Attorney General’s Office fights drug nuisances one property at a time – Sussex County drug haven closed in latest enforcement action

The Attorney General’s Office announced today that it has secured the closure of a
Sussex County property under Delaware’s Drug Nuisance and Social Vices Abatement Act. At a
temporary abatement hearing on July 29, Superior Court Judge E. Scott Bradley found that the
property, at 8855 Cedar Creek Road, in Lincoln, owned by Lillie Mae Lewis, presented a threat to the
health, safety, and welfare of the community and ordered it to be closed immediately.
“This property is a classic example of why Attorney General Biden’s Nuisance Abatement
Program exists,” stated Lawrence Lewis, State Solicitor. “The owner was repeatedly warned of the
illegal activity and continued to allow it to occur. As a result of this action, the surrounding
community will not have to deal with the dangers associated with drug dealing.”

Within the last eight years more than 60 calls have been made to Delaware State Police
regarding complaints of physical violence, sexual misconduct, gunfire, drug transactions, and sexual
abuse at this property. State Police brought this activity to the attention of the Attorney General’s
Nuisance Abatement Program, which conducted an investigation and sought the property’s closure in

In addition to ordering the property to be closed, Judge Bradley ruled that any lease associated
with the property is void and that all involved parties are to have no contact with the property until a
permanent abatement hearing takes place at some point in the future.

In August, 2007 Attorney General Biden announced an expanded statewide effort to reduce
crime using Delaware’s newly enhanced Nuisance Abatement Act. Enforcement actions under the
Nuisance Abatement Act can take a variety of forms, including closure of the property. The Delaware
Department of Justice identifies nuisance properties statewide through its own investigations and
cooperation with state and local police agencies, local authorities, civic associations, and residents. The
Department works to abate those nuisances, either by obtaining a court order or through securing the
voluntary cooperation of the owner to clean up the illegal activity.
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Attorney General’s Office announces $60,000 fine against New York Brokerage Firm; secures

The Delaware Attorney General’s Securities Unit announced that it has
fined McLaughlin, Piven & Vogel (MPV), a New York Stock Brokerage firm, for failure to adequately
supervise employee Vikram Manhas. This fine resolved an investigation initiated by a complaint
received from a 92 year-old Lewes investor.

“The Attorney General’s Office is committed to taking aggressive action against investment
scams and frauds,” stated Timothy Mullaney, Director of the Attorney General’s Fraud and Consumer
Protection Division. “With today’s action we are not only holding offenders accountable, but are
protecting other investors, particularly seniors who can be targets of these crimes. We urge all
investors to report suspected fraud to our Securities Fraud hotline at (302) 577-8424.”

Manhas opened a fictitious on-line account in his client’s name and fraudulently transferred
$240,000 worth of bonds from his client’s existing brokerage account into the fictitious account.
Manhas ultimately transferred the securities into his own on-line account by use of a forged transfer
document. Through these actions, Manhas stole his client’s securities and then left the country.
Manhas was indicted in Delaware on felony charges of Theft and Securities Fraud. Warrants for his
arrest were issued and are still outstanding. Manhas remains at large.

As a result of a Securities Unit investigation Manhas’ firm, MPV, was fined $60,000 for not
properly supervising their broker/agent by failing to have compliance and supervisory procedures in
place to detect and prevent the theft of the firm’s clients’ funds. The Lewes investor received
restitution for his losses. In addition, the firm has withdrawn its Delaware registration to market
securities and is no longer conducting business in the State.

The Delaware Department of Justice Securities Unit investigates and prosecutes fraud and
licensing violations by brokers, investment advisors, and the firms they work for. In addition to
enforcing the law, it also serves as an educational resource to investors, printing an annual “Safe
Investing Guide”, and hosting the investor website,
Delaware investors are encouraged to report suspected incidents of investment crime and fraud
by calling the Securities Fraud hotline at (302) 577-8424.
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Delaware Attorney General’s Office announces $5 million settlement with DISH Network

The Delaware Attorney General’s Office announced that it has reached an
agreement with the DISH Network, L.L.C. (“DISH Network”) following a 39-state investigation
triggered by consumer complaints. The states alleged that the satellite TV provider and its third-party
retailers engaged in deceptive and unfair sales practices. Delaware’s Consumer Protection Fund will
receive $125,000 to aid consumer protection enforcement efforts.

“Today’s announcement shows that companies will be scrutinized for their sales and marketing
practices and held accountable if those practices are found to be deceptive,” stated Timothy Mullaney,
Director of the Fraud and Consumer Protection Division.

The allegations against DISH Network include:
Denying responsibility for its third-party retailers and installers participating in unfair practices;
Violating do-not-call rules;
Failing to disclose all terms and conditions of customer agreements, including availability of
rebates, credits and free offers;
Failing to disclose that purchased or leased equipment was used and/or refurbished;
Referencing competitors’ price offers of materially different goods or services; and
Charging customer credit cards and bank accounts without providing adequate notice and
obtaining appropriate authorization.

