N.Y. EXC Law § 175 — New York Code / Act EXC / Article 7-A / Section 175
Enforcement by attorney general
Status: in_force

§ 175. Enforcement by attorney general. 1. An action for violation of\nthis article may be prosecuted by the attorney general, or his deputy,\nin the name of the people of the state, and in any such action, the\nattorney general or his deputy, shall exercise all the powers and\nperform all duties which the district attorney would otherwise be\nauthorized to exercise or to perform therein.\n  2. In addition to any other action or proceeding authorized by law and\nany action or proceeding by the attorney general, the attorney general\nmay bring an action or special proceeding in the supreme court, in the\nname and in behalf of the people of the state of New York, against a\ncharitable organization and any other persons acting for it or in its\nbehalf to enjoin such organization and/or persons from continuing the\nsolicitation or collection of funds or property or engaging therein or\ndoing any acts in furtherance thereof, and to cancel any registration\nstatement previously filed with the attorney general pursuant to this\narticle and for an order awarding restitution and damages, penalties and\ncosts; and removing any director or other person responsible for the\nviolation of this article; dissolving a corporation and other relief\nwhich the court may deem proper, whenever the attorney general shall\nhave reason to believe that the charitable organization or other person:\n  (a) is violating or has violated any of the provisions of this\narticle;\n  (b) has refused or failed, or any of its principal officers has\nrefused or failed, after notice, to produce any records of such\norganizations;\n  (c) is employing or about to employ, or there is employed or about to\nbe employed, in any solicitation or collection of funds or other\nproperty for such organization, any device, scheme or artifice to\ndefraud or for obtaining money or property by means of a false pretense,\nrepresentation or promise;\n  (d) has made a material false statement in an application,\nregistration or statement required to be filed pursuant to this article;\n  (e) (i) has failed or is failing to apply the funds solicited from the\npublic in a manner substantially consistent with its charitable purposes\nor solicitation or has engaged in repeated fraudulent or illegal\nactivities, acts or conduct in connection with the solicitation for\ncharitable purposes; (ii) or, in the case of a law enforcement support\norganization, has failed or is failing to apply the funds solicited from\nthe public in a manner substantially consistent with the purposes of the\nsolicitation or has engaged in repeated fraudulent or illegal\nactivities, acts or conduct in connection with the solicitation for\npurposes of the law enforcement support organization;\n  (f) violates any order or determination made by the attorney general\npursuant to the provisions of this article;\n  (g) has used or intends to use false or materially misleading\nadvertising or promotional material in connection with any solicitation\nor with any commercial co-venture or fails to disclose the information\nrequired to be disclosed pursuant to section one hundred seventy-four-b\nof this article; or\n  (h) is a law enforcement support organization and is employing or\nabout to employ, or there is employed or about to be employed, in any\nsolicitation or collection of funds or other property for such\norganization, any device, scheme or artifice to defraud or for obtaining\nmoney or property by means of a false pretense, representation or\npromise which shall include, without limitation, making any of the\nfollowing representations: (i) that professional fund raisers or\nsolicitors are police officers or employees of any law enforcement\nagency, (ii) that funds collected will be used to aid widows and\nchildren of police officers slain in the line of duty or for any other\ncharitable program unless the organization is actually engaged in such a\nprogram, (iii) that contributors will receive special benefits from\npolice officers, and (iv) that contributions are tax deductible as a\ncharitable contribution or as a business expense unless they so qualify\nunder the applicable provisions of the internal revenue code.\n  In connection with such proposed action or proceeding the attorney\ngeneral is authorized to take proof, issue subpoenas and administer\noaths in the manner provided in the civil practice law and rules.\n  3. Upon a showing by the attorney general in an application for an\ninjunction that any person engaged in solicitation has been convicted in\nthis state or elsewhere of a felony or of a misdemeanor involving the\nmisappropriation, misapplication or misuse of the money or property of\nanother, and who has not, subsequent to such conviction, received\nexecutive pardon therefor or a certificate of relief from disabilities\nor a certificate of good conduct pursuant to article twenty-three of the\ncorrection law, the supreme court, after a hearing, may enjoin such\nperson from engaging in any solicitation.