Attorney General Pam Bondi today announced a $220 million multistate settlement with Deutsche Bank for fraudulent conduct involving the manipulation of LIBOR. LIBOR is a benchmark interest rate that affects financial instruments worth trillions of dollars and has a widespread effect on global markets and consumers. By manipulating LIBOR, Deutsche Bank defrauded government entities and not-for-profit organizations in Florida and throughout the U.S. out of millions of dollars.
The investigation, conducted by a working group of 45 state attorneys general, revealed that Deutsche Bank manipulated LIBOR in a number of ways. Deutsche Bank employees improperly made internal requests for LIBOR submissions to benefit Deutsche Bank’s trading positions. Deutsche Bank also attempted to influence other banks’ LIBOR submissions in a manner intended to benefit their trading positions. Lastly, Deutsche Bank received communications from inter-dealer brokers and external traders attempting to influence Deutsche Bank’s LIBOR submissions. At times, Deutsche Bank LIBOR submitters and supervisors expressly acknowledged and indicated they would work to implement the requests received.
Deutsche Bank employees had strong reason to believe that these LIBOR submissions did not reflect the true borrowing rates pursuant to published guidelines. Additionally, the LIBOR rates the bank submitted did not reflect the actual borrowing costs of Deutsche Bank and other panel banks. Even though these rates are material terms of LIBOR-referenced transactions, Deutsche Bank employees did not disclose these facts to the governmental and not-for profit counterparties who executed the transactions with the bank.
Governmental and not-for-profit entities with LIBOR-linked swaps and other investment contracts with Deutsche Bank will be notified if they are eligible to receive a distribution from the settlement fund of more than $213 million. The balance of the settlement fund will be used to pay costs and expenses of the investigation and for other uses consistent with state laws.
As part of the settlement, the Florida State Board of Administration is receiving more than $10 million and other Florida counter-parties are receiving a total more than $5 million.
To view a copy of the settlement, click here.
Deutsche Bank is the second of several USD-LIBOR-setting panel banks under investigation by the state attorneys general to settle. In August, 2016, the states settled with Barclays Bank PLC and Barclays Capital Inc. Deutsche Bank is cooperating with the investigation. The investigation into the conduct of several other USD LIBOR-setting panel banks is ongoing.
Attorney General Pam Bondi
Attorney General’s Office Files Lawsuit Against Air Conditioning Marketing and Sales Company
Attorney General Pam Bondi’s Office is taking action against a Palm Beach County sales and marketing company and its owners for making false promises to customers buying air conditioning units. Complete Eco Home Services LLC f/d/b/a The Green Club Home Services LLC and its owners allegedly induced customers, often targeting the elderly and low-income consumers, to purchase air conditioning units at no cost or for minimal monthly installment payments. The Attorney General’s Office is seeking refunds for Florida consumers of more than $200,000.
“Taking advantage of seniors trying to save money on their utility bills just to make ends meet is immoral—we will not allow anyone to get away with deceiving our seniors to make a quick buck,” said Attorney General Bondi.
The complaint states that the business falsely represented their air conditioning units to be more energy efficient, with the potential for consumers’ utility bills to be substantially lower. In some circumstances, the defendants allegedly promised customers air conditioning units at no cost and then assisted or personally filled out loan applications for the amounts of the units. The victims believed the applications to be authorizations for the promised free units, not actual loan applications. According to the complaint, during sales presentations, the business also falsely stated that it has special relationships with various government agencies and utility companies that would result in free or substantially reduced air conditioning units.
Attorney General Bondi’s Office is seeking to permanently enjoin Complete Eco Home Services from engaging in any business in Florida involving the marketing, sale, financing and installation of heating, ventilation and air conditioning products and services. The action also seeks full restitution to consumers affected by the company’s deceptive and unfair trade practices.
To view a copy of the complaint, click here.
