Public Document No. 12 Office of Attorney General Martha Coakley Boston Office Consumer Hotline Insurance Fraud Tipline One Ashburton Place, Boston, MA 02108 100 Cambridge Street Phone: (617) 727-8400 Phone: (617) 573-5330 Phone: (617) 727-2200 TTY: (617) 727-4765 Boston, MA 02108 Hours of operation for the The Insurance Fraud Tipline www.mass.gov/ago Phone: (617) 727-2200 Consumer Hotline are (accepting calls 24 hours) is 10:00 a.m. to 4:00 p.m. intended for calls pertaining to New Bedford Office fraud in any of the following: 105 William Street, First Floor Elder Hotline workers’ compensation, motor The Office of Attorney General MarthaC oakley consists New Bedford, MA 02740 Phone: (888) AG-ELDER vehicle insurance, disability, of the Executive Bureau which includes management Phone: (508) 990-9700 (243-5337) health care billing, and and communications functions, and four bureaus that Springfield Office Fair Labor Helpline unemployment insurance. perform substantive legal work: Government; Criminal; 1350 Main Street, Fourth Floor Phone: (617) 727-3465 Business and Labor; and Public Protection and Advocacy. Victim compensation and Springfield, MA 01103 Most staff members work in the Boston office locations, Insurance and Health Care assistance Hotline Phone: (413) 784-1240 and the Attorney General also maintains regional offices Consumer Helpline Phone: (617) 727-2200 ext. 2160 in Central (Worcester), Southeastern (New Bedford), Worcester Office Phone: (888) 830-6277 and Western (Springfield) Massachusetts. In FY09, the 10 Mechanic Street, Suite 301 Attorney General’s Office returned over $657 million to Worcester, MA 01608 the Commonwealth and its residents. Phone: (508) 792-7600 A Message from Attorney General Martha Coakley

T he preparation of this 4th Annual Report marks an opportunity to reflect not only on the past year but also on my first term as your Attorney General. I n my first message to readers of this Report, I said that my goal was “to make this office as effective and responsive as it can be, and to use the skills, talent and energy of the staff to bring positive change to the lives and futures of all who call the Commonwealth home.”

Over these past four years, I am proud to say that the Attorney General’s Office has successfully stood up for the consumers and taxpayers of the Commonwealth, recovering more than a billion dollars during that time. In fact, for every one dollar in our office’s budget, we recover five dollars for the people of theC ommonwealth. As the state’s chief law enforcement office, we also have worked to make our communities safer through investigations and prosecutions as well as proactive prevention efforts.

Of course, one of the great challenges that we faced during these four years was the economic crisis that has affected us all.W e responded to that crisis aggressively by filing groundbreaking actions against companies that contributed to the foreclosure crisis, recovering hundreds of millions of dollars for taxpayers and helping to keep more than 15,000 people in their homes.

We’ve worked to keep energy rates down for families and businesses, and stood up for consumers in the face of unfairness. We’ve prosecuted cases of fraud and corruption, and

www.mass.gov/ago i leveled the playing field for businesses by taking on companies that mistreated workers. W e’ve taken on those who abused our seniors, violated people’s civil rights, or sought to prey on our kids online.

This report is just a snapshot of the work that we do each day. We have highlighted priorities, cases, and issues that we hope will give you the opportunity to better understand the breadth of the work of this office.

I am grateful for this opportunity to serve as your Attorney General and look forward to continuing to fight on your behalf over the next four years.

Cordially,

Martha Coakley Massachusetts Attorney General

ii Fiscal Year 2010 Annual Report Protecting T ax p a yers Protecting Taxpayers

This year the AGO returned money RECOVERIES FROM to the Commonwealth’s General Fund

WALL STREET S Money and to the state’s Medicaid program, aving The AGO continued its strong protecting the investment that we all leadership in holding big banks and make as taxpayers and aggressively Wall Street accountable for their going after the fraudulent use of role in the economic crisis. In FY taxpayer funds. 2010, through numerous landmark Protecting Of the $35.7 million recovered by C cases, the office recovered more onsu the AGO in its capacity as the Medicaid

than $20 million in taxpayer money m Fraud enforcement authority, over ers for the Commonwealth. (A more $18 million was returned to the complete outline of the office’s work Massachusetts Medicaid program. in response to the economic crisis is These funds were recovered as a result outlined later in this report.) of indictments of laboratories for a C o Building variety of fraudulent acts (including FALSE CLAIMS ACTIONS mm unities taking kickbacks) and other litigation During FY10, the AGO entered which addressed off-label marketing into agreements with two major of drugs. In addition to the significant supermarket chains in Massachusetts funds returned to the Commonwealth, after an investigation unveiled that the in parallel consumer protection Financial

companies were overcharging public A ddressing matters, the AGO obtained restitution entities for various prescription drugs and compensation to consumers who under the workers compensation C risis were defrauded. Other Medicaid fraud insurance system, violating the actions involved cases of unnecessary Massachusetts False Claims Act. medical or dental services or, in at least Together the companies paid one case, the diversion of drugs paid $246,127 to the Commonwealth and D evelo E for by Medicaid and were hallmarks of $94,463 to certain cities and towns in cono

AGO efforts to save taxpayers money. pm Massachusetts. m ic ent

www.mass.gov/ago 1 yers a p ax T Protecting Saving Money for the Commonwealth The AGO continued to look at the anti- The AGO defends state agencies, one case, the AGO saved $2.7 million and as such had an important role aving aving competitive effects of the pharmaceutical in damages claimed by a plaintiff Money S industry’s efforts to undermine the in FY10 in the implementation arguing that its factory was damaged ready availability of generic drugs. of pension reform, ensuring that due to an inadequate culvert on In a case against pharmaceuticals only eligible residents receive state Interstate 1-95. In another case, staff manufacturer Abbott Labs /TriCor, the services. When the validity of fees or, defended state agencies in cases AGO ­recovered more than $750,000 (as in some cases, an Agency’s authority where the court or, in some cases a ers m part of a nationwide settlement of $22.5 to levy taxes was challenged, jury, ultimately found no valid claim. onsu

C the AGO defended the relevant The AGO also beat back overzealous Protecting million) for Massachusetts agencies. Also, the AGO’s work in the field agencies. Of particular significance efforts by plaintiffs to attach of anti-trust has had international was the AGO work in support of government funds in situations ­impact as in the case against consolidation in the Department where there was no right – these are ­manufacturers of Dynamic Random of Transportation and the defense often matters in which swift analysis Access Memory (“DRAM”). AGO of the State Retirement Board. In and action by AGO staff also saved unities mm Building staff litigated a multistate price ­fixing addition, the AGO’s defense of the plaintiffs’ legal fees by narrowing the o C case on behalf of Massachusetts insurance commissioner’s order issues to be tried. ­government purchasers of electr­ onic rejecting proposed health insurance The AGO has been a national­ equipment containing DRAM rate increases resulted in significant leader in civil consumer protection ­computer chips and obtained taxpayer savings. actions against pharmaceutical risis C settlements with seven international In defense of various agencies, companies including Merck, Eli manufacturers for their role in the the zealous advocacy of AGO staff Lilly, and Pfizer, Inc. AGO ­attorneys ddressing A

Financial ­conspiracy. Compensation will be yielded savings that can be quantified ­successfully led the nation with paid to the Commonwealth in an mostly by what the Commonwealth complex investigations into amount to be determined. did not have to pay in damages as a pharmaceutical and medical device result of claims of negligible merit. In company conduct resulting in a $33 ent ic m pm cono E evelo D

2 Fiscal Year 2010 Annual Report Protecting T ax p a yers million national settlement with tooth and ordered by the Court Pfizer Inc. to resolve allegations to pay over $36,000 in restitution; of ­improper marketing of the in another matter, the owner of ­antipsychotic drug, Geodon. a roofing company plead guilty S Money Recognizing the significant cuts to failing to pay over $119,000 in aving to the vital local programs that workers’ compensation insurance serve Massachusetts residents, premiums; finally, in a third case, the AGO has delivered over $3.5 the Court sentenced a Revere man million in grant funding, all obtained to State Prison and ordered him to Protecting through ­judgments and settlements, pay over $164,000 in restitution for C onsu throughout our communities. The fraudulently using others’ identities m

Prescription Drug Assistance Grant to collect unemployment benefits. ers provided over $1 million to 14 ­community health centers to help defray the cost of drugs and/or the co-

pays for some of Massachusetts’ most C o Building vulnerable residents. mm In FY10, the AGO secured over unities $769,000 in restitution orders to the Commonwealth and private ­insurers. These recoveries helped to

­protect consumers and the ­integrity Financial A of the insurance system, including ddressing the unemployment and ­workers’ C ­compensation systems. The ­cases risis were extremely varied: In one case, a man was convicted of filing­ twenty-­ one (21) fake injury reports with D evelo insurance companies for the same E cono pm m ic ent

www.mass.gov/ago 3 yers a p ax T Protecting Protecting Consumers

UTILITY RATEPAYERS transmission line in Maine at a 345 kV thousands of Massachusetts motorcycle The AGO serves as the Ratepayer scale. As a ­result of the AGO’s inquiry, riders during FY10.

aving aving Advocate working on behalf of the line was scaled down to a 115 kV line. Money S CONSUMER PROTECTION ­individual and corporate citizens The resulting ­savings to Massachusetts ACTIONS for whom the cost of electricity and ratepayers will be $18 million. ­natural gas is often a significant The Consumer Liaison Group​ The AGO uses the tools of part of their bottom line. In FY10, (CLG) was created with ­leadership of investigation and enforcement the AGO’s work resulted in $136 actions (litigation) on behalf of

ers the AGO in response to a Federal Energy m million in savings for ratepayers. Regulatory Commission (“FERC”) consumers to protect them from onsu C Protecting In one major case, the work of the ­order to increase the ­responsiveness fraud and deception. In FY10, the office resulted in a reduction by of Regional Transmission Operators AGO investigated and settled the Department of Public Utilities to stakeholder­ interests. The CLG incidents involving false and in a National Grid’s rate request ­provides electric consumers with a misleading advertising practices­ from $111 million to $43 million. In ­forum and an opportunity for input in the ­automobile sales ­industry. another case, a rate ­request from Bay Agreements prohibited the use of unities on the region’s electric markets mm Building State’s rate was ­reduced from $34 “­asterisk ­pricing” and required o and transmission planning and C million to $19 million and in another construction process. payments for local consumer­ aid case, advocacy by the AGO resulted programs and civil penalties. The in the rejection by the Department of MOTORCYCLE OWNERS AGO also obtained injunctive relief Public Utilities of NSTAR’s request After receiving a complaint from a against companies and individuals risis C to recover $33.5 million in a rate single consumer, AGO staff began a making false promises to repair settlement incentive payment. comprehensive investigation and found consumers’ credit in violation of ddressing A

