A woman's finger is clicking through the apps on the screen of an Apple iPhone cell phone resting on a desk.

Apple Inc. Settles $24 Million Consumer Lawsuit

San Diego County District Attorney Summer Stephan announced today that Apple Inc. will pay $24.6 million to settle a California lawsuit alleging the company failed to disclose that iPhone software it instructed consumers to download intentionally slowed down the performance in older iPhones. In a separate action, the tech company is simultaneously settling a nationwide lawsuit for $113 million under the same basis. [TWEET THIS]

The Cupertino, CA-based company reached a settlement with the San Diego County District Attorney’s Office, as well as the California Attorney General’s Office, Alameda, Los Angeles, Santa Clara and Santa Cruz County District Attorney’s offices. Apple Inc. will pay $4.1 million in fines to each agency.

The Consumer Protection Units of the San Diego, Los Angeles, Alameda, Santa Cruz and Santa Clara County District Attorneys’ Offices and the California Attorney General’s Office jointly conducted an extensive consumer protection investigation into the cell phone operations of Apple, Inc., focusing on Apple’s practice of providing updates to its cell phone operating systems that impaired or slowed the performance of those phones without disclosing the performance reductions to consumers.

“Our Consumer Protection team used their expertise working with colleagues across the state to reach this $24.6 million settlement against Apple, making it one of the largest consumer protection judgments in the history of local California consumer protection.” DA Summer Stephan said. “This settlement delivers justice on behalf of iPhone users and makes it clear that companies that use unfair business practices, such as throttling or slowing iPhone performance, will be held accountable.”

The civil complaint, filed in Alameda County Superior Court, alleges that Apple Inc. violated state law by failing to timely and adequately disclose that its iOS software slowed down the performance of older iPhones as their batteries aged.

Dissatisfied customers and industry experts had complained that Apple iOS updates were causing reduced performance in some iPhones. In December 2017, Apple Inc. released a statement apologizing to consumers and providing an explanation about why it slowed down the iPhones. As part of the company’s statement, it said that the iOS 10.2.1 update, which it had issued nearly a year earlier, contained power management features for certain iPhones to prevent unexpected shutdowns. The company also said a subsequent iOS 11.2 update also contained these power management features affecting other iPhones. These power management features resulted in slowing down certain iPhones and causing some users to experience longer launch times for apps, lower speaker volume, backlight dimming, and other reductions in performance. The iPhones affected by these software updates included the iPhone 6, iPhone 6 Plus, iPhone 6s, iPhone 6s Plus, first generation iPhone SE, iPhone 7, and iPhone 7 Plus.

The People alleged that Apple Inc.’s failure to disclose these features at the time iOS 10.2.1 and iOS 11.2 were released constituted an unlawful business practice and violated California’s false advertising statute. Apple Inc. did not admit that it had violated any laws, but the company cooperated with the investigation.

Under the settlement terms, Apple Inc. has agreed to maintain easily accessible and prominent webpages that provide clear and conspicuous information to consumers about lithium-ion batteries, unexpected shutdowns, and performance management.

The webpages must provide guidance to consumers on steps they can take to maximize battery health and describe the operation of performance management and its impact on iPhone battery and performance.

Additionally, Apple Inc. has agreed to notify consumers in a clear and conspicuous manner if a future iOS update materially changes performance management features. [TWEET THIS]

A separate private class action lawsuit, announced earlier this year, will provide individual consumer restitution for these practices. (See In re Apple Inc. Device Performance Litigation, Case No. 18-MD-2827-EJD, U.S. District Court for the Northern District of California). The private restitution process is separate from The District Attorney and Attorney General law enforcement action. For more information on the private settlement see: www.SmartphonePerformanceSettlement.com.