$120 Million Settlement Reached with General Motors for Defective Ignition Switch
Attorney General Pam Bondi, 48 other state attorneys general and the District of Columbia today announced a $120 million consumer protection settlement with General Motors Company regarding allegations that GM concealed safety issues related to ignition-switch-related defects in GM vehicles. The settlement concludes a multistate investigation into the auto manufacturer’s failure to timely disclose known safety defects in several models of GM vehicles.
In 2014, GM issued seven vehicle recalls in response to unintended key-rotation-related and ignition-switch-related issues that affected more than nine million vehicles in the United States. The recalls involved a defective ignition switch that, under certain conditions, could move out of the run position to the accessory or off position. If this occurred, the driver experienced a loss of electrical systems, including power steering and power brakes. If a collision occurred while the ignition switch was in the accessory or off position, the vehicle’s safety airbags may have also fail to deploy, increasing the risk of serious injury or death in certain types of crashes in which the airbag was otherwise designed to deploy.
Certain employees of GM and General Motors Corporation, which went through bankruptcy in 2009, allegedly knew as early as 2004 that the ignition switch posed a safety defect because it could cause airbag non-deployment. Despite this knowledge, GM personnel decided the defect was not a safety concern and delayed making recalls. GM continued to market the reliability and safety of motor vehicles equipped with this defective ignition switch.
As part of a consent judgment, GM will:
- Not represent that a motor vehicle is safe unless GM complied with the Federal Motor Vehicle Safety standards applicable to the motor vehicles;
- Not represent that certified pre-owned vehicles are safe, repaired for safety issues or have been subject to rigorous inspection, unless such vehicles are not subject to any open recalls relating to safety or have been repaired pursuant to such a recall;
- Instruct dealers that all applicable recall repairs must be completed before any GM motor vehicle sold in the U.S. and included in a recall is eligible for certification; and
- If there is a recall on any certified pre-owned vehicle sold in the U.S., the required repair must be completed before the vehicle is delivered to a customer.
As part of the consumer protection settlement, GM also agreed to pay the participating attorneys general a total of $120 Million, of which Florida’s share is more than $6 million.The settlement is pending judicial approval.
To view a copy of the settlement, click here.
Coral Springs Man Arrested for Human Trafficking
Attorney General Pam Bondi, the Federal Bureau of Investigation, the Broward Sheriff’s Office, the Florida Department of Law Enforcement and Palm Beach County Human Trafficking Task Force today announced the arrest of Robert Atlee Miner V for human trafficking multiple victims. According to the investigation, Miner, 27, recruited and exploited young women since January 2015 through sex trafficking for personal profit.
“The defendant is charged with preying on women and, in some cases, using violence to force them into sex trafficking; all while depositing large amounts of cash into his bank account,” said Attorney General Bondi. “The facts of this case are appalling—that anyone is charged with forcing another human being into the sex trade.”
Miner allegedly recruited victims using online advertisements seeking to hire young women to work as dancers or companions. Victims then answered the ads seeking to be dancers, and Miner forced them with threats or physical harm to perform sex acts for money instead. In addition to using the Internet to recruit victims, Miner also used websites such as Backpage.com to advertise the women and services. At one point, Miner arranged for one of the victims to fly to and work in Las Vegas.
There is no record of Miner having any legitimate source of income, yet bank account records reveal Miner consistently making large cash deposits, totaling more than $225,000 since January 2015. Financial records also show, in multiple situations, that Miner paid for hotel rooms on the same night, but in different cities.
Miner faces multiple counts of human trafficking, deriving support from the proceeds of prostitution, money laundering and structuring transactions. Miner also faces charges for branding, armed sexual battery, unlawful use of a two-way device and renting a room for prostitution. If convicted, Miner faces up to life in prison. Assistant Statewide Prosecutor Danielle Dudai with Attorney General Bondi’s Office of Statewide Prosecution is prosecuting this case with the assistance of the State Attorney’s Office for the 15th Judicial Circuit.
