Consumer Protection

TRAVIS AIR FORCE BASE -- Attorney General Kamala D. Harris and Holly Petraeus, Director of the Office of Service Member Affairs at the Consumer Financial Protection Bureau (CFPB), today met with Airmen and their families to discuss the financial difficulties they face, especially as they relate to the foreclosure crisis.

California has the largest population of military members, reservists and veterans and is the epicenter of the foreclosure crisis. Attorney General Harris formed a working group last year to explore scams and other predatory conduct uniquely targeting servicemembers.

Attorney General Harris is proposing the California Homeowner Bill of Rights in order to fix California’s broken mortgage process and extend to all borrowers many of the same reforms included in the recent national mortgage settlement. The legislation builds on the national mortgage settlement, which secured enhanced protections for active-duty and veteran homeowners, in addition to bringing an historic $18 billion in relief to California homeowners and foreclosure victims.

“Our servicemembers, veterans and their families have made tremendous sacrifices for all of us,” said Attorney General Harris. “It is our obligation to do right by them and make sure they have the tools they need to protect their homes, their families and their future.”

“I commend Attorney General Harris’ work to address the unique financial challenges military personnel face,” Petraeus said. “Military homeowners experience frequent moves and deployments, and it’s important that mortgage servicers recognize and respond to their special circumstances. Servicemembers put their lives in jeopardy to serve our country, and in return we owe them strong consumer protections.”

The National Mortgage Settlement protect those in the military by requiring banks to provide specially-trained points of contact to servicemembers and give special consideration for loan modifications and other relief to servicemembers who are required to relocate to a new duty station.

The California Homeowner Bill of Rights would require banks to notify servicemembers of their rights under the Servicemembers Civil Relief Act before filing a foreclosure. Under that Act, servicemembers are eligible for various mortgage-related protections, including a capped interest rate and possible deferment of payments.

Military families are especially vulnerable to mortgage-related abuses for a variety of reasons. Deployments and emergencies lead to unplanned and unique financial difficulties; servicemembers are often victims of marketing preying on their loyalty and patriotism; frequent relocation can make it difficult to sell a home; and foreclosure or other debt can lead to loss of security clearance and position.

FRESNO -- Attorney General Kamala D. Harris today was joined by Fresno County Sheriff Margaret Mims, Merced County Sheriff Mark Pazin, Tulare County Sheriff Bill Wittman, and Fresno Police Chief Jerry Dyer at a press conference in support of the California Homeowner Bill of Rights, which contains law enforcement tools to help prevent blight and other crimes associated with the foreclosure crisis.
Attorney General Harris also presented Attorney General Awards to distinguished officers from the Visalia Police Department, Fresno Police Department, the California Highway Patrol (Madera area), Kings County District Attorney’s Office and the California Department of Corrections and Rehabilitation.

The press conference occurred after at a regional “zone” meeting, where law enforcement leaders discussed common challenges and collaboration. Zone 5 includes law enforcement agencies from Fresno, Kern, Kings, Madera, Mariposa, Merced and Tulare counties.

“As I meet with law enforcement leaders around the state, I repeatedly hear of their frustrations dealing with the aftermath of our foreclosure crisis and crime that is associated with it,” said Attorney General Harris. “I am gratified by the support of these Central Valley law enforcement leaders for the California Homeowner Bill of Rights, and look forward to the public safety enhancements it will bring.”

“Attorney General Harris’ proposed legislation provides increased enforcement capabilities, due process for homeowners, and gives local law enforcement additional tools to avoid blight as a result of empty homes left vacant as a result of foreclosures. I am pleased to be able to join her and support the California Homeowner Bill of Rights,” said Sheriff Margaret Mims of Fresno County.

“All Californian’s should be appreciative of these bills the Attorney General is trying to pass as they will help prevent foreclosure abuses, especially here in Merced where we ranked among some of the nation’s highest foreclosed homes,” Merced Sheriff Mark N. Pazin said.

“As the Sheriff of Tulare County, I have seen firsthand the devastating effects of the mortgage crisis, not only in Tulare County but across the State of California. In Tulare County alone, between 2008 and 2011 there were over 11,000 foreclosures. The California Homeowner Bill of Rights will assist homeowners and law enforcement agencies by providing additional resources and tools to identify and fight a multitude of crimes related to mortgage fraud, real estate fraud, and loan scams. I fully support the California Homeowner Bill of Rights,” Tulare County Sheriff Bill Wittman said.

The California Homeowner Bill of Rights, which would bring transparency and fairness to California’s broken mortgage process, is under consideration in the Legislature and includes proposals to help law enforcement respond to mortgage fraud and to crime associated with the foreclosure crisis.

These bills would empower communities to crack down on blight and the resulting crime, would support law enforcement responses to mortgage fraud by extending the statute of limitations, and would empower the Attorney General to empanel a special grand jury to target multi-jurisdictional financial crimes.