Public Encouraged to Report Suspected Fraud, Reminder Comes During International Fraud Awareness Week

Public Encouraged to Report Suspected Fraud, Reminder Comes During International Fraud Awareness Week

When a patient goes to the doctor, they expect that their doctor will only recommend treatments that are in the patient’s best interest. However, some unscrupulous doctors abuse this trust by entering into kickback arrangements with other medical providers. In these scams, a doctor receives money for every patient they refer for various services, including X-rays, MRIs, other diagnostic tests or medical equipment, whether the patient needs those services or not. This type of medical provider fraud is illegal and is just one type of fraud prosecuted by the San Diego County District Attorney’s Office. [TWEET THIS]

Operation Backlash is the codename given to the largest workers’ compensation provider fraud case ever prosecuted by the San Diego DA’s Insurance Fraud Division. Since 2015, the Insurance Fraud Division, together with the FBI and United States Attorney’s Office has charged more than 70 defendants, obtained over 55 convictions, had over $6 million dollars in restitution ordered and property forfeited, and over $1 billion in fraudulent workers’ compensation liens dismissed. This successful operation has made it clear that such provider fraud is not tolerated in San Diego County.

Insurance Fraud is the second-largest economic crime in the U.S. and costs California residents approximately $15 billion a year. To combat this ever-growing problem, the District Attorney, in conjunction with the California Department of Insurance, is shining a spotlight on this issue on social media during International Fraud Awareness Week, November 15 to 21. The goal is to minimize the impact of fraud by promoting anti-fraud awareness and education, as well as encouraging the public, employees, and businesses to report suspected fraud to authorities. For information and resources about International Fraud Awareness Week, visit www.FraudWeek.com.

“Fraud takes many shapes and forms, and our office has multiple divisions dedicated to preventing and prosecuting this crime,” said District Attorney Summer Stephan. “Whether it’s senior citizens being taken advantage of by unscrupulous life insurance agents or employees who are put in danger by the greed of unethical employers not wanting to provide the adequate workers’ compensation as required by law, we’re working to hold those who would commit fraud responsible for their crimes.”

The DA’s Insurance Fraud Division is dedicated to eradicating all types of insurance fraud, whether it relates to workers’ compensation, automobile insurance, life insurance, or fraud in the healthcare industry. The Insurance Fraud Division also prosecutes other crimes uncovered during insurance fraud investigations, including wage theft, tax evasion and even labor trafficking. The Economic Crimes Division at the District Attorney’s Office

In 2019, the DA’s Insurance Fraud Division filed criminal charges against 458 defendants and obtained 406 convictions for various insurance fraud offenses. As a result of these convictions, over $2.1 million in restitution was ordered for victims, including individuals, insurers, and state agencies.

Some examples of the types of crimes that the Insurance Fraud Division prosecutes are:

  • Workers’ Compensation Provider Fraud – When medical and legal providers, including doctors, chiropractors, and lawyers are paying or receiving kickbacks for referrals, billing for services not rendered or overbilling for services provided.
  • Workers’ Compensation Premium Fraud – When a business misrepresents its true payroll, the type of work it performs, or conceals employee injuries to pay lower workers’ compensation premiums. One of the most common premium fraud schemes occurs when employers pay employees in cash without reporting that cash payroll to the Employment Development Department and their insurer. This activity results in $7 billion in lost revenue each year and evasion of approximately $6.5 million in payroll taxes annually. Frequently, employers who commit premium fraud also engage in other crimes, including wage theft, tax evasion, and labor/human trafficking.
  • Workers’ Compensation Applicant Fraud – When employees fake or exaggerate work injuries in order to collect workers’ compensation benefits, or when employers make false statements to deny benefits to injured workers.
  • Uninsured Employers – Every business in the State of California is required to have workers’ compensation insurance to cover its employees in the event of a workplace injury. These cases are especially important because if an employee is injured at work and their employer does not have workers’ compensation insurance, the employee may have no recourse to get required care and benefits.
  • Auto Insurance Fraud – Fraudulently obtaining payment on an auto insurance policy based on false information such as inflated or faked damages, staged collisions, false claims of vehicle theft and arson. This fraud costs consumers billions of dollars each year in the form of higher insurance premiums.
  • Disability and Healthcare Fraud – This involves fraudulent medical and disability claims and policies, including medical providers who fraudulently bill insurance companies or who divert medications for personal use or sale. Healthcare fraud increases medical costs for everyone.
  • Life and Annuity Fraud – Unscrupulous life insurance agents and others who seek to steal the savings of victims through power-of-attorney abuse, securities fraud, and fraudulent claims on legitimate policies. These scams often target senior citizens, and the impact is life- altering, since seniors do not have the time or opportunity for financial recovery.

