Eric Schneiderman (Photo: Facebook)

Attorney General Eric Schneiderman took to the airwaves today to denounce the Defense of Marriage Act on legal grounds, arguing that it will be ruled unconstitutional because it "discriminates" against New York State's recognition of same-sex marriages. The high-profile case is set to go before the Supreme Court later this week.

"This is something that, without getting too far into the merits of the case, I think the Supreme Court will strike down," Mr. Schneiderman said this morning on The Brian Lehrer Show. "This is an overreach by the federal government, this is inconsistent with our federalist system and I think this one will definitely fall." 

DOMA, which stipulates that marriage is a legal union between one man and one woman, permits states that have outlawed same-sex marriage to disregard same-sex marriages in other states where they are legal, like New York. Several federal appeals courts have ruled DOMA unconstitutional already and the Obama Administration has asked the Supreme Court to declare a crucial part of DOMA unconstitutional.

Mr. Schneiderman, who filed an amicus brief in support of the case--United States vs. Windsor--further contended that it's "a fairly straight forward case" for the court to evaluate and rule upon.

"[DOMA] discriminates against the states that recognize same sex marriage because it says not only the federal government doesn't have to respect our marriages and provide married couples from New York with all the benefits that every other type of marriage gets; it also says that other states don't necessarily have to respect our marriages," Mr. Schneiderman said. "This really runs against hundreds of years of jurisprudence in which the United States government, Congress, kept its hands out of domestic relations matters and that have always traditionally been a matter for the states. The DOMA case is a fairly straight forward case. It's a matter of overreaching by Congress and overreaching by the federal government into an area that should be committed to the states."

Mohan Ramchandani in his mugshot

Earlier this afternoon, Attorney General Eric Schneiderman announced both the arrest and conviction of Mohanbhai "Mohan" Ramchandani, who pleaded guilty to felony tax-evasion charges. In the press release detailing the case, Mr. Ramchandani was labeled a "prominent tailor," and indeed he has styled many members of the city's political class including former mayors Rudy Giuliani (conservative, two-button suit in blue and gray) and Ed Koch (classic, no darts, straight pants and suspender buttons).

"There are no excuses for tax cheats - regardless of how prominent they are. Mr. Ramchandani’s conviction for orchestrating this multi-million dollar scheme to defraud taxpayers sends a clear message that those who rip off the public will be held accountable for their crimes," said Mr. Schneiderman. "Honest citizens are harmed by people who break the law to avoid paying their fair share, making it harder for New York State to provide essential services. This office will continue to bring aggressive action against tax evaders who believe they are above the law."

According to Mr. Schneiderman's office, in exchange for his guilty plea, Mr. Ramchandani will be sentenced to a prison term of one to three years. He and his Midtown business, Mohan's Custom Tailors, Inc., were further fined $5.5 million dollars in damages and penalties for the ten-year scheme.

Shirley Huntley's mugshot.

Former State Senator Shirley Huntley, who has already plead guilty to federal embezzlement charges, decided to settle her affairs this morning by pleading guilty to separate state-based charges of tampering with evidence during the embezzlement investigation. Specifically, in the words of Attorney General Eric Schneiderman when he unveiled the indictment last summer, Ms. Huntley was accused of "falsifying business records, conspiracy and tampering with an investigation in a scheme to steal taxpayer money using a sham nonprofit that did not provide any services to the public whatsoever.”

Ms. Huntley initially maintained her innocence, including issuing a forceful declaration in an "Emergency Press Conference" on her front lawn. This morning, however, the former southeastern Queens lawmaker reversed course and directly admitted to breaking the law to benefit Parent Workshop, the "sham nonprofit."

"In or around March 2011, I assisted Roger Scotland and Patricia Savage by drafting a letter to be used to create a false record indicating that events on behalf of the Parent Workshop had taken place at the Beacon Center," Ms. Huntley said. "I understood that the false record would be submitted by Patricia Savage in response to a subpoena issued as part of the Attorney General's investigation of Parent Workshop."

For their part, A.G. Schneiderman and Comptroller Tom DiNapoli, who jointly led the state investigation, took a victory lap with statements released after Ms. Huntley's admission.

“It is unconscionable that an elected official would deliberately tamper with a law enforcement investigation into the theft of taxpayer dollars," Mr. Schneiderman said. “Former Senator Huntley’s felony plea sends a strong message that those who abuse their positions to rip off taxpayers and tamper with investigations will be held accountable. My office’s partnership with the Comptroller is designed to combat such corruption, and we will continue to work tirelessly to protect every penny of taxpayer money during these challenging economic times.”