Financial The AGO also works to address widespread insurer overcharging of state and federal law. and to control the costs of proposed motorcyclists. The investigation, still The AGO filed enforcement actions transmission projects. The AGO ongoing, resulted in filings against and obtained injunctions against challenged the necessity of constructing six insurers and provided over travel companies who sold worthless ent ic m a section of the Orrington-Maxsys $20.7 million of restitution to tens of travel club memberships to consumers­ pm cono E evelo D

4 Fiscal Year 2010 Annual Report Protecting T ax p a yers as well as against individuals who make payments to those former failed to provide consumers with customers who were overcharged by timeshares or made false promises other insurance companies. that they would obtain timeshare In December of 2009, the AGO S Money deeds for consumers. In addition, the released a comprehensive report on aving AGO brought enforcement actions the impact of managed competition against various home improvement in the auto insurance market in contractors who failed to provide Massachusetts. The report provides services paid for or who were not a detailed accounting of how the Protecting licensed to perform contracting work market is currently operating and C onsu in Massachusetts. how consumers are being impacted. m

The AGO also addressed​ AGO undertook a blend of state- ers overcharges in premiums paid by specific and multi-state tobacco consumers after finding that some enforcement initiatives to ensure insurance companies were failing to that entities within the tobacco

abide by the 2009 Board of Appeal distribution chain not only complied C o Building statute. Under that law, insurance with their statutory obligations but mm companies must report and use also prohibited underage youth from unities Board of Appeal determinations in purchasing or otherwise accessing setting consumers’ premiums. The tobacco products. AGO entered into settlements with The AGO was active in the eight companies this ­fiscalyear. The development and passage of laws that Financial A settling insurers were required to added safeguards to the prescription ddressing ­correct the at-fault determinations drug monitoring program which C that they reported to the allowed the AGO to have access risis Comprehensive Loss Underwriting to information that helps prevent Exchange (C.L.U.E.), a privately diversion of controlled substances. ­operated database used to evaluate D evelo customers’ driving histories, and E cono pm m ic ent

www.mass.gov/ago 5 yers a p ax T Protecting HEALTH CARE elements of fraud and deception in resolved 6,198 consumer complaints, In the case of the deceptive the marketing of pharmaceuticals. resulting in $4,056,930.86 being marketing of medical discount plans, In one case, the AGO obtained $1.35 returned or credited to consumers. often labeled as health insurance, million consent judgment with Health care consumers are the AGO effectively used its broad Stryker Biotech to resolve allegations supported by a dedicated staff of aving aving Money S consumer protection authority to that it marketed certain orthopedic experts who accepted over 5,000 calls pursue a multi-pronged approach. products for uses that had not been to the hotline, handled 916 mediations Through consumer protection reviewed and approved by the U.S. and recovered over $261,000 to health regulations (effective January Food & Drug Administration (FDA). care consumers. The Insurance and Financial Services Mediation program 22, 2010), the AGO has required CONSUMER MEDIATION

ers fielded 2,629 phone calls, opened

m organizations marketing health The AGO supports an expansive discount plans in Massachusetts to 639 complaints and recovered over onsu C Protecting voluntary mediation program designed communicate clearly with potential $701,000 in savings and refunds on to help consumers outside of the formal customers about how their plans behalf of Massachusetts consumers. court process. In FY10, the AGO funded work. The AGO also filed litigation 13 Face-to-Face Mediation Programs, against several companies enjoining operating in many of the District Courts. them from engaging in deceptive

unities These programs mediated 3,205 cases promotion of discount health plans mm Building

o and helped consumers recover almost C in Massachusetts. To help consumers $2.9 million. protect their own interests, the AGO Informal mediation of consumer also issued consumer advisories complaints, usually over the to assist residents to understand telephone, is handled both by staff risis

C the costs and benefits of a medical at the AGO and through a group of discount card.

ddressing 19 Local Consumer Programs who,

A In addition to the significant

Financial like the Face-to-Face Mediation recoveries for the Massachusetts Programs, are funded by the AGO. Medicaid program, the AGO Staff at the AGO and at the Local addressed the consumer protection Consumer Programs successfully ent ic m pm cono E evelo D

6 Fiscal Year 2010 Annual Report Protecting T ax p a yers Building Stronger and Safer Communities S Money

The Attorney General is the PUBLIC CORRUPTION aving chief law enforcement officer in In FY10, the AGO was active in Massachusetts. She is responsible the development and passage of a for the prosecution of significant comprehensive set of ethics reforms matters, especially in the areas of which enacted broad bans on gifts public corruption and fraud, and in

to public officials, strengthened the Protecting C addressing a variety of issues that Ethics Commission and authorized onsu cross jurisdictional boundaries and m the AGO to convene a statewide ers are therefore beyond the purview grand jury. of one of the 11 District Attorneys in In FY10, the AGO continued to Massachusetts. focus on the protection of public FY10 saw the vigorous prosecution

funds through the prosecution of C o Building of criminal organizations and public corruption matters. AGO mm perpetrators of violent crime. Work efforts to address the fallout of the unities of the AGO resulted in the disruption financial crisis included the vigorous and dismantling of major narcotics prosecution of criminal fraud in trafficking organizations. These cases mortgage transactions and protecting focused on trafficking in cocaine, ­investors, consumers and other Financial A oxycodone, and marijuana trafficking private victims of financial crimes. ddressing and ­distribution, assault and battery Working with financial investigators, C with a dangerous weapon, unlawful prosecutors secured almost $8 risis gaming, the making of usurious loans, ­million in restitution for government, and other crimes with a significant individual and charitable/non-profit ­impact on public safety. victims. The AGO has successfully D evelo

prosecuted individuals who E cono pm m ic ent

www.mass.gov/ago 7 yers a p ax T Protecting ­defrauded the Commonwealth by Sanitary Code to target abandoned legal and technical support to smaller accepting kickbacks, filing false sales and foreclosed homes in all regions. NSP eligible communities to develop tax ­returns and underreporting sales, In FY10, the AGO implemented receivership strategies, ­including of almost $4 million. The AGO also protocols for identifying clusters of cross-bureau initiatives to do title indicted individuals for falsifying abandoned and foreclosed homes searches, finding eligible receivers aving aving Money S teaching certificates, accepting bribes in NSP eligible communities, taking and introducing ­communities and in connection with food stamps and enforcement action under the receivers to untapped funding sources stealing money from regional transit sanitary code that resulted in banks through DHCD and related agencies. authorities. taking responsibility for repairs CYBER CRIME or having receivers appointed to NEIGHBORHOOD

ers rehabilitate homes, resulting in a Attorney General Coakley took a m REVITALIZATION positive impact on neighborhoods leadership role in at the beginning onsu C Protecting One of many continuing effects of particularly hard hit by foreclosures. of her first term, by establishing the financial crisis is the deterioration of As a pilot project, in fewer than the Cyber Crime Initiative and has housing stock due to properties having­ eight months the AGO worked with ­developed a state-of-the art forensics been foreclosed and abandoned.­ Each the City of Lawrence in targeting 12 lab. The lab performs a huge number individual property is also a part of homes in and around one Lawrence of forensic examinations for the

unities the fabric of a neighborhood so the neighborhood. The AHI is addressing AGO as a whole, and for various mm Building

o reclamation of these properties is a neighborhood blight by either law enforcement agencies across the C key to neighborhood ­stabilization owner intervention or receivership. Commonwealth. and community safety. In FY10, Throughout the Commonwealth, The AGO’s role in addressing risks the Abandoned Housing Initiative over 100 abandoned homes have been associated with technology includes (AHI) expanded its coverage through having addressed over 575 reported risis identified and over 30­ abandoned C the Neighborhood Stabilization Plan homes have been, or are in the pr­ ocess data breaches and demanded

ddressing (NSP) grant from the Department of rehabilitation, as a result of the compliance with the Massachusetts A

Financial of Housing and Community AHI’s actions. Receivership projects Data Breach Notification Law from Development (DHCD), using the have enabled local contractors to keep organizations that failed to provide ­receivership statute in the State crews employed during the economic proper notice to consumers. downturn. The AHI has provided ent ic m pm cono E evelo D

8 Fiscal Year 2010 Annual Report Protecting T ax p a yers

The AGO has undertaken a provide information sharing, standards, comprehensive review of the role training, and tool certification to of websites in facilitating human computer forensic experts across the trafficking and the illegal sex trade Commonwealth. This will not only S Money and works in collaboration with ­increase the effectiveness of existing aving federal and local agencies as part of law enforcement efforts, thereby saving the Boston’s Human Trafficking Task taxpayer money, it will also improve Force. the quality of evidence available Prosecutors investigated and to prosecutors. Improved forensic Protecting litigated a wide variety of cyber evidence helps to build stronger and C onsu crime cases including auction safer communities. m fraud, child exploitation, child ers CIVIL RIGHTS luring, consumer protection, child pornography, copyright, credit FY10 saw an unprecedented level card fraud, cyberbullying, data of civil rights enforcement in the areas of housing discrimination, hate breach, employment scams, gaming, C o Building hacking/unauthorized access, crimes, and notably in the landmark mm identification fraud, internet fraud, victory in the constitutional case unities and larceny. in federal district court striking AGO staff trained over 2,000 law down the Defense of Marriage ­enforcement officers in FY10 and Act (‘DOMA”) that denied federal worked together to begin the effort benefits and protections to married Financial A to comprehensively address the use same-sex couples and their families ddressing of computers in the criminal ­sexual Civil Rights enforcement saw C exploitation of women and men in the its share of work generated by risis Commonwealth. Finally, the Division the increasing reliance in business is in the process of establishing the and commerce on technology and, Massachusetts Digital Evidence especially the internet. A sweep D evelo Consortium. This group will work to of listings on the popular website E cono pm m ic ent

