Protecting Consumers

Shutting Down Finance, Investment And Tax Scams

Advises Taxpayers to Avoid Companies that Charge Up-Front Fees and Promise to Eliminate Tax Debt. As tax day approaches, Brown urged Californians to avoid "phony tax-relief companies" that charge taxpayers up to $3,000 in up-front fees to reduce or eliminate back taxes owed to the Internal Revenue Service (IRS), but provide no actual relief. ("Brown Advises Taxpayers to Avoid Companies that Charge Up-Front Fees and Promise to Eliminate Tax Debt," Press Release 3/30/2010)

Recovers $1.4 Billion for Wells Fargo Investors in Landmark Settlement. Attorney General Edmund G. Brown Jr. announced a landmark $1.4 billion settlement with three Wells Fargo affiliates to pay back investors, charities and small businesses that purchased auction-rate securities based on "misleading advice." ("Brown Recovers $1.4 Billion for Wells Fargo Investors in Landmark Settlement," Press Release 11/18/2009)

Arrests Mastermind of Multi-Million Dollar Ponzi Scheme. Attorney General Edmund G. Brown Jr. announced the arrest of William Arthur Sassman II who "looted" the life savings of dozens of investors to bankroll his lavish lifestyle and prop up a multi-million dollar Ponzi scheme. ("Brown Arrests Mastermind of Multi-Million Dollar Ponzi Scheme," Press Release 11/16/2009)

Sues State Street Bank for Massive Fraud Against CalPERS and CalSTRS. Seeking to recover more than $200 million in illegal overcharges and penalties, Attorney General Edmund G. Brown Jr. announced that he has filed suit against State Street Bank and Trust -- one of the world's leading providers of financial services to institutional investors -- for committing "unconscionable fraud" against California's two largest pension funds -- CalPERS and CalSTRS. ("Brown Sues State Street Bank for Massive Fraud Against CalPERS and CalSTRS," Press Release 10/20/2009)

Sues Executive Financial Credit Services for Operating Illegally. Attorney General Edmund G. Brown Jr. sued Todd Swick and Michael Sardo, owners of Los Angeles based Executive Financial Credit Services, for ignoring "repeated warnings" to register with his office and post a $100,000 bond with the Secretary of State. ("Brown Sues Executive Financial Credit Services for Operating Illegally," Press Release 9/30/2009).

Sues Beverly Hills Investment Adviser Stanley Chais for Misleading Investors. Continuing his fight against financial fraud, Attorney General Edmund G. Brown Jr. filed suit against "Madoff middleman" Stanley Chais, who directed hundreds of millions of dollars of his clients' investments to Bernard Madoff, while actively concealing the link between the two. ("Brown Sues Beverly Hills Investment Adviser Stanley Chais for Misleading Investors and Concealing Ties to Bernard Madoff," Press Release 9/22/2009)

Wins $1.2 Million Ruling Against Small Business Rip-Off Artists. Continuing his fight against "rip-off artists," Attorney General Edmund G. Brown Jr. won a $1.2 million ruling against Gaston Muhammad, 42, and Ronna Green, 41, of Duluth, GA, who billed nearly a million California business owners $150 each for deceptive and unnecessary corporate minutes services. ("Brown Wins $1.2 Million Ruling Against Small Business Rip-Off Artists," Press Release 7/31/2009)

Files 92 Criminal Charges Against Woman who Bilked Retirees to Fund Gambling Habit. Attorney General Edmund G. Brown Jr. announced that prosecutors from his office have filed grand theft, embezzlement and burglary charges against Maria Elna Flora, 59, of Sacramento, after she "fleeced" retirees out of almost $350,000 to pay for a daily gambling habit. ("Brown Files 92 Criminal Charges Against Woman who Bilked Retirees to Fund Gambling Habit," Press Release 6/19/2009)

Wins Suit Prohibiting Liberty Tax Service from Deceptive Advertising of High-Cost Tax Refund Loans. Attorney General Edmund G. Brown Jr. won a lawsuit that bars the nation's third largest tax preparer -- Liberty Tax Service -- from deceptive advertising that "blurs the line" between tax refunds that are free and high-cost loans. ("Brown Wins Suit Prohibiting Liberty Tax Service from Deceptive Advertising of High-Cost Tax Refund Loans," Press Release 6/19/2009)