“Former Senator Huntley betrayed the trust of her constituents and her public duty,” Mr. DiNapoli said. “State officials must be held to the highest standards. My office will continue to work with the Attorney General to investigate wrongdoing and protect taxpayer funds.”

Other individuals, including Ms. Huntley's niece, Lynn Smith, still face charges due to their connections to Parent Workshop.

(Photo: Getty)

New York Attorney General Eric Schneiderman is keeping an eye on the assorted charities raising money for Hurricane Sandy relief efforts. In a statement released today, Mr. Schneiderman announced he sent a letter to 75 Sandy-focused nonprofits requesting information on their fundraising and spending activities, which he intends to post online.

"Our office commends all of the charities, and their volunteers and donors, who have come to the assistance of New Yorkers after Hurricane Sandy," Mr. Schneiderman said in the press release. "In light of the importance of the recovery efforts, and the enormous amount of money raised in such a short period of time, it is critical that donors know where their money is going, and that funds are spent responsibly. In the name of transparency and accountability, we must ensure that funds raised for Hurricane Sandy relief are used for that purpose."

Mr. Schneidman previously busted a local breast cancer charity for allegedly pocketing most of their contributions with internal overhead costs. In order to ward off similar incidences in the name of another noble cause, he requested the following information from the Sandy-related nonprofits:

-The amount raised and spent to date for Hurricane Sandy relief;
-Whether donations will be used solely for Hurricane Sandy relief;
-The services provided to date to those affected by Hurricane Sandy;
-Whether the charity is providing funding to other organizations, or making direct financial grants to individuals, families or businesses;
-What the charity plans to do with any surplus funds.

And, noting they planned to request information from additional organizations, Mr. Schneiderman's office provided a list of charities contacted so far:

AARP Foundation
Acupuncturists Without Borders
Afya Foundation
All Hands Volunteers
American Humane Association
American Red Cross
American Society for the Prevention of Cruelty to Animals
AmeriCares Foundation, Inc.
Best Friends Animal Society
B’nai B’rith International
Breezy Point Hurricane Sandy Relief
Brooklyn Recovery Fund
Brother's Brother Foundation
Catholic Charities of the Archdiocese of New York
Catholic Charities Diocese of Brooklyn and Queens, Inc.
Center for Disaster Philanthropy
Children's Hunger Fund
Church World Service
City Harvest
Citymeals-on-Wheels
Convoy of Hope
Direct Relief International
Disaster Chaplaincy Services
Emergency Children's Help Organization
Empire State Relief Fund
Episcopal Relief & Development
Feed the Children
Food Bank for New York City
Gleaning For The World
Goodwill Industries of Greater New York and Northern New Jersey, Inc.
Graybeards
Habitat for Humanity International
Heart to Heart International
Hispanic Federation
Hope for the Warriors
Hurricane Sandy Relief Foundation
ICNA Relief
International Rescue Committee
Islamic Relief USA
Jewish Disaster Response Corps
Kids in Distressed Situations, Inc.
Liberty Street Relief Fund
MAP International
Matthew 25 Ministries
Modest Needs Foundation
Movement for Peace
National Firefighters Endowment
National Urban League
New York Cares
New York Communities for Change
Occupy Sandy
Operation Blessing International
Rebuilding Together
Rebuilding Together NYC
Red Hook Initiative
Robert R. McCormick Foundation
Robin Hood Foundation
Samaritan's Purse
Save the Children Federation Inc.
ShelterBox USA
Staten Island Strong
Stephen Siller Tunnel To Towers Foundation
Team Rubicon
The Humane Society of the United States
The Jewish Federations of North America, Inc.
The Mayor's Fund to Advance New York City
The New York City Coalition Against Hunger
The Salvation Army
UJA-Federation of New York
United Methodist Committee on Relief
United Way of Long Island
United Way of New York City
Waves For Water
We Care NYC
World Vision International

(Photo: Getty)

As several gas station owners are about to learn, it's against New York State law to jack up the price of goods like fuel after a hurricane. To wit, Attorney General Eric Schneiderman announced he is bringing his “first series of enforcement actions" against price gougers in the wake of Superstorm Sandy.