www.mass.gov/ago 9 yers a p ax T Protecting craigslist.org, yielded a statewide Disabilities Act, however, continued for law enforcement and school enforcement effort against landlords vigilance is necessary. In FY10, administrators on cyber bullying. and real estate companies who the AGO secured groundbreaking In its defense of state agencies, posted discriminatory rental housing settlement agreements with the the AGO has an important advertisements on the web. This nation’s three largest movie theater impact on community safety, aving aving Money S sweep resulted in over 40 judgments chains to make theaters accessible ­protecting the right of agencies and settlements. The judgments to people who are blind and deaf by to deny gun ­permits, ­defending and settlements included payment using advanced technologies. the suspension and r­evocation of of money damages and strong drivers’ licenses­ who are convicted KEEPING PEOPLE SAFE injunctive relief, often requiring fair of driving under the ­influenceand AND HEALTHY

ers housing training for employees, protecting ­consumers by defending m adoption of fair housing policies and In FY 10, the AGO was instrumental administrative discipline against onsu C Protecting procedures, affirmative advertising, in the passage of a comprehensive ­licensed professionals, contractors and as appropriate, requiring bullying prevention law that was and tradespeople. Finally the office property owners to clean up lead passed by the Legislature and signed ­regularly defended determinations hazards to make safer housing for into law by Governor Patrick in May by the Department of Children and children. 2010. By statute, Attorney General Families relative to child abuse and

unities The AGO obtained a record Coakley is leading a Commission on neglect and successfully defended mm Building o number of civil rights injunctions Bullying Prevention which is charged on appeal the state buffer zone C against people who committed hate with reviewing the Massachusetts law to ensure that patients and crimes based on the victim’s race, General Laws and considering staff members are protected at national origin, sexual orientation ­whether any laws need to be amended reproductive health facilities. in order to more effectively address risis and/or religion. Since the beginning Recognizing that the health and C of the Coakley administration in bullying and cyber-bullying. wellness of the Commonwealth’s

ddressing January 2007, the office has secured AGO staff continue to conduct youth is central to its community A

Financial forty-one MCRA injunctions, ­extensive outreach and training safety, the AGO elected to direct including ten in FY10. in the area of bullying prevention, over $1.5 million in proceeds from 2010 saw the 20th anniversary of and in FY10, hosted a conference judgments and settlements toward the passage of the Americans with grants to 16 organizations in 12 ent ic m pm cono E evelo D

10 Fiscal Year 2010 Annual Report Protecting T ax p a yers communities to provide jobs for PROTECTING THE over 230 youth. The jobs focused ENVIRONMENT on wellness to develop the next The AGO is responsible for generation of leaders with a enforcement of civil and criminal S Money commitment to important principles laws governing environmental aving of health and safety. protection. In FY10, the AGO PROSECUTING CASES facilitated the redevelopment and OF ELDER ABUSE productive use of contaminated sites including Hamilton Mills in Lowell, AGO authority over prosecutions Protecting C

AVX, the former Aerovox facility onsu of Medicaid fraud extends on the harbor in New Bedford, the m

beyond returning money to the ers 6.7 acre Handy & Harmon site in Commonwealth. Its authority includes North Attleborough, and Quantum prosecution of cases of physical Properties, the 15 acre site of former and sexual abuse or neglect, and of papermills in Holyoke. diversion of medication by home C

Efforts by the office protected the o Building health aides and others caring for mm

public water supply in tributaries to unities our neighbors and family members. the Quabbin Reservoir. AGO efforts The AGO successfully prosecuted resulted in an order compelling individuals who were paid, through ExxonMobil to install a new system Medicaid, as personal care attendants to reduce its emissions at bulk gas

(PCAs) but violated the trust and Financial facilities in Everett and Springfield, A confidence of some of the most ddressing and AGO staff took action against vulnerable of Massachusetts’ residents

automobile inspection stations that C – the elderly and the disabled. risis conducted fraudulent inspections In one case a dentist was indicted of automobile emissions control for allegedly using paperclips as systems dental posts, but billing Medicaid for D evelo the cost of the actual medical device. E cono pm m ic ent

www.mass.gov/ago 11 yers a p ax T Protecting On the criminal side, the AGO revised regulations on October 29th, ­violence, an ­increase in the domestic successfully investigated and 2010 with the Secretary of State’s violence ­homicide claims received prosecuted two people for tampering Office and they were published in in FY09. The total new domestic with public drinking water samples the Register on November 13th. violence-related claims was 200 and and with falsifying the results of Our revisions expand the driving under the influence claims aving aving Money S safety testing for public drinking assistance options available to totaled 12. Of the claims made eligible water, individuals and companies victims of violent crime without ­during FY10, 133 victims were under for failing to report oil spills or for raising the existing cap on victim the age of 17, and 23 victims were improper storage and disposal of compensation. Specifically the over the age of 65. Under the Forensic medical waste or other hazardous changes eliminate the minimum Sexual Assault Exam protocol, the

ers waste, 12 individuals and companies loss requirement for the victim, Division received 134 new claims m for illegally removing asbestos and increase the funeral allowance, for ­compensation and awarded onsu C Protecting exposing workers and others to the allow for crime scene clean-up and $34,299.50 in exam expenses. During risks of asbestos inhalation, and security measures reimbursement, FY10, the Division opened 915 new eight individuals and companies for and expand mental health benefits claims and 540 supplemental claims, fabricating environmental reports. for non-offending parents of minor awarding compensation to victims The AGO played an effective role victims. The modifications also totaling $3,577,957.58 out of its state

unities as an advocate for stronger national adjust the timeline for requesting and federal monies. mm Building

o standards relating to smog, mercury, reconsideration, giving notice of a C CRIMINAL APPEALS and cancer causing particulates, decision, and requesting judicial and for vigorous action to reduce review in district court to reflect the During FY10, work of the AGO emissions of greenhouse gases. time involved with ­reviewing such resulted in 22 published decisions from the United States Court of risis requests. C SUPPORTING VICTIMS In FY10, the Victim Compensation Appeals for the First Circuit, seven OF CRIME ddressing and Assistance Division received published decisions from the A

Financial The passage of H.B. 1587 1,585 new claims, an increase Supreme Judicial Court, 25 published necessitated revisions of 940 CMR of 166 over FY09. Of those, 200 and unpublished decisions from 14.00, Compensation of Victims of were homicide claims, including the Massachusetts Appeals Court, Violent Crimes. The AGO filed the 29 homicides­ related to domestic and more than 50 decisions from ent ic m pm cono E evelo D

12 Fiscal Year 2010 Annual Report Protecting T ax p a yers the United States District Court. on re-opening a conviction after it Some of these cases involved novel has been fully reviewed by the state’s issues of law, such as the application ­appellate courts. of the Commonwealth’s drug During the past Fiscal Year, the S Money distribution laws to physicians who AGO also expanded its amicus ­curiae aving write illegal prescriptions, corporate (“friend of the court”) practice.­ In criminal liability for involuntary the Supreme Judicial Court, the manslaughter based on the collective AGO drafted four amicus briefs conduct and knowledge of multiple on ­important questions of criminal Protecting employees, and whether a police ­justice and policy. C onsu officer “deliberately elicits” a m confession from a suspect by serving ers an arrest warrant on him in prison. Addressing the Many of the decisions issued in these financial crisis cases will have a lasting and positive In November 2007, Attorney impact on the development of federal C o Building habeas law, as well as on state criminal General Coakley published The mm law and procedure. In Clements v. American Dream Shattered: The Dream unities Clarke, for instance, the First Circuit of Homeownership and the Reality reaffirmed a significant aspect of of Predatory Lending. The report habeas corpus law – specifically, when ­documented comments made at a state decision denying a prisoner’s public hearings surrounding the new Financial A claim will be given deferential review consumer protection regulations ddressing by a federal court – in a manner that governing mortgage lenders and C will benefit the Commonwealth in brokers. The connection between risis future cases. Similarly, in Foxworth v. the misdeeds and outright fraud Amand and Drew v. MacEachern, the perpetrated by mortgage brokers and Supreme Judicial Court and the First others and the crisis of foreclosure D evelo Circuit upheld important limitations was made apparent and addressed, E cono pm m ic ent

www.mass.gov/ago 13 yers a p ax T Protecting in part by the passage of state laws LANDMARK CASES Massachusetts homeowners, $23 and the development of a stricter In FY10 the AGO, negotiated million to the Massachusetts Pension regulatory framework within which a landmark settlement with Fund for investment losses, and $19.5 home financing would operated in Countrywide Financial Corporation million in taxpayer money to the the future. However thousands of through its successor, Bank of America Commonwealth’s General Fund. aving aving Money S Massachusetts residents faced, and Corporation. The settlement, which The AGO sued State Street and continue to face the loss of their homes addressed Countrywide’s unfair and obtained $10 million in penalties and Massachusetts communities deceptive loan origination practices, and restitution for approximately bear the scars of foreclosure. The implemented a comprehensive, 270 investors­ harmed because State AGO continued to address unfair first-in-the-nation loan modification Street issued certain bond funds

ers and discriminatory lending practices which included subprime mortgage

m program for distressed homeowners in court and obtained broad and resulting in an estimated $3 billion debt that it did not disclose to the onsu C Protecting inclusive injunctive relief for in mortgage loan relief nationwide. municipalities, charities, and ­others ­thousands of homeowners that For Massachusetts homeowners, loan that invested in the funds. State Street though challenged by the industry, relief included principal reductions then urged the investors to keep their was ­ultimately ­affirmed by the amounting to $18 million, plus an money in the fund, even while State Massachusetts Appeals Court. additional $4.1 million for foreclosure Street’s own executive employee unities As the full scope of the financial relief. pension fund was bailing out. mm Building

o crisis became apparent, Massachusetts C After an investigation by the AGO FORECLOSURE consumers became familiar with into its role in the securitization and RESCUE SCAMS terms like Auction Rate Security, financing of Massachusetts subprime A whole new breed of scam and Collateralized Debt Obligation loans, investment giant Morgan Stanley was developed, one in which the risis and the AGO began to unravel the

C (Morgan) paid $102 million to af­ fected ­desperation of the homeowner­ ­facing complex web of financial transactions Massachusetts homeowners and the ddressing and the effects that the securitization foreclosure was met with the ­offer A Commonwealth. Under the Assurance

