Delaware Urges FTC to Strengthen “Used Car Rule”

Wilmington, DE – The Delaware Department of Justice announced today that it is calling on the Federal Trade Commission (FTC) to amend its Used Car Rule to require car dealers to indicate prior title status and damage history on used cars, trucks or SUVs offered for sale. Delaware joined Attorneys General from 39 other states, the District of Columbia, and the Northern Mariana Islands. Under the FTC’s Used Car Rule, car dealers are required to post “Buyer’s Guide” notices on used vehicles, indicating whether the automobile is offered with a warranty, or is being sold “as-is,” without a warranty. While this warranty information is valuable for prospective buyers, the states noted in their letter that the Rule’s value is limited because it does not require notice about a vehicle’s damage history and prior use. In addition, the states added that damaged vehicles may pose safety hazards to consumers, and that manufacturers void warranties on vehicles with damage histories.
“Amending the Buyer’s Guide to require not only warranty information but also damage, prior use, and Lemon Law History, will help prevent fraud and help buyers make more informed purchasing decisions,” stated Timothy Mullaney, Director of the Delaware Department of Justice Fraud and Consumer Protection Division.

The states’ letter also indicates that Wisconsin already requires prior-damage information to be disclosed on Buyer’s Guides posted on used vehicles in that state, and that the FTC approved the Wisconsin regulation. Moreover, this information is readily available to dealers through private data sources and title records that accompany vehicles they purchase at auction or take in trade.
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Delaware Department of Justice Reminds Investors of Limited Time Buyback Offers for Auction Rate Securities

Wilmington, DE – As state securities regulators continue their efforts to provide relief to investors whose funds have been frozen in the auction rate securities market, the Delaware Department of Justice reminds investors of repurchase opportunities that have been arranged between securities regulators and several Wall Street investment firms.
In settlements reached with state and federal securities regulators, eleven investment firms have agreed in principle to repurchase more than $50 billion of auction rate securities (ARS) from investors. Eligible investors may have already received written notices about these limited time repurchase opportunities. Investors are encouraged to contact the Delaware Department of Justice at (302) 577- 8424 and the investment firm from which they originally purchased their ARS if they have questions about the repurchase offers.
“Investors should be aware that if the notice they receive from the selling firm is not followed, the current repurchase opportunity will expire and future repurchase offers are unlikely,” stated James Ropp, Delaware Securities Commissioner. “Any investor who is unsure whether they own auction rate securities should immediately contact the Delaware Department of Justice or their broker.” Auction rate securities, also referred to as ARPS, short term paper, 7 day paper, or floaters, are
long-term financial instruments with interest rates that are reset through weekly or monthly auctions. When auctions run properly investors who hold these securities can buy and sell them on a regular basis. However, when there are not enough buyers for every ARS being offered for sale, auctions “fail” and investors are forced to hold their ARS until the next successful auction. Since early 2008, the majority of these auctions have failed and many investors have been unable to sell their holdings.
In response to investor complaints, state-led investigations into possible violations of securities laws in connection with the sale of ARS began in April. The North American Securities Administrators Association formed a multi-state Task Force, comprised of securities regulators in 12 states, to investigate whether Wall Street firms had systematically misled investors who purchased these securities. The Delaware Department of Justice Securities Unit is a Task Force member. Several investment firms have established telephone hotlines to respond to questions from customers concerning the repurchase of auction rate securities. Those firms and hotline numbers are: Bank of America: 866-638-4183 Citi: 866-720-4802 Deutsche Bank: 866-926-1437 Goldman Sachs: 888-350-2857 JP Morgan: 866-450-8470 Merrill Lynch: 888-706-1381 Morgan Stanley: 800-566-2273 UBS: 800-253-1974 Wachovia: 866-283-7943
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Delaware Department of Justice Sentencing Announcement

 
Media Release
November 14, 2008

Wilmington, DE – The Delaware Department of Justice today announced sentences in the following criminal cases:

Dana Goodman, age 38 of Easton, Maryland, pled guilty on September 3, 2008 in Sussex County Superior Court to 2 counts of Rape 4th degree, Felony Endangering the Welfare of a Child and Official Misconduct.
Between January, 2008 and May, 2008, Goodman engaged in a sexual relationship with a 17 year old student at Sussex Central High School, the school at which he was the Principal. Goodman was arrested by Delaware State Police on May 2, 2008. Goodman was sentenced today in Sussex County Superior Court by Judge Richard F. Stokes to 4 years in prison during which time he must complete an intensive sex offender treatment program. Incarceration will be followed by six months of Work Release and then 2 years of intensive Probation. Additionally, Goodman must undergo DNA and HIV testing as well as pay restitution to the victim compensation board. He was ordered to have no unsupervised contact with children, except for his own, must register as a Tier 2 sex offender, and will appear on the child abuse registry for life.
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Dennis Trotter, age 28 of Magnolia, pled guilty on September 23, 2008 in Kent County Superior Court to two counts of Assault 2nd Degree.
On May 30, 2008, Delaware State Police responded to a domestic complaint at Trotter’s residence. Trotter became belligerent and refused to cooperate with officers. As he was being taken into custody, Trotter injured a Trooper and a State Police K9. Trotter was sentenced on November 13, 2008 in Kent County Superior Court by Judge Robert B. Young to 12 days in prison followed by 1 year of Probation.
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Kenneth Hawkes, age 32 of Wilmington, pled guilty on September 22, 2008 in New Castle County Superior Court to 2 counts of Robbery in the 1st Degree, 2 counts of Robbery in the 2nd degree, and one count of Attempted Robbery.
Between December, 2007 and January, 2008, Hawkes used a BB gun to committed a string of four armed robberies and one attempted robbery throughout New Castle County at gas stations and convenience stores. He was arrested on April 2, 2008 by Delaware State Police. Kenneth Hawkes was sentenced today in New Castle County by Judge Jan R. Jurden to 6 years in prison, followed by 6 months of Work Release, and then 18 months of Intensive Probation.
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Delaware Department of Justice Sentencing Announcement

Wilmington, DE – The Delaware Department of Justice today announced sentences in the following criminal cases:
Marvin Hair, age 41 of Wilmington, pled guilty on September 15, 2008 in New Castle County Superior Court to Driving Under the Influence in the 4th Degree, Vehicular Assault 2nd Degree and Reckless Endangering 2nd Degree.
On May 6, 2008, while driving in Wilmington, Hair struck a vehicle while making a left turn onto Concord Avenue from the right lane of Washington Street, then ran a red light at Concord Avenue and West Street, striking another vehicle. On West Street, Hair drove onto the sidewalk, almost striking a pedestrian. At 12th and N. King Streets he again ran a red light and struck a vehicle, causing injury to himself and the other driver. He was taken to Wilmington Hospital for treatment and his Blood
Alcohol Content (BAC) was determined to be .21. The legal BAC is .08.
Marvin Hair was sentenced today in New Castle County Superior Court by Judge Jerome O. Herlihy to nine months in prison, followed by six months of Work Release and then five years of Intense Probation. In addition, Hair must undergo a substance abuse evaluation and complete treatment. He also must pay a $2000 fine and restitution for court costs.
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Melissa Hutchinson, age 27 of Wilmington, pled guilty on August 7, 2008 in New Castle County Superior Court to Robbery 1st Degree.
On March 7, 2008, Hutchinson attempted to rob a store on Belmont Road in Claymont. She fled with $20 from the store and drove away in a car that was identified and traced by police back to her. Hutchinson was arrested by New Castle County Police on the same day as the robbery. Hutchinson was sentenced today in New Castle County Superior Court by Judge Jerome O. Herlihy to four years in prison, followed by six months of Work Release and then two years of Probation.
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Delaware Department of Justice Sentencing Announcement

Wilmington, DE – The Delaware Department of Justice today announced sentences in the following
criminal cases:
Gregory Semans, age 20 of Frederica, pled guilty on September 9, 2008 in Kent County Superior
Court to two counts of Burglary 3rd Degree and one count of Conspiracy 2nd Degree.
On June 27, 2007, Semans broke into several cars and a shed in High Point. He was arrested by
Delaware State Police on August 13, 2007.
Semans was sentenced today in Kent County Superior Court by Judge Robert B. Young to one year of
Intense Probation. He was also ordered to pay restitution and complete drug counseling.
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Michael A. Hall, age 25 of Townsend, was found guilty on July 23, 2008 in New Castle County Court
of Assault 2nd Degree.
On January 6, 2008, Hall was involved in an altercation and punched the victim.
Hall was sentenced today in New Castle County Superior Court by Judge Fred S. Silverman to six
months of Home Confinement or another similar Department of Corrections program or until Hall
completes Anger Management Counseling, after which he will serve 18 months of Intense Probation.
In addition, he was ordered to pay restitution, to have no contact with the victim, and to submit to a
substance abuse evaluation and undergo treatment. Hall must also obtain a GED and obtain and
maintain full-time employment.
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Gamliel Negron, age 23 of Wilmington, pled guilty on February 26, 2008 in New Castle County
Superior Court to Possession with Intent to Deliver. Negron was also found guilty on September 3,
2008 in New Castle County Superior Court of a second count of Possession with Intent to Deliver and
Possession of a Firearm During the Commission of a Felony.
Negron was arrested on three separate occasions, twice in October 2007 and again in February 2008,
and charged with possession with intent to deliver marijuana. In addition, on one of these occasions he
was also charged with Possession of a Firearm during the Commission of a Felony. On each occasion
Negron was arrested by Wilmington Police.
Negron was sentenced today in New Castle County Superior Court by Judge John A Parkins to three years in prison, followed by six months of work release and then 18 months Intense Probation.
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