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New York Attorney General

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New York State Attorney General Letitia James

New York Attorney General Letitia James has secured more than $3.2 million from eight Nissan dealerships in New York City, the Hudson Valley, and on Long Island – Action Nissan, Bay Ridge Nissan, Legend Nissan, Garden City Nissan, Huntington Nissan, Rockaway Nissan, Smithtown Nissan, and Teddy Nissan – for allegedly overcharging more than 1,700 New Yorkers who wanted to purchase their leased vehicles at the end of their lease term. The announcement was made on May 6.

An investigation by the Office of the Attorney General (OAG) found that these dealerships added junk fees or falsified the price of leased vehicles that customers wanted to buy when their lease ended, forcing them to pay higher costs. As a result of OAG’s investigation, eight dealerships will pay penalties for overcharging on end-of-lease buyouts and pay full restitution to more than 1,700 consumers who paid more for their vehicles than they were promised. Attorney General James has now stopped deceptive practices at 15 Nissan dealerships and recovered more than $1 million in penalties and $4.5 million in restitution for more than 2,800 New Yorkers.

“Buying a car is a major financial decision, and no one should have to worry about dealers using illegal junk fees to drive up the price,” said Attorney General James in a press release. “These car dealers misled their customers with bogus fees and other costs to cheat them out of their hard-earned money. My office’s investigation will put money back in the pockets of defrauded New Yorkers and require these dealers to steer clear of violating our laws and deceiving consumers.”

The OAG opened an investigation into Nissan dealerships after consumers reported they were being overcharged and given inaccurate receipts for end-of-lease buyouts after the onset of the COVID-19 pandemic. The investigation found that the consumers leased their Nissan cars under an agreement that gave them the option to purchase the vehicle for a set amount after the lease term ended. However, when they returned to the dealerships to buy their car when their leases were up, the dealerships substantially overcharged them. The dealers either added miscellaneous “dealership fees” or “administrative fees,” or inflated the vehicle’s price on the invoice given to the consumer.

Under the agreements announced on May 6:

  • Action Nissan in Nyack, Rockland County will pay $157,958.59 to 192 overcharged consumers and pay a $47,920 penalty;
  • Bay Ridge Nissan in Brooklyn will pay $23,624 to 46 overcharged consumers and pay a $11,960 penalty;
  • Garden City Nissan in Hempstead, Nassau County will pay $824,013 to 361 overcharged consumers and pay a $89,624 penalty;
  • Huntington Nissan in Huntington Station, Suffolk County will pay $426,654 to 275 overcharged consumers and pay a $68,750 penalty;
  • Legend Nissan in Syosset, Nassau County will pay $333,482 to 233 overcharged consumers and pay a $20,000 penalty;
  • Rockaway Nissan in Queens will pay $308,918 to 177 overcharged consumers and pay a $44,250 penalty;
  • Smithtown Nissan in St. James, Suffolk County will pay $643,640 to 321 overcharged consumers and pay a $80,250 penalty; and
  • Teddy Nissan in the Bronx will pay $108,773 to 156 overcharged consumers and pay a $35,560 penalty.

New Yorkers entitled to restitution do not need to take any action to receive the payment. The dealerships have already begun paying restitution through mailed checks in the full amount of the overcharge and will continue to do so throughout the year. The dealerships have also agreed to reform their invoicing practices to ensure all lease buyout customers are neither overcharged nor provided with inaccurate receipts.

Attorney General James has secured settlements with 15 different Nissan dealerships for cheating customers with illegal fees and inflated prices when they attempted to buy out the leases on their cars. In June 2024, Attorney General James secured $350,000 from two Nissan dealers on Long Island. In March 2024, Attorney General James secured over $1.9 million from five Nissan dealers in New York City and Long Island.

Attorney General James asks any consumers who may have been affected by deceptive or fraudulent lease buyout practices to file a consumer complaint online.

This matter was handled by Assistant Attorney General Alec Webley of the Consumer Frauds and Protection Bureau, under the supervision of Bureau Chief Jane M. Azia and Deputy Bureau Chief Laura J. Levine. The Consumer Frauds and Protection Bureau is a part of the Division of Economic Justice, which is led by Chief Deputy Attorney General Chris D’Angelo and overseen by First Deputy Attorney General Jennifer Levy.

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Sanitation truck. File photo

By Peter Sloniewsky

In June, waste-incinerator Covanta agreed to pay the Town of Brookhaven $1 million to settle a lawsuit alleging the company trucked hazardous ash to the town’s Yaphank landfill. While the settlement is pending in the Nassau County Supreme Court, town Supervisor Dan Panico (R) said he has “no reason to believe that it wouldn’t be approved.”

The lawsuit was filed in 2013 by whistleblower Patrick Fahey, a former Covanta Hempstead employee, on behalf of local governments that sent municipal waste to the Covanta plant in Westbury. Brookhaven accepted the resulting ash at its Yaphank landfill.

