NEW YORK (Legal Newsline) -- New York Attorney General Eric Schneiderman said Wednesday his office has reached a settlement with a security guard training school and its owner for allegedly falsely promising jobs to victims who paid for expensive job training courses.
1st Security Prep and Placement and Allen Haft, the company's owner, will direct as much as $100,000 to refund victims of the company's unlawful practices, as well as cover penalties, fees and costs.
Schneiderman filed a lawsuit against 1st Security and Haft in April and obtained a temporary restraining order to shut the school down and freeze its assets.
"Phony job listings lured thousands of vulnerable, unemployed New Yorkers into believing they would obtain work after paying for expensive training courses," the attorney general said in a statement. "In fact, this company's whole operation was a scam.
"This office will not tolerate individuals or companies who make false promises to deceive the public into paying for inferior products."
Schneiderman's lawsuit alleged 1st Security posted hundreds of fake security guard job listings online and in newspapers to make it seem like the company was hiring employees at high hourly wages.
1st Security was allegedly just selling inferior training courses that cost between $449 and $667. After consumers paid for and completed the courses, they were allegedly given worthless referrals and were not hired for any positions.
Under the terms of the settlement, 1st Security and Haft are permanently enjoined from offering employment opportunities or employment placement assistance and from selling, conducting or offering to sell security guard or other safety-related training in New York.