Announcements, information & updates from the Attorney General Alliance Members and Associates
November 12, 2021
ATTORNEY GENERAL NEWS
BANKRUPTCY VENUE REFORM ACT OF 2021 SUPPORTED BY 43 STATE ATTORNEYS GENERAL
A coalition of 43 states and territories to include Connecticut, Maryland, Ohio, Texas, Alaska, Arizona, Arkansas, California, Colorado, District of Columbia, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, New Mexico, New York, North Dakota, Oklahoma, Oregan, Pennsylvania, Puerto Ric, Rhode Island, South Carolina, South Dakota, Tennessee Utah, Vermont, Washington, West Virginia, Wisconsin, and Wyoming joined together to support the Bankruptcy Venue Reform Act. Currently, individuals can file for bankruptcy only in the district where they reside, but corporations are permitted to file wherever an affiliated entity is incorporated. This can lead to rampant forum shopping by corporations filing in bankruptcy court jurisdictions that feature favorable laws. Congressional passage of the Bankruptcy Venue Reform Act would curb such abuse. The bipartisan legislation would end “forum shopping” and prevent corporations from choosing to file for bankruptcy in whichever district is believed to be more favorable.

Currently, incorporations may file bankruptcy in any district in which they are incorporated, have their principal place of business or assets, or in any district where an affiliate has been created or located. This leaves corporations with a wide choice of possible venues, which can be manipulated to their advantage.

In the letter, the attorneys general contend that passage of the legislation will, reduce forum shopping in the bankruptcy system; strengthen the integrity of, and build public confidence and ensure fairness in, the bankruptcy system, and help consumers and other parties to be represented in court without undue burden, as well as level the playing field for state attorneys general to guard their states’ financial interests and enforce consumer protection laws.
LAWSUITS CHALLENGE VACCINE MANDATE
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Texas, Florida, Missouri, and 23 other states have sued to block the vaccine mandate requiring that large companies have their workers vaccinated against COVID-19 or submit to regular testing.

Missouri Attorney General Eric Schmitt co-led an eleven-state coalition with Montana, Arizona, and Nebraska in filing a lawsuit in the U.S. Court of Appeals for the Eighth Circuit. The Occupational Safety and Health Administration published its emergency regulation shortly after Missouri’s announcement. OSHA issued the rule, which applies to companies with at least 100 workers, under its authority to create emergency temporary standards that are necessary to address a “grave danger.”

A group of five states led by Texas filed in the Fifth Circuit, three states led by Florida filed in the Eleventh Circuit, and seven states led by Kentucky filed in the Sixth Circuit.
 
“The federal government should not be forcing private employers to require their employees to get vaccinated or foot the cost to test those employees weekly,” Missouri Attorney General Eric Schmitt said in a statement.

Missouri’s petition alleges that OSHA lacks the statutory authority to issue the rule that goes beyond workplace safety and into public health policy. More broadly, its petition claims that the federal government’s attempt to mandate vaccinations goes beyond it’s constitutional authority and infringes on states’ police powers reserved by the Tenth Amendment.

Missouri’s petition was joined by Arizona, Nebraska, Montana, Arkansas, Iowa, North Dakota, South Dakota, Alaska, New Hampshire, and Wyoming. A handful of businesses and organizations also joined the petition, including the Christian Employers Alliance and the Home School Legal Defense Association.

Texas’s petition included Louisiana, Mississippi, South Carolina, and Utah, as well as several businesses. Florida’s petition was joined by Alabama and Georgia, and also included industry associations, businesses, and private schools. This petition proved to be successful. At the 5th Circuit, the three-judge panel that issued the temporary order said the challengers give “cause to believe there are grave statutory and constitutional issues” with the mandate.

Kentucky’s petition was joined by Idaho, Kansas, Ohio, Oklahoma, Tennessee, and West Virginia.

Separately, but related, a coalition of 10 states filed a lawsuit Wednesday to challenge a federal vaccine requirement for most workers in healthcare settings — the latest in an increasingly complex web of lawsuits. The latest lawsuit was filed in the U.S. District Court for the Eastern District of Missouri on behalf of the states of Missouri, Nebraska, Arkansas, Kansas, Iowa, Wyoming, Alaska, South Dakota, North Dakota, and New Hampshire.
HUMAN TRAFFICKING & SEX CRIMES
Mississippi Attorney General Lynn Fitch announced recent successful human trafficking operations in Rankin, Hinds, and Lincoln Counties. Together, they recovered five trafficking victims, including one minor, who were offered care and assistance. These operations included recently trained investigators with local law enforcement agencies.

“Trafficking is a multi-billion-dollar international criminal enterprise, and it can regrettably be found in communities all across our great State,” said Attorney General Lynn Fitch. “We are committed to shutting traffickers down in Mississippi and helping their victims recover without shame or blame, but this is going to take a statewide network of law enforcement officers who are trained in carrying out trafficking operations and providing support for those recovered. The Mississippi Bureau of Investigation, a division of the Mississippi Department of Public Safety, will continue to partner with the Attorney General’s office to prevent human trafficking, prosecute those involved in human trafficking, and protect the victims of human trafficking.”