The DA’s Economic Crimes Division is responsible for prosecuting a wide variety of wrongdoing, including computer intrusion, identity theft, investment scams, embezzlements, real estate matters, counterfeit goods, environmental crimes and the theft of public assistance funds. The division also acts to protect consumers and businesses by successfully filing numerous civil cases to prohibit unfair business practices within the marketplace.

In 2019, the Economic Crimes Division filed criminal charges against 300 defendants and obtained 285 convictions. Additionally, from those convictions 136 defendants were ordered to pay more than $12 million in restitution.

Separately, the Economic Crimes Division pursued civil enforcement actions against various businesses for unfair competition or environmental violations. The Consumer and Environmental units participated in over a dozen statewide civil enforcement actions that lead to injunctive relief in all of the cases as well as millions collected in restitution, penalties and costs.

Examples of the types of cases that the Economic Crimes Division prosecutes include:

  • Real Estate Fraud – This type of crime involves various fraudulent real estate transactions and/or schemes such as the submission of forged loan applications, fraudulent transfers of title of real property, recordation of fraudulent real estate documents; home equity sale contract fraud; and mortgage foreclosure consultant fraud.
  • Computer and Technology Crimes High Tech Task Force (CATCH) – This Unit prosecutes high-technology criminals engaged in crimes where technology is the prime instrumentality of the crime, or where technology is the target of the crime, such as theft facilitated by technology, theft of technology resources, network intrusions, online harassment and stalking, as well as providing technical and investigative assistance to local law enforcement agencies with respect to digital forensics.
  • Identity Theft – These crimes usually involve criminals acquiring key pieces of someone’s identifying information to impersonate them and commit numerous forms of fraud which include taking over the victim’s financial accounts, opening new bank accounts, purchasing automobiles, applying for loans, credit cards, and social security benefits, renting apartments, and establishing services with utility and phone companies.
  • Complex Theft – These crimes commonly involve embezzlement or investment scams. Embezzlement is the fraudulent appropriation of property by a person to whom it has been entrusted. Instead of using the company’s payroll system or checking or credit card account for legitimate company business, the individual uses these accounts to steal by directing the money to his or her own accounts or to pay for personal expenses. Grand theft schemes take many forms but include scams where the perpetrator misleads individuals about an investment opportunity and instead the uses the money to support the perpetrator’s lifestyle.
  • Consumer Protection – These cases generally involve a business or an individual taking advantage of consumers. These cases can range from a business failing to warn a consumer that their credit card will be billed on an ongoing basis to a business using scanners that charge an amount over the advertised price to building contractors operating without a license. These cases also include other unfair business practices such as misleading product labeling or false advertising.
  • Environmental Protection – These cases generally involve businesses that violate rules relating to the environment such as hazardous waste disposal, underground storage tank regulations and clean air act statutes.

If you see, hear, or know of an insurance fraud scam happening in your area, please contact the DA’s Office through the Insurance Fraud hotline at (800) 315-7672 or at sdconnect@sdcda.org, or contact the California Department of Insurance at (800) 927-4357. To report fraud related to real estate, you can contact the DA’s Real Estate Fraud hotline at (619) 531-3552. To report any other type of fraud or criminal activity, please contact your local law enforcement agency.  [TWEET THIS]

Fatal DUIs Spike Amid COVID-19

Fatal DUIs Spike Amid COVID-19

San Diego County District Attorney Summer Stephan said today that over the last five months San Diego County has averaged one fatal DUI crash per week and is on target to surpass its worst record in decades. Even though non-injury DUI cases are down more than 30 percent, fatal crashes are up 33 percent with 24 deaths so far this, compared to 18 last year. In addition, blood-alcohol levels are higher than last year’s average.

The DA also announced today that her office is receiving a grant of $426,000 from the Office of Traffic Safety to prevent and prosecute impaired driving deaths. For the last seven years, cases in which someone dies at the hands of a DUI driver are investigated as potential murders, instead of approaching the case as a DUI car crash in which someone died. This higher level of investigation, prosecution and accountability is thanks to a grant from the Office of Transportation Safety, which is in its seventh year of funding the DA’s DUI Homicide Unit. To date, the organization has given more than $2.7 million in DUI grants to the DA’s Office.