"Today's action is the first in a series of steps my office will take as we continue to actively investigate the hundreds of complaints we've received from consumers of businesses preying on victims of Hurricane Sandy," the attorney general said in a statement. "We will do everything we can to stop unscrupulous individuals from taking advantage of New Yorkers trying to rebuild their lives."

Although the law doesn't specifically cite an illegal price for gasoline, it does prohibit an “unconscionably excessive price" during an "abnormal disruption of the market," according to Mr. Schneiderman's office. In addition to "war" and "military action," the law names “weather events" as a triggering event that would restrict such sharp price increases. A fatal storm that left much of the city without gas would certainly seem to qualify.

Mr. Schneiderman said thirteen retailers in particular "stand out from others in the high prices they have charged and in the size of their price increases," which can be viewed below, along with the alleged illegal prices:

Nassau County
Shell
3709 Crompond Road
Cortlandt Manor, NY 10567
Consumer compliant $5.00

Shell
408 Rockaway Turnpike
Cedarhurst, NY 11516
Consumer complaint 5.00+

Suffolk County
Babylon Gas Station/Express Mart
1000 Route 109
Lindenhurst, NY 11757
Consumer complaint $4.99

USA Petroleum
East Islip, NY
11730, NY
Consumer complaint $5.50+

USA Petroleum
2664 Route 112
Medford, NY 11763
Consumer complaint 5.50+

Westchester County
Mobil
174 Westchester Avenue
White Plains, NY
Consumer complaint $5.05

Mobil
Hutchinson River Parkway
White Plains, NY
Consumer complaint $5.03

Brooklyn
Sonomax
278 Greenpoint Ave
Brooklyn, NY
Consumer complaint $4.74

Queens
Mobil
4040 Crescent St
Long Island City ,NY
Consumer complaint $4.89

Shell
Northern Heights Service
7018 Northern Blvd
Jackson Heights, NY
Consumer complaint $5.50

Delta
1309 14th Avenue
College Point, NY
Consumer compliant $5.00

Bronx
Getty
600 Pelham Parkway
Bronx, NY
Consumer complaint $5.39

Mobil
688 E. Gun Hill Road
Bronx, NY
Consumer complaint $4.89

(Photo: Getty)

Yesterday, it was revealed President Barack Obama's re-election campaign may have improperly used Greenburgh Town Hall, a government property in Westchester County, to conduct weekly phonebank operations without paying to use the space. Although the partisans, "White Plains for Obama," agreed to retroactively pay rent after confronted by the New York Post, local Republicans aren't satisfied. In a statement released this afternoon, the county's GOP chairman Doug Colety declared Mr. Obama's campaign was "caught with their hand in the cookie jar" and needs to face the scrutiny of the law.

“The taxpayers of Greenburgh are being ripped off by the Obama campaign and Greenburgh’s Democratic leadership and I am calling on the New York State Attorney General to conduct a full investigation to see if any laws are being violated by this clearly unethical behavior," he said. "Taxpayers have a right to know that public facilities are not being used for partisan political campaigns and no municipal building should ever be converted into in a campaign headquarters for any party.”

He added, "It is critical that the Attorney General step in to answer important questions, including whether any town employees were used to keep Town Hall open for the evening phonebank and whether any laws were broken in the process."

Mr. Colety's thoughts were echoed by other GOP officials in the area. For example, Arthur DeRuve, a member of the Westchester County Republican Committee, told the Greenburgh Daily Voice that the entirely Democratic town board's decision to approve the campaign activities was probably political and "an outrage."

"If he's doing something illegal it should be investigated," Mr. DeRuve said.

We've reached out to Attorney General Eric Schneiderman's office and will update if they have any comment.

(Photo: Getty)

Last night at the Plaza Hotel, Attorney General Eric Schneiderman and the Hotel Trades Council's Peter Ward were honored by the Yhitzhak Rabin Center, a high-profile Israeli institute, for their respective commitments to leadership. And almost major politician in town, including President Bill Clinton, Senator Chuck Schumer, Senator Kirsten Gillibrand, Mayor Michael Bloomberg, various congressional representatives and multiple candidates for mayor in 2013 all heaped praise onto honored guests.

Mr. Schneiderman, of course, has been involved in a number of high-profile national issues, including the fight against the Supreme Court's Citizens United decision, a federal settlement with major banks in the wake of the foreclosure crisis, and on down the list. For his part, Mr. Ward helped transform a small union into one of the most influential labor powerhouses in the city.

