New York Paralegal Blog

Ever bought something online and wondered who you were really buying from? A new law is changing that, and a recent settlement with Temu shows just how serious regulators are about protecting you. The popular online marketplace, Temu, recently agreed to pay a $2 million fine to settle a lawsuit brought by the government. The reason? It failed to follow a new law called the INFORM Consumers Act. This isn't just about a one-time penalty; it's the first time this law has been enforced, sending a clear message to all online marketplaces. What Did Temu Do Wrong? According to the complaint, Temu made it difficult for shoppers to get in touch with them and with the sellers on their platform. The new law requires marketplaces to give you a clear way to report suspicious activity—both online and by phone. Temu allegedly didn't provide a working phone number for reporting problems. They also failed to be transparent about who the big sellers were on their site, especially...

Ever signed up for a dating site and felt like you got a raw deal? You're not alone. The Federal Trade Commission (FTC), the government agency that protects consumers, recently took a major stand against some of the biggest names in online dating. ⚖️ The FTC has reached a settlement with Match Group, the parent company of popular dating sites like Match.com, OkCupid, PlentyOfFish, and The League. The company has agreed to pay $14 million and change its business practices to resolve charges that it tricked consumers. What Were the Allegations? 🤔 The FTC's complaint, filed in 2019, alleged that Match Group engaged in three main unfair and deceptive practices: Misleading Guarantees: Match.com advertised a "six-month guarantee" for users who didn't "meet someone special." However, the FTC claims the company failed to clearly disclose all the fine print. Consumers had to jump through a bunch of hoops and meet specific, often difficult, requiremen...

In March 2024, Richard Kim founded Zero Edge, a company that was supposed to build an online casino using blockchain and cryptocurrency. He told investors that their money would be used to develop on-chain games like craps, roulette, and blackjack. Kim successfully raised approximately $4.3 million in seed funding for the company. What Happened to the Money? Instead of using the money to build the business as promised, Kim is accused of diverting a large portion of the funds for personal use. Shortly after the funding round closed, he allegedly transferred about $3.8 million into his personal cryptocurrency accounts. From there, he sent money to various crypto exchanges, including Binance, Kraken, and Backpack. Kim allegedly used a significant amount of these funds for personal gambling and speculative trading. He transferred roughly $7 million (with a net transfer of about $1 million) to a crypto casino and sportsbook called Shuffle.com. He also allegedly moved hundreds of...

Justice has been served! Anthony Villani, a powerful captain in the notorious Luchese organized crime family, was sentenced today to 21 months in prison for his role in a massive, illegal online gambling operation. This wasn't just some small-time bookie; Villani's "Rhino Sports" raked in at least $35 million in illicit profits over nearly two decades, all under the "protection" of the Luchese family. And as part of his sentence, he's been ordered to pay a staggering $4 million in forfeiture! This outcome is a huge win for law enforcement, sending a clear message to organized crime: your illegal enterprises and lavish lifestyles funded by criminal activity will be shut down, and you will be held accountable. Unmasking "Rhino Sports": A Deep Dive into the Illegal Empire Villani’s illegal gambling business, operating since the early 2000s, was a sophisticated setup. It used offshore servers in Costa Rica, employing local bookmakers to...

BOSTON - As a new school year begins and children research classroom assignments online, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) alerts parents to more closely monitor their children's Internet activities to avoid child predators.

PHOENIX – High-Tech Institute, Inc., doing business as Anthem College Online, will pay $260,000 as part of a settlement of a sexual harassment lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today. In its suit in U.S. District Court for the District of Arizona (Civil Action No.CV-09-2041-ROS), the EEOC charged that Anthem College subjected female employees to repeated sexual harassment by supervisors. According to the EEOC, six female admissions representatives working at the Phoenix, Ariz., location were frequently sexually harassed by three supervisors. The EEOC’s allegations included that the supervisors engaged in unwanted sexual touching and comments, writing sexually suggestive e-mails and soliciting sex from employees during unwelcome visits to the employees’ homes in the early morning hours. Some of this abusive behavior was witnessed by other Anthem College employees, the EEOC said. The EEOC maintained that Anthem ...

