Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.
Arizona
- Attorney General Mayes announced that she is opening an investigation into the Steward Health Care’s bankruptcy, filed in Texas bankruptcy court on May 6, 2024. Steward Health Care also plans to auction four Arizona hospitals, including: Florence Hospital in Florence, Mountain Vista Medical Center in Mesa, St. Luke’s Behavioral Health Center in Phoenix, and Tempe St. Luke’s Hospital in Tempe. Due to potential negative effects on patients, providers, healthcare workers, and vendors, Attorney General Mayes indicated that she is considering intervening in the bankruptcy proceeding.
Illinois
- Attorney General Raoul filed a lawsuit against Southeast Energy Consultants LLC (“SEC”) for defrauding Illinois residents by making numerous false statements that misled consumers to believe SEC agents were associated with local public utility companies enrolling consumers in a cost saving official state-sponsored program. The lawsuit alleges that SEC worked on behalf of several alternative retail electric suppliers and marketed to consumers that they would save money on their electric bills by switching to an alternative energy supplier. This caused consumers to inadvertently purchase a high-cost electricity supply service. The lawsuit seeks to end the illegal conduct, recover the increased cost consumers paid, and impose a penalty of $50,000 for each statutory violation committed against older Illinois residents.
Minnesota
- Attorney General Ellison announced the filing of a lawsuit against Chadwick Banken, a Minnesota realtor, and a variety of businesses he owns. The lawsuit alleges that Banken and his businesses conducted illegal contracts for deeds, used deceptive trade practices for marketing, and participated in discriminatory practices by offering unfair contract terms to Muslin purchasers. Banken used contracts for deed to require large down payments on homes that could not be refinanced, and then, required large balloon payments at the end of the short loan period, which purchasers could not pay and allegedly caused purchasers to default on their contract and forfeit their homes. The lawsuit seeks to halt the unlawful practices, impose civil penalties, and cancel or reform existing contracts.
New Hampshire
- Attorney General Formella announced that Shanna M. Pinet pled guilty to one count of Unlicensed Practice of Naturopathic Medicine and one count of Acts Prohibited under the Consumer Protection Act, for advertising and providing services of a naturopathic under the name “Dr. Fabianna Marie” between August 1, 2020 and May 31, 2021 without the required education, training, and licensure.
North Carolina
- Attorney General Stein announced a consent judgment with Lisa Eustathiou, a landlord, and her company, Apollon LLC, for violations of state consumer protection and debt laws. Eustathiou and Apollon are required to repay $25,040 in security deposits for imposing improper fines and wrongfully withholding security deposits from college students and their families at the end of lease terms and without prior notice.
Pennsylvania
- Attorney General Henry announced a settlement with Miller Properties Group, LLC, and its owner, Jason Miller, for allegations of unlawfully shutting off or disconnecting water service to rental properties as a method of self-help without first obtaining a court order of possession, required by the Pennsylvania Landlord Tenant Act. Miller and Miller Properties Group, LLC agreed to pay civil penalties of $500 and comply with applicable laws as part of the settlement.
Washington
- Attorney General Ferguson filed a petition to enforce subpoenas sent to the Seattle Archdiocese. The subpoenas were in regard to an investigation into the Seattle Archdiocese for three Washington diocese of the Catholic Church using charitable funds to cover up allegations of child sex abuse by clergy.