N.Y. Executive Law § 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.