A.G. Schneiderman files lawsuit against companies that scammed thousands
Staff Writer |
New York Attorney General Eric T. Schneiderman's office has filed a lawsuit against New York City-based Delta Services and its predecessor Ultimate Security Force, a/k/a U.S.F. (Ultimate Security), and their owner Jeffreys Paulino.
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They allegedly wereusing phony job listings and false promises of employment to trick unemployed consumers into paying for expensive, and often unnecessary, security guard and other training courses.
The Attorney General alleges that Delta, Ultimate Security, and Mr. Paulino have scammed hundreds, if not thousands, of consumers.
The Attorney General’s office has secured a temporary restraining order restraining Delta, Ultimate Security, and Mr. Paulino from transferring, converting or disposing of any assets owned, possessed or controlled by them.
The lawsuit seeks restitution for the hundreds, if not thousands, of consumers allegedly defrauded in the schemes, as well as injunctive relief prohibiting the companies from continuing to operate these scams.
Delta (and Ultimate Security before it) is an employment agency located at 160 Pearl Street, Suite 201, New York, NY 10005. Employment agencies operating in New York City are required by law to be licensed by the New York City Department of Consumer Affairs and cannot offer or render placement services for a fee if they are unlicensed. Even licensed employment agencies cannot collect upfront fees.
The agencies must provide job applicants information such as the name and address of the person to whom the applicant is to apply for such employment, the kind of service to be performed, the anticipated rate of wages or compensation, whether such employment is permanent or temporary, and the name and address of the person authorizing the hiring of such applicant.
They must also disclose their name and address and the word “agency†when they advertise in newspapers or other printed media. The lawsuit alleges that Delta and Ultimate Security operated without a license and charged individuals seeking jobs up-front fees, in violation of New York law.
After receiving consumer complaints from several agencies, the Attorney General’s Office conducted an undercover investigation that revealed that the company and its predecessor were allegedly posting false job listings online and in newspapers that offered high paying security guard jobs.
The lawsuit alleges that these advertisements were a ruse to sell high-priced security guard training and other courses. When consumers responded to the advertisements, both companies promised the consumers that they would be placed in a job.
In addition to making false promises of employment, the lawsuit further alleges that companies falsely represented that consumers must complete an entire package of security guard courses to be eligible to work as a security guard or maintenance worker. In other instances, the companies allegedly told consumers they were required to take Occupational Safety and Health Administration (OSHA) training.
In fact, OSHA training is not required to obtain such jobs and only one of the three courses in the security guard series - the eight hour pre-assignment training course - is required to begin working as a security guard.
After consumers paid for and completed the training courses, they allegedly discovered that the promises were lies: the companies do not actually provide employment to graduates of the courses. Instead, the companies offer worthless “referrals†to companies.
When consumers followed up on the referrals, the complaint alleges that they found that the companies that they were referred to had no knowledge of Delta or Ultimate Security, were not expecting the consumer for an interview, and were not actually hiring for any positions.
The companies allegedly told many consumers that before they could start working at the promised position, they had to complete a series of OSHA training courses or security guard training courses at a cost ranging from $199 to $499.
Consumers should also be aware that 10-30 hour OSHA training is not required to obtain any type of job and that OSHA law provides that other required training must be provided by and paid for by employers.
In order to teach the 10-hour or 30-hour outreach classes, an OSHA-authorized trainer must complete a one-week training course taught by an OSHA Training Institute (“OTIâ€) Education Center. ■