“This grant will allow our DUI Homicide Unit to continue its critical public safety work,” DA Stephan said. “Even with stay-at-home orders because of the pandemic and many bars being closed, we are still on the brink of topping the highest number of deadly DUI crashes we have had in a single year. Today’s drivers know the risks and the dangers of driving under the influence of alcohol or drugs, yet they persist. Prosecuting and investigating these important cases require a specialized team of prosecutors and investigators to be able to hold offenders accountable and deter this deadly behavior.”

In addition to forming a special prosecution team, funding will be used to:

  • Develop protocols for handling cases through every step of the criminal process.
  • Provide training for prosecutors and investigators through California’s Traffic Safety Resource Prosecutor Program.
  • Host quarterly regional meetings with law enforcement partners to improve DUI investigations and prosecutions.

“If you drink or use drugs and decide to drive, you put lives at risk,” said OTS Director Barbara Rooney. “This funding from the OTS makes sure that those who make the choice to drive under the influence are held accountable for their actions.”

More than 9,406 DUI-related cases were prosecuted last year, a slight decrease from the 9,629 in 2018, a decrease of just 2.5 %. At the same time however, the District Attorney’s Office prosecuted 445 DUI with injury or fatality cases. The worst year for fatal DUI crashes was 2017, when we had 25 deaths. This year is on track to top that sad distinction.

As part of the grant and with assistance from the State’s Traffic Safety Resource Program, the DUI Homicide Unit coordinates and participates in DUI prevention and awareness in schools, military bases and colleges. It also provides training to local law enforcement agencies. Funding from this DUI Prosecution Grant will aid the District Attorney’s Office in handling cases through each step of the criminal process. This includes prosecuting both alcohol and drug-impaired driving cases. In fatal and major injury DUI vehicle collisions, members of the team may respond to the crash scene to assist in the investigation.

The DUI Homicide Unit, which launched in 2014, streamlines complex DUI cases by creating expertise within the office. The specialized unit creates uniformity in sentencing among the four adult courthouses. In addition, the unit helps law enforcement adapt to changes in technology by having a designated DA Investigator who is trained in the latest techniques in collision reconstruction. Since its inception, the unit has prosecuted more than 130 cases.

In recent years, California has seen an increase in drug-impaired driving crashes. The District Attorney’s Office supports efforts from OTS reminding the public that “DUI Doesn’t Just Mean Booze.” If you take prescription drugs, particularly those with a driving or operating machinery warning on the label, you might be impaired enough to get a DUI. Marijuana use can also be impairing, especially in combination with alcohol or other drugs, and can result in a DUI arrest and conviction.

Grant funding from the California Office of Traffic Safety through the National Highway Traffic Safety Administration will change how our office handles these challenging cases to be better, more efficient and more effective.

DA Hosts First Virtual Crime Survivor Summit to Improve Victim Services

DA Hosts First Virtual Crime Survivor Summit to Improve Victim Services

San Diego County District Attorney Summer Stephan announced today that her office is hosting a first-of-its-kind crime victim and survivor summit, which will bring together victims, survivors, service providers and stakeholders. The innovative Summit will provide educational workshops and identify gaps and needs in crime prevention, protection of victims and survivor healing. The event will be held virtually on November 9, from 9:30 a.m. to 3:30 p.m., complete with a keynote speaker and “hope talks,” akin to TED Talks. The keynote speaker is the ‘father’ of pivotal research on the impact of early childhood adverse experiences. [TWEET THIS]

Participants will come together for presentations from victims, survivors, service providers, researchers, experts and professionals that will focus on forms of victimization and trauma, including violent loss of life, domestic violence, child abuse, sexual assault, human trafficking, elder abuse, mass threat of violence and hate crimes. The goal is to transform and improve systems of care.

“As District Attorney, my mission is to pursue fair and equal justice for all and to keep our neighborhoods safe with the protection of victims as a top priority,” DA Stephan said. “During my years of fighting in the courtroom for justice, I’ve witnessed the devastation that violent crime, such as rape, murder, domestic violence, child and elder abuse, inflicts on human beings. The effects ripple throughout life and children grow up to suffer generational trauma. Leading an office that is the largest provider of victim services in the county is a heavy responsibility, and this landmark Summit will help move us forward in transforming victim services and preventing violent crime.”