\n  4. The attorney general may exercise the authority granted in this\nsection against any charitable organization which operates under the\nguise or pretense of being an organization exempted by the provisions of\nsection one hundred seventy-two-a of this article and is not in fact an\norganization entitled to such an exemption.\n  5. Whenever the attorney general shall have reason to believe that any\nprofessional fund-raiser, fund raising counsel, professional solicitor\nor commercial co-venturer is operating in violation of the provisions of\nthis article, or has made any false statement in any application,\nregistration or statement required to be filed pursuant to this article,\nor if any professional fund-raiser, fund raising counsel, or commercial\nco-venturer has refused or failed, after notice, to produce any records\ndemanded of him, or there is employed or is about to be employed in any\nsolicitation or collection of contributions for a charitable or\nreligious organization any device, scheme or artifice to defraud or for\nobtaining money or property by means of any false pretense,\nrepresentation or promise, in addition to any other action or proceeding\nauthorized by law, he may bring in the supreme court an action or\nproceeding in the name, and on behalf, of the people of the state of New\nYork against such professional fund-raiser, fund raising counsel,\ncommercial co-venturer, professional solicitor, and any other person who\nhas participated or is about to participate in such solicitation or\ncollection by employing such device, scheme, artifice, false\nrepresentation or promise, to enjoin such professional fund-raiser, fund\nraising counsel, commercial co-venturer, professional solicitor, or\nother person from continuing such solicitation or collection or engaging\ntherein or doing any acts in furtherance thereof, or to cancel any\nregistration statement previously filed with the attorney general.\n  6. Whenever the attorney general has determined to commence an action\nunder this article, he may present to any justice of the supreme court,\nbefore beginning such action, an application in writing for an order\ndirecting the person or persons mentioned in the application to appear\nbefore the justice of the supreme court or referee designated in such\norder and answer such questions as may be put to them or to any of them,\nor to produce such papers, documents and books concerning the practices\nto which the action which he has determined to bring relates, and it\nshall be the duty of the justice of the supreme court to whom such\napplication for the order is made to grant such application. The\napplication for such order made by the attorney general may simply show\nupon his information and belief that the testimony of such person or\npersons is material and necessary. The provisions of the civil practice\nlaw and rules relating to an application for an order for the\nexamination of witnesses before the commencement of an action and the\nmethod of proceeding on such examination, shall not apply except as\nherein prescribed. The order shall be granted by the justice of the\nsupreme court to whom the application has been made with such\npreliminary injunction or stay as may appear to such justice to be\nproper and expedient and shall specify the time when and place where the\nwitnesses are required to appear. The justice or referee may adjourn\nsuch examination from time to time and witnesses must attend\naccordingly. The testimony of each witness must be subscribed by him and\nall must be filed in the office of the clerk of the county in which such\norder for examination is filed. The order for such examination must be\nsigned by the justice making it and service of a copy thereof with an\nendorsement by the attorney general signed by him or his deputy, to the\neffect that the person named therein is required to appear and be\nexamined at the time and place and before the justice or referee\nspecified in such endorsement, shall be sufficient notice for the\nattendance of witnesses. Such endorsement may contain a clause requiring\nsuch person to produce at such examination all books, papers and\ndocuments in his possession or under his control relating to the subject\nof such examination. The order shall be served upon the person named in\nthe endorsement aforesaid by showing him the original order and\ndelivering to and leaving with him at the same time a copy thereof,\nendorsed as above provided, and by paying or tendering to him the fee\nallowed by law to witnesses subpoenaed to attend trials of civil actions\nin any court of record in this state.\n  7. In addition to any other action authorized by law, the attorney\ngeneral may bring an action or special proceeding in the supreme court\nto recover any civil penalties assessed by the attorney general.\n  8. Nothing contained in section one hundred seventy-seven of this\narticle shall prevent, limit, restrict, impede or delay the attorney\ngeneral from instituting, at any time, any action or proceeding\nauthorized by the provisions of this article or any other appropriate\nlaw, as he may deem necessary.\n