The California Homeowner Bill of Rights will also extend to all borrowers many of the same reforms negotiated for in the recent national mortgage settlement. The legislation includes protections against the dysfunctional “dual-track” foreclosures process, guarantees of a single point of contact for distressed homeowners, and an increase in penalties for robo-signing. The multistate mortgage settlement brought a commitment of up to $18 billion for California homeowners and foreclosure victims from banks.

Foreclosure-related estimates for each county in the zone are:

Fresno County:
Number of foreclosures 2008-2011: 27,837
Estimated amount of California commitment: $311,015,043

Kern County:
Number of foreclosures 2008-2011: 35,893
Estimated amount of California commitment: $374,504,344

Kings County
Number of foreclosures 2008-2011: 2,139
Estimated amount of California commitment: $24,288,347

Madera County
Number of foreclosures 2008-2011: 7,005
Estimated amount of California commitment: $84,307,143

Mariposa County
Number of foreclosures 2008-2011: 238
Estimated amount of California commitment: $6,761,727

Merced County
Number of foreclosures 2008-2011: 18,229
Estimated amount of California commitment: $215,723,069

Tulare County
Number of foreclosures 2008-2011: 11,269
Estimated amount of California commitment: $119,124,870

SACRAMENTO -- Attorney General Kamala D. Harris today testified in support of the California Homeowner Bill of Rights, a package of legislation designed to protect homeowners from unfair practices by banks and mortgage companies and to help families and communities cope with the state’s urgent mortgage and foreclosure crisis.

Attorney General Harris testified at the joint Legislative Conference Committee created to examine two key bills from the Homeowner Bill of Rights. These bills will guarantee a single point of contact for struggling homeowners, penalize the ‘robosigning’ of documents, and restrict so-called “dual track” foreclosures, where borrowers are foreclosed upon even while negotiating with their bank to pay to stay in their homes.

“This Bill of Rights is simply about common sense reform and about bringing transparency for an otherwise confusing and daunting system,” said Attorney General Harris. “It is about hard working people who believe in the American dream.”

Attorney General Harris was joined in testifying by responsible homeowners struggling with their mortgages.

Celeste Singh’s home was sold at auction before she was denied a loan modification. She has tried repeatedly to have her bank modify her loan after a car accident left her with brain damage.

“My home is where my heart is, and my community is where my children and I have laid down our grassroots,” Singh said during her testimony. “I have been an active participant in my community for years. It feels like a death sentence and thousands of Californians know what I'm talking about.”

The Homeowner Bill of Rights builds on the national mortgage settlement and California commitment announced by Attorney General Harris earlier this year. That agreement included common-sense reforms, hammered out through a thoughtful process, but which only apply to the five settling banks and only for a limited time. The bills in the Homeowner Bill of Rights would make these reforms permanent and extend them to all Californians. The bills are authored by Senator Mark Leno and Assembly Member Mike Eng.

The legislation, first introduced at a February 29th press conference, was developed in collaboration with Assembly Speaker John A. Perez, Senate President pro Tem Darrell Steinberg and other members of the legislature. The Conference Committee features three members from each house: Senators Noreen Evans, Ron Calderon and Sam Blakeslee and Assembly Members Mike Eng, Mike Feuer, and Donald Wagner.

California won up to $18 billion in the national mortgage settlement, and has appointed an independent monitor, Professor Katherine Porter, to verify the extent and timeliness of lenders meeting their obligations to California homeowners.

Other bills in the package include:
- BLIGHT PREVENTION LEGISLATION: AB 2314 (Carter) & SB 1472 (Pavley and DeSaulnier)
- TENANT PROTECTION LEGISLATION AB 2610 (Skinner) and SB 1473 (Hancock)
- ENHANCEMENT OF ATTORNEY GENERAL ENFORCEMENT ACT AB 1950 (Davis)
- ATTORNEY GENERAL SPECIAL GRAND JURY ACT AB 1763 (Davis) and SB 1474 (Hancock)

More information on the bills can be found here: www.leginfo.ca.gov

SAN FRANCISCO -- Attorney General Kamala D. Harris today announced two historic settlements with Abbott Laboratories over the illegal off-label marketing of its Depakote drug.

California joined other states and the federal government in a $1.5 billion civil and criminal settlement with Abbott Laboratories. The second largest recovery ever from a pharmaceutical company, this settlement resolves false claims made by Abbott Laboratories to Medicaid and other federal healthcare programs. The second settlement, a $100 million civil consumer protection settlement, is the largest consumer protection settlement ever reached with a pharmaceutical company.

As a result of the settlements, Abbott Laboratories will be restricted from marketing the drug for off-label uses not approved by the U.S. Food and Drug Administration.

