2012 New York Consolidated Laws
EXC - Executive
Article 7-A - (171-A - 177) SOLICITATION AND COLLECTION OF FUNDS FOR CHARITABLE PURPOSES
175 - Enforcement by attorney general.

 
    § 175. Enforcement  by attorney general. 1. An action for violation of
  this article may be prosecuted by the attorney general, or  his  deputy,
  in  the  name  of  the  people of the state, and in any such action, the
  attorney general or his  deputy,  shall  exercise  all  the  powers  and
  perform  all  duties  which  the  district  attorney  would otherwise be
  authorized to exercise or to perform therein.
    2. In addition to any other action or proceeding authorized by law and
  any action or proceeding by the attorney general, the  attorney  general
  may  bring  an action or special proceeding in the supreme court, in the
  name and in behalf of the people of the state of  New  York,  against  a
  charitable  organization  and  any other persons acting for it or in its
  behalf to enjoin such organization and/or persons  from  continuing  the
  solicitation  or  collection of funds or property or engaging therein or
  doing any acts in furtherance thereof, and to  cancel  any  registration
  statement  previously  filed  with the attorney general pursuant to this
  article and for an order awarding restitution and damages, penalties and
  costs; and removing any director or other  person  responsible  for  the
  violation  of  this  article;  dissolving a corporation and other relief
  which the court may deem proper, whenever  the  attorney  general  shall
  have reason to believe that the charitable organization or other person:
    (a)  is  violating  or  has  violated  any  of  the provisions of this
  article;
    (b) has refused or failed,  or  any  of  its  principal  officers  has
  refused  or  failed,  after  notice,  to  produce  any  records  of such
  organizations;
    (c) is employing or about to employ, or there is employed or about  to
  be  employed,  in  any  solicitation  or  collection  of  funds or other
  property for such  organization,  any  device,  scheme  or  artifice  to
  defraud or for obtaining money or property by means of a false pretense,
  representation or promise;
    (d)   has   made   a  material  false  statement  in  an  application,
  registration or statement required to be filed pursuant to this article;
    (e) (i) has failed or is failing to apply the funds solicited from the
  public in a manner substantially consistent with its charitable purposes
  or solicitation  or  has  engaged  in  repeated  fraudulent  or  illegal
  activities,  acts  or  conduct  in  connection with the solicitation for
  charitable purposes; (ii) or, in the case of a law  enforcement  support
  organization, has failed or is failing to apply the funds solicited from
  the public in a manner substantially consistent with the purposes of the
  solicitation   or   has   engaged  in  repeated  fraudulent  or  illegal
  activities, acts or conduct in  connection  with  the  solicitation  for
  purposes of the law enforcement support organization;
    (f)  violates  any order or determination made by the attorney general
  pursuant to the provisions of this article;
    (g) has  used  or  intends  to  use  false  or  materially  misleading
  advertising  or promotional material in connection with any solicitation
  or with any commercial co-venture or fails to disclose  the  information
  required  to be disclosed pursuant to section one hundred seventy-four-b
  of this article; or
    (h) is a law enforcement support  organization  and  is  employing  or
  about  to  employ,  or there is employed or about to be employed, in any
  solicitation  or  collection  of  funds  or  other  property  for   such
  organization, any device, scheme or artifice to defraud or for obtaining
  money  or  property  by  means  of  a  false pretense, representation or
  promise which shall include,  without  limitation,  making  any  of  the
  following   representations:  (i)  that  professional  fund  raisers  or
  solicitors are police officers  or  employees  of  any  law  enforcement
  agency,  (ii)  that  funds  collected  will  be  used  to aid widows and