Financial of a so-called foreclosur­ e ­rescue. and financing of Massachusetts of Discontinuance, filed in Suffolk Foreclosure rescue firms showed subprime loans had on residents and Superior Court, Morgan ­provided $58 up almost overnight, many of them on municipalities. million in relief to more than 1,000 fly-by-night schemesdesigned­ ent ic m pm cono E evelo D

14 Fiscal Year 2010 Annual Report Protecting T ax p a yers to make money off of ­already financing, purchase or sale of real ­burdened ­homeowners. The AGO estate as well as significant consumer filed­numer ous enforcement actions restitution and civil penalties. against companies and individuals Homeowners were not the only S Money that solicited Massachusetts victims of the mortgage debacle – aving homeowners with misleading Massachusetts tenants often found promises to save their homes from out about foreclosures only when the foreclosure, or who solicited and sheriff showed up at the door. The accepted illegal advance­ fees to seek AGO obtained injunctions against Protecting loan modifications for homeowners. many loan servicers who unlawfully C onsu The AGO obtained injunctions attempted to evict tenants from m prohibiting these companies and foreclosed properties. ers individuals from continuing their In addition to its enforcement ­unlawful conduct in Massachusetts as actions, the AGO defended state well as consumer restitution and civil agencies in their efforts to address

penalties. the fallout, in particular, in defense C o Building The AGO obtained judgments of the sanctions for advertising mm against mortgage brokers, real unregistered securities. unities estate brokers, closing attorneys CRIMINAL MORTGAGE FRAUD and straw buyers who deceived homeowners into selling their homes On the legislative and policy under the false promise of avoiding front, the AGO was active in the Financial A foreclosure in order to obtain title development, negotiation and ddressing to the homeowners’ residences and passage of a new law (Chapter 258 of C strip most of the homes’ equity. the Act of 2010) to address criminal risis The judgments included permanent mortgage fraud and to ensure injunctions enjoining defendants that the law covers the full range from engaging in real estate closings of mortgage transactions. On the D evelo and other business relating to the prosecution front, the AGO secured E cono pm m ic ent

www.mass.gov/ago 15 yers a p ax T Protecting a conviction and state prison time in representation by qualified legal a case in which, using forged deeds, services organizations of individuals­ Fostering Economic forged powers of attorney, and a who are at risk of losing their homes Development and a Level corrupt mortgage broker, an attorney due to fraud, misrepresentation or orchestrated a scheme designed to ­otherwise in connection with unfair, Playing Field for Business aving aving Money S steal equity from Worcester area ­deceptive or predatory lending From the beginning of the Coakley homeowners in danger of foreclosure. ­practices. The AGO used a federal administration, the work of the AGO The AGO obtained indictments and, grant from the Neighborhood has been premised on the idea that in the completed matters, convictions Stabilization Program to expand reasonable government regulation against a group of defendants for its efforts to address ­abandoned and a vital business climate were not

ers fraudulently obtaining $12.5 million and foreclosed housing, providing

m only compatible but could result in in mortgage loans from 19 financial program and legal ­support to synergies. The AGO is committed onsu C Protecting lending institutions and defrauding ­municipalities to assist them in to supporting a level playing field homebuyers in connection with the bringing the housing stock back to for all businesses through its civil, purchase of 26 multi-family homes productive use. In addition, the AGO criminal, policy, legislative, and in the Greater Boston area. used funds secured from mortgage education efforts. By helping to Recognizing the prevention, fraud matters to provide resources ensure fairness for business, the AGO unities ­education and outreach are vital to to municipalities­ and community is better able to support fairness for mm Building

o protecting residents from pr­ edatory based organizations to work toward C workers, taxpayers and others in practices, in FY10, the AGO dedicated additional ­restoration of abandoned Massachusetts. over $1 million in funds secured in housing in 11 Massachusetts judgments and settlements with communities and all of Worcester STREAMLINING REGULATIONS

risis mortgage companies to provide County. In FY10, the office worked with C grants to consumer and community­ the business community ensuring

ddressing programs that would provide

A that when agencies promulgate

Financial ­consumer outreach, education regulations under the Massachusetts and related services in the area of Consumer Protection Law, they now financial literacy and borrower more thoroughly consider the impact protection initiatives, including ­legal

ent of that regulation on small business. ic m pm cono E evelo D

16 Fiscal Year 2010 Annual Report Protecting T ax p a yers

The AGO included business input commercial real estate development. in its work amending its existing In this way the AGO is uniquely debt collection regulations. This positioned to zealously advocate on effort was focused on updating behalf of consumers and community S Money the AGO regulations in order to safety and take an active role in aving ensure streamlining of state and protecting and fostering the economic federal practice within the industry vitality of our business and industry. while at the same time, maintaining ENSURING A FAIR protection of both the consumer and BUSINESS CLIMATE Protecting creditor. C onsu The AGO recognizes that the Public construction in Massachusetts m business community is ­constantly is a significant driver of the economic ers concerned about unduly burdensome engine. The public construction bid regulations. That is why when laws provide the means for awarding implementing a new regulatory authorities to obtain the lowest price that competition among qualified scheme, for example in the case C o Building of date security regulations, the ­contractors can secure and serve to mm AGO takes into account the risk of ­establish an open and honest procedure unities inadvertent harm to the marketplace for fair competition among bidders for when protecting the balances the ­public construction contracts. To provide interests of consumers rights, with additional guidance and increased making certain regulations do not ­transparency to the public procurement Financial A inadvertently harm the marketplace. arena, the Attorney General’s Bid Unit ddressing AGO staff worked extensively with issued General Guidelines Regarding C the business community to address Attorney General Bid Protests in risis those concerns and to establish November 2009 and updated the a coordinated review process for ­information on its website to make bylaws, legislation, regulations, and clear, concise and relevant information D evelo certain cases that focus largely on E cono pm m ic ent

www.mass.gov/ago 17 yers a p ax T Protecting available to the industry and the public of driving school services in the Fall million in restitution and penalties entities governed by the laws. River area. In another case, yielding to workers and the Commonwealth, AGO casework zealously enforces benefits to voters and to municipalities a record for the Office. The AGO public bidding laws. In FY10, the throughout Massachusetts, the AGO continued its ongoing efforts to Supreme Judicial Court upheld the worked with other states and the provide outreach to a wide range of aving aving Money S Attorney General’s finding that Department of Justice in obtaining stakeholders, including employer UMass Lowell bypassed the public a ­divestiture of certain assets in associations, unions, community bidding laws by entering into a lease connection with the Diebold/Election organizations and schools. agreement with a private developer Systems & Software acquisition. This The AGO received complaints to build a dormitory the school would will help maintain competition in from employees of Allied Waste

ers then lease. The residential housing the market for voting and election that the company was not paying m project involved creation of a new ­machines in Massachusetts cities and them properly for work performed onsu C Protecting building, adjacent to the ­university’s towns, and elsewhere around the at the Oak Bluffs/Tisbury Transfer campus and dependent on the use of country. In another multi-state anti- Station public works project. After an the university’s parking lot, which the trust action, AGO staff were involved investigation, the AGO determined university had the right to occupy for in the Ticket Master/Live Nation that Allied Waste failed to properly 30 years. The court agreed that such ­acquisition and worked with other pay certain employees the prevailing

unities a project ­constituted construction of states and the Department of Justice to wage and overtime from October 2005 mm Building o a building as contemplated by the obtain significant divestiture and other through December 2007. As part of an C public bidding laws. remedies to protect consumers. initial settlement agreement, Allied On issues large and small, the AGO Wasted agreed to pay over $404,000 in PROTECTING WORKERS kept watch to protect the thriving restitution to the workers and a $50,000 The fallout of the financial crisis risis competition necessary to ensure a penalty to the Commonwealth. In 2010, C vital business climate. In one case, left many workers without jobs a supplemental audit revealed that

ddressing AGO staff obtained an Assurance of and thousands the victim of wage approximately 350 employees were A

Financial Discontinuance and civil fine against violations. The Attorney General’s owed over $1.3 million in restitution the operator of a driving school Office handled over 5,000 wage for miscalculated prevailing wage and who solicited an agreement among complaints, many involving multiple overtime rates. Allied Waste agreed to competing operators to raise the price workers, and returned over $9 pay in accordance with those findings. ent ic m pm cono E evelo D

18 Fiscal Year 2010 Annual Report Protecting T ax p a yers

The AGO began an investigation OVERSIGHT OF of Walmart following reports that MASSACHUSETTS CHARITIES workers were required to work The Massachusetts nonprofit through their meal breaks. The AGO sector generates about $87 billion in S Money secured a $3 million dollar settlement revenue annually, represents $207 aving to resolve allegations of widespread billion in assets and employs close violations of the Massachusetts Meal to 450,000 workers. The non-profit Break Law. sector is, therefore, a significant As a result of complaints lodged with contributor to the Commonwealth’s Protecting the Governor’s Joint Enforcement Task C

economic strength and its cultural onsu Force on the Underground Economy heritage. A public charity is a m and Employee Misclassification, the nonprofit organization whose ers AGO launched an investigation of purpose is charitable and which Labor Solutions/Tam Vuong. The collects, holds and expends funds for owner and the staffing company were the benefit of the public. Examples

