Attorney General’s Office Warns Delawareans About Rental Scams

The Consumer Protection Unit of the Delaware Department of Justice warns Delawareans during this peak vacation season to be careful when they are looking for a vacation rental. The scammers operating rental scam schemes find legitimate rental postings and capture the information and photos of the property, and then list it on Craigslist or other online advertising platforms. Unsuspecting consumers looking for a good deal on a vacation rental find the bogus posting, send a deposit, and receive confirmation of their rental only to arrive and find other people in the home, are unable to gain access, or are otherwise turned away from the property they believed they had rented.

Rental home scams are also occurring with regard to longer term residential rentals. Again ads are placed on sites like Craigslist and marketed at very low monthly rental rates. The scammers steal information from legitimate for-rent postings, and troll neighborhoods for vacant, abandoned and foreclosed homes. Prospective tenants in these scenarios may be shown the property before moving in as the scammers have changed the locks to unlawfully gain access. The scammers will collect a security deposit and first month’s rent, and may even provide keys and allow the consumer to move into the property. Typically, only when the true owner or a neighbor notices, will the tenant be aware they have been conned. The scammers in these scenarios typically require that monthly rent be paid in cash and will often appear in-person at the residence to collect the rent.

All consumers should be diligent before entering into any type of lease for a rental property or providing any deposit or rental payment by taking these steps first:

  • Consider working with a licensed realtor or property management company when possible;
  • If using an online search engine or website, research whether the property appears on other websites or listing platforms and make contact with the listing agents to determine which is the legitimate advertisement;
  • Research who the true owner of the property is by doing a parcel search online: In Delaware, one can search New Castle County properties at http://www3.nccde.org/parcel/search/; Kent County properties at http://kent400.co.kent.de.us/PropInfo/PIName.HTM, and Sussex County properties at, https://sussexcountyde.gov/zoning-and-sales-information.
  • Carefully review the posting, advertisement or lease for misspellings and grammatical errors;
  • If you are looking at a rental through an online listing site, you should familiarize yourself with the site’s policies for detecting and dealing with potentially fraudulent listings;
  • Never pay any security deposit or rental payment in cash—always use a check, money order or credit card—and demand a receipt;
  • Demand a written lease in advance, that includes the identification and contact information of the landlord, as well as identification of the bank where your security deposit will be held;
  • When possible, request a walk-through before agreeing to rent or paying any deposit;
  • Talk to neighbors to learn more about the property and the owners—be cautious of properties with a recently deceased owner or foreclosure;
  • If you meet the person claiming to be the landlord, request to see their credentials, such as a business card or realtor’s license, and identification; you should also make note of the make and model of their car and the license plate number.

Consumers who believe they may have been scammed should contact their local police department and file a report. They can also call the Attorney General’s toll-free Consumer Hotline at 1-800-220-5424 or email the Consumer Protection Unit of DOJ at consumer.protection@delaware.gov. If the listing was posted on an online platform, such as Craigslist, the consumer should also file complaints with the online platform and with federal law enforcement at www.ic3.gov.


Delaware Weighs In To Case On Independence of Federal Consumer Protection Agency

Attorney General Matt Denn joined 16 other attorneys general in filing a motion Monday to intervene in a federal appeals case, with the goal of ensuring that the federal Consumer Financial Protection Bureau (CFPB) remains independent and able to aggressively defend the interests of American consumers free from political pressure from the White House.

The case – PHH Corporation, et al. v. Consumer Financial Protection Bureau – is currently before the United States Court of Appeals for the District of Columbia Circuit. In an October 2016 ruling, a divided court found the structure of the CFPB unconstitutional, and ordered that the law be interpreted so that the director of the CFPB could be terminated by the President at will, rather than only for cause. The CFPB filed a petition for rehearing of the decision, and that petition is currently pending before the court. To this point, the federal government had vigorously defended the CFPB in the appeal.

In today’s motion to intervene in the litigation, the attorneys general argue that they have a vital interest in defending an independent and effective CFPB. They have used their authority to bring civil actions in coordination with the CFPB to protect consumers against unfair, deceptive and abusive financial practices. They argue that the court’s ruling, if permitted to stand, would undermine the power of state attorneys general to effectively protect consumers against abuses in the consumer finance industry, and significantly lessen the ability of the CFPB to withstand political pressure and act effectively and independently of the president.

“The CFPB must maintain its independence in order to fulfill its role as a watchdog over the financial industry,” Attorney General Denn said. “To make the head of the CFPB subject to removal by the president at will would be to effectively undo the protections put in place for consumers after the market crash that led to the Great Recession. The federal government should continue to defend the CFPB’s structure in court, and the court should maintain the CFPB’s ability to pursue bad actors on Wall Street without political pressure.”