Cabinet to Declare Disability Employment Awareness Month
Florida Attorney General Pam Bondi will introduce a resolution at the Tuesday, October 17, Cabinet meeting declaring October as Disability Employment Awareness Month in Florida. The Cabinet meeting begins at 9 a.m. in the Cabinet meeting room on the lower level of the Capitol Building.
Longtime Pensacola Walmart employee Rachel Caylor Long will address Governor Rick Scott and the Florida Cabinet on the importance of including people with disabilities in the workforce. Along with Caylor Long, leaders from Agency for Persons with Disabilities, Department of Economic Opportunity, Vocational Rehabilitation, Blind Services, Veterans’ Affairs, Able Trust, Florida Developmental Disabilities Council, and Florida Association of Rehabilitation Facilities will be there to accept the resolution.
The Agency for Persons with Disabilities supports people with developmental disabilities to live, learn, and work in their communities. The agency annually serves more than 50,000 Floridians with severe autism, cerebral palsy, spina bifida, intellectual disabilities, Down syndrome, Phelan-McDermid syndrome, and Prader-Willi syndrome. For more information about the Agency for Persons with Disabilities, visit APDcares.org or call toll-free 1‑866‑APD‑CARES (1‑866‑273‑2273).
Attorney General Bondi Announces Actions Against Student Loan Debt Relief Scammers as Part of National Crackdown
Attorney General Pam Bondi’s Office is participating in the first coordinated federal-state civil enforcement crackdown involving student loan debt relief scams. These scams unlawfully took a combined total of more than $95 million in upfront fees from students nationwide. The crackdown involves a total of 36 state or federal actions against student debt relief companies, with Attorney General Bondi’s Office filing two of these lawsuits, as well as a third action to compel compliance with an investigative subpoena. The Attorney General’s Office also reached a settlement with a student loan debt relief company in a fourth matter that ensures the company will no longer operate in Florida.
The two lawsuits allege that certain companies misled consumers into believing they would be enrolled in loan forgiveness or other relief programs through false promises. Instead of helping, the companies allegedly took hundreds or thousands of dollars from these consumers who could have used the money to pay their student loans. One complaint is against Strategic Student Solutions, LLC and its owner Dave Green in Palm Beach County, and the other is jointly filed with the Federal Trade Commission against Student Aid Center Inc., and owners Damien Alvarez and Ramino Fernandez-Moris in Miami. For more information about the complaint against Strategic Student Solutions, click here. For more information about the joint action with the FTC, click here.<
The Attorney General’s Office also filed an action against Wesley Chapel-based The Student Loan Help Center for failure to comply with an investigative subpoena. This subpoena relates to the company’s alleged misrepresentations of the amount of student loan reductions available and the company’s failure to provide the student loan debt relief services promised. To view this filed action, click here.
Lastly, the Attorney General’s Office reached a settlement with Boynton Beach-based Debt Relief Pros, Inc. d/b/a Student Debt Relief, and its owner, Christopher Wordell. This settlement resolves allegations that the company charged a fee for services otherwise free through the Federal Direct Loan Program, misrepresented the company’s ability to lower monthly student loan payments and failed to perform the services for which consumers paid advance fees. The settlement permanently enjoins the company and its owner from operating in Florida or involving Florida businesses or residents in any manner related to student loan debt relief services. To view a copy of the settlement, click font-family: Arial; font-size: medium;”> here.
In addition to these four actions, the Federal Trade Commission and 10 other attorneys general filed or settled 32 other actions as part of this initiative. For more information about the nationwide crackdown, click here.
Attorney General Bondi Takes Action Against Companies Targeting Financially Distressed Floridians
Attorney General Pam Bondi’s Office filed a complaint against HOA Problem Solutions, Inc., as well as several related companies, for using deceptive and unfair practices to acquire properties from financially distressed homeowners. These Floridians’ homes faced impending homeowners’ association foreclosure auction because of outstanding HOA dues. According to the complaint, HOA Problem Solutions told homeowners that they could walk away free and clear from properties if the homeowners executed a quitclaim deed for a fraction of the value of the home. However, the homeowners who executed quitclaims are still being held responsible for prior home loans.