“This company put people in harm’s way through the deceptive off-label uses of its drug,” Attorney General Harris said. “Californians should be able to trust the companies that produce pharmaceuticals and the magnitude of this settlement shows the seriousness of the offenses.”

As part of the $1.5 billion settlement, Abbott Laboratories will pay the states and the federal government $800 million in civil damages and penalties to compensate Medicaid, Medicare, and various federal healthcare programs for harm suffered as a result of its conduct. The California gross share recovery is $52 million plus 2.5 percent annual interest, which will be split among various parties, including the U.S. Department of Health Care Services, the whistleblowers the California Department of Health Care Services and the California False Claims Act Trust.

Abbott Laboratories also pled guilty this morning to a violation of the Food, Drug, and Cosmetic Act (FDCA) and agreed to pay $700 million in criminal fines. Further as a condition of the settlement, Abbott Laboratories will enter into a Corporate Integrity Agreement with the United States Department of Health and Human Services, Office of the Inspector General.

“We are pleased that this settlement retrieves scarce Med-Cal funds that should be used for the care of vulnerable Californians,” said California Department of Health Care Services Director Toby Douglas. “Protecting the fiscal integrity of Medi-Cal remains a top priority for this department.”

The $1.5 billion settlement includes 49 states and the District of Columbia and is based on four qui tam cases filed under federal and California false claims statutes. A team appointed by the National Association of Medicaid Fraud Control Units participated in the investigation and conducted the settlement negotiations with Abbott on behalf of the participating states. Team members from the Attorney General Harris’ Bureau of Medi-Cal Fraud and Elder Abuse include Investigative Auditor Martha Valdez, Special Agent Supervisor Cynthia Bentley and Deputy Attorneys General Matt Kilman and Carlotta Hivoral.

The second settlement announced today included 44 other states and the District of Columbia. The $100 million consumer protection settlement included $6.7 million for California, the largest share of any state.

In the complaint filed today with the settlement agreement, the states alleged that Abbott engaged in unfair and deceptive practices when it marketed Depakote for off-label uses. Depakote is approved for treatment of seizure disorders, mania associated with bipolar disorder and prophylaxis of migraines, but the attorneys general alleged Abbott marketed the drug for treating unapproved uses, including schizophrenia, agitated dementia and autism.

As a result of the states’ investigation, Abbott has agreed to significantly change how it markets Depakote and to cease promoting off-label uses.

Under the consumer protection settlement, Abbott Laboratories is:
-Prohibited from making false or misleading claims about Depakote
-Prohibited from promoting Depakote for off-label uses
-Required to ensure financial incentives on sales do not promote off-label uses of Depakote

In addition, for a five-year period Abbott must:
-Limit responses to requests by physicians for non-promotional information about off-label uses of Depakote
-Limit dissemination of reprints of clinical studies relating to off-label uses of Depakote
-Limit use of grants and continued medical education
-Disclose payments to physicians
-Register and disclose clinical trials

Joining California in the consumer protection settlement are the Attorneys General of the District of Columbia and the following states: Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia and Wisconsin.

SACRAMENTO -- Attorney General Kamala D. Harris released the following statement upon the announcement that parts of the California Homeowner Bill of Rights will be heard by a Legislative Conference Committee:

“There are more than 500,000 California homeowners in the foreclosure pipeline, and securing for them the protections of the Homeowner Bill of Rights is my central concern. I am sure these reforms will receive thoughtful attention and discussion in the Legislative Conference Committee which is why I support the Assembly Speaker and Senate President pro Tem’s decision to form it. I look forward to working with the Legislative leaders and members of the committee to bring transparency and fairness to our state’s mortgage and foreclosure process.”

SACRAMENTO -- Attorney General Kamala D. Harris today announced seven bills in the California Homeowner Bill of Rights to protect homeowners from unfair practices by banks and mortgage companies passed out of Legislative committees.

The bills include measures to protect tenants in the foreclosure process, allow local communities better remedies against blight and allow the Attorney General’s office more power to investigate and prosecute mortgage-related crimes.

“All Californians have been impacted by the toll the mortgage and foreclosure process has taken on our neighborhoods,” said Attorney General Harris. “Our California Homeowner Bill of Rights will provide relief for homeowners, tenants and communities. I thank the authors and supporters of these important bills.”

AB 2314 and SB 1472 would provide local jurisdictions with additional tools to fight blight from abandoned homes. These tools include increased penalties against the owners of blighted property, including the cost of taking control of that property. AB 2314 and SB 1472 unanimously passed the Assembly and Senate Judiciary Committees.

Another bill is aimed at providing greater protections to California tenants. AB 2610 and SB 1473 would provide California tenants with the same protections that they are currently afforded under federal law. This legislation would require purchasers of foreclosed homes to honor the terms of existing leases and give tenants at least 90 days before commencing eviction proceedings. The bills passed the Assembly and Senate Judiciary Committees on a 7 to 3 and 3 to 2 vote, respectively.