Arrests Two Men who Stole Millions Through Phony Stock Sale. Attorney General Edmund G. Brown Jr. announced that agents from his office, working with law enforcement in Tennessee and Nevada, arrested two individuals earlier this week for stealing millions of dollars through "phony stock sales" and an illegal pyramid scheme. ("Brown Arrests Two Men who Stole Millions Through Phony Stock Sale," Press Release 6/5/2009)

Clamped Down On Companies Luring Californians Into Internet Scheme Promising Riches. Attorney General Brown and Ventura District Attorney Gregory D. Totten clamped down on two companies -- Imergent, Inc. and Stores On Line - that “falsely promised” customers that they could earn full-time income by selling merchandise over the Internet. (“Brown Clamps Down on Companies Luring Californians into Internet Scheme Promising Riches,” Press Release, 3/16/09)

Reached Agreement With H&R Block Prohibiting Deceptive Marketing Of Tax Refund Loans. Attorney General Brown reached a $4.85 million settlement with H&R Block, which prohibits the company from marketing refund anticipation loans as early tax refunds. The California Attorney General filed suit against H&R Block in early 2006 regarding its marketing and sale of income tax refund anticipation loans and a related product called refund anticipation checks. A refund anticipation loan is a short-term loan secured by a taxpayer's anticipated income tax refund. (“Attorney General Brown Reaches Agreement with H&R Block Prohibiting Deceptive Marketing of Tax Refund Loans,” Press Release, 1/02/09)

Announced $7.5 Million Settlement With Financial-Services Firm Edward Jones & Co. California Attorney General Brown announced a $7.5 million settlement with financial-services firm Edward Jones & Co. for the company's failure to inform its customers of its revenue-sharing agreements with various mutual-fund companies. In these revenue-sharing agreements, Edward Jones obtained payments from mutual fund companies in exchange for promoting their mutual funds to its clients. (“Attorney General Brown Settles Edward Jones Lawsuit,” Press Release, 9/10/08)

Forced Settlement with Citibank After Investigation Revealed Bank Was Stealing From Its Customers. California Attorney General Brown announced that he has reached a settlement with Citibank after a three-year investigation into the company's use of an illegal “account sweeping” program. Nationally, the company took more than $14 million from its customers, including $1.6 million from California residents, through the use of a computer program that wrongfully swept positive account balances from creditcard customer accounts into Citibank's general fund. (“Atty. General Brown Forces Settlement with Citibank: Investigation Reveals Bank Was Stealing From Its Customers,” Press Release, 8/26/08)

Sued To Topple Online Pyramid Scheme. California Attorney General Brown announced a lawsuit against YourTravelBiz.com for operating a “gigantic pyramid scheme” that recruited tens of thousands of members with deceptive claims that members could earn huge sums of money through its online travel agencies. (“Brown Sues To Topple Online Pyramid Scheme,” Press Release, 8/05/08)

Filed Microsoft Anti-Trust Report. California Attorney General Brown filed a report questioning the effectiveness of the Microsoft consent decree. Brown joined Connecticut, Iowa, Kansas, Minnesota, Massachusetts and the District of Columbia in filing the Report on Remedial Effectiveness concerning the Microsoft Final Judgment. (“Brown Files Microsoft Anti-Trust Report,” Press Release, 8/30/07)

Announced Agreement With Microsoft To Change Vista. California Attorney General Brown announced that Microsoft has agreed to make significant changes in the design of its desktop search feature in the Windows Vista operating system. Details of Microsoft's agreement were outlined in a joint status report that was filed in federal district court regarding the company's compliance with a 2002 antitrust Final Judgment. (“California Attorney General Brown Gets Microsoft to Change Vista,” Press Release, 6/19/07)

Keeping our Products Safe

Agreement with American Spirit Cigarettes Maker over Alleged Misleading Marketing of Organic Tobacco Products. Attorney General Edmund G. Brown Jr. announced that his office has secured an agreement with Santa Fe Natural Tobacco Company, Inc., the manufacturer of American Spirit tobacco products, that requires the company to clearly disclose that its organic tobacco is "no safer or healthier" than other tobacco products. ("Brown Secures Agreement with American Spirit Cigarettes Maker over Alleged Misleading Marketing of Organic Tobacco Products," Press Release 3/1/2010)