Without further ado, here is said heaped praise:

From Former President Bill Clinton: “… I also know that Yitzhak would enthusiastically agree with your recognition tonight of the efforts of Eric Schneiderman and Peter Ward, who have both demonstrated remarkable tenacity and skill as negotiators and advocates for ordinary Americans. Eric has fought tirelessly throughout his career as New York State Senator and Attorney General to represent his fellow citizens and protect them from fraud.”

From United States Senator Charles E. Schumer: “ … I would like to the take this opportunity to recognize this evening’s Yitzhak Rabin Leadership and Public Service Award honorees, The Honorable Eric T. Schneiderman, New York State Attorney General and Peter Ward, President, New York Hotel Trades Council. Eric’s courageous advocacy work and determination to eradicate ills at every level of government is only a fraction of his devotion to better the State of New York. His drive compels him to continue his noble deeds and continue the work of the people throughout the state … Both honorees believe in social justice, and their hard work and commitment to the communities that they serve, is a testament to their legacies. Their dedication and commitment to live in the spirit of Yitzhak Rabin is a true inspiration to all New Yorkers and the American Friends of the Yitzhak Rabin Center …”

From Dr. Michael B. Oren, Ambassador of Israel to the United States: “… I join you this evening in congratulating Eric T. Schneiderman and Peter Ward on receiving the Yitzhak Rabin Leadership and Public Service award. Both of these gentlemen exemplify admirable standard of leadership and service. Eric’s work on behalf of public integrity, economic and social justice, and environmental protection, both in the Attorney General’s office as well as in the New York Senate, is certainly worthy of recognition …”

From Ambassador Ido Aharoni, Consulate General of Israel in New York: “ … As we celebrate the achievements of the Yitzhak Rabin Center, let me congratulate tonight’s exceptional honorees. New York State Attorney General Eric Schneiderman and Mr. Peter Ward, President of the New York Hotel and Trades Council have been models of vision and leadership, and are most deserving of this special recognition …”

From Massachusetts Governor Deval L. Patrick: “ … As New York State Attorney General, Eric Schneiderman has championed anti-corruption in government and fought for justice and equal rights for all … I cannot think of anyone more deserving of this year’s Yitzhak Rabin Leadership and Public Service Award than these two men …”

From New York City Mayor Michael R. Bloomberg: “ … On behalf of the City of New York, congratulations to the recipients of the Yitzhak Rabin Leadership and Public Service Award, New York Hotel and Motel Trades Council President Peter Ward and New York State Attorney General Eric Schneiderman. Please accept my best wishes for a wonderful evening and continued success.”

From United States Senator Kirsten E. Gillibrand: “ … I can think of no one more deserving of the Yitzhak Rabin Leadership and Public Service Award than tonight’s honorees. For years, New York Attorney General Eric Schneiderman and New York Hotel Trades Council President Peter Ward have been dedicated to helping New Yorkers. The late Yitzhak Rabin was a strong and courageous leader who left a legacy as a champion for those he served and as a statesman dedicated to peace and democracy. Tonight’s honorees have certainly followed in this legacy. Since taking office, Attorney General Schneiderman has been recognized as a leader in the fight to ensure fairness and justice throughout the country … I congratulate both of them for their achievements and their award tonight.”

From Congresswoman Carolyn B. Maloney: “ … I proudly salute your distinguished honorees this evening, New York Attorney General Eric Schneiderman and Peter Ward of the New York Hotel Trades Council. I join you in paying tribute to Attorney General Schneiderman and Peter Ward, president of the New York Hotel Trades Council as they receive the 2012 Yitzhak Rabin Leadership and Public Service Award. Attorney General Schneiderman has served New York with distinction, upholding the highest standards of public integrity, economic justice, social justice, and environmental protection. In response to our nation’s housing crisis, Attorney General Schneiderman has called for a swift and thorough investigation and accountability of financial institutions that acted against the interest of homeowners … Attorney General Schneiderman and Mr. Ward are outstanding examples of public service and leadership to our city, state and nation.

From Congressman Jerrold Nadler: “ … I join you in paying tribute to the distinguished honorees, New York Hotel Trades Council President Peter Ward, and New York State Attorney General Eric Schneiderman, and in celebrating the Center’s excellent work … Tonight’s Yitzhak Rabin Leadership and Public Service Award honorees are both very much deserving of this particular distinction. Attorney General Schneiderman has fought tirelessly for the rights of the people of New York State, and has proven himself to be a strong advocate for social justice both locally and nationally … My congratulations to both of these honorees, and my vest best wishes to all in attendance for a wonderful celebration.”

