NY Exec L § 175 (2021)
2021 New York Laws EXC - Executive Article 7-A - 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.