“The collaboration between law enforcement and victim services is key to effective human trafficking investigations,” said Sandy Middleton, Executive Director for the Center for Violence Prevention. “Due to the expertise and specialized training these law enforcement investigators possess, they are able to quickly recognize indicators for trafficking and alert a rapid response from certified advocates. Once victim services are engaged, the emergent response allows for immediate screening of potential victims and the best opportunity for victims to engage in services through the Tower program at the Center for Violence Prevention or another partner agency.”
Vermont Attorney General T.J. Donovan and his office announced that Travis Lathe-Godfrey, 26, of Hardwick, Vermont, was arraigned on November 3, 2021, on one felony count of Promoting a Recording of Sexual Conduct by a Child. According to documents filed with the Court, the Vermont Internet Crimes Against Children Task Force (VT-ICAC) received a cyber tip from the National Center for Missing and Exploited Children, which indicated that someone had used the social media website Facebook to send an electronic file containing child sexual assault material. VT-ICAC subsequently identified the user as Mr. Lathe-Godfrey after executing online and residential search warrants.

Mr. Lathe-Godfrey pleaded not guilty at his arraignment in the Orleans Criminal Division of Vermont Superior Court. The Court, Judge Lisa A. Warren presiding, released Mr. Lathe-Godfrey on conditions of release, which include limitations on his access to children and the internet.

The charge brought against Mr. Lathe-Godfrey stems from an investigation conducted by the Attorney General’s Office, VT-ICAC, Vermont State Police, Homeland Security Investigations, the Burlington Police Department, and the Hardwick Police Department.
Michigan Attorney General Dana Nessel announced that a former priest in Oakland County has pleaded guilty to sex abuse. Gary Berthiaume, 79, was sent to trial in July by Judge James Brady in Oakland County's 47th District Court on two counts of second-degree criminal sexual conduct (CSC), 15-year felonies. 

In June, Berthiaume was charged with additional felonies in two new cases. Both cases were sent to trial by the end of September. All three cases stem from allegations of abuse in the 1970s involving three different victims who were between 13- and 15-years-old at the time. Berthiaume was a priest at St. Joseph Catholic Church in Wyandotte and later Our Lady of Sorrows in Farmington during that timeframe. Berthiaume pleaded guilty to two counts of second-degree CSC, one count of gross indecency, and no contest to a third charge, before Judge Daniel O'Brien
ENVIRONMENTAL
Virginia Attorney General Mark R. Herring and the Virginia Department of Environmental Equality (DEQ) filed charges on Filibuster Distillery, LLC (Filibuster), Filibuster Barrels, LLC, and Sid Dilawri leading to them pleading guilty to 40 counts of violating Virginia’s State Water Control Law for dumping over 40,000 gallons of industrial waste and discharging cooling water outside of the terms of their permit into a stream in Shenandoah County. Collectively, the two corporations and Dilawri have agreed to pay a $700,000 penalty, a majority of which will be redirected back into the Shenandoah County community through education and infrastructure support. As part of the agreement, Filibuster agrees to maintain compliance at the distillery and invest in equipment upgrades to prevent future environmental impacts.

These guilty pleas are the first criminal pleas related to environmental violations brought by the Office of the Attorney General and DEQ and came after a multi-year investigation conducted by the U.S. Environmental Protection Agency, the Shenandoah County Fire Marshal, and DEQ into Filibuster.

“DEQ takes our mission to protect the environment very seriously, and this case demonstrates that mission in action,” said DEQ Director David Paylor. “OAG’s prosecution of this case not only led to directing funds back into the impacted community but sent a strong message that environmental crimes will not be tolerated.”
CONSUMER PROTECTION
Pennsylvania Attorney General Josh Shapiro announced he has filed suit against the Philadelphia-based companies owned and operated by social media personality Dana Chanel. The suit alleges that Chanel, whose real name is Casey Olivera, along with co-owners, misled consumers and failed to deliver goods and services as promised.

Chanel uses her sizable platform on social media to promote many products, including credit repair services offered by Credit Exterminators Inc., later rebranded as Earn Company, LLC, and mobile app development services through Alakazam Apps, LLC. Chanel co-owns and operates Credit Exterminators/Earn Company with her sister, Cassandra April Olivera. She runs Alakazam Apps with her father, Nakia Rattray.

The suit alleges how one consumer, who runs a nonprofit, paid Alakazam Apps $2,000  believing she would work directly with them to bring a custom app to life. She never received an app from Alakazam and contacted the company more than ten times via phone but never received a response or a refund.

The suit also alleges how one consumer signed up with Credit Exterminators with the understanding that, as part of the services she paid for, Credit Exterminators would resolve delinquent credit accounts on her behalf. Months after retaining Credit Exterminators, the consumer received a garnishment of wages letter from a creditor she believed Credit Exterminators had resolved. She received no refund or other relief and in total paid the company more than $2,000.