Congress created the CFPB in 2010. The CFPB’s purpose it to provide a single point of accountability for enforcing federal consumer financial laws and protecting consumers in the financial marketplace. During its 2016 fiscal year, the CFPB’s supervisory actions resulted in financial institutions providing more than $58 million in redress to over 516,000 consumers, according to its report to Congress. The CFPB receives thousands of consumer complaints every week from consumers across the country.

In addition to Delaware, the motion includes Connecticut, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Mississippi, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington and the District of Columbia.

The motion can be found here.

 


Fraudulent Firefighter Charity Calls Stopped and Misleading Donations Given to Delaware Firefighters After AG Office Investigation

Misleading charitable solicitations that were misrepresented as going to Delaware fire companies have ended as a result of an investigation and a Cease and Desist Agreement from the Delaware Department of Justice targeted at Firefighter Support Services, Inc., a Michigan organization, and almost $6,000 in contributions will be returned to the Delaware fire community.

The solicitations by Firefighter Support Services took the form of telemarketing calls where the callers would repeatedly use the terms “firefighter” or “firemen.” Under Delaware law, use of certain terms that refer to law enforcement personnel such as “firefighter” or “police” are prohibited unless the caller is actually a bona fide law enforcement officer or employee, or the caller has written permission from a Delaware law enforcement agency to use such terms in their fundraising campaigns. The calls had been brought to the attention of the Delaware Department of Justice by Delaware fire companies who said the calls had no connection to any fire companies in the state, and DOJ alerted the public to the calls in February (https://news.delaware.gov/2016/02/02/attorney-general-warns-delawareans-about-fraudulent-fundraising-calls-to-support-delaware-firefighters-foundation/)

To resolve the violations, the Consumer Protection Unit of DOJ entered into an agreement which sanctions Firefighter Support Services, Inc. for its violations of Delaware law through civil penalties and demands restitution of the near $6,000 in donations from Delawareans since 2011. These restitution amounts will be distributed to the Delaware Volunteer Firefighter’s Association, Inc., a local non-profit that counts all 60 Delaware fire companies as members and provides education, training, outreach and other services relevant to the Delaware firefighter community.

“It can never be stated enough how our fire companies protect our communities and it is the least we can do to aggressively pursue those who would trade on Delaware firefighters’ outstanding reputation for fraudulent donations,” Attorney General Matt Denn said. “I appreciate the fire companies that brought it to our attention and Deputy Attorney General Gillian Andrews and Special Investigator Alan Rachko for achieving the resolution in this case.”

Joseph Zeroles, President of the Delaware Volunteer Firefighters Association said, “It is sad when people take advantage of the great work done by the Delaware volunteer fire companies to pray upon unsuspecting citizens. We wish to thank everyone in the Attorney General’s Consumer Protection Unit for their tireless effort in bringing this to resolution.”

The terms of the Cease and Desist Agreement also provide that Firefighter Support Services, Inc. shall not further violate provisions of Delaware’s charitable solicitation laws. In connection with this enforcement action, Firefighter Support Services, Inc. completely ceased its charitable solicitations in Delaware as of February 2016.

If you are interested in donating to your local fire company, the Attorney General encourages you to visit your local firehouse to drop off your donation in person, or donate directly to the fire company another way. A list of all local fire companies in Delaware and their contact information can be found at the Office of the State Fire Marshal: http://statefiremarshal.delaware.gov/information/fire_companies.shtml.

Anyone who suspects they have received a suspicious solicitation, the Attorney General encourages donors to call the toll-free Consumer Hotline at 1-800-220-5424 or email the Consumer Protection Unit at consumer.protection@delaware.gov.


Brothers From Dover Sentenced to Prison For Drug Activity

Others sentenced for home improvement fraud, rape, assault, and robbery

Following are recent results obtained in cases pursued by the attorneys, investigators and staff of the Delaware Department of Justice:

Two brothers both received significant prison sentences for their roles as main players in a group selling drugs out of the Capitol Park neighborhood near Dover. Thirty-year-old Jermaine Brinkley, 30 was charged after a Delaware State Police wiretap investigation, which occurred in late 2014 and early 2015. Brinkley pled guilty to five counts of Drug Dealing, two counts of Aggravated Possession, and one count of Conspiracy Second Degree. Brinkley was sentenced to a total of 14 years in prison, followed by 1 year of Level IV work release, and 18 months Level III probation. Brinkley’s 26-year-old brother George pled guilty to four counts of Drug Dealing, one count of Conspiracy Second Degree, and one count of Resisting Arrest. George Brinkley was sentenced to a total of 8 ½ year in prison, followed by 18 months of Level III probation. Deputy Attorney General Lindsay Taylor handled both cases.