DISH Network denied any wrongdoing, but agreed to pay restitution to consumers and to enter
into an agreement that limits how it can market services in the future.

Unresolved complaints sent to Dish Network or the Attorney General’s office since January 1,
2004 are eligible for restitution and will be sent a claims notice by Dish Network. Consumers who
have not already done so may file a complaint about activity that took place within the last 2 years to
be considered for restitution. Complaints may be directed to Dish Network, the Attorney General’s
Office, or the Better Business Bureau, and must be filed by December 14, 2009. Consumers who are
dissatisfied with the offer of restitution may file a claim with a third-party claims administrator.
Questions regarding the refund process can be addressed to: DISH Network, L.L.C., Dispute
Resolution Team, P.O. Box 9040, Littleton, CO 80120 or by e-mail at
Delaware consumers are encouraged to report suspected violations of fair business practices or
other consumer fraud to the Attorney General’s Office by visiting
or by calling the toll-free Consumer Hotline at 1-800-200-5424.
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Delaware announces agreement with pharmaceutical firms concerning delayed disclosure

The Delaware Attorney General’s office announced a settlement with
Merck & Co. Inc, Shering-Plough Corporation, and joint venture company MSP Singapore Company,
LLC that resolves a multi-state investigation into the companies’ lengthy delay releasing negative
results from a clinical trial involving the cholesterol lowering drug Vytorin®. As a result of the
investigation, the companies will make specific changes to their business practices and pay $5.4
million to the 36 states who participated in the investigation. Delaware’s Consumer Protection Fund
will receive $100,000.

“It is unacceptable for pharmaceutical companies to delay the release of study results that may
influence consumers’ purchasing decisions,” stated Timothy Mullaney, Director of the Attorney
General’s Fraud and Consumer Protection Division. “As a result of this investigation, consumers will
benefit from more timely and accurate information about medications available to them and be able to
make better informed choices.”

In the clinical trial, Vytorin, a combination of the drug Zetia® and simvastatin, was no more
effective reducing formation of plaque in carotid arteries than the cheap, generically available
cholesterol lowering drug simvastatin. Although the clinical trial ended in May 2006, a partial
reporting of negative results did not occur until January 2008, and complete results were not published
until the following April. Prior to the release of study results, Vytorin had been heavily promoted in
direct-to-consumer advertisements.

Today’s settlement applies the same injunctive relief to Zetia and Vytorin that was applied to
Merck’s 2008 Consent Judgment with the states regarding Vioxx. Zetia and Vytorin had been carved
out from the Vioxx settlement because they are promoted by Merck as a joint venture with Shering-
Plough. Among the injunctive relief that now applies to Vytorin and Zetia are requirements to:
• Obtain pre-approval from the Food and Drug Administration (FDA) for all direct-to-consumer
television advertisements;
• Comply with FDA suggestions to modify drug advertising;
• Register clinical trials and post their results;
• Prohibit ghost writing of articles;
• Reduce conflicts of interest for Data Safety Monitoring Boards that ensure the safety of
participants in clinical trials; and,
• Comply with detailed rules prohibiting the deceptive use of clinical trials.
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Attorney General’s office to host internet safety presentations this summer

The Delaware Attorney General’s Office announced its Summer internet
safety presentation schedule to help educate kids about ways to protect themselves online.

“During summer months kids can be at an increased risk of becoming the victim of a predator
because of the increase of time available to be online,” stated Patricia Dailey Lewis, Director of the
Family Division. “Being aware of dangers on the internet and how to avoid them is the critical first
step in protecting yourself.”

The Attorney General’s office will lead the following presentations this month:
Date Location
Monday, July 13 Appoquinimink Boys & Girls Club, Wilmington
Wednesday, July 15 Camp Barnes, Frankford
Wednesday, July 22 Greater Milford Boys & Girls Club, Milford
Monday, July 27 Greater Smyrna Clayton Boys & Girls Club, Smyrna
Tuesday, July 28 Greater Newark Boys & Girls Club, Newark
Wednesday, July 29 Claymont Boys & Girls Club, Claymont
Every time a child goes online, he or she is at risk of being contacted by a predator, with
statistics revealing that one in every seven children has been sexually solicited on the internet. That is
why an essential part of Attorney General Biden’s fight to protect children from predators is giving
kids the real-world tools they need to keep themselves safe online. Since spring 2007, Attorney
General Biden and his staff have led 34 internet safety presentations for more than 16,000 young
people, educators, and parents.

To schedule an internet safety presentation for your organization, please contact the Attorney
General’s office at (302) 577-8288 or e-mail Learn about the Attorney
General’s efforts to combat internet crimes at
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