Among other things, the Utah settlement adds a fourth clinic in Ogden to the three Provo area clinics that are subject to divestiture and monitoring provisions under the FTC settlement and adds a provision that makes it easier for an insurer to include individual clinics, in their provider networks even if the insurer doesn’t elect to include other DaVita clinics. 
Arkansas Attorney General Leslie Rutledge announced the arrest of Part of the Solution executive director Dwayne Robinson, of Little Rock, for stealing $24,335 from tobacco settlement proceeds. He was arrested, following an extensive investigation by The Public Integrity Division of the Arkansas Attorney General’s Office. In November 2000, the Tobacco Settlement Proceeds Act was passed by Arkansans and part of the funding was allocated to the Prevention and Cessation Program. That process granted Robinson funding for his non-profit organization Part of the Solution.

A MISRGO employee discovered questionable reimbursements Robinson made on behalf of Part of the Solution. UAPB was notified and contacted Internal Audit for the University of Arkansas System where staff conducted an audit and found Robinson falsified board minutes, forged checks, fabricated invoices, and altered bank statements. 

University of Arkansas Systems auditors contacted the Arkansas Attorney General’s Office Public Integrity Division. After a thorough criminal investigation by special agents, an arrest warrant was issued for Robinson. He is charged with one count of Theft of Property, a Class C Felony; ten counts of Forgery 2nd Degree, Class C Felony; and two counts of Falsifying Business Records, a Class A Misdemeanor. Robinson was booked in the Jefferson County jail.
WORKER RIGHTS

According to New York City, “under the agreement, Marblegate will restructure outstanding loans to a principal balance of $200,000, which will be constituted as a $170,000 guaranteed loan, plus a city grant of $30,000. The terms of the new loan will include a five-percent interest rate and a 20-year, fully amortizing term. This restructuring will cap debt service payments at $1,122 per month for eligible medallion owners. “The city will provide funding for a guarantee on the principal and interest for these loans and will work with all other medallion lenders to achieve the same terms.”
MEDICIAD FRAUD
Attorney General Hector Balderas announced that Cathy Chidester, who operated Drop-In Counseling in Las Cruces, pled guilty to Medicaid Fraud, Obstruction of Investigation, and Identity Theft. She was accused of fraudulently billing New Mexico’s Medicaid program for children’s counseling, when in fact, public school records showed that the children were in class attending school during the alleged counseling sessions. Sentencing for Ms. Chidester will be in 60 days and she faces up to five years imprisonment in addition to payment of restitution of more than $177,000.
NOTABLE
Attorney General Dana Nessel was one of five legal professionals recently honored to be recognized in this year's 100 Most Influential Women in Michigan at the Michigan Association for Justice’s (MAJ) 76th Annual Banquet. She received the 2021 MAJ Women’s Caucus Award of Excellence, in recognition of her service to the State of Michigan. Her selection celebrates her commitment to the truth and unapologetic fight for justice.

She is the 54th Attorney General, a former criminal prosecutor, and civil rights attorney and was sworn on January 1, 2019.  Her core initiatives are based on her promise to Michigan’s residents — to give the Department of Attorney General back to the people that it serves. 
Announcing the Publication of the
Cannabis Law Deskbook 2021-2022 Ed. 
The Attorney General Alliance and Thomson Reuters are proud to announce the publication of the Cannabis Law Deskbook. As chief legal officers, the State Attorneys General offer a unique insight into cannabis law and policy. 

This book offers a broad and in-depth accounting of the complexities found in the ever-evolving field of cannabis law. The Cannabis Law Deskbook will help readers navigate the myriad of federal, state, and local laws governing the burgeoning cannabis and hemp markets. The contributing authors of this book are subject matter experts: public sector attorneys and regulators from over a dozen state and local jurisdictions across the U.S. 
The Cannabis Law Deskbook addresses the core pillars of cannabis law and policy: 

  • Federal prohibition & state reforms 
  • Navigating the federal-state conflict 
  • Compliance priorities 
  • Incentives for market participation 
  • Social equity programs 
  • Public health perspectives 
  • Cannabis licensing and ownership 
  • Consumer protection requirements 
  • Tracking, Taxes, and Testing 
  • Investigations and enforcement 
  • Complexities hemp markets 
  • An extensive exploration of the Canadian approach to cannabis law

The Attorney General Alliance is committed to presenting the complex issues of cannabis law and policy in a manner that provides guidance to those engaged in this arena.

For more information regarding the release of the Cannabis Law Deskbook, please contact: 
Austin Bernstein 
Cannabis Law Deskbook Managing Editor 
Director, Attorney General Alliance Cannabis Project 
Assistant Attorney General, Colorado Department of Law 
ABernstein@Agalliance.org 
“The Cannabis Law Deskbook answers the call for clarity and guidance in this evolving landscape.” 
- Attorney General Wayne Stenehjem (ND) 
 “Cannabis Law Deskbook provides readers with a broad and nuanced understanding of the driving forces shaping cannabis law and policy.” 
- Attorney General Phil Weiser (CO) 
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