Brett Johnson, 33, of Magnolia, pled guilty to six counts of felony home improvement fraud. Throughout 2015, Johnson repeatedly took deposits from people for home improvement projects, and then never returned to complete the work. Superior Court Judge T. Henley Graves sentenced Johnson to two years at Level V suspended, and one year at Level II for each of the counts. Judge Graves also ordered full restitution to the nine victims, all of whom were senior citizens, in the amount of $11,554.75, and he imposed a restriction on future employment so that Mr. Johnson cannot be employed as a contractor ever again. Deputy Attorney General Jill Remming secured the sentences.

A Newport News, Virginia man will spend nine years in prison for rape. Deputy Attorney General Jan van Amerongen secured the sentence for 46-year old Gerald Griffin. In late 2014, Griffin raped a young woman with intellectual disabilities in her mother’s home in Wilmington. Griffin, a registered tier three sex offender, pled guilty to Rape Fourth Degree, and was sentenced by Judge Wallace to 15 years at Level V, suspended after 9 years, for 6 years at Level IV, suspended after 6 months, for 2 years of Level III probation.

Deputy Attorney General Jan van Amerongen secured a plea from Mingo Smalls, 21, of Newark to one count of Rape Fourth Degree. In February 2013, Smalls, then 18-years-old, had a sexual relationship with a 13-year-old eighth grader. Following a presentence investigation ordered by Judge Abigail LeGrow, Smalls will be sentenced in September.

Deputy Attorney General Cari Chapman secured a plea from Michael Ford, 37, of Wilmington, to Assault Second Degree. During an argument in December 2015, Ford punched his 62-year old mother in the face while he was on probation. As part of his plea, Ford defendant admitted his violation of probation, and agreed to serve four years in prison. Sentencing will take place later this month before Judge Jurden.

Deputy Attorney General Casey Ewart secured a prison sentence for Qadir Gardner, 18, of Norristown, Pennsylvania. In July 2015, Gardner, armed with a handgun, stole a man’s Toyota Prius from the Starbucks on Rehoboth Avenue in Rehoboth Beach. Gardner pled guilty to Carjacking 1st, Robbery 2nd, and Conspiracy 2nd. Judge Bradley sentenced the Gardner to three years in prison, and the successful completion of the Key Program, followed by the Level IV Crest Program, then two years of Level III probation with Crest Aftercare.


Attorney General Warns Delawareans About Fraudulent Fundraising Calls to Support “Delaware Firefighters Foundation”

Attorney General Matt Denn warns Delawareans to be wary of potentially unauthorized telephone solicitations involving the “Delaware Firefighters Foundation” supposedly on behalf of local fire companies and firefighters.

The calls display a local (302) area code, and the callers request donations for the “Delaware Firefighters Foundation,” or they claim to be soliciting funds for “your local fire company” or “injured firefighters in your area,” without actually identifying the fire company or firefighters by name. There is no known charitable organization registered under “Delaware Firefighters Foundation” in Delaware or with the IRS Exempt Organization Division.

“It’s sad that someone is trying to take advantage of the respect we have and support we want to provide to our Delaware firefighters,” said Attorney General Matt Denn. “As consumers, we have the right to know who we are giving our money to and how it will be spent. So people should ask those questions and be very suspicious if they don’t get an answer.”

Delaware law requires callers to supply you with certain information, including:
Whether they are a paid fundraiser;
Where they are calling from, including company name and location;
The charity for which the funds are being raised;
The amount of the consumer’s donation that will actually go to the charity; and
If they are calling on behalf of police, fire or law enforcement, they must either be an actual law enforcement employee or have written permission from the state, county or local first responder organization to make the call.

The Attorney General’s Consumer Protection Unit reminds you to never give your credit card or bank account information in response to one of these calls. If you are interested in donating to your local fire company, the Attorney General encourages you to visit your local firehouse to drop off your donation in person, or donate directly to the fire company another way. Someone calling you to make a legitimate telephone solicitation on behalf of a Delaware fire company (or any charitable organization) should be willing to mail you a written donation form and envelope to send in a pledge. A list of all local fire companies in Delaware and their contact information can be found at the Office of the State Fire Marshal.

Anyone who suspects they have been scammed or have received a suspicious solicitation, the Attorney General encourages donors to call the Attorney General’s toll-free Consumer Hotline at 1-800-220-5424 or email the Attorney General’s Consumer Protection Unit at consumer.protection@delaware.gov.