(Wilmington, DE) Attorney General Carl C. Danberg announced today that his office has found no
legal violations in the business and accounting practices of the Christina School District audited thus far by the Auditor of Accounts. This conclusion is based solely on a review of three audits published to date.
The Auditor of Accounts is currently working on several additional audits of Christina School District
including its salary and personnel expenses. Those Audits have not yet been finalized, nor have they been presented to or reviewed by this office. It is anticipated that these audits will require further investigation by this office.
Earlier this year, the Auditor of Accounts issued three audits of the Christina School District. Two of the Audits made allegations of fiscal wrongdoing. The two audits addressed the purchase of land and use of referenda funds for a new middle school, and the use of “tuition tax” funds, funds used for special needs or non-traditional students.
A third audit issued, pertaining to “Cafeteria Funds” (as the name implies, these are funds for nutritional programs and expenses), however this Audit did not make significant findings of wrongdoing. It found that the cafeteria funds were used for the purpose of child nutrition and were allowable per the Department of Education. The majority of disputed charges were verified as legitimate by the District or approved by other State agencies.
Following the issuance of the middle school and tuition tax audits, this office reviewed the matters to
see if any legal action was appropriate. We have concluded that there is no basis for criminal prosecution or other legal action arising out of these matters.
These findings should not be taken as approval of, or validation of, the business practices or internal
procedural and bookkeeping practices of the District. Indeed, the Auditor of Accounts uncovered a number of procedural and documentation problems with the District’s records and accounting. However, we have
concluded that there is no evidence of civil or criminal violations committed by the District or its former officials.
There is no evidence of any false statements, or falsification of records, and no evidence that the District administration tried to mislead or to hide any of their actions from State officials. There is no evidence of monies being taken or personal gain by any Christina School District officials.
The text of the Attorney General’s report is available on the website at www.state.de.us/attgen or by
calling the office.
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Attorney General Carl C. Danberg announced today that YP Corp., (doing business as YP.com) and its wholly owned subsidiary Telco Billing, Inc., have agreed to settle allegations that they engaged in deceptive business practices by using “live” activation checks to obligate businesses and organizations to pay for an enhanced listing (called an “Internet Advertising Package”) on YP.com’s online yellow pages directory. The agreement is the result of an investigation by Delaware and 33 other states regarding YP.com’s use of activation checks.

According to the terms of the settlement, YP Corp. has agreed to stop using activation checks as the sole device to obligate businesses to purchase its products and services. YP Corp. also has agreed to pay $2,000,000.00 collectively, to the investigating states. YP Corp. further agreed to contact its current activation check customers to inform them of their right to cancel their agreement with YP Com and of their potential eligibility for at least a partial refund of monies paid to YP.com

The states alleged that since at least January 1, 2003 YP.xom sent businesses and other organizations “live” activation checks in the mail. These checks were made payable to the business or organization for a small amount, usually around $3.50. Ont he back of the checks, in fine print above the endorsement line, was language stating that by depositing the check, the recipiend agreed to purchase advertising from YP.com for its online yellow pages directory. The fine print also stated that by depositing the check, the recipient authorized YP.com (through it subsidiary Telco Billing, Inc.) to bill the monthly fees in advance, on the business’s telephone bill or by debiting the amount from the bank account into which the recipient deposted the check, or by other methods. The envelope that the check was mailed in also contained YP.com advertising material.

The states’ investigation revealed that some activation check recipients that deposted YP.com’s checks did so without knowing that the deposit constituted a purchase of an enhanced online yellow page listing from YP.com and that the deposit authorized YP.com to bill them monthly fees on their telephone bill, by debit from their account, or any other method. In some of these cases, the recipient remained unaware that it was being billed by YP.com after it deposited the activation check.

The allegations that gave rise to the state’ investigation and the settlement described above have not been admitted by YP.com, and its agreement to address the STate’s concerns and allegations does not constitute an admission of wrongdoing by YP.corp, Yp.com, or Telco Billing, Inc.

Current YP.com customers who are being billed through their telephone bill or bank account for a listing and became a customer by depositing an activation check should be contacted by letter within the next two (2) weeks by YP.com. Any customers with questions are invited to call the Attorney General’s Office at 577-8600.

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(Wilmington): In a press conference earlier today, Attorney General Carl
Danberg announced a new significant statewide Drug Nuisance Abatement Initiative
aimed at illegal drug and prostitution activity. Recently, for the first time, the State of
Delaware issued a notice letter to a business seeking immediate abatement of the drug
and prostitution nuisance promoted on the business’ property.
This office has filed suit against the Hollywood Motel, 145 South Dupont
Highway, New Castle. In the complaint, the state is seeking the immediate temporary
relief, of closing the property until the facilities can be upgraded to deter crime on the
premises. Over the last year, the New Castle County and Delaware State Police have
been dispatched over 300 times to the Hollywood Motel. Arrests were made for
prostitution, drug distribution, drug possession, a homicide and various assault
charges. As recently as yesterday, Delaware State Police arrested a prostitute for
possession with intent to deliver crack cocaine.

Danberg said, “The purpose of this initiative is to remediate the nuisances that
these high crime properties promote and to improve the quality of life for the
surrounding community.” It was also announced that 7 other New Castle County
properties have been notified that we intend to file suit against them. Those properties are:
The Star Center, 3125 New Castle Avenue, New Castle Glen Efficiencies & Motel, 1176
Pulaski Highway, Bear
Memorial Gulf Station, 3006 New Castle Avenue, New Castle
2 Can Dans, 3050 & 3052 New Castle Avenue, New Castle
The Rodeway Inn, 3 Memorial Drive, New Castle
Mr. C’s Car Wash, 3056 New Castle Avenue, New Castle
Private Residence, 8 Thorn Court, Rosegate, New Castle
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