  children of police officers slain in the line of duty or for  any  other
  charitable program unless the organization is actually engaged in such a
  program,  (iii)  that  contributors  will  receive special benefits from
  police  officers,  and  (iv)  that contributions are tax deductible as a
  charitable contribution or as a business expense unless they so  qualify
  under the applicable provisions of the internal revenue code.
    In  connection  with  such  proposed action or proceeding the attorney
  general is authorized to take  proof,  issue  subpoenas  and  administer
  oaths in the manner provided in the civil practice law and rules.
    3.  Upon  a  showing  by the attorney general in an application for an
  injunction that any person engaged in solicitation has been convicted in
  this state or elsewhere of a felony or of a  misdemeanor  involving  the
  misappropriation,  misapplication  or misuse of the money or property of
  another, and who  has  not,  subsequent  to  such  conviction,  received
  executive  pardon  therefor or a certificate of relief from disabilities
  or a certificate of good conduct pursuant to article twenty-three of the
  correction law, the supreme court, after  a  hearing,  may  enjoin  such
  person from engaging in any solicitation.
    4.  The  attorney  general  may exercise the authority granted in this
  section against any charitable organization  which  operates  under  the
  guise or pretense of being an organization exempted by the provisions of
  section  one hundred seventy-two-a of this article and is not in fact an
  organization entitled to such an exemption.
    5. Whenever the attorney general shall have reason to believe that any
  professional fund-raiser, fund raising counsel,  professional  solicitor
  or commercial co-venturer is operating in violation of the provisions of
  this  article,  or  has  made  any  false  statement in any application,
  registration or statement required to be filed pursuant to this article,
  or if any professional fund-raiser, fund raising counsel, or  commercial
  co-venturer  has refused or failed, after notice, to produce any records
  demanded of him, or there is employed or is about to be employed in  any
  solicitation   or  collection  of  contributions  for  a  charitable  or
  religious organization any device, scheme or artifice to defraud or  for
  obtaining   money   or   property   by  means  of  any  false  pretense,
  representation or promise, in addition to any other action or proceeding
  authorized by law, he may bring  in  the  supreme  court  an  action  or
  proceeding in the name, and on behalf, of the people of the state of New
  York  against  such  professional  fund-raiser,  fund  raising  counsel,
  commercial co-venturer, professional solicitor, and any other person who
  has participated or is about to  participate  in  such  solicitation  or
  collection   by   employing   such   device,   scheme,  artifice,  false
  representation or promise, to enjoin such professional fund-raiser, fund
  raising counsel,  commercial  co-venturer,  professional  solicitor,  or
  other person from continuing such solicitation or collection or engaging
  therein  or  doing  any  acts  in  furtherance thereof, or to cancel any
  registration statement previously filed with the attorney general.
    6. Whenever the attorney general has determined to commence an  action
  under  this article, he may present to any justice of the supreme court,
  before beginning such action, an application in  writing  for  an  order
  directing  the  person or persons mentioned in the application to appear
  before the justice of the supreme court or referee  designated  in  such
  order and answer such questions as may be put to them or to any of them,
  or  to produce such papers, documents and books concerning the practices
  to which the action which he has determined to  bring  relates,  and  it
  shall  be  the  duty  of  the  justice of the supreme court to whom such
  application for the  order  is  made  to  grant  such  application.  The
  application  for such order made by the attorney general may simply show
  upon his information and belief that the testimony  of  such  person  or

  persons  is material and necessary. The provisions of the civil practice
  law  and  rules  relating  to  an  application  for  an  order  for  the
  examination  of  witnesses  before the commencement of an action and the
  method  of  proceeding  on  such  examination, shall not apply except as
  herein prescribed. The order shall be granted  by  the  justice  of  the
  supreme   court  to  whom  the  application  has  been  made  with  such
  preliminary injunction or stay as may  appear  to  such  justice  to  be
  proper and expedient and shall specify the time when and place where the
  witnesses  are  required  to  appear. The justice or referee may adjourn
  such  examination  from  time  to  time  and   witnesses   must   attend
  accordingly. The testimony of each witness must be subscribed by him and
  all must be filed in the office of the clerk of the county in which such
  order  for  examination is filed. The order for such examination must be
  signed by the justice making it and service of a copy  thereof  with  an
  endorsement  by the attorney general signed by him or his deputy, to the
  effect that the person named  therein  is  required  to  appear  and  be
  examined  at  the  time  and  place  and  before  the justice or referee
  specified in such  endorsement,  shall  be  sufficient  notice  for  the
  attendance of witnesses. Such endorsement may contain a clause requiring
  such  person  to  produce  at  such  examination  all  books, papers and
  documents in his possession or under his control relating to the subject
  of such examination. The order shall be served upon the person named  in
  the  endorsement  aforesaid  by  showing  him  the  original  order  and
  delivering to and leaving with him at the  same  time  a  copy  thereof,
  endorsed  as  above  provided, and by paying or tendering to him the fee
  allowed by law to witnesses subpoenaed to attend trials of civil actions
  in any court of record in this state.
    7. In addition to any other action authorized  by  law,  the  attorney
  general  may  bring an action or special proceeding in the supreme court
  to recover any civil penalties assessed by the attorney general.
    8. Nothing contained in section  one  hundred  seventy-seven  of  this
  article  shall  prevent,  limit,  restrict, impede or delay the attorney
  general  from  instituting,  at  any  time,  any  action  or  proceeding
  authorized  by  the  provisions of this article or any other appropriate
  law, as he may deem necessary.