­indicted and pled guilty to ­violation C

include philanthropic organizations, o Building of the state’s wage and hour laws and mm

as well as most nonprofit hospitals, unities insurance and tax fraud. The AGO’s independent schools, colleges and investigation ­revealed many of those universities, social service providers hired through Labor Solutions did and cultural organizations. Examples not receive the minimum­ wage or of non-profit organizations that ­mandatory overtime rates for a two- are not public charities, and are Financial A year period beginning in September not regulated by the AGO, include ddressing 2007. Many workers, who were paid

chambers of commerce, labor unions, C risis in cash, were illegally charged $2 to social clubs, civic associations, and $3 a day for transportation, thereby similar organizations that only reducing their pay below the minimum benefit their members. The AGO wage. The Defendant was ordered to

works to safeguard the public’s D evelo pay $500,000 in r­estitution to victims. E cono pm m ic ent

www.mass.gov/ago 19 yers a p ax T Protecting interest in these organizations, as approximately $606,000 recovered Capital Management, L.P. This filing well as ensure the proper solicitation for charitable purposes. commenced the AGOs formal review and use of charitable funds raised In carrying out its responsibility of the transaction which continued from other sources. to assure the proper use of charitable through FY10 and was finalized the In FY10, the Attorney General funds, the AGO reviews significant following fiscal year in October, 2010. aving aving Money S approved 1,679 initial public charity asset dispositions, changes in In its continuing efforts to improve registrations, processed 22,071 annual purposes of charitable funds, as regulatory clarity and transparency, financial reports, and approved well as proposed dissolutions by the AGO issued several new 504 registrations for professional charitable corporations organized guidelines that address pertinent solicitors, fundraising counsel, and in Massachusetts to ensure that issues in the charitable community,

ers commercial co-venturers. Fees for charitable assets are managed including guidance as to the laws m these activities generated in excess of appropriately. During FY10, the AGO and regulations for raffles and other onsu C Protecting $2,250,000 – for the Commonwealth. reviewed several hundred notices gaming activity and the provisions for As a party to the probate of all regarding significant transactions handling mergers and consolidation ­estates in which a charitable interest and approved the dissolution of 137 of charitable corporations. exists and in all judicial proceedings public charities. The AGO also tries to be responsive affecting charitable trusts, during In a significant piece of work, the to current events. In the aftermath

unities FY08 the AGO: received and AGO issued, in September 2009, its of the tragic earthquake in Haiti, mm Building o reviewed 772 new wills, 1,210 ­interim comprehensive report: Examination of the AGO provided regular guidance C accounts, and 640 final accounts; Executive and Director Compensation; to residents about donating wisely assented to 43 petitions to sell real Increased Oversight. to the hundreds of charities that ­estate; and received and reviewed In May, 2010, pursuant to the purported to be assisting victims by

risis 550 miscellaneous complaints and requirements of Massachusetts raising funds. C filings with respect to these­matters. General Law Chapter 180, Section 8(A) The AGO’s work, in addition to

ddressing The AGO also resolved 64 cases (d), Caritas Christi Health Care System investigation and enforcement, can A

Financial involving the misapplication of (“Caritas”) filed formal notice of a include analysis of how changes in the ­charitable bequests or excessive fees, proposed sale of the system’s assets law affect Massachusetts residents. which, in the aggregate, resulted in and operations to Steward Health Care In the months and years following System LLC an affiliate of Cerberus the implementation of managed ent ic m pm cono E evelo D

20 Fiscal Year 2010 Annual Report Protecting T ax p a yers competition in the auto insurance brings to its negotiations with payers, industry, and in the aftermath of the correlates to prices paid. The AGO landmark health insurance reform did not find a correlation between in Massachusetts, experts in the different prices and the quality of care S Money AGO have continued their analysis provided, sickness of the patients, aving and are active players in helping to or whether the provider served a ensure fairness and effectiveness in large Medicaid population or was an these significant programs. academic medical center. The AGOs landmark health care report resulted HEALTH CARE COST Protecting

from a year-long examination of the C CONTAINMENT onsu market that was authorized by the m

In the spring of 2010, the AGO Massachusetts Legislature. ers ­released a report outlining findings The AGO’s report has had a from the extensive investigation into ­profound effect upon the Massachusetts the contracting practices between ­market and national discussions on commercial health care insurers

health system reform. The AGO’s C o Building and health care ­providers (hospitals recommendations to promote value-­ mm and physicians), specifically based purchasing led directly to unities examining health care prices and passage of Chapter 288 of the Acts of how those prices are ­negotiated. The 2010 which instituted­ first in the nation report identified and documented ­standards for public reporting of health serious ­system-wide failings in the care information­ to promote market Financial A ­commercial health care marketplace effectiveness. ddressing that threaten access to affordable, C quality healthcare. Specifically, the risis investigation found that the cost of care was not value based and that market leverage, the size of D evelo the organization and the strength it E cono pm m ic ent

www.mass.gov/ago 21 reau Bu xecutive E awareness, consumer protection, with questions and complaints. PIAC Executive Bureau education, and direct constituent ­offers a ­mediation program working services. CIED is responsible for the with Local Consumer Programs as COMMUNICATIONS DIVISION development and management of all an ­informal way to resolve consumer­ The Communications Division grants related to consumer protection, disputes with businesses. In FY10, inal m

ri serves as the liaison between the public health and safety; oversight PIAC ­successfully ­resolved 6,198 Bureau C Attorney General’s Office and the of Local Consumer Programs/ complaints, resulting in $4,056,930.86 news media. In addition to responding Face-to-Face Programs; facilitation being ­returned or credited to to all media inquiries and providing of public awareness and education consumers. comment on behalf of the Attorney through website management and the INFORMATION TECHNOLOGY ent General’s Office, the Division also development of collateral materials; m writes and distributes press releases and AGO sponsorship of public In FY10, the Information Technology Bureau overn

G and holds press conferences in order events, conferences, and trainings. In Division (IT) continued work on the to inform and educate the public FY10, CIED managed grant programs multi-year initiative to modernize about the office’s work on behalf of that distributed $4,827,873.15 the computer systems, networks and residents of the Commonwealth. to communities throughout ­applications utilized by AGO staff. The The Communications Division also Massachusetts Division made significant progress in works closely with other divisions The Public Inquiry & Assistance the implementation of a new Event

lic Protection throughout the office on a variety Center (PIAC) provides central Management application intended to dvocacy Bureau b A Pu & of projects aimed at providing intake for the office’s consumer standardize the way in which all divi­ information, consumer education, complaint and constituent services sions record, track and report their and resources to the public. operation. PIAC operates a consumer operations. This effort will improve or b a hotline receiving an average of 5,300 both the information available to L COMMUNITY INFORMATION calls per month from consumers ­management for decision making as

Bureau AND EDUCATION wishing to file a complaint or well as the productivity of staff. Staff

Business & The Community Information and seeking information. A separate continued work throughout the year Education Division (CIED) serves hotline focused solely on senior to build secure, electronic interaction as a clearinghouse for internal and residents and staffed by volunteers capability between residents and external communication, public similarly guides ­elder consumers the AGO, implementing electronic ent ic m ff pm ta S cono ttorneys E A evelo D

22 Fiscal Year 2010 Annual Report E xecutive Bu reau communication capabilities for web for all staff through the AG Institute. based resident communications. IT To ensure that staff has access to works to develop strategic information the latest information and training management plans in support of available and in furtherance of their C Bu ri m

AGO business goals: planning and professional development, in FY10, reau inal implementing computer hardware the AG Institute offered 21 programs and software architecture in support of continuing education to legal and of multiyear technology initiatives;­ non-legal staff on a variety of topics, delivering training programs for and also sponsored a presentation by

all employees to ensure full use of a distinguished lecturer. The GCO G overn ­technology and to increase employee handled over 400 Public Records Bureau m

productivity; supporting technology Requests office wide, coordinated ent use by AGO employees with and monitored the appointments of contemporary help desk technology, Special Assistant Attorneys General, methods and tools; and providing and served as the point of contact & Pu A b

business systems analysis in support to the National Association of dvocacy Bureau lic Protection of the business­ needs of each of the Attorneys General on the review of AGO ­bureaus and divisions. approximately 56 multi-state amicus briefs and 30 other sign-on requests. OFFICE OF THE The GCO also coordinates the STOP GENERAL COUNSEL FRAUD (Stimulus Oversight and

Within the AGO, the Office of the Prevention of Fraud) Task Force for Business &

General Counsel (GCO) provides the Commonwealth of Massachusetts, Bureau legal advice on ethics, conflicts of which is primarily made up of L interest, contracts, employment, a ­representatives from federal and state b or and administrative and managerial oversight agencies. ­issues. The GCO participates in AGO diversity efforts and provides office-

wide, in-house training programs A ttorneys S ta ff

www.mass.gov/ago 23 reau Bu xecutive E POLICY & GOVERNMENT regarding general policy concerns, in numerous committees, outreach, The Policy & Government Division pending state and federal legislation, and training activities including (P&G) works on the state level with the and referrals of constituent matters the Victim and Witness Assistance Legislature and state agencies, and also from municipal officials. P&G staff meet Board, the Sexual Assault Nurse ­regularly with community stakeholders Examiner (SANE) Advisory Board, inal with members of the Commonwealth’s m

ri on broad policy matters such as energy the Governors Council to Address Bureau

C federal delegation and with municipal leaders throughout Massachusetts. and environmental concerns, criminal Domestic and Sexual Violence, and In FY10, P&G staff worked with law proposals and consumer protection as faculty of the Massachusetts members of the Legislature on the matters. Staff from the Division is Victim Assistance Academy. development of several major pieces of available to provide legal analysis to The Division also provides financial ent legislative and administration staff on a compensation, referrals, and other m legislation, including a comprehensive broad range of policy matters. assistance to victims of violent

Bureau anti-bullying law aimed at protecting overn

G crimes through its stewardship of the children, a new law establishing VICTIM AND WITNESS Victim Compensation and Assistance criminal ­mortgage fraud, and important SERVICES updates to our ­victim compensation Program. Eligible victims and their The Victim and Witness Services and public charities laws. These new families can receive assistance in Division provides comprehensive laws further protect the public and paying for out-of-pocket medical services to victims and witnesses strengthen the AGO’s ability to keep our ­expenses, lost wages, funeral and lic Protection ­involved in AGO cases. These ­burial costs, mental health counseling, dvocacy Bureau b communities safe. The AGO continued A

Pu ­services include referrals to other & to work with the federal delegation on and other crime-related expenses. state and local agencies and helping a number of ­proposals such as funding ­victims to understand the court or for low-income heating assistance, b

a ­process and their role in it. Victim L preemption concerns with the new Witness Advocates (VWAs) worked federal consumer financial­pr otection

Bureau on over 240 cases throughout the law, and effectively recovering from

Business & year serving victims and witnesses the mortgage foreclosure crisis. The involved with Criminal, Civil, Division also responds to the needs of and post-disposition matters. In municipalities by answering questions ­addition, staff members were active ff ta S ttorneys A

24 Fiscal Year 2010 Annual Report E xecutive Bu reau

habeas corpus pr­ oceedings filed by Criminal Bureau persons held in custody;­ r­epresents The Criminal Bureau investigates state officials and­agencies, including judges, clerks, probation officers, and and prosecutes a wide spectrum of C Bureau ri criminal cases and also focuses on ­prosecutors, sued or issued subpoenas m inal prevention and educational efforts to in state or federal court proceedings support public safety and quality of arising from actions ­related to the life for all Massachusetts residents. ­criminal justice system; and defends the The office focuses on cases that reflect ­constitutionality and legality of state

criminal statutes, rules, practices, and G the statewide jurisdiction and ar­ eas overn of investigative and prosecutorial procedures in state and federal­ trial and Bureau m

