Attorney General Frosh Announces Settlement with …

Attorney General Frosh Announces Settlement with Neiman Marcus Over 2013 Data Breach

Neiman Marcus Must Pay $1.5 Million to the States; More Than 8,000 Marylander Consumers' Payment Data Compromised

BALTIMORE, MD (January 8, 2019) - Maryland Attorney General Brian E. Frosh announced today that he, along with the Attorneys General of 42 other states and the District of Columbia, has reached a settlement with The Neiman Marcus Group, LLC. Under the terms of the settlement, Neiman Marcus has agreed to pay $1.5 million and implement a number of policies to resolve a multistate investigation into the 2013 breach of customer payment card data at 77 Neiman Marcus stores.

The breach took place over the course of several months and compromised the names and payment card data collected at Neiman Marcus retail stores throughout the United States. The states' investigation determined that approximately 370,000 payment cards were compromised, including 8,323 associated with Maryland consumers. At least 9,200 of the payment cards compromised in the breach were used fraudulently.

"Businesses that collect and hold consumers' payment card data have a responsibility to make sure that data is protected from hackers," said Attorney General Frosh. "This settlement requires Neiman Marcus to bolster its protection of consumers' information to prevent a breach like this from reoccurring."

In addition to the monetary settlement, Neiman Marcus has agreed to a number of injunctive provisions aimed at preventing similar breaches in the future, including:

Complying with Payment Card Industry Data Security Standard (PCI DSS) requirements; Maintaining an appropriate system to log and monitor its network activity; Maintaining working agreements with two qualified Payment Card Industry forensic

investigators, operating separately, to allow for speedy investigation and remediation of any future concerns; Updating all software associated with maintaining and safeguarding personal information; Implementing appropriate industry-accepted payment security technologies relevant to the company's business; and Use technologies like encryption and tokenization to obscure payment card data.



Under the settlement, Neiman Marcus is also required to obtain an information security assessment and report from a third-party professional, and detail any corrective actions that the company may have taken or plans to take as a result of this report.

The Maryland Attorney General's Office was a member of the Executive Committee that led the investigation.

Information on how to protect your identity and what to do in the event of a data breach can be found in the Maryland Office of Attorney General's Identity Theft Guide. Consumers who believe they may be a victim of identity theft should contact the Attorney General's Identity Theft Unit at 410-576-6491 or by sending an email to idtheft@oag.state.md.us.

In making today's announcement, Attorney General Frosh thanked Assistant Attorney General Richard Trumka, Jr. for his work on the case.

Attorney General Frosh Announces Wells Fargo Consumer Redress Review Program

Program Allows Consumers Not Assisted Through Other Remediation Programs to Have Complaint Reviewed

BALTIMORE, MD (February 27, 2019) ? Maryland Attorney General Brian E. Frosh today announced that Wells Fargo has begun a consumer redress review program through which consumers who have not yet been made whole through other remediation programs already in place can seek to have their inquiry or complaint reviewed by a Wells Fargo escalation team for possible relief.

"Through this program, all affected consumers have an opportunity to have their claims reviewed," said Attorney General Frosh. "Not one customer who was wronged should slip through the cracks."

The consumer redress review program was a key component of the December 2018 settlement with the attorneys general of all 50 states and the District of Columbia to resolve claims that the bank violated state consumer protection laws by

Opening millions of unauthorized accounts and enrolling customers into online banking services without their knowledge or consent;

Improperly referring customers for enrollment in third-party renters and life insurance policies;

Improperly charging auto loan customers for force-placed and unnecessary collateral protection insurance;

Failing to ensure that customers received refunds of unearned premiums on certain optional auto finance guaranteed asset/auto protection (GAP) products; and,

Incorrectly charging customers for mortgage rate lock extension fees.

As part of the program, Wells Fargo is maintaining a website that describes the issues covered by the settlement agreement and provides information regarding consumers' eligibility for redress and the escalation phone numbers consumers may use to request review. In addition, Wells Fargo will provide periodic reports to the states about ongoing remediation efforts. Wells Fargo's redress website address is mitment/redress.