The complaint alleges that once HOA Problem Solutions gained control of the properties, the corporation rented out the homes and collected rent payments for personal profit. The corporation then failed to make payments to holders of the mortgages, in violation of Florida’s Deceptive and Unfair Trade Practices Act. Additionally, HOA Problem Solutions allegedly failed to adequately disclose to tenants that the properties faced foreclosure and the tenants might not be able to stay throughout the term of the leases.
Attorney General Bondi’s Office is seeking to stop HOA Problem Solutions from buying, selling or renting residential real estate, including participating in future foreclosure auctions. The corporation also faces civil penalties for violations of FDUTPA.
To view a copy of the complaint filed, click here.
Multimillion Dollar Settlement Reached with EpiPen Manufacturer
Attorney General Pam Bondi joined the federal government, the District of Columbia and all 49 other state attorneys general in a multimillion settlement with an international pharmaceutical company. This nationwide settlement resolves allegations that Mylan Inc. and its wholly-owned subsidiary, Mylan Specialty L. knowingly underpaid rebates owed to the Medicaid program for the drugs EpiPen® and EpiPen Jr.®. The drugs are injections containing epinephrine, a chemical that narrows blood vessels and opens airways in the lungs. These effects can reverse severe low blood pressure, wheezing, severe skin itching, hives and other symptoms of an allergic reaction.
Mylan allegedly misclassified EpiPen to avoid paying rebate obligations to the U.S. and the state, violating the federal False Claims Act and various state false claims statutes. As part of the settlement, Mylan will pay a total of $465 million to the federal government and the states. Florida will receive more than $9 million in restitution and other recovery.
The investigation stemmed from two qui tam actions, United States ex rel. sanofi-aventis US LLC v. Mylan Inc., et al. No. 16-cv-11572-ADB, and United States ex rel. Ven-A-Care of the Florida Keys, Inc. v. Mylan Inc., et al. No. 17-10140-ADB, pending in the U.S District Court for the District of Massachusetts.
To view a copy of the settlement, click here.
Attorney General Bondi Issues Subpoenas in Debris-Removal Investigation
Attorney General Pam Bondi today issued investigative subpoenas to three debris-removal companies in the aftermath of Hurricane Irma. The subpoenas are being issued pursuant to Florida’s Deceptive and Unfair Trade Practices Act and are part of an ongoing investigation into allegations that debris removal contractors are either failing to perform at pre-storm contract rates, not performing until negotiating higher rates or are slow to perform under existing contracts.
“Sitting debris is a health and safety hazard and needs to be removed as soon as possible—but instead of doing their jobs and helping Floridians recover, apparently some contractors are delaying the work or requesting higher rates,” said Attorney General Bondi. “These subpoenas seek to answer questions about why many communities are continuing to struggle with the hazards of debris while having to contend with rate hikes.”
The office is reviewing contracts and gathering information relating to delays and potential price increases for debris removal by AshBritt, Inc. Two other companies, Ceres Environmental Services, Inc. and DRC Emergency Services Inc. have also been served with investigative subpoenas based on information that they may have also sought increased rates for debris removal. The subpoenas seek documents showing whether the contractors are indeed providing the services under the contract, the estimated time for completion of debris removal, what rates are being charged, and whether these rates have been increased. Also included in the subpoenas are requests for information relating to subcontractors.
In addition to the subpoenas issued today, the office will continue to review contracts and gather more information from other contractors and local officials.
To view Ashbritt’s subpoena, click here.
Attorney General Bondi Kicks Off Human Trafficking Summit
Attorney General Pam Bondi today kicked off Florida’s 2017 Human Trafficking Summit in Orlando. This year’s summit focuses on connecting stakeholders throughout Florida with the shared goal of eradicating human trafficking. Law enforcement, the legal community, service providers, healthcare professionals, educators and other first responders are participating in profession-specific breakout sessions and training opportunities. There will be breakout sessions discussing human trafficking prevention, victim advocacy, law enforcement action and much more.