Deal with Toyota to Help Consumers While Recalled Vehicles are Repaired. Attorney General Edmund G. Brown Jr. today announced that his office has reached an agreement with Toyota Motor Sales USA, Inc. to provide California Toyota owners with at-home pickup and vehicle return and cost-free alternative transportation while their recalled vehicles are being repaired. ("Brown Forges Deal with Toyota to Help Consumers While Recalled Vehicles are Repaired," Press Release 2/26/2010)

Sues Electronic Cigarette Maker for Targeting Minors and Misleading Advertising Claims. Attorney General Edmund G. Brown Jr. sued Florida-based electronic-cigarette retailer Smoking Everywhere to prevent the company from targeting minors and making "misleading and irresponsible" claims that electronic cigarettes are a safe alternative to smoking. ("Brown Sues Electronic Cigarette Maker for Targeting Minors and Misleading Advertising Claims," Press Release 1/13/2010)

Issues Warning to Major Retailers Caught Selling Children's Products Containing Excessive Lead. Attorney General Edmund G. Brown Jr. sent a letter to six major retailers, warning them that a number of children's products on their store shelves were found to contain "illegal levels of lead" and to pull the products from their stores immediately. ("Brown Issues Warning to Major Retailers Caught Selling Children's Products Containing Excessive Lead," Press Release 11/17/2009)

Creates Nation's First Enforceable Lead Standards for Artificial Turf. Fighting to ensure the safety of children's playgrounds and ball fields, Attorney General Edmund G. Brown Jr. today signed off on an agreement requiring Georgia-based AstroTurf, LLC to virtually eliminate lead from its artificial grass, creating the country's first enforceable lead standards for artificial turf products. ("Brown Creates Nation's First Enforceable Lead Standards for Artificial Turf," Press Release 8/14/2009)

Forced CVS Pharmacy to Provide Customers a $2 Coupon if They Find Expired Products on Shelves. Attorney General Edmund G. Brown Jr. today forged a settlement with CVS Pharmacy requiring the company to make sure expired products are not sold in its stores and provide customers a $2 coupon if they identify products past their sell-by date.("Brown Forces CVS Pharmacy to Provide Customers a $2 Coupon if They Find Expired Products on Shelves," Press Release, 6/10/09)

Forced Company to Stop Illegal Importation of Untreated Produce from India. Attorney General Edmund G. Brown Jr. and the California Department of Food and Agriculture last week forged an agreement requiring Bombino Express Worldwide to immediately stop the "illegal importation" of produce that has not been treated to eradicate the Oriental Fruit Fly or other crop-damaging pests. ("Brown and CDFA Force Company to Stop Illegal Importation of Untreated Produce from India," Press Release, 6/8/09)

Protecting California’s Children Sued Twenty Toy Companies For Knowingly Exposing Children To Lead Contaminated Toys. California Attorney General Brown and Los Angeles City Attorney Rockard J. Delgadillo sued twenty companies for manufacturing or selling toys with “unlawful quantities of lead.” The state's lawsuit alleges that companies knowingly exposed individuals to lead-a chemical known to the State of California to cause cancer and reproductive harm-and failed to provide any warning about this risk. (“Brown Sues Toy Companies For Lead,” Press Release, 11/19/07)

• Reached Settlement With Mattel And Several Other Toy Makers. California Attorney General Brown and Los Angeles City Attorney Rocky Delgadillo have reached a settlement with Mattel, Inc. - and several other toy makers - that will “safeguard California's children” from lead contaminated toys this Christmas. Even though a new federal law ratcheting down standards for lead in toys won't go into effect until February 10, 2009, Mattel and its subsidiary Fisher-Price, RC2 (which makes Thomas the Tank Engine toys), A&A Global Industries, Cranium Inc., Eveready Battery Company, Marvel Entertainment, Toy Investments, Kids II, and Amscan, have agreed to adopt the tough new federal standards immediately. (“Brown and Delgadillo Reach Settlement with Mattel,” Press Release, 12/04/08)

Sued Baby Furniture Manufacturers For Formaldehyde In Products. California Attorney General Brown sued five baby furniture manufacturers for failing to warn consumers about the dangerous levels of formaldehyde gas emitted by their products, including cribs and changing tables. (“Brown Attorney General Brown Sues Baby Furniture Manufacturers for Formaldehyde in Products,” Press Release, 9/24/08)