Headlining the summit is keynote speaker, Dr. Vincent Felitti, the co-principal investigator of the internationally recognized Adverse Childhood Experiences Study (ACES) and Founder of the Department of Preventive Medicine for Kaiser Permanente in San Diego. Research on ACES has found that even one adverse childhood experience of trauma can have lifelong health ramifications for survivors. Dr. Felitti will share major findings from the ACES studies and provide suggestions on how the findings can be used to inform policy and programming for victim survivor services.

In addition, the Summit will incorporate the vantage points that reflect diversity in color, ethnicity and sexual orientation. San Diego County has been at the forefront of best practices in the care for victims of crime but there are critical gaps that remain and will be addressed.

At the conclusion of the Summit, a smaller number of participants that comprise diverse and inclusive representations from each group will participate in a facilitated strategic planning session, using the model of Sequential Intercept Mapping. This model has been successfully used to help transform the intersection of criminal justice, mental health and homelessness detailed in the DA’s Blueprint for Mental Health Reform.

Many other speakers are slated to speak at the Summit, including Brent King, father of slain teen, Chelsea King, former San Diego City Attorney and pioneer of the Family Justice Center, Casey Gwinn, Fernando Lopez, executive director of San Diego Pride, as well as Kimberly Giardina, Director of Child Welfare Services in San Diego County. [TWEET THIS]

DA Objects to Early Release of DUI Driver in Chicano Park Crash

DA Objects to Early Release of DUI Driver in Chicano Park Crash

A man sentenced to nine years and eight months in prison for killing four people in a DUI crash is set to be released early by the California Department of Corrections and Rehabilitation (CDCR) on Friday after serving only two years and 10 months of his sentence. Richard Anthony Sepolio, 27, was behind the wheel of a pickup truck that plummeted over the side of a transition ramp to the Coronado Bridge and landed in Chicano Park, killing four people.

Sepolio was convicted in February of last year for the October 15, 2016, crash that killed Annamarie Contreras, 50, and Cruz Contreras, 52, a married couple from Chandler, Arizona; and Hacienda Heights residents Andre Banks, 49, and Francine Jimenez, 46. Seven other people were seriously injured. Sepolio was convicted of four counts of vehicular manslaughter while intoxicated and one count of DUI causing injury.

On Monday, CDCR surprised victims in the case as well as the District Attorney’s Office by notifying them of the impending early release, citing various prison credits for good behavior as well as its policy of releasing inmates early due to the COVID-19 pandemic. There were no specific reasons cited related to this defendant.

In strongly worded letters to both Governor Gavin Newsom and CDCR Secretary Kathleen Allison, San Diego County District Attorney Summer Stephan called the early release a “miscarriage of justice,” arguing that Sepolio should not receive extra credits and an early release due to COVID-19. DA Stephan wrote that Sepolio should serve the term as originally contemplated for the safety of the public.

“This very early release is unconscionable,” DA Stephan Said. “CDCR’s decision is re-victimizing the family and friends of the four people killed and seven injured who have been devastated by their loss and continue to deal with the financial, emotional, mental and physical trauma caused by the defendant. This inmate continues to deny and minimize the crime by refusing to admit he was speeding and denying being impaired while arguing with his girlfriend on the phone, which resulted in the devastating crash.”

Sepolio was traveling between 81 and 87 miles per hour when he lost control of his vehicle. He testified that when he got onto the Coronado Bay Bridge another vehicle would not let him over into the left-hand lane, so he sped up twice to pass. When he lost control, the vehicle bounced off the inside guardrail and then veered across the lanes of traffic hitting the outside guardrail before plummeting off the bridge. The vehicle careened down into Chicano Park where there was a motorcycle rally with nearly 1,000 people present.

District Attorney and City Attorney Remind Voters of their Rights

District Attorney and City Attorney Remind Voters of their Rights

San Diego County District Attorney Summer Stephan and San Diego City Attorney Mara W. Elliott today released a “know your rights” fact sheet outlining the laws that protect voters’ ability to safely and privately cast their ballots.

The prosecutors will share the fact sheet with the public digitally, in English and Spanish. It is designed to supplement and amplify the educational outreach already being done throughout San Diego County by the Registrar of Voters.

The City and the County are both part of the San Diego Law Enforcement Coordination Center, which is tasked with investigating any reports of improprieties or violations at the polls.