From Speaker of New York City Council Christine C. Quinn: “ … Congratulations as well to this year’s honorees, New York State Attorney General, Eric T. Schneiderman and New York Trades Council President Peter Ward …”

From Bill de Blasio, Public Advocate for the City of New York: “ … As Public Advocate, I would especially like to extend my congratulations to tonight’s honorees receiving the Yitzhak Rabin Leadership and Public Service Award:
· Eric Schneiderman, New York State Attorney General
· Peter Ward, President of the New York Hotel & Motel Trades Council …”

From Scott M. Stringer, Manhattan Borough President: “ … I want to offer my personal regards to this year’s honorees – New York State Attorney General Eric Schneiderman and Peter Ward, President of the New York Hotel and Motel Trades Council. Their demonstrated commitment to social justice and improving our communities are a true testament to the legacy left by Yitzhak Rabin here in New York and around the world …”

From William C. Thompson, Jr.: “It is a pleasure to extend my best wishes to The American Friends of the Yitzhak Rabin Center and tonight’s distinguished honorees, New York State Attorney General Eric Schneiderman and President of the New York Hotel Trades Council, Peter Ward … I would like to congratulate Eric Schneiderman and Peter Ward as they receive the Yitzhak Rabin Leadership and Public Service Award. Attorney General Schneiderman’s unwavering commitment to protecting the interests of the citizens of New York in both the private and public sectors makes him a champion for social justice … Eric Schneiderman’s commitment to public integrity and Peter Ward’s dedication make them ideal recipients of this prestigious award …”

From John W. Wilhelm, President of UNITE HERE: “I have come to know the Attorney General more recently. What a pleasure it is, in our cynical political world, to find someone who believes that pursuing justice for average New Yorkers is more important than the next election – and works every day to bring reality to that belief. New York State is fortunate indeed to have such a committed leader as its chief legal officer, especially because the laws of New York give that office as much potential to pursue justice, and in so doing to help restore our citizens’ shattered faith in our institutions. Few things are as dangerous to our democracy as the mortgaging of our political system to unreported, unlimited money, and the Attorney General’s pursuit of this issue is especially important for all of our futures.”

"Let the process run, I understand the appetite to further the story, but let the process run and let the facts come out," he said, switching to a slow, mocking voice to describe newspaper headlines. "'Secret Deal' was the initial headline. 'Sheldon Silver signs secret deal.' Poetic, beautiful. Yeah, except it wasn't true and it wasn't accurate and it wasn't right. It wasn't a 'secret deal.'"

Mr. Dicker pointed out that the public wasn't aware of the deal, which certainly made it more secret than perhaps other government expenditures.

"Well, it had a confidentiality, but it wasn't a secret deal done by the Speaker. It wasn't," Mr. Cuomo responded. “It was a deal and an agreement that we now find out, which anyone would have asked us is the first question, frankly: Did the Comptroller authorize it? Because how does a Speaker make a payment anyway without it going through the Comptroller? Did the Attorney General's Office review it?"

Indeed, both Attorney General Eric Schneiderman and State Comptroller Tom DiNapoli's offices had been involved in the process, though the elected officials themselves are arguing they had little to do with it. Mr. Schneiderman's office, for example, has said that they only provided template settlement language and without any confidential provisions.

After Mr. Dicker repeated that the settlement was pretty much a "secret," Mr. Cuomo asked, "Was it a secret?"

"It was in writing, the settlement itself said it will remain confidential," Mr. Dicker explained.

"My point was that in some ways, it was even worse, it was not a secret deal done by Sheldon Silver, which people would think was just Sheldon Silver signs a secret deal," Mr. Cuomo countered. "It was a secret deal reviewed by the Attorney General's Office and implemented by the Comptroller's Office."

The host pointed out that now Mr. Cuomo was using the phrase "secret deal" that he was deriding just moments ago.

"Yes, it was an agreement with a confidentiality," the governor contended. "But it was not a deal that was done outside of the checks and balances of government."

While the newspaper editorial boards and segments of the public may be casting Mr. Silver as being at fault for Mr. Lopez's settlement, it seems Mr. Cuomo is going to have his back. Given Mr. Cuomo's ability to bend Albany towards his desired outcome, this is certainly good news for Mr. Silver, and possibly less-than-great news for Mr. Schneiderman and Mr. DiNapoli.