Called On CVS Pharmacy To End Expired Product Sales, Including Baby Food And Over-The-Counter Medications. California Attorney General Brown called upon CVS Pharmacy to immediately stop selling expired products, including baby food and over-the-counter medications, which were discovered during recent undercover shopping investigation in Southern California. The attorney general also asked the CVS to comply with California laws requiring proper storage and disposal consumer's confidential medical and financial information. (“Brown Calls On CVS Pharmacy To End Expired Product Sales, Protect Confidential Information,” Press Release, 6/19/08)

Forged Agreement With Shell Oil To Curb Tobacco Sales To Minors. Attorney General Brown announced a multi-state agreement with Shell Oil Company to stop young people from purchasing tobacco products at its convenience stores. Attorneys General throughout the country won this agreement after a nationwide investigation of tobacco selling practices at convenience stores affiliated with Shell. (“Attorney General Brown Forges Agreement with Shell Oil to Curb Tobacco Sales to Minors,” Press Release, 10/08/08)

Keeping California’s Food Safe Settled Potato Chip Lawsuit With Heinz, Frito-Lay & Kettle Foods. California Attorney General Brown settled lawsuits against Heinz, Frito-Lay, Kettle Foods and Lance Inc. after the companies agreed to slash levels of the cancer-causing chemical acrylamide in their potato chips and french fries. (“Atty. Gen. Brown Settles Potato Chip Lawsuit With Heinz, Frito-Lay & Kettle Foods,” Press Release, 8/01/08)

Sued Importer For Smuggling Unmarked And Untreated Mangos. “California Attorney General Brown and the California Department of Food and Agriculture announced that Bombino Express Worldwide has been sued for importing unmarked packages of mangos and yams from India that had not been treated to prevent the spread of the destructive Oriental Fruit Fly. (“Brown Sues Importer For Smuggling Unmarked And Untreated Mangos,” Press Release, 7/21/08)

Shutting Down Other Consumer Scams

Stops LifeLock from Misleading Consumers about Identity Theft Protection Services. Attorney General Edmund G. Brown Jr. joined the Federal Trade Commission (FTC) and 34 other attorneys general to announce a settlement against LifeLock, Inc. that prevents the company from "misrepresenting and overstating" the identity theft protection services it offers to consumers. ("Brown Stops LifeLock from Misleading Consumers about Identity Theft Protection Services," Press Release 3/9/2010)

Avoid High-Cost Tax-Refund Loans. With tax season quickly approaching, Attorney General Edmund G. Brown Jr. urged Californians to avoid high-cost tax-refund-anticipation loans, which force taxpayers to "borrow their own money," include numerous fees and can carry triple-digit annual interest rates. ("Brown Urges Taxpayers to Avoid High-Cost Tax-Refund Loans," Press Release 2/1/2010)

Encouraged Californians to Donate to Haitian Relief Effort, but Warns Donors to Avoid Charity Scams. Attorney General Edmund G. Brown Jr. is encouraging Californians to make charitable donations for victims of the devastating earthquake in Haiti, but warns citizens to avoid "scam artists" who may prey on the goodwill of California donors. "Brown Encourages Californians to Donate to Haitian Relief Effort, but Warns Donors to Avoid Charity Scams," Press Release 1/14/2010)

Urges Consumers Scammed by Hy Cite Corporation to Collect Share of $100,000 Remaining from Settlement. Attorney General Edmund G. Brown Jr. and the Los Angeles County Department of Consumer Affairs announced that $100,000 in consumer refunds are still available as part of a settlement reached last year with Hy Cite Corp. after the company "hoodwinked" consumers into buying its high-priced cookware using deceptive in-home demonstrations and scare tactics. ("Brown Urges Consumers Scammed by Hy Cite Corporation to Collect Share of $100,000 Remaining from Settlement," Press Release 11/24/2009)

Launches Investigation into Scam Targeting African American Churches. Attorney General Edmund G. Brown Jr. announced that his office has launched an investigation into whether four individuals defrauded more than 30 African American churches in Southern California by forcing them to pay up to $45,000 for shoddy computer kiosks originally presented as cost-free. These individuals-Michael Morris; Willie Perkins; Tonya Wilson; and Wayne Wilson-are also suspected of targeting dozens of churches in at least ten other states. ("Brown Launches Investigation into Scam Targeting African American Churches," Press Release 11/20/2009)