U.S. Commerce Secretary Gary Locke was joined today at by Chair of the National Economic Council Gene Sperling and White House Cyber-security Coordinator Howard A. Schmidt to release the administration’s National Strategy for Trusted Identities in Cyberspace (NSTIC) – a White House initiative to improve online security, increase privacy and foster economic growth and innovation online. Hosted by the U.S. Chamber of Commerce, the event included a panel discussion with industry leaders and privacy advocates, as well as demonstrations of innovative smart technologies being developed to improve online authentication. NSTIC is a key building block in the national effort to secure cyberspace. According to industry surveys, as many as eight million Americans are victims of online fraud and identity theft each year and lose an average of $631 out-of-pocket per incident. Through a private sector-led effort facilitated by the government, NSTIC aims to make online transactions more trustworthy...

Three Firms Will Pay More Than $400,000 in Total Penalties Three online retailers have agreed to pay more than $400,000 in total penalties to settle Federal Trade Commission charges that they failed to post EnergyGuide information on their websites to inform consumers about the energy use of major home appliances they sell. The agency also notified two other online sellers that it will seek a total of $640,000 in fines from them. According to the FTC, the online appliance retailers knowingly violated the FTC’s Appliance Labeling Rule, which requires them to provide EnergyGuide information for certain products such as refrigerators, freezers, dishwashers, air conditioners, water heaters, and washing machines. The information estimates the annual cost to operate the appliance.

(FTC) Sony BMG Music Entertainment (Sony Music) has agreed to pay $1 million as part of a settlement to resolve Federal Trade Commission charges that it violated the Children’s Online Privacy Protection Act (COPPA) and the Commission’s implementing Rule. The Commission’s complaint alleges that, through its music fan Web sites, Sony Music improperly collected, maintained and disclosed personal information from thousands of children under the age of 13, without their parents’ consent. The civil penalty to be paid by Sony Music matches the largest penalty ever in a COPPA case. Sony BMG Music Entertainment, a subsidiary of Sony Corporation of America, represents hundreds of popular musicians and entertainers, including numerous artists popular with children and teenagers. The company operates over 1,000 Web sites for its musical artists and labels. Sony Music requires users to submit a broad range of personal information, together with date of birth, in order to register for these sites. ...

OLYMPIA – In an era of drive-through wedding chapels and even quicker divorces, it’s still possible to reach a roadblock. The Attorney General’s Office, which announced a settlement today with a company that advertised online divorce services, says Washington residents should check out the credentials of those who provide legal guidance and resources. “Couples trying to undo their ‘I dos’ could find the process as irksome as an irreconcilable relationship if they don’t get information from a qualified source,” Senior Counsel Paula Selis said. Do-it-yourself divorces can work if you and spouse agree about important issues, such as childcare and dividing property, Selis added. But she said there are many situations where individuals should seek the services of a licensed attorney or someone who is supervised by one. More...

WASHINGTON – A resident of Malaysia was sentenced today to two years in prison on a conspiracy charge that arose from an international fraud scheme to "hack" into online brokerage accounts in the United States and use those accounts to manipulate stock prices, announced Acting Assistant Attorney General of the Criminal Division Matthew Friedrich and U.S. Attorney for the District of Nebraska Joe W. Stecher. Thirugnanam Ramanathan, 35, a native of Chennai, India, and legal resident of Malaysia, was also sentenced today by U.S. District Judge Laurie Smith Camp to pay restitution of $362,247 and serve three years of supervised release. Ramanathan previously pleaded guilty on June 2, 2008, to one count of conspiracy to commit wire fraud, securities fraud, computer fraud and aggravated identity theft before Judge Smith Camp in Omaha, Neb. Following his arrest in Hong Kong, Ramanathan was extradited on May 25, 2007, to the United States. More...