Covanta, which announced in April a name rebranding to Reworld Waste, has denied any wrongdoing.

Fahey’s attorney, David Kovel, has said that his client “doesn’t think the town is acting in the best interests of its citizens” in agreeing to settle for $1 million, and opposed the settlement with a court filing. Kovel added that only the state Attorney General’s Office has standing to settle, and that “it is astonishing that the Town of Brookhaven would sell out its citizens” by accepting such a “sweetheart” settlement.

Members of the Brookhaven Landfill Action and Remediation Group shared similar sentiments in a June 6 statement at a Brookhaven Town Board meeting. Group co-founder Monique Fitzgerald said, “It is despicable that this settlement would give Covanta a pass, while continuing to force community members to carry the burden,” adding, “This agreement comes without any input from the community.” She noted that Covanta would be absolved of any future financial responsibility for pollution cleanups in the area.

BLAR group has also called for the immediate closure of the landfill, which was previously slated to be closed in 2027 or 2028, and for there to be an immediate cleanup of the North Bellport community’s air, land and water. Town officials have yet to provide a firm timeline for closing the Yaphank facility.

Panico, when asked whether the town will earmark the settlement money for the benefit of the North Bellport community or for remediation at the landfill, said, “We’re doing work far in excess of that $1 million figure. Our commitment to the people of North Bellport is long-standing and strong.”

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Parking spots in the Brookhaven Town Marina lot were given to Port Jeff Village as part of a 2015 agreement, but the deal alienated parkland, according to the AG's office. Screen capture

To accommodate the sale of a Brookhaven Town-owned building within Port Jefferson Village jurisdiction, the entities reached an intermunicipal agreement in 2015 to swap parking spaces. An informal opinion from the attorney general’s office dated Dec. 13, 2017 has left the deal in limbo.

Brookhaven sold the property on the corner of Main and East Main streets to private developer Agrino Holdings LLC. The developer has since turned the space into first floor retail with apartments above. The change of use of the building triggered a requirement within village code for additional parking, but downtown Port Jeff has a perennial parking problem, with a constant space shortage that can make it difficult for new developments to meet village code requirements. To offset the lack of spaces, the town reached an agreement with the village on a parking space swap — giving the village control of spots at the town-owned marina lot overlooking Port Jefferson Harbor in exchange for spots behind what was previously First National Bank of Port Jefferson and the town tax receiver’s office.

Upon hearing of the agreement at a village board meeting, Michael Mart, a longtime village resident and former member of Port Jeff’s parking committee, said he had some questions. Mart said he believed the deal created an alienation of parkland, as the town-owned spots were meant for boat trailer parking at the marina and boat launch. He took the issue to other interested Brookhaven Town residents who joined up for his cause, and after some back-and-forth in a series of letters to the editor in The Port Times Record by both Mart and Village Mayor Margot Garant, in April 2016, the town attorney’s office requested an informal legal opinion from New York Attorney General Eric Schneiderman asking, “Must the Town of Brookhaven seek legislative approval for the alienation of parkland for an intermunicipal agreement with the Village of Port Jefferson to maintain and control 30 vehicular stalls at a Town marina?”

In Kathryn Sheingold’s response for Scheniderman in December, the New York state assistant solicitor general in charge of opinions vindicated Mart’s contention.

“We are of the opinion that because land currently dedicated to park purposes — parking for the marina — would be made available for parking for other than park purposes, that is, general municipal parking, the change would constitute a diversion of park property that must be authorized by the Legislature before it can occur,” she wrote.

Englebright said in an interview last week he would not support legislation that results in the alienation of parkland.

“I’m open to a conversation if someone can persuade me that the precedent being set is good, but at the moment, from what I see, this is [not a good outcome], despite everyone being of good intent,” he said if he were to receive legislation for the swap as initially crafted. “My door is always open, but I’m very cautious about messing around with parkland.”

Port Jeff Village Attorney Brian Egan said the village has been in touch with the town attorney’s office and the sides are evaluating options, though he does expect an agreement will be reached to rectify the situation, and the sale of the building will not be voided.

““The fact of  the matter is that this informal opinion is only an opinion,” Egan said. “The town attorney and village attorney respectfully disagree with this non-binding opinion on the attorney general’s opinion of the facts and the law. [The document] is not the pinnacle of clarity if this transfer of parking for parking constitutes alienation … I’m confident with the creativity of the town and the village we will come up with a solution.”

Village Deputy Mayor Larry LaPointe said in a statement Egan is reviewing the opinion and the village will decide if any further action is necessary. Brookhaven Town Attorney Annette Eaderesto offered a statement on the matter through a town spokesperson.

“The town will not be seeking alienation,” she said.

A legal battle could ensue should the municipalities fail to reach an agreement.

This post was updated Jan. 29 to correct Michael Mart’s course of action in 2016. This post was updated Jan. 30 to amend Brian Eagen’s quote and to include a statement from Annette Eaderesto.

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