Forced Loan Provider to Forgive $112.7 million in Debts of Helicopter Flight School Students. Attorney General Edmund G. Brown Jr. and 11 other state Attorneys General forced Student Loan Xpress, Inc. to provide $112.7 million in debt relief to students facing a "mountain of debt" for helicopter flight instruction they never received. ("Brown and 11 States Force Loan Provider to Forgive $112.7 million in Debts of Helicopter Flight School Students," Press Release 10/27/2009)

Announced $549,000 for Musical Performances Up and Down the State. Attorney General Edmund G. Brown Jr. and the California Arts Council announced that 42 local arts organizations will be awarded $549,000 to present free or inexpensive public concerts throughout California with funds obtained from a 2003 anti-trust settlement. ("Brown and California Arts Council Announce $549,000 for Musical Performances Up and Down the State," Press Release 10/15/2009)

Sues 8 Individuals and 6 Businesses Operating Scams Targeting California Small Businesses. Continuing his fight against "rip-off artists" operating in California, Attorney General Edmund G. Brown Jr. filed suit against eight individuals and six businesses that operated scams targeting small business owners. The lawsuits, filed today in San Diego Superior Court, seek to recover more than $3 million. ("Brown Sues 8 Individuals and 6 Businesses Operating Scams Targeting California Small Businesses," Press Release 10/8/2009)

Arrests Individual Who Operated Nationwide Credit Card Scheme While Out on Bail. Attorney General Edmund G. Brown Jr. today announced that agents from his office and the Santa Ana Police Department have arrested a "serial con artist" who defrauded hundreds of people by charging them $500 to apply for credit cards that did not exist. ("Brown Arrests Individual Who Operated Nationwide Credit Card Scheme While Out on Bail," Press Release 9/23/2009)

Sues to Stop UCLA Professor from Improperly Using Charitable Donations to Fund Personal Business Ventures. Attorney General Edmund G. Brown Jr. has filed legal action to permanently stop Professor Gerald D. Buckberg, M.D., and five officers of the nonprofit L.B. Research Foundation from "diverting donations" from the charity to their own personal business ventures and medical research activities. ("Brown Sues to Stop UCLA Professor from Improperly Using Charitable Donations to Fund Personal Business Ventures," Press Release 9/9/2009)

Halts UCLA Professor's Use of Charitable Funds for Personal Business Ventures. Attorney General Edmund G. Brown Jr. today reached a settlement with UCLA Professor Gerald D. Buckberg, M.D., and five officers of the nonprofit L.B. Research and Education Foundation ("L.B.") that forces them to stop using the charity as a "personal bank account" to finance their business ventures. ("Brown Halts UCLA Professor's Use of Charitable Funds for Personal Business Ventures," Press Release 12/4/2009)

Warns Donors to Avoid Sham Fire-Relief Charities. Attorney General Edmund G. Brown Jr. warned Californians wishing to assist victims of the California fires to avoid "sham charities" that rip off consumers in the wake of major disasters. ("Brown Warns Donors to Avoid Sham Fire-Relief Charities," Press Release 9/2/2009)

Sues 22 Midas Shops to Block Bait-and-Switch Auto Repair Scam. Following more than two dozen undercover sting operations, Attorney General Edmund G. Brown Jr. today sued Maurice Irving Glad and his 22 California Midas auto shops to stop a "massive bait- and-switch scam" in which customers were offered cheap brake specials and then charged hundreds of dollars more for unnecessary repairs. ("Brown Sues 22 Midas Shops to Block Bait-and-Switch Auto Repair Scam," Press Release 6/30/2009)

$1.8 Million Settlement with Owner of 22 Midas Auto Shops Over Massive Bait-and-Switch Scheme. Attorney General Edmund G. Brown Jr. announced a $1.8 million settlement preventing Maurice Irving Glad, owner of 22 Midas auto shops throughout California, from owning or operating an auto repair shop in the state, after the franchisee "deceptively lured" customers with cheap brake specials and then charged hundreds of dollars for unnecessary repairs. ("Brown Reaches $1.8 Million Settlement with Owner of 22 Midas Auto Shops Over Massive Bait-and-Switch Scheme," Press Release 1/25/2010)