(Photo: Getty)

Attorney General Eric Schneiderman introduced former President Bill Clinton and President Barack Obama in New York last night, and he made a passionate case for the need to defeat the "Romney/Republican agenda" and why the American electorate will say, "Thanks, but no thanks” to a de facto third term for George W. Bush.

"We will continue and build upon the progress President Obama has made," Mr. Schneiderman argued. "We will show the American people that when there is a Democrat in the White House, a strong and fair economy is possible. It’s possible because we’ve done it, and we’ll do it again."

In turn, both Mr. Clinton and Mr. Obama heaped praise on Mr. Schneiderman as well.

"First of all, you've got an outstanding Attorney General -- please give Eric Schneiderman a big round of applause," Mr. Obama said. "He is doing the right thing on behalf of consumers and working people all across this great state and having an influence all across the country."

For his part, Mr. Clinton declared, "I want to thank Eric Schneiderman for his lucid statement of the case of what's at stake in this election, and for his exceptional service to the state of New York."

View Mr. Schneiderman's full prepared remarks below:

Together we can do great things. Together we can make sure all Americans have a fair shot. Together we can make sure everybody does their fair share. Together we can ensure that everyone plays by one set of rules.

And together, we can re-elect our president this November and make sure America has the leader we need for four more years.

No one has spoken more clearly on this than the great leader I am so honored to introduce.

He is a great leader not only a Democratic leader. He is a world leader. Someone who puts progressive values into practice and left a record of accomplishment, of prosperity and budget surpluses that stand in stark contrast to the Romney/ Republican agenda.

To see what is at stake in this election, look no further than the record of our last Democratic president compared to the last republican. Under President Clinton’s leadership, 23 million jobs were created. We balanced the budget and produced a record surplus of 236 billion dollars when President Clinton left office.

Then what happened? Eight years of George W. bush plunged our country into the worst economic disaster since the great depression. All those tax cuts for millionaires and billionaires we were promised would lead to jobs for the middle class never materialized. President Bush left office with the worst jobs record of any president since the government started recording employment figures.

That record surplus? It turned into a record deficit.

President Obama inherited an economy in free fall, with skyrocketing health care costs, dwindling employment, and banking and housing markets on the brink of collapse.

He stabilized the financial system and helped to prevent a second great depression. An economy that was losing 700,000 jobs a month is now gaining jobs. We still have a long way to go, but we are now moving forward on the road to recovery.

Given how much is on the line for everyday Americans, why in the world would we hand over the white house to the same people that left our country in a much worse place than they found it?

The same recipe for economic failure is what Mitt Romney’s serving. And I believe the American people will say “Thanks, but no thanks” to a third term for George W. Bush.

We will continue and build upon the progress President Obama has made. We will show the American people that when there is a Democrat in the White House, a strong and fair economy is possible. It’s possible because we’ve done it, and we’ll do it again.

Ladies and gentlemen, please give a warm welcome to the leader whose record proves the need to stay on the current path and why we cannot afford to erase the progress we’ve made so far. Ladies and gentlemen, the 42nd President of the United States, William Jefferson Clinton.

“This settlement forces Skechers to ‘shape up’ by ceasing to make unsubstantiated health and medical claims for their so-called toning shoes. New Yorkers who purchased these shoes as a result of Skechers’ deceptive marketing practices will now be eligible for refunds,” Mr. Schneiderman said. “A fair market only exists when there are no false marketing claims that give one company an unfair advantage over the competition. Corporations will not be allowed to mislead consumers into spending their hard-earned money on products that promise what they can’t deliver.”

The settlement calls for the company to end its deceptive marketing practices. Under the settlement, Skechers will provide $40 million for refunds and an additional $5 million to the states.

According to Mr. Schneiderman's office, Skechers said that their Shape-Ups and Tone-Ups provided:

 certain health and medical benefits that were not adequately proven by scientific evidence. Skechers claimed that its toning shoes caused consumers to lose weight, burn calories, improve circulation, fight cellulite, and firm, tone or strengthen thigh, buttock, and back muscles and that its products also reduce stress and improve sleep. However, these grandiose claims were not substantiated by credible scientific evidence. Following the investigation, Skechers agreed to change its marketing of its toning shoe products.

Under the settlement, Skechers is prohibited from making these claims unless it has adequate substantiation to do so. Consumers who purchased Shape-Ups, Tone-Ups, or the Skechers Resistance Runner at any time should go to www.ftc.gov/skechers or call 866-325-4186 beginning today to submit a claim for a partial refund.