­expertise not addressed by other law ­appellate courts. The Appeals Division ent enforcement offices, particularly in the ­provides ­services to ­victims, family protection of taxpayer funds and the members and ­witnesses in connection integrity of governmental agencies. In with ­federal habeas ­proceedings and & Pu A b FY10, the Criminal Bureau included ­direct state criminal appeals. During dvocacy Bureau lic Protection the following divisions: Appeals, this Fiscal Year, the Division provided Corruption and Fraud, Cyber Crime, outreach to approximately 80 victims, Insurance and Unemployment Fraud, family members and witnesses, Environmental Crimes Strike Force, and ­accompanied ­approximately Enterprise and Major Crimes, and the 30 victims and family members to State Police Detective Unit. ­proceedings in state and federal court. Business & Bureau APPEALS DIVISION CORRUPTION AND

FRAUD DIVISION L a

The Appeals Division r­epresents b or the Commonwealth on direct ­appeal The Corruption and Fraud Division in all criminal cases pr­ osecuted by investigates and prosecutes criminal the Criminal Bureau; defends the misconduct involving corrupt

individuals and entities, whether A Commonwealth in all state and federal ttorneys S ta ff

www.mass.gov/ago 25 reau Bu xecutive E public or private, and a broad array of crimes with a cyber component, facilitate more effective investigation financial crimes, including fiduciary including both crimes committed while continuing to safeguard embezzlement, complex financial on a computer network and crimes individual rights. frauds, and tax crimes. The Division involving electronic evidence. The ENTERPRISE AND MAJOR focuses on cases that have an impact Division handles investigations inal

m CRIMES DIVISION

ri beyond the facts of the individual case, and cases in the areas of identity Bureau C that involve­ particularly vulnerable theft, child exploitation, and large- The Enterprise and Major victims, or that restore trust and scale financial fraud, which utilize Crimes Division targets criminal confidence in institutions responsible modern technology and threaten all enterprises and organizations to the public. segments of society. In addition to using sophisticated investigative ent Division members were prosecutors investigation and prosecution, the techniques and strategies in order to m or administrative staff until midway Division continued its work on the develop high-impact prosecutions. Bureau overn

G through FY10 when the Division six priority areas outlined in the 2007 The Division includes prosecutors ­subsumed the Financial Investigations Strategic Plan. and State Police assigned to the Division adding seven civilian The division delivered training AGO who work closely with investigative professionals to the team. to over 2,000 law enforcement various federal, state and local law These investigative professionals personnel at 40 separate events, enforcement authorities and agencies work with Division prosecutors and increased the number of users of to target, investigate, prosecute, and

lic Protection State Police to gather, examine and the Cyber Crime Web-Portal (www. disrupt criminal organizations in dvocacy Bureau b A Pu & report upon the prolific testimonial maagocybercrime.org) four-fold, order to promote and ensure public and documentary evidence vital to continued its focus on statewide safety in communities throughout the Division’s investigations­ and digital forensic evidence processing the Commonwealth. or b a prosecutions. In FY10, the Corruption requirements by overseeing the In FY10, Enterprise and Major L and Fraud division indicted 34 new development of the Massachusetts Crimes Division disposed of nine (9)

Bureau defendants and resolved 38 cases. Cyber Crime Initiative Model cases and opened twenty-one (21)

Business & Policy Manual for Digital Evidence cases for a wide variety of ­offenses, CYBER CRIME DIVISION Analysts, and secured passage of including Narcotics Trafficking The Cyber Crime Division administrative subpoena and search (heroin, cocaine, Oxycodone and investigates and prosecutes warrant amendments which will marijuana), Extortion, Assault and ff ta S ttorneys A

26 Fiscal Year 2010 Annual Report E xecutive Bu reau

Battery to Collect a Loan, Assault Through the cooperation of the and Battery with a Dangerous Attorney General, the Department Weapon, Breaking and Entering with of Environmental Protection, and the Intent to Commit a Felony, Gaming, Massachusetts Environmental Police, C Bureau ri

Usury, Unlawful Firearm Possession, the ECSF brings together prosecutorial, m inal and Larceny. Eight of those cases technical and investigative expertise were resolved following jury trials to identify environmental violations, in Suffolk and Hampden Counties. evaluate their impact on public safety In addition, AAGs in the Division and the environment, and develop

obtained 71 criminal indictments. the evidence necessary to prosecute G overn There were 16 arrests. In addition, environmental crimes. The types of Bureau m

the Massachusetts State Police cases recently prosecuted by ECSF ent assigned to the Division opened 12 involved the illegal treatment and criminal investigations, and obtained disposal of hazardous waste, the via subpoena hundreds of financial improper ­handling and removal & Pu A b

records from banks, mortgage of asbestos, the filing of false dvocacy Bureau lic Protection companies, and other agencies in environmental compliance reports, furtherance of criminal investigations and the failure to report releases of throughout the Bureau. hazardous materials. ESCF handled 36 cases in FY10 and obtained $299,500 in ENVIRONMENTAL CRIMES fines and restitution. STRIKE FORCE Business & INSURANCE AND

The mission of the Environmental Bureau Crimes Strike Force (ECSF) is to UNEMPLOYMENT

FRAUD DIVISION L investigate and prosecute the most a b serious environmental violations The Insurance and Unemployment or in Massachusetts, and to establish Fraud Division (IUFD) investigates precedents for environmental and prosecutes those who commit

misconduct that will not be tolerated. fraud against insurers (including: A ttorneys S ta ff

www.mass.gov/ago 27 reau Bu xecutive E automobile, health care, and At the end of FY10, the Government disability), and against the Government Bureau Bureau had 2,513 pending cases. These Commonwealth’s unemployment The Government Bureau represents matters resulted in almost $3 million insurance and workers’ compensation the Commonwealth, its agencies and in savings from the zealous defense of system. IUFD prosecutes these litigation against Commonwealth. inal officials in many types of civil litigation, m

ri crimes to protect both Massachusetts Bureau as well as defending Commonwealth C ADMINISTRATIVE consumers and the integrity of the employees from civil claims made LAW DIVISION insurance system thereby protecting against them resulting from the taxpayers from higher premiums performance of their duties. The The Administrative Law Division and taxes that result from fraud and Bureau develops and maintains close defends suits concerning the validity ent assuring that those in need receive of statutes and regulations and the m working relationships with agency appropriate services. In FY10, IUFD counsel and provides them with legality of government operations, Bureau overn G obtained over $750,000 in restitution information and advice on matters of particularly those seeking injunctive orders in 69 matters. broad common interest, particularly or declaratory relief; defends suits where advance consultation may challenging adjudicatory decisions of STATE POLICE prevent unnecessary litigation. state administrative agencies; prepares DETECTIVE UNIT The Government Bureau also initiates legal opinions for constitutional The State Police Detective Unit affirmative litigation on behalf of the officers, heads of agencies, and certain

lic Protection functions as an investigative branch of other officials concerning issues dvocacy Bureau b Commonwealth when such ­litigation is A

Pu the Criminal Bureau and is involved & in the public interest and has significant arising from the performance of their in investigations throughout all of monetary value or raises­ legal or policy­ formal duties; and reviews proposed the Bureaus divisions. In FY10, the issues of concern to the public and the statewide initiative and referendum or b

a State Police assigned to the AGO had questions under Amendment Article

L Commonwealth. The bureau has three 93 criminal investigations pending, divisions, Administrative Law, Trial 48 of the Massachusetts Constitution Bureau executed 47 search warrants and and Open Government, as well as a to determine whether such questions

Business & made 48 arrests. Municipal Law Unit. In the course of are of the type that may lawfully FY010, Government Bureau attorneys appear on the ballot. In these matters, opened 1,123 cases and closed 1,044 cases. the Division addresses diverse subject matters, including land use and ff ta S ttorneys A

28 Fiscal Year 2010 Annual Report E xecutive Bu reau housing, environmental protection, DIVISION OF OPEN education, health and human GOVERNMENT services, employment and retirement, As part of the 2009 Ethics Reform professional licensing, taxation, and C

Bill, the Open Meeting Law was revised Bureau ri insurance. m

and now centralizes responsibility inal TRIAL DIVISION for state-wide enforcement in the AGO. To prepare for the July 1, 2010 The Trial Division defends suits effective date of the revised law, the against state agencies or employees Attorney General created the Division

who are sued in the context of their G

of Open Government. Focusing on its overn agency ­duties. These suits generally Bureau mandate to educate public officials, seek damages­ or other relief for alleged­ m the media and members of the ­public ent wrongful acts of government of­ ficials on the revised law’s requirements, the or employees, particularly torts, real Division created training materials, ­estate matters, contract-related ­disputes, &

including a comprehensive Open Pu

­employment disputes, civil rights A b dvocacy Bureau

Meeting Law Guide, and conducted lic Protection ­violations, and environmental ­damage training sessions throughout the claims. The Division also reviews ­certain Commonwealth. contracts, leases, bonds, and various The Division also drafted conveyance documents submitted by regulations to implement the state agencies for approval as to form. As revised law. Among other things, the required by statute, the Division must Business & regulations detailed a straightforward

review and approve all pre-litigation­ Bureau complaint process to investigate and settlements of tort claims against the resolve ­alleged Open Meeting Law L

Commonwealth or its ­agencies for a b

violations. In addition, the Division or $2,500 or more. created a website, providing access to a broad range of Open Meeting Law material, ­including the law itself, the A ttorneys S ta ff

www.mass.gov/ago 29 reau Bu xecutive E regulations, training materials, the related to anticipated changes in complaint form and frequently asked local laws and charters, continued to Public Protection and questions. be significant. Advocacy Bureau The Municipal Law Unit has also MUNICIPAL LAW UNIT worked with municipalities and the The Public Protection and Advocacy inal m The Municipal Law Unit reviews Bureau (PPAB) uses investigation, ri Department of Energy r­esources in Bureau C and approves municipal by laws the development of alternative ener­ gy analysis, affirmative litigation, and and by-law amendments from (­primarily wind and solar) zoning other advocacy to advance the the 351 cities and towns in the by-laws which impose reasonable Attorney General’s statutory and Commonwealth. The Attorney ­regulations on the siting of alternative ­constitutional responsibility to enforce ent General exercises a limited power to energy projects. Certain of the by- laws protecting the public. The bureau m disapprove local legislative action if laws reviewed and approved by the focuses on a wide range of issues, Bureau overn including equality and civil liberties G the proposed amendment is found to Municipal Law Unit include as-of- be inconsistent with the laws or the right siting for such projects, which is for all, clean air, land and water, fair Constitution of the Commonwealth ­required for communities to qualify as and competitive business practices and Home Rule Charter amendments Green Communities under the Green in the areas of consumer protection, must be reviewed by the Attorney Communities Act of July 2008. These antitrust, and financial services General, During FY010, the by-laws assist municipalities to save and insurance, and access for all to affordable, high-quality health care. lic Protection Municipal Law Unit reviewed 934 energy costs for public buildings and dvocacy Bureau b A

Pu zoning by-laws, 695 general by-laws The PPAB includes the following & satisfy some of their ener­ gy needs from and 45 charter amendments, alternative sources. divisions: Antitrust, Civil Rights, In addition, the AGO offers During FY10, the Municipal Consumer Protection, Environmental or b Protection, Health Care, Insurance and a voluntary, informal review of Law Unit worked closely with L proposed town by law amendments, town clerks and other municipal Financial Services, and Investigations.

