do you think?

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