“Combating human trafficking in Florida has been and will remain one of my top priorities, but the fight requires joint-efforts from partners not just from Florida, but nationwide,” said Attorney General Bondi. “This important summit brings together those dedicated to ending this crime and builds on partnerships striving to make Florida a zero-tolerance state for human trafficking.”
Attorney General Bondi is dedicated to eradicating human trafficking and is a national leader in the field—just this summer, Attorney General Bondi discussed efforts to stop human tracking with international leaders at the Conference of Western Attorneys General Meeting. Additionally, Bondi’s Office of Statewide Prosecution continues to aggressively prosecute multi-judicial circuit human trafficking cases in Florida. Working with state lawmakers, Bondi helped create the Statewide Council on Human Trafficking, which she now chairs. Part of the council’s duty is to hold this annual Human Trafficking Summit.
Today’s summit brings together local, state and other national leaders working to fight all forms of trafficking. Participants will be exploring ways to help survivors and possible policies changes to combat the crime. More than a thousand individuals registered for today’s summit working to achieve this common goal.
At the summit, Attorney General Bondi presented awards to individuals for their efforts to combat human trafficking:
- Misty Laperriere, Survivor Advocate of the Year—Laperriere is the Director of Outreach and Law Enforcement Liaison for Selah Freedom and a survivor of human trafficking. In 2016, Laperriere assisted the Sarasota Police Department in rescuing two women from a local hotel. In addition to her work with victims, Laperriere provides training to several law enforcement agencies in Florida including the Sarasota and Bradenton Police Departments and travels throughout the state helping victims of human trafficking. Additionally, Laperriere implemented Florida’s first prostitution diversion court program called Turn Your Life Around.
- Dr. Heidi Schaeffer, Community Advocate of the Year—As executive board member and coalition communications specialist for the Broward Human Trafficking Coalition, Dr. Schaeffer has spoken to several news organizations about human trafficking and how citizens can help. Dr. Schaeffer trained teachers and students at Palm Beach County schools on human trafficking indicators. She also worked closely with deans, professors and students to help incorporate human trafficking instruction into medical school curriculum and develop a clinical training video and multiple live presentations for Baptist and South Miami Hospitals.
- Lisa Haba, Prosecutor of the Year—Haba is an assistant state attorney in 18th Judicial Circuit Court. Haba works in the office’s sex crimes and child abuse division, prosecuting cases involving human trafficking and crimes against children. Last year, Haba successfully prosecuted the first human trafficking case in Seminole County. Haba also sits on the board of directors of The Lifeboat Project, a human trafficking focused non-profit. Haba is a member of the Seminole County Human Trafficking Task Force and teaches the community, law enforcement officers and deputies about human trafficking.
- Corporal Alan Wilkett, Law Enforcement Official of the Year—Corporal Wilkett led the Pasco County Human Trafficking Task Force on several sweeps and trained more than 2,000 community members through the Pasco County Commission on Human Trafficking. Corporal Wilkett actively works with local government offices, local healthcare provider Baycare, the local community and non-profit organizations like Bridging Freedom, where he serves as a board member.
Additionally, the Florida Department of Juvenile Justice awarded Christopher Massey Human Trafficking Advocate of The Year. Massey chairs the Education and Awareness sub-committee for the Freedom 7 Human Trafficking Task Force. Since January 2016, as Chair, Massey trained and educated almost 5,000 individuals about human trafficking.
The Florida Department of Children and Families awarded Investigator Deborah Stout the Department of Children and Families Human Trafficking Investigator of the Year font-family: Arial; font-size: medium;”> for her compassion for a young victim. Instead of discounting the victim due to the victim’s record, Stout tried to fully understand the situation, established trust and developed a relationship with the victim.
For more information about the summit, visit HumanTraffickingSummit.com.