Bureau and—even though not subject to officials regarding the revised Open ANTITRUST DIVISION

Business & review by the Attorney General— Meeting Law, particularly as the new The Antitrust Division protects the proposed city ordinances. During requirements relate to the process people, state agencies, and businesses FY10, the number of calls from local of zoning bylaw adoption and of Massachusetts from anticompetitive public officials and members of amendments. practices and helps maintain and ff the general public, many of which ta S ttorneys A

30 Fiscal Year 2010 Annual Report E xecutive Bu reau encourage a competitive and vibrant ­legislation to better address civil rights economy through fair and effective issues, and works with community and enforcement of antitrust laws. The advocacy groups to promote needed Division investigates and challenges civil rights for all. The Division litigates C Bureau ri anticompetitive mergers, price-fixing­ housing discrimination cases under m inal agreements, and other illegal practices­ the Massachusetts Anti-Discrimination by companies, both local and ­national, statute (M.G.L. c. 151B), investigates that harm both Massachusetts and litigates hate crime cases under the ­consumers and important state Massachusetts Civil Rights Act (M.G.L.

­interests. The Division also advocates c. 12, s. 11H), and performs education, G overn for effective competition policy at the outreach and enforcement work in the Bureau m

state and national levels by filing­legal area of disability rights through the ent briefs in important antitrust cases, ­efforts of the Division’s Disability Rights engaging in policy initiatives, and Project. The AGO currently has 117 open promoting pro-competitive legislation. cases, proceeding in the Massachusetts & Pu A b

courts. dvocacy Bureau CIVIL RIGHTS DIVISION lic Protection The Civil Rights Division enforces CONSUMER PROTECTION laws protecting and securing for all DIVISION Massachusetts residents an equal The Consumer Protection Division opportunity to participate in civic protects Massachusetts residents and

­society in areas such as education, health business markets from unfair, deceptive,­ Business &

care, housing, financial services,­ public and otherwise unlawful conduct that Bureau ­accommodation, employment, civil causes consumer harm. The Division L marriage, and voting, and the ­enjoyment investigates business conduct and a b of individual rights, autonomy, and brings enforcement actions under the or privacy, under state and federal law. The Consumer Protection Act (M.G.L. ­ Division brings enforcement ­actions, c. 93A) to enjoin unlawful practices and

advocates in support of proposed to recover consumer restitution, civil A ttorneys S penalties, and attorneys’ fees. ta ff

www.mass.gov/ago 31 reau Bu xecutive E ENVIRONMENTAL legislative or other policy proposals; consumers. In FY10, the HCD had 11 PROTECTION DIVISION intervening, where appropriate, in matters open and obtained almost $1 The Environmental Protection siting disputes; and entering into million in judgments or settlements on Division pursues three main types Brownfields liability agreements behalf of Massachusetts consumers. to further the clean-up and inal of work: (1) prosecuting civil m INSURANCE AND FINANCIAL

ri redevelopment of contaminated Bureau C enforcement and cost recovery cases, SERVICES DIVISION seeking to produce the greatest sites. The Insurance and Financial ­results in terms of compliance and HEALTH CARE DIVISION Services Division (IFSD) represents deterrence, environmental and The Health Care Division (HCD) the interests of consumers and the public health benefits, and financial ent advocates and brings enforcement public in matters involving the m recovery; (2) handling defensive actions to increase access to health insurance, securities and commercial

Bureau cases, seeking to provide effective overn

G insurance, control health care ­quality banking industries. The Division representation to support the policy and costs, promote public health, investigates and litigates consumer choices made by state agencies reduce disparities, and protect protection and False Claims Act cases and officials in implementing our ­consumers. The Division investigates and participates in insurance rate environmental protection laws; and and litigates consumer protection proceedings before the Division of (3) undertaking affirmative, non- ­cases involving health insurers, Insurance. The Division also assists enforcement work to develop and

lic Protection health providers, and pharmaceutical consumers by mediating insurance, dvocacy Bureau b pursue innovative ways to further A

Pu companies, and assists state entities,

& banking and investment disputes environmental protection exercising including the Commonwealth Health that do not rise to the level of unfair the Attorney General’s role as the Insurance Connector and the Health practices, and by advocating for or Commonwealth’s chief law officer. b

a Care Quality and Cost Council, statutory and regulatory reforms. In L This last area includes: bringing in developing sound policies and FY10, staff recovered over $701,000 “impact litigation” (typically

Bureau practices. In FY10, the Division’s in savings and refunds on behalf of against the federal government);

Business & staff addressed consumer complaints consumers, opened 639 complaints participating as an amicus to help relating to health insurance­ and health and fielded over 2,600 phone develop the law in a way that care and took over 5,200 phone calls, calls. In FY10, IFSD had 103 open will further the Commonwealth’s opened 916 complaints for mediation, cases resulting in $82 million in

­interests; developing­ or supporting

ff and recovered over $261,192 for consumer savings, over $320 million ta S ttorneys A

32 Fiscal Year 2010 Annual Report E xecutive Bu reau in restitution to Massachusetts consumers and more than $13 million Business and Labor Bureau in payments to the Commonwealth. Through the Business and Labor

Bureau (BLB), the AGO protects the C Bureau INVESTIGATIONS DIVISION ri public interest through fair, firm and m inal The Investigations Division transparent investigation, reporting conducts civil investigations for and enforcement actions while all divisions across the AGO. providing certainty and equality in the Investigators in the Division market place. In so doing, the AGO

locate and interview victims, G

takes the long view of promoting overn witnesses and subjects; obtain and a healthy economy and aims to Bureau review documentary evidence m balance regulatory enforcement and ent from numerous sources including review with advocacy for ratepayers, individuals, corporations, and ­consumers and workers. The bureau federal, state, county, and municipal also plays an important role by focusing & Pu agencies; conduct surveillance, A b on fraudulent acts and practices that dvocacy Bureau lic Protection background checks, and asset occur in the context of commercial checks; analyze financial records and relationships. The bureau works to perform other forensic accounting ­prevent rising government costs caused functions; and testify before Grand by fraud involving business or medical Juries and at trial. services provided to or regulated by the government and to level the Business &

playing field so that no company can Bureau gain an unfair advantage by breaking L a

the rules. BLB includes the following b or divisions: Business, Technology and Economic Development; Energy and Telecommunications; Fair Labor; A Medicaid Fraud; and Non-Profit ttorneys S ta

Organizations/Public Charities. ff

www.mass.gov/ago 33 reau Bu xecutive E BUSINESS, TECHNOLOGY or judicial proceedings on behalf savings, some of which is based upon AND ECONOMIC of consumers in connection with the lifetime of a particular project. DEVELOPMENT DIVISION matters involving the rates, charges, FAIR LABOR DIVISION The primary role of the Business prices, or tariffs of an electric, gas or telephone company doing business The Fair Labor Division enforces inal Technology and Economic Develop­ m various laws that protect workers, ri in the Commonwealth and subject to Bureau

C ment Division (BTED) is to further the including the prevailing wage, Attorney General’s efforts to promote the jurisdiction of state regulations. minimum wage, payment of wages, economic growth in Massachusetts. The Division works to ensure that overtime, tip pooling, child labor, BTED is the liaison between the businesses and residents have ­access Sunday and holiday premium pay business community and the AGO, to reliable, safe and affordable ener­ gy. ent The Division litigates its cases befor­ e laws, and the arbitration of related m promoting better communication, state and federal courts, as well as public construction bid disputes.

Bureau providing information and facilitating overn

G The Division has broad powers to a better understanding of issues facing ­administrative regulatory bodies such as investigate and enforce violations of the business community. In addition, the Massachusetts Department of Public these laws through criminal and civil BTED staff advise the Attorney Utilities, the Federal Energy Regulatory enforcement actions. The Division uses General from the perspective of the Commission, and the Federal this authority to protect employees from business community as the Attorney Communications Commission. In many exploitation by an employer, prosecute General develops policy on matters of these matters, particularly public lic Protection utility rate cases, the Attorney General employers who are failing to follow dvocacy Bureau b that may affect the economic climate A Pu

& the Commonwealth’s wage and hour of the Commonwealth. is the only active participant advocating on behalf of Massachusetts consumers. laws, and set a level playing field with ENERGY AND The Division is funded through an clear rules that the Commonwealth’s or b a TELECOMMUNICATIONS assessment on the gas, electric­ and employers can follow, ensuring that L DIVISION telecommunications companies doing strong economic growth and fairness

Bureau Through the Energy and Telecom­ business in the Commonwealth. In FY10, for workers go hand-in-hand. In FY10,

Business & munications Division, the Attorney there were approximately 187 cases the Division recovered over $9 million General serves as the Ratepayer pending before state and ­federal ­bodies. in restitution and penalties on behalf Advocate in administrative and/ Matters that were finalized in FY10 of the Commonwealth’s workers. yielded approximately $136 million in ff ta S ttorneys A

34 Fiscal Year 2010 Annual Report E xecutive Bu reau

MEDICAID FRAUD DIVISION public charities to safeguard the public’s The Medicaid Fraud Division (MFD) interest in these organizations and to works to prevent and, if necessary, ensure the proper solicitation and use of charitable funds raised. Non-profit C