Consumers with questions or concerns may call the following Wells Fargo escalation phone numbers for more information:

Unauthorized Accounts/Improper Retail Sales Practices: 1-844-931-2273



 Improper Renters and Life Insurance Referrals: 1-855-853-9638 Force-Placed Collateral Protection Auto Insurance ("CPI"): 1-888-228-9735 Guaranteed Asset/Auto Protection ("GAP") Refunds: 1-844-860-6962 Mortgage Interest Rate Lock Extension Fees: 1-866-385-5008

Consumers may also call the Attorney General's consumer protection hotline at 410-528-8662 or 888-742-0023.

Brian E. Frosh Attorney General

Media Contact: Press@oag.state.md.us

410-576-7009

Press Release

Attorney General Frosh Announces Settlement with Residential Real Estate Management Company

BALTIMORE, MD (March 29, 2019) ? Maryland Attorney General Brian E. Frosh today announced that his Consumer Protection Division has entered into a settlement with Cole Property, LLC and its owner for alleged violations of Maryland's Security Deposit Law.

Cole Property, which manages nine row homes in Baltimore City, had included two terms in its form leases that allegedly violated Md. Code Ann., Real Property ? 8-203 ("Security Deposit Law"):

? Making a portion of the security deposit nonrefundable; and ? Conditioning the return of consumer's security deposits on their providing advanced

notice of the termination of their leases.

The landlord also allegedly charged more for dishonored checks than was permitted under Maryland law. In the settlement, Cole Property and its owner agree to discontinue the practices that violate the Security Deposit Law and to stop charging excessive fees for dishonored checks, to return any illegal payments to their tenants, and to pay a penalty of $2,500.00.

Consumers with questions about this settlement may call the Attorney General's consumer protection hotline at 410-528-8662 or 888-742-0023.

###



Attorney General Frosh Charges Company with Making Predatory Loans

Consumer Protection Division Files Charges Against Cash-N-Go, Inc., Cash-NGo Pawnbrokers LLC, and Brent M. Jackson for Allegedly Making Unlicensed

and Usurious Loans to Maryland Consumers

BALTIMORE, MD (April 11, 2019) ? Maryland Attorney General Brian E. Frosh announced today that his Consumer Protection Division has filed charges against Cash-N-Go, Inc., Brent M. Jackson, and related businesses owned and operated by Jackson under the "Cash-N-Go" name for allegedly making unlicensed and usurious consumer loans, referred to as "title loans" or "title pawns," which put vulnerable Maryland consumers at risk of losing their motor vehicles.

According to the Division's charges, Jackson and his companies--which include Cash-N-Go, Inc., Cash-N-Go Pawnbrokers LLC, and Cash-N-Go Pawnbrokers, Inc.--offered consumers short-term, high-interest loans secured by the consumer's motor vehicle. Cash-N-Go would keep the title to the vehicle, and if the consumer failed to make a payment on the loan, the vehicle could be repossessed and sold. According to the charges, such "title loans" or "title pawns" are consumer loans under Maryland law and are subject to Maryland's licensing requirements and interest rate caps. However, the charges allege that Jackson and his companies were never licensed by the Maryland Commissioner of Financial Regulation to make consumer loans in Maryland, and that their loans were highly usurious, typically charging an annual interest rate of 360%--more than 10 times the state's legal rate of interest for consumer loans.

"Maryland's usury laws protect consumers from companies charging outrageous and unlawful amounts of interest," said Attorney General Frosh. "Title lending requires particular scrutiny, since the loans are often made to vulnerable consumers who risk losing their only means of transportation if they fail to repay their loan."

A hearing on the Division's charges has been scheduled for June 25-27, 2019, at the Office of Administrative Hearings in Hunt Valley, Maryland. The Division is seeking an order compelling Jackson and his Cash-N-Go companies to permanently cease and desist from making unlicensed and usurious consumer loans in Maryland, to pay restitution to all affected consumers, and to pay civil penalties.