“As prosecutors, we’re constantly working to prevent crime and protect the public’s safety- including protecting the rights of every voter to safely vote in San Diego County,” said San Diego County District Attorney Summer Stephan. “We are working closely with law enforcement, the U.S. Attorney and the City Attorney to ensure a civil process during and after the election and we are calling on our community to report any suspicious or unlawful activity to law enforcement. Voters should be assured that we won’t tolerate violations of state law connected to voting or polling locations, including hate crimes.”

“Every voter should feel confident in the integrity of this election,” San Diego City Attorney Mara W. Elliott said. “District Attorney Stephan and I want to make sure that the public knows that laws and procedures to protect voting rights are in place. We want to ensure votes are cast safely and that all conduct at polling places is lawful. Those who violate the law will be held accountable.”

“The close coordination between the Registrar of Voters, the District Attorney, and the City Attorney’s Office is paramount to ensuring a safe voting environment for our San Diego County voters,” said County Registrar of Voters Michael Vu. “Our collective message to all eligible voters? Your right to vote freely in this, or any election, will be protected.”

District Attorney Stephan and City Attorney Elliott urge the public to:

  • Report unauthorized guns at or outside the polls by calling 9-1-1
  • Report any illegal or fraudulent election activity to an elections official or the Secretary of State’s Office, including vandalism at polling places and tampering with election equipment.

Important contacts:

  • Registrar of Voters: (858) 565-5800
  • San Diego Law Enforcement Coordination Center: 858-495-7200 or www.SD-LECC.org
  • Secretary of State Voter Hotline: (800) 345-VOTE (8683)

CLICK HERE TO DOWNLOAD AND PRINT THE KNOW YOUR RIGHTS FACT SHEET.

DA Joins Colleagues Across California to Support Victims of Domestic Violence

DA Joins Colleagues Across California to Support Victims of Domestic Violence

San Diego County District Attorney Summer Stephan joined the District Attorneys of Sacramento, Alameda and Ventura counties, and the United States Attorneys for the Eastern District of California, Central District of California, and Southern District of California to launch an online outreach campaign to help victims of domestic violence during the COVID-19 pandemic. The District Attorneys and U.S. Attorneys are joined by Childhelp, a national nonprofit organization aiding victims of child abuse.

The outreach campaign was created to combat unintended consequences of COVID-19 public health measures— an alarming rise in domestic violence with victims trapped at home with their abusers under increasing stress. The National Domestic Violence Hotline has reported an increase in contacts to the hotline during COVID-19. Reports show that physicians are treating more domestic violence injuries and that these injuries are more severe. According to the CDC, roughly 1 in 6 homicide victims are killed by an intimate partner. In 2019, there were 17,434 domestic violence cases reported to law enforcement in San Diego County. There were 13 domestic violence homicide victims, of which the suspect was a current or former intimate partner, and 4 children. According to SANDAG, there were 8,495 domestic violence incidents reported in the first six months of 2020 compared to 8,235 reported in the first half of 2019.

“These unprecedented circumstances of the COVID-19 pandemic appear to have unleashed more domestic violence in the home with victims feeling trapped with their abusive partner and children as collateral victims,” District Attorney Summer Stephan. “We want victims to know that they are not alone and our DA Victim Services, local and national organizations and law enforcement continue to be ready, despite the pandemic, to help them get to safety and give them the help and resources they need.”

According to Childhelp Founder & CEO, Sara O’Meara, “The partnership of California’s safety leaders with Childhelp to secure children during COVID-19 is a model for child welfare across the country. All these huge hearts coming together to find children trapped in the shadows of abuse will not only save lives but create a culture of compassion that will exist long after this virus is behind us.”

The campaign includes a video public service announcement and public awareness messages posted on Facebook, Twitter, and other social media  platforms with a new post made each day for one week. The posts provide information for victims with resources, such as 24-hour hotlines and other services vital to reporting abuse. The posts also provide tips for concerned friends, relatives, and educators on how they can help victims of abuse. This outreach campaign follows a July campaign addressing domestic violence and child abuse and exploitation by U.S. Attorney Scott, ChildHelp, and the District Attorneys of San Diego, Alameda and Sacramento counties.