­prosecute provider fraud and violations Bureau ri

­charitable organizations, which range in m of state law pertaining to fraud in the inal administration of the Medicaid program. size and scope, are major contributors to The Division executes search warrants the Commonwealth’s economic strength and administrative document requests, and its cultural heritage. negotiates settlements, obtains judgments The Division reviews ­annual

public charity filings, works with G and convictions, and recovers criminal overn Bureau and ­civil restitution, fines, penalties, and organizations to address and cure m costs. In addition, the Division reviews potential violations, and, when ent complaints of resident abuse or neglect ­necessary, conducts civil investigations in nursing homes and other health care and litigation to enforce the law. In FY10, in the nonprofit context, the &

facilities. The Division serves as the Pu A b

Attorney General approved 1,679 dvocacy Bureau

Medicaid Fraud Control Unit for the lic Protection Commonwealth of Massachusetts and is initial ­registrations, processed 22,071 annually certified by the Secretary of the ­annual financial reports, and approved U.S. Department of Health and Human 504 registrations for professional Services. In FY10, the MFD had 339 cases solicitors, fundraising counsel, and pending. Closed cases yielded almost $36 commercial co-venturers. Fees for million in recovery to the Commonwealth these activities generated in excess of Business & and Medicaid programs. $2,250,000 for the Commonwealth. Bureau The Division also provided guid­ ­ance L NON-PROFIT ORGANIZATIONS/ a charitable organizations through ­sev­­ b or PUBLIC CHARITIES DIVISION eral advisories­ including: 8A guidelines, The Non-Profit Organizations/ Raffle guideline and mergers and Public Charities Division supervises ­consolidations guidelines. A ttorneys S ta ff

www.mass.gov/ago 35 Fiscal Year 2010 Attorneys reau Bu xecutive E A Ackil, Ann C Calkins, Sheila D Dalrymple, Joyce G Geary, John Adams, Stephen Callanan, Joseph Dekermenjian, Krikor Goldberg, I. Andrew Adreani, Jennifer Carriker, Eric DeSouza, Barbara Dillon Goldman, Julie Ahearn, Michael Cartee, Jennifer Doherty, Andrew Goldman, Lauren Aine, Geraldine Casey, Timothy Dollar, Robyn Goldstein, Joanne

inal Alvarez-Jimenez, Iraida Celli, Melissa Donnelly, Edmund Green, Jonathan m

ri Anderson, Bruce Cetola, David Donnelly, John Groff,C asey Bureau C Anderson, Deborah Chan, Tackey Donovan, Brian Grundy, Richard Andrews, David Chintapalli, Pallavi Duhamel, Jessica Guberman, David Arguin, James Choy-Seymour, Shannon Dundin, Louis Gunagan, Kelli Armstrong, Emily Clark, James Dupuis, Renee Gwiazda, Amy Augenstern, Frederick Coakley, Martha E Eade, Mary H Hadas, David ent m B Badway, Eva Collins, Cathleen Eisemann, Jeremy Hammond, Daniel Baily, Christine Collins, Jeffrey Eisenstadt, Joseph Hanley, Patrick Bureau overn

G Balakrishna, Annapurna Connolly, Matthew Engel, Jonathan Harper, Nancy Barnett, Jessica Connolly, Rosemary English, April Healey, Maura Barnico, Thomas Conroy, Kevin Ericson, Benjamin Healey-Dippold, Jean Barry-Smith, Christopher Cooke, Margret F Fauth, Lisa Healy, Janice Barshak, Jason Cosgrove, Audrey Feiner, Gillian Hettinger, Lee Bedrosian, Edward Cotter, Jennifer Fitzpatrick, Kate Hirales, Lillian Benedetto, Annette Cournoyer, Madonna Franck, Michael Hoffman, Steven lic Protection dvocacy Bureau b Bennett, Leslie Cowin, William Frankl, Laurie Hollander, Bart A Pu & Berge, Matthew Cray, Pierce Freeley, Mary Hollingsworth, Adam Boecke, Donald Cromack, Daniel Freeman, William Hunt, Pamela Bowen, John Cunha, Glenn Friedman, David Hunter, Marsha or b Brock, Matthew Curseaden, John Hurley, Margaret a L Brookman, Monica I Iancu, Carol Brown, Susan Ireland, Matthew Bureau Business & ff ta S ttorneys A

36 Fiscal Year 2010 Annual Report E xecutive Bu

Fiscal Year 2010 Attorneys reau

J Jalelian, Lincoln M Maietta, Anita O O’Brien, Thomas S Sacks, Peter T Tabor, Anna-Marie Johnson, Lois Mann, Nora O’Brien, James Salinger, Kenneth Tarantino, Rosemary Johnson, Thomas Marks, David O’Brien, Eileen Schafer, Scott Tarmey, Patrick Joliat, Kiernan Maroney, Nancy O’Donnell, Brian Schofield, Seth Tarrow, Lorraine C

Jones, Marc Marshalek, Stephen Ofilos, Jonathan Schrumpf, Matthew Thomas, Anne Bureau ri m

Jones, Miranda Martland, Douglas Ogden, Nicholas Sclarsic, Jonathan Thornton, Gabriel inal Jones, Jocelyn Masinton, M. Claire Olson, Neil Seder, Sandra Cardone Tosches, Jamie Joss, Sarah Massey, Jessica O’Malley, R. Gabriel Sharobem, Steven Trager, Bruce K Kaczmarek, Anne Matlack, William O’Neill, William Shea, Matthew Tran, Liza Jean Kahn, Stephanie Matthews, Gregory O’Shea, Brendan Shin, Sookyoung Triplett, Tracy Kalman, Judy Mazlen, Emiliano P Pakstis, Joshua Singh, Amita Tseng, Karen G Kaplan, Glenn Mazzone, Dean Palfrey, Quentin Soris, Johanna U Unger, Toby overn Bureau Karangekis, Amy McBride, Britte Paradise, Emily Spackman, David V Vanderweele, Sally m

Kehoe, Ronald McCarthy, Colleen Pardee, William Spector, Amy Veenstra, Jeanne ent Kelly, Christopher McGuire, Timothy Parks, Margaret Stark, Jennifer Villa, Amber Killian, Bryan McGuire, Joshua Patten, Robert Stark, Zoe W Walsh, Michael Kim, Tori McKinlay, James Phillips, Mary Stephan, John Walsh, Christopher & Klibaner, Alexander Merrick, Sandra Pina, John Sterman, Anne Walsh, Teresa Pu A b dvocacy Bureau Koenig, Elizabeth Meshnick, Howard Pine, Michael Stetson, James Waterfall, David lic Protection Kosla, Kerry Milkey, James Porter, William Strayer, Kerry Watras, Katherine Kosmetatos, Argiro Miller, Jonathan Price, Elisabeth Sullivan, Catherine Weber, Benjamin L Lam, Siu Tip Miller, Jennifer Q Quinan, Robert Sullivan, Jennifer Welch, Jacqueline Lamarre, Teresa Monahan, David R Ragland, Sarah Sutliff, Mark Werner, Gwen Lamb, Aaron Monroe, Natalie Rainer, Andrew Sweeney, James Whitcomb, James

Langlois, Wendoly Moriarty Sousa, Marina Ralph, Thomas White, Doris Business & Lawton, Diane Mullin, Peter Rathbun, Danielle Wyzanski, Charles Bureau Lefkon, Owen N Nable, Amy Ravitz, Randall Y Yas, Anne

Leight, Peter Nosal, Jed Reardon, Susanne Yeager, K. Nathaniel L a b

Less, Daniel Reyes, Jesse Z Zachos, George or Letzler, Benjamin Reynolds, Maryanne Zarbo, Karla Lockhart, Emiley Rice, Douglas Lyons, Matthew Ritchie, Ronald

Rogers, Joseph A ttorneys S

Rom, Alan ta Ross, Julie ff

Rossi, Patricio

www.mass.gov/ago 37 In Memorium

Loretta Smith

1949 ~ 2009

Loretta Smith was the Chief of our Government Bureau and passed away suddenly in the summer of 2009. She graduated from Boston University Law School and was a law clerk for Associate Justice Robert Braucher of the Supreme Judicial Court, before becoming an associate in 1980 at Goodwin, Procter & Hoar. She was an Assistant Attorney General from 1996 to 1997 in the Administrative Law Division. In 2001 she was named an Assistant District Attorney in the Appeals Bureau of the Middlesex District Attorney's Office until joining the Attorney General's Office in 2007. Loretta served the Office of the Attorney General and the Commonwealth of Massachusetts with distinction, and we are grateful for her public service.

38 Fiscal Year 2010 Annual Report By The Numbers: Protecting Consumers and Taxpayers

In FY2010, the Attorney General’s Office saved or recovered more than 6$6 0 million for taxpayers and consumers, including:

$333 million recovered from financial services companies as restitution to victims and payments to the Commonwealth.

$82 million in savings to automobile and motorcycle insurance ratepayers

$136 million in savings to utility customers

$35.7 million in civil recovery for Medicaid fraud

$18 million in loan modification relief for Massachusetts consumers

$7.18 million in restitution, penalties and fees in consumer protection judgments

$902, 980 recovered in Massachusetts as a result of AGO leadership in multi-state actions addressing improper marketing of pharmaceuticals.

$764,000 recovered for Massachusetts as a result of multi-state enforcement to prevent anti-competitive behavior in the area of generic pharmaceuticals.

$9.3 million in restitution and civil and criminal penalties for violation of fair wage laws

$4.9 million in civil and criminal judgments arising from damage to the environment

$3 million in revenue saved or recovered through civil litigation on behalf of state agencies

$4.05 million returned to consumers through informal mediation plus $261,000 to consumers of health insurance

$701,000 recovered in saving and refunds through insurance and financial service meditation

$3.465 million in compensation to victims of violent crime

$2.2 million in fees generated for the regulation of charities and over $600,000 recovered as the result of the misapplication of bequests and fees in Massachusetts estates.

$7.8 million in recovery from perpetrators of public corruption and fraud

$769,748 in restitution ordered for victims of worker compensation and unemployment insurance fraud.

$156,000 in monetary relief to victims of civil rights violation

$14.4 million in False Claims Act cases paid to the Commonwealth

Design Donated by Lydia Mann