Sues 53 Individuals, 17 Telemarketers and 12 Charities that Exploited Donors. Attorney General Edmund G. Brown Jr. filed eight lawsuits against 53 individuals, 17 telemarketers and 12 charities that "shamelessly exploited" people's generosity and squandered millions of dollars of donations intended to help police, firefighters and veterans. ("Brown Sues 53 Individuals, 17 Telemarketers and 12 Charities that Exploited Donors' Desire to Help Cops, Firefighters and Veterans" Press Release, 5/29/09)

Ends Online Travel Pyramid Scheme. Bringing an end to an "elaborate pyramid scheme," Attorney General Edmund G. Brown Jr. today completed an agreement forcing YTB International to stop the deceptive marketing of its largely unprofitable travel websites and prohibiting the company from charging consumers nearly $500 to recruit others into its endless chain scheme. ("Brown Ends YTB's Online Travel Pyramid Scheme" Press Release 5/14/09)

Prevents Calling Card Company from Boosting Profits by Charging Hidden Fees. Attorney General Edmund G. Brown Jr. today obtained a court order preventing Los Angeles-based Total Call International, Inc. from charging "hidden and deceptive" fees for its pre-paid calling cards. ("Brown Prevents Calling Card Company from Boosting Profits by Charging Hidden Fees" Press Release 5/8/09)

Arrests Owner of 'Big Bad Student Travel' for Pocketing Thousands for Spring Break Trip.
Attorney General Edmund G. Brown Jr. announced that special agents from
the California Department of Justice today arrested Abel Moses
Somilleda, the owner of a vacation travel agency, who "ripped off"
$55,000 from high school and college students whose 2006 trip to
Cancun, Mexico was cancelled. ("Brown Arrests Owner of 'Big Bad Student
Travel' for Pocketing Thousands for Spring Break Trip" Press Release 3/27/09)

Stopped Massive Statewide Home Repair Scam Impacting Thousands Of Californians. Attorney General Brown and the Contractors State License Board (CSLB) have finalized an agreement that will stop a massive service and repair scheme that unfairly overcharged thousands of Californians for “shoddy and woefully inadequate” home repair work…A months-long investigation by the Attorney General's Office and the Contractors State License Board found that SRVS Charge Inc. and its affiliated companies had been cheating some 6,000 customers each year for overpriced and substandard home repair work since 1989. (“Brown and Contractors State License Board Stop Massive Statewide Home Repair Scheme,” Press Release, 3/23/09)

Announced Settlement With Wal-Mart For Price Discrepancies At Cash Register. California Attorney General Brown and San Diego District Attorney Bonnie Dumanis announced a settlement with Wal-Mart Stores, Inc. that will “help consumers as the holiday season approaches” by giving customers $3 back at the cash register for price-scanning errors. (“Attorney General Brown Announces Settlement with Wal-Mart to Give Customers $3 Back for Price Discrepancies at Cash Register,” Press Release, 11/24/08)

Won $160 Million Refund From The L.A. Department Of Water and Power For Illegal And Unjustified Overcharges. Attorney General Brown announced that the State of California and several local agencies, including the Los Angeles Unified School District and Los Angeles County, won a refund of $160 million for “illegal and unjustified overcharges” that the Los Angeles Department of Water and Power charged during a 10 year period between 1997 and 2007. (“Attorney General Brown Wins $160 Million Refund from the L.A. Department of Water and Power,” Press Release, 10/27/08)

Settled Stolen Cell Phone Billing Disputes With AT&T. California Attorney General Brown announced a “groundbreaking settlement” with AT&T Mobility (formerly Cingular) that will prohibit the cell phone carrier from charging customers for any calls made after their phones are lost or stolen. Brown alleged that the company violated California law, including Public Utilities Code section 2890, which bars phone companies from charging customers for unauthorized services. (“Attorney General Brown Settles Stolen Cell Phone Billing Disputes,” Press Release, 10/10/07)

Settled Million-Dollar Predatory Consumer Marketing Case. California Attorney General Brown in conjunction with the Los Angeles Department of Consumer Affairs (LADCA) announced a million dollar settlement with Wisconsin-based Hy Cite Corporation, which was investigated for using discriminatory business practices and false advertising in the sales of its high-priced Royal Prestige cookware to California consumers. (“Attorney General Brown Settles Predatory Consumer Marketing Case with Hy Cite Corporation,” Press Release, 9/03/08)