If you or someone you know needs help, visit PreventDV1.org for local resources or call the National Domestic Violence Hotline at 1-800-799-7233.

ed Bath & Beyond to Pay $1.49 Million for Environmental Violations

Bed Bath & Beyond to Pay $1.49 Million for Environmental Violations

District Attorney Summer Stephan, along with 30 other California District Attorneys and the Los Angeles City Attorney, announced today that a Ventura County Superior Court Judge has ordered New Jersey-based Bed Bath & Beyond, Inc. (“Bed Bath & Beyond”) to pay $1,498,750 as part of a settlement of a civil environmental prosecution.

The judgment is the culmination of a civil enforcement lawsuit filed last month in Ventura County Superior Court claiming that more than 200 Bed Bath & Beyond stores throughout the state (including Cost Plus, buybuy BABY, Harmon, Harmon Face Values, World Market, and Cost Plus World Market stores) unlawfully handled, transported and disposed of batteries, electronic devices, ignitable liquids, aerosol products, cleaning agents, and other flammable, reactive, toxic, and corrosive materials, at local landfills that were not permitted to receive those wastes.

“This judgment once again reveals how some companies doing business in California continue to ignore laws put in place to protect the environment and our community’s health and safety,” DA Summer Stephan said. “Our Environmental Protection Unit continues to work with our colleagues up and down the state to hold corporations accountable.”

The investigation was initiated by the Ventura County District Attorney’s Office after a fire broke out on December 24, 2015 at the City of Oxnard’s Del Norte Transfer Facility in a load of store waste from the trash compactor of the Oxnard Bed Bath and Beyond store. The bagged store waste burst into flames when a city employee used a front-end loader to spread the freshly dumped trash pile. Investigation recovered numerous items of regulated waste, including several electronic items and hazardous waste, including lithium batteries and a small can of lighter fluid.

About four months later, on April 14, 2016, the Oxnard Fire Department responded to a fire emergency in the trash compactor attached to the rear of the Oxnard Bed Bath & Beyond store. After that fire was extinguished, the District Attorney’s Environmental Specialist inspected the waste and again discovered numerous items of regulated waste, including batteries, broken compact fluorescent bulbs and various discarded electronic devices.

Following these events, the San Diego District Attorney’s Office joined Ventura County and 30 other prosecutorial agencies and environmental regulatory officials in conducting a series of undercover inspections of Bed Bath & Beyond store waste across the state. These inspections, and other investigation, revealed that Bed Bath & Beyond had been sending regulated hazardous wastes from stores to local landfills throughout California, including our local landfills in San Diego County. The waste included hazardous and flammable liquids, electronics and batteries. Bed Bath & Beyond operates 17 stores in San Diego County.

When notified of the investigation, Bed Bath and Beyond took steps to cooperate and to dedicate additional resources towards environmental compliance and improving its existing regulated-waste management program, including by performing regular self-audits of its compactors and waste bins in California.

Under the final judgment, Bed Bath & Beyond must pay $1,327,500 in civil penalties and as reimbursement of investigation and prosecution costs, of which $94,800 will be paid to the San Diego County District Attorney’s Office, and $18,500 to the San Diego County Environmental Health Division. The company will pay an additional $171,250 to fund supplemental environmental projects furthering environmental enforcement in California. The retailer will also be bound under the terms of a permanent injunction prohibiting similar future violations of law.

Insurance Companies Nearly $900k Sentenced

Dentist Who Bilked Insurance Companies Nearly $900k Sentenced

San Diego County District Attorney Summer Stephan announced today that a Mira Mesa dentist, who fraudulently billed multiple insurance companies $866,700 claiming she performed 800 root canals on 100 patients, some of whom never stepped foot in her dental office, was sentenced to six years in prison after pleading guilty to three counts of insurance fraud earlier this year. April Rose Ambrosio, 59, who does not have specialized training as an endodontist to perform root canals, received more than $400,000 from ten insurance companies after billing them nearly $900,000, according to the San Diego County District Attorney. She has been ordered to pay restitution in the amount of $405,633.

Ambrosio, a general dentist, fraudulently billed 10 insurance companies $866,700 from 2014 to 2018 for 800 root canals which were never done. Her deception involved billing for work on days her office was closed, or she was noted as being on vacation, and, in one case, billing for more than 100 root canals over a three-month period for a family of four. In some instances, Ambrosio billed for root canals on non-existent or missing teeth, or she double billed for teeth she previously claimed to have performed root canals on.