Consumers with complaints against Brent M. Jackson, Cash-N-Go, Inc., Cash-N-Go Pawnbrokers LLC, or Cash-N-Go Pawnbrokers, Inc. may call or write to the Consumer Protection Division at 410-576-6569 or 200 St. Paul Place, 16th Floor, Baltimore, MD 21202.



Attorney General Frosh Announces Settlement with Reverse Mortgage Servicer Compulink Corporation/DBA Celink

Celink Refunds or Credits Illegal Inspection Fees, Will Pay Penalties and Costs

BALTIMORE, MD (April 16, 2019) ? Maryland Attorney General Brian E. Frosh announced today, in cooperation with the Commissioner of Financial Regulation, a settlement agreement with Compulink Corporation, DBA Celink, resolving allegations that it charged homeowners illegal inspection fees.

Celink is a non-bank servicer of reverse mortgage loans and arranges for inspectors to visit properties in default on their mortgage loans. Although Maryland law prohibits passing the cost of inspections onto homeowners, the Consumer Protection Division alleged that Celink continued to charge the inspection costs to homeowners until January 2017. Celink has refunded or credited homeowners more than $43,900 in prohibited inspection fees.

"Celink's property inspections serve the interests of the lenders, not the homeowners," said Attorney General Frosh. "Our settlement puts an end to the practice of charging homeowners the cost of inspections, and returns the money to homeowners that they were wrongfully charged."

Under the terms of the settlement, Celink agrees to comply with Maryland law with respect to inspection fees, to refund inspections fees to the extent that they have not been refunded, and to pay $50,000 in penalties and $5,000 in costs.

In addition to the settlement, the Commissioner of Financial Regulation, which licenses Celink, received similar assurances from the company that it had updated its procedures and ceased charging these fees.

Consumers with questions about this settlement may contact the Consumer Protection Division at 410-528-8662 or toll-free at 888-743-0023.



Settlement Announced in Cash on Delivery Charity Scam

Man Permanently Banned By Maryland Officials From Charitable Soliciting After Using Fake Law Enforcement Charities to Solicit Donations

BALTIMORE, MD (April 17, 2019) ? Maryland Attorney General Brian E. Frosh and Secretary of State John C. Wobensmith today announced a settlement agreement in a case against Stephen D. Everhart, Lion Fundraising, Police Journal and Fire Yearbook, and Lion Fraternal Order of Police Assistance Fund LLC.

An investigation into Everhart and Lions Fundraising revealed that the scam dated back several years, and that Everhart used the donations instead to pay himself, and not to benefit any real law enforcement or fire organization. Everhart used the following fake names to solicit for donations: McKimmie-Catterton Maryland Police Post 2979, Anne Arundel Police Post 2979, Firefighters Association, Maryland Fire Post, Coalition of Police, Anne Arundel Police Stronger Than Drugs, D.C. Police Assistance Funding, D.C. Police Association Blue Santa Drive, FOP Fundraising, Lion Charitable Fundraising, Lion Charitable Funding, Lion Fraternal Order of Police, Lion Police Fire Veterans Fundraising, Lion United Funds, Maryland Law Enforcement Fund, Police Fire Post, Police Fire Veterans Assistance Fund 2979, Police Fire Veterans Assistance Fund, and Veterans of Foreign Wars Post 2979.

"Mr. Everhart's actions hurt real charities," said Attorney General Frosh. "He preyed upon the public's good will and desire to support law enforcement and first responders so that he could line his own pockets."

As a result of the investigation, on September 28, 2018, the Secretary of State issued a cease and desist order citing multiple violations of the Maryland Solicitations Act including Everhart's failure to register as a charitable organization or as a paid fundraiser, as required by the law.

"Our office is committed to protecting Maryland from those who use deceit to divert charitable donations," said Secretary of State John C. Wobensmith. "We encourage citizens to report any suspicious charities or fundraisers to our office, and research the registration and financial information of a charity.

The settlement announced today includes a permanent, lifetime ban against Everhart from operating or founding any charitable organization, from fundraising for any charitable organization, and a permanent ban from working for any charitable



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