Bipartisan Group of 51 AGs Supports FCC’s Efforts to Speed Up Adoption of Anti-Robocall Technology

• The National Association of Attorneys General (“NAAG”) sent a comment letter to the Federal Communications Commission (“FCC”) in support of the FTC’s Third Further Notice of Proposed Rulemaking under the Pallone-Thune Telephone Robocall Abuse Criminal Enforcement and Deterrence Act (“TRACED Act”), urging the FCC to move up the deadline for certain smaller telephone companies to implement mandated anti-robocall ID technology.
• The comment letter, which was signed by 51 AGs, notes that under the TRACED Act, all telephone companies are required to implement caller ID authentication technology, known as STIR/SHAKEN technology, on their networks to help ensure that calls originate from verified, non-spoofed numbers. While large companies were required to implement the technology by June 2021, smaller phone companies with 100,000 voice subscriber lines or fewer were given an extension until June 2023. But the FCC found that some of the smaller companies given the extension were responsible for the origination or facilitation of high volumes of illegal robocalls, accounting for over 95% of likely robocalls in the United States.
• The letter supports the FCC’s proposed rulemaking that will require smaller telephone companies responsible for the origination or facilitations of high volumes of calls to implement the STIR/SHAKEN technology by June 30, 2022.

New Republican Challenger Enters the Race for Michigan Attorney General

• Michigan Republican State Representative Ryan Berman announced his candidacy for the Republican nomination in the 2022 election for Michigan AG.
• As previously reported, incumbent Michigan Democratic AG Dana Nessel is seeking reelection for a second term. In addition, private-practice attorney Matthew DePerno, who was one of the attorneys who challenged in court the 2020 presidential election results in northern Michigan’s Antrim County, is also running for Michigan AG, although he has not yet specified his party affiliation.
• To “meet” the state AGs across the nation and read more AG election news and insights, visit The State AG Report.

Democratic Attorneys General Voice Strong Support for the PRO Act

• A group of 17 Democratic AGs, led by California AG Rob Bonta, sent a letter to U.S. Senate leaders urging the Senate to pass the Protecting the Right to Organize Act of 2021 (“PRO Act”), intended to strengthen unions and modernize the National Labor Relations Act.
• The letter argues that the decline in union participation in the United States significantly contributes to the decline in real wages and working conditions for the U.S. workforce, and that the PRO Act is intended to curb abusive corporate practices designed to weaken unions and discourage labor organizing. The letter further argues that the PRO Act will help diminish inequality in the workplace, including racial and gender disparities.
• As previously reported, a group of 14 Republican AGs, led by South Carolina AG Alan Wilson, sent a letter opposing the PRO Act, arguing that the bill would undermine state “right-to-work laws” and increase the likelihood that employees will be coerced into joining unions and pay dues in order to keep their jobs.

Water Cure: Florida Company Sued over False Marketing Claims Relating to Health Benefits of Hydrogen-Enriched Water

• Florida AG Ashley Moody sued drinking-water system marketer Wellness Program Services, LLC d/b/a Trusii and related entities and individuals (collectively “Trusii”) over allegations that it used false and misleading health benefits claims and finance offers to market its systems in violation of the Florida Deceptive and Unfair Trade Practices Act and the Consumer Review Fairness Act.
• The complaint alleges that Trusii falsely claimed that its molecular hydrogen water systems, for which it charged thousands of dollars, could provide health benefits for over 170 medical conditions, including cancer, COVID-19, depression, and diabetes. Trusii also allegedly did not deliver many machines for months after customers began paying monthly installments for them, and often delivered inoperable or broken machines, and it did not honor its money-back and repair or replacement guarantees. In addition, Trusii allegedly offered consumers the option of enrolling in a case-study program in which they would be compensated on a regular basis for positive reviews, while in reality such compensation was sporadically paid or never paid at all.
• The complaint seeks injunctive relief, restitution, disgorgement, civil money penalties, and attorneys’ fees and costs, among other things.

Trucking Company Pays $2.38 Million to Resolve Allegations of Faking Compliance with Emissions Standards

• California AG Rob Bonta reached a settlement with trucking company Complete Logistics Company, LLC (“CLC”) to resolve allegations that it falsely certified compliance with California emissions regulations to obtain state grants in violation of the California False Claims Act.
• According to the AG’s office, CLC personnel falsely certified that it complied with state emissions standards to obtain $2.2 million in grants under the Goods Movement Emission Reduction Program, which incentivizes trucking companies to reduce emissions and invest in newer, cleaner trucks. The false certification was discovered through an audit by the California Air Resources Board (“CARB”), which is responsible for administering the incentive program.
• Under the terms of the settlement agreement, CLC will pay approximately $2.38 million in restitution, of which 90% will be received by CARB and 10% by the AG’s office. Upon payment of the settlement amount, CLC will be eligible to apply for and receive future incentive funds from CARB programs.

Owner of Payroll Companies Laundered over $1 Billion in Money Stolen from Client-Employers

• New York AG Letitia James announced that the owner of several payroll companies, Michael T. Mann, pleaded guilty to and was sentenced for one felony count of Money Laundering in the First Degree for laundering funds stolen from employers, employees, financial institutions, and financing companies.
• The complaint alleged, among other things, that Mann diverted tens of millions of dollars in payroll funds entrusted to his companies by thousands of client-employers nationwide for paychecks and taxes, and that he used these funds to meet the financial obligations of his businesses, including paying down business loans and lines of credit. Mann’s money-laundering activities through illegal transfers between the accounts of his various businesses amounted to over $1 billion.
• According to the AG’s office, under the terms of the plea deal, Mann pleaded guilty to the money laundering count and was ordered to pay more than $100 million in restitution. In addition, the Saratoga County Court sentenced Mann to 8 to 24 years in state prison.