“The way this defendant bilked the system is astounding,” DA Stephan said. “Unfortunately, when insurance companies get ripped off, consumers ultimately pay the price through higher premiums.”

The Department of Insurance spent two years investigating this case and worked closely with the District Attorney’s Insurance Fraud Division to bring Ambrosio to justice. Investigators say she was running the billing scam for four years.

Ambrosio never billed the patients for their portion of phony dental work which she billed to the insurance companies. In addition, Ambrosio’s license to practice dentistry has been suspended since September 24, 2019.

Insurance fraud in the U.S. costs consumers about $80 to $90 billion per year. In California, it is a $15 billion-a-year problem. Insurance fraud is the second-largest economic crime in America, exceeded only by tax evasion. The District Attorney’s Insurance Fraud Division is dedicated to preventing all forms of insurance through outreach efforts, investigation and prosecution. This team handles workers’ compensation fraud, disability insurance fraud, health care insurance fraud, auto insurance fraud and life insurance and annuity product financial abuse.

Civil Penalties for Nitrous Oxide Distributor

Civil Penalties for Nitrous Oxide Distributor

San Diego County District Attorney Summer Stephan announced today a $50,000 civil judgment against nitrous oxide distributor United Brands Products Design, Development and Marketing, Inc. (United Brands) of South San Francisco. The consumer protection civil action was brought by the San Diego County District Attorney’s Office and the San Mateo County District Attorney’s Office. The case was investigated by the U.S. Department of Homeland Security Investigations. [TWEET THIS]

United Brands does business under the brand name Whip-It! The civil complaint alleges that it engaged in unlawful business practices by selling nitrous oxide cartridges through its on-line retail store without verifying the purchaser was not a minor or providing any of the California mandated health and safety warnings.

Nitrous oxide is considered a dangerous and hazardous oxidizing gas and is a central nervous system depressant when inhaled. Beyond feelings of euphoria, nitrous oxide inhalation may cause drowsiness and dizziness and suffocation. The recreational use of nitrous oxide has been regulated in California since 2015 by Penal Code section 381e. The non-medical, recreational use of nitrous oxide has been known over the years by different slang terms including hippie crack, NOS, NOX and Whip-its (the defendant’s brand name).

“The DA’s Consumer Protection Unit safeguards the health of all of us in San Diego County, and this specific case goes further, protecting kids who might be tempted to use this dangerous gas to get a cheap high,” DA Stephan said. “The judgment will ensure this company isn’t selling to children and should alert parents who might not be familiar with the recreational use of nitrous oxide.”

Homeland Security Investigations initiated an investigation into the unlawful sale and distribution of nitrous oxide in 2018 in San Diego County. During the investigation United Brands was identified as one of the distributors of nitrous oxide to smoke shops in San Diego County. Further online investigation revealed that the age of the purchaser was never determined prior to purchase, the legal age in California to purchase nitrous oxide is 18-years old because of the potential abuse of the gas. [TWEET THIS]

“Nitrous oxide is a dangerous inhalant when used for recreational purposes, and we want to ensure the parents and the general public are aware that its abuse can be dangerous and potentially life-threatening,” said Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI). “Today’s judgement demonstrates the commitment of HSI, the District Attorney’s office, and our law enforcement partners to investigating and prosecuting companies that put their own profits above the health and safety of our communities.” [TWEET THIS]

The following mandated health and safety warnings were also not provided to consumers by United Brands:

  1. That inhalation of nitrous oxide outside of a clinical setting may have dangerous health effects;
  2. That it is a violation of state law to possess nitrous oxide or any substance containing nitrous oxide, with the intent to breathe, inhale, or ingest it for the purpose of intoxication;
  3. That it is a violation of state law to knowingly distribute or dispense nitrous oxide or any substance containing nitrous oxide, to a person who intends to breathe, inhale, or ingest it for the purpose of intoxication.

The complaint was filed in the San Mateo County Superior Court. The stipulated judgment resolving the case was entered on October 19, 2020. The judgment requires United Brands to comply with the age verification and disclosure requirements and the payment of $50,000 in civil penalties. United Brands cooperated in the resolution of the case. [TWEET THIS]