Filed 78 Felony Charges Against Travel Agent For Selling Bogus Packages To Senior Citizens. California Attorney General Brown announced the arrest of an Orange County travel agent who sold more than $160,000 in “bogus travel packages” to senior citizens who wanted to visit Cuba for religious and cultural purposes. (“Attorney Brown Files 78 Felony Charges Against Bandit Travel Agent,” Press Release, 4/17/08)

Obtains Guilty Plea from Individual who Sold Phony Trips to Cuba. Attorney General Edmund G. Brown Jr. announced that Ralph Adam Rendon, 33, of Orange County, was sentenced to five years in state prison yesterday for selling $154,000 in "phony travel packages" to senior citizens seeking to visit Cuba for religious and cultural purposes. ("Brown Obtains Guilty Plea from Individual who Sold Phony Trips to Cuba," Press Release 10/27/2009)

Resolved Confusing America Online Cancellation Policy, Announced $3 Million Settlement. California Attorney General Brown announced a $3 million settlement with America Online (AOL), one of the nation's largest Internet service providers. The prelitigation settlement, entered into by California, the District of Columbia and 47 other states, resolves complaints that AOL failed to disclose terms and conditions of paid service and made it extremely difficult for consumers to cancel their AOL pay services. Under the agreement AOL will make a number of improvements including: easier cancellation procedures, improved billing disclosures and commitment to refunding unauthorized charges. (“Brown Resolves Confusing AOL Cancellation Policy,” Press Release, 7/11/07)

Protecting Students From Scams Arrested Owner of Big Bad Student Travel for Pocketing Thousands For Spring Break Trip. Attorney General Brown announced that special agents from the California Department of Justice arrested Abel Moses Somilleda, the owner of a vacation travel agency, who “ripped off” $55,000 from high school and college students whose 2006 trip to Cancun, Mexico was cancelled. (“Brown Arrests Owner of “Big Bad Student Travel” for Pocketing Thousands for Spring Break Trip,” Press Release, 3/27/09)

Reached Multi-Million Settlement With One Of The Nation’s Largest For-Profit Vocational School Chains For Alleged False Advertising And Unlawful Business Practices. California Attorney General Brown announced that Corinthian Schools, Inc. and Titan Schools, Inc. will pay $6.5 million, including $5.8 million in consumer restitution, to settle a lawsuit alleging that the for-profit vocational operator engaged in false advertising and unlawful business practices by presenting inaccurate salary and employment information to students. According to the complaint, Corinthian students pay between $7,000 and $27,000 for vocational courses, which typically take from six months to one year to complete. Corinthian allegedly overstated the percentage of its students who obtained employment from these courses, inflated starting salary information, and used these misrepresentations to convince potential students to enroll. (“Brown Reaches Multi- Million Settlement With Corinthian Vocational School,” Press Release, 7/31/07)

Sued To Aid Students Swindled By San Diego Vocational School. A shuttered San Diego vocational school was sued for allegedly bilking students out of millions of dollars in tuition for computer classes that were not delivered, according to a joint lawsuit by California Attorney General Brown and San Diego District Attorney Bonnie M. Dumanis. The suit, which seeks millions of dollars in fines and restitution, accuses the owners and operators of MicroSkills of charging students about $25,000 in tuition and of closing the San Diego campus without refunding students. (“Brown Sues to Aid Swindled Students,” Press Release, 5/07/07)

Brown’s Long Time Leadership on Consumer Issues:

• Forced Credit Card Companies to Disclose Finance and Interest Charges: As Governor, Brown signed a law requiring credit card companies to disclose to consumers the amount of interest and finance charges they are billed.
• Required Better Notice from Credit Card Companies: Governor Brown required credit card companies to give consumers notice of cancellation of credit cards.
• Consumer Credit Reporting Agencies: Governor Brown required accountability among programs that evaluate credit worthiness and capacity.
• Generic Prescription Drugs: As Governor, Brown signed a law allowing consumers to purchase less expensive generic prescription drugs. This saved many consumers the cost of purchasing more expensive and equally effective brand name drugs.
• Toughened Penalties for Violating Fair Packaging and Labeling Law: As Governor, Brown toughened the penalties for violating the Fair Packaging and Labeling Law.
• Created Energy "Life-Line" Rates: Governor Brown signed legislation requiring the establishment of a “life-line” rate be established for basic quantities of gas and electricity needed by the average household.
• Required Manufacturers to Refund or Replace Defective Vehicles: Brown required that car manufacturers provide refunds or replacements for defective automobiles.