Two bills would provide additional tools for the Attorney General’s office to investigate and prosecute mortgage frauds and crimes. AB 1950 would extend the statute of limitations on mortgage-related crimes, including loan modification scams and the unlicensed sale of real estate. This legislation would also provide the Attorney General’s office with funding to prosecute these and other mortgage-related crimes through a $25 fee to be paid by servicers upon the recording of a notice of default. AB 1950 passed the Assembly Public Safety Committee on a 4 to 2 vote.

Attorney General Harris formed a Mortgage Fraud Strike Force last year to investigate and prosecute mortgage fraud. In August, the Strike Force filed its first suit against a law firm that took millions from desperate homeowners: http://oag.ca.gov/news/press_release?id=2552&y=&m=

AB 1763 and SB 1474 would allow the Attorney General to convene a special grand jury to investigate and indict the perpetrators of financial crimes involving victims in multiple jurisdictions. Both bills passed out of their houses’ Public Safety Committees unanimously.

SAN FRANCISCO – California Attorney General Kamala D. Harris today announced a settlement with Arbitron Inc., the nation’s dominant provider of radio audience ratings, over allegations that the method it used to collect ratings information discriminated against radio stations with predominantly African-American and Latino audiences. The settlement is the result of a consumer protection lawsuit filed jointly by the State of California and the cities of Los Angeles and San Francisco.

Attorney General Harris, Los Angeles City Attorney Carmen A. Trutanich and San Francisco City Attorney Dennis Herrera alleged that Arbitron Inc.’s implementation of “Portable People Meters” (PPM) to measure radio station listenership in California beginning in 2008 violated the state’s Unfair Competition Law, False Advertising Law and Unruh Civil Rights Act by dramatically undercounting minority audiences, causing sharp declines in advertising rates and revenue for many broadcasters.

“This settlement ensures that California’s diverse audiences will be fully counted by Arbitron’s ratings systems and that broadcasters serving these communities will have the opportunity to compete fairly in the marketplace,” said Attorney General Harris. “I am pleased that Arbitron will be revising its practices in the state and thank my partners in this effort, City Attorneys Carmen Trutanich and Dennis Herrera.”

Arbitron’s ratings are based on information provided by sample groups of listeners. In deploying a new system that relied on electronic metering devices in place of personal listenership diaries, Arbitron’s listener recruitment methodology failed to reflect the diversity of broadcast audiences in California markets, according to the complaint filed in San Francisco Superior Court.

The settlement mandates that Arbitron meet concrete metrics in its efforts to ensure that its audience sampling methods are fair and representative of California’s diverse media markets. Specifically, Arbitron will improve its sample-audience recruitment by increasing address-based outreach to 65 percent of its total recruitment activity by December 31, 2012. Previously, recruitment was conducted primarily via land-line telephone, a survey method that failed to adequately include minority households. Arbitron will also take all reasonable steps to increase minority participation in their sample audience panels in five California major media markets. Additionally, Arbitron will begin incorporating country of origin as a standard demographic characteristic collected from participating Hispanic households—an additional benefit to Spanish-language media outlets. The Columbia, Md.-based media research firm also has agreed to pay a total of $400,000 to the plaintiffs: $150,000 each to the State of California and City of Los Angeles and $100,000 to the City and County of San Francisco.

Radio stations serving primarily African American and Latino audiences were disproportionately affected by the sample audience recruitment methods Arbitron began using with its switch to the PPM ratings scheme in 2008. Of the 18 stations serving minority audiences in Los Angeles, 16 experienced ratings decreases in excess of 30 percent under the initial PPM system. Three of these fell by over 70 percent. One Los Angeles radio station whose audience is mostly African-American, was rated 0.0 for a significant portion of the day immediately after implementation of the new PPM ratings. One Spanish- language radio station that had previously enjoyed a number one ranking in the Los Angeles market saw its ratings plummet by more than 50 percent under Arbitron’s PPM ratings for September 2008.

Arbitron’s PPM methodology was criticized by minority broadcasters and the Media Ratings Council, the independent industry body that accredits media ratings systems, which has found problems with minority representation in Arbitron’s sample audiences in the past.

“Through this settlement, Arbitron has agreed to take important steps to ensure that minority radio stations are reasonably treated in order that they may fairly compete in the California marketplace,” said Los Angeles City Attorney Carmen A. Trutanich. “In a city as diverse as Los Angeles, it is important that all of our residents and our businesses be equally represented and able to compete in our field of commerce. Only then will all Californians have a voice.”

“Assuring the integrity of broadcast rating methodologies is essential to protect media outlets that serve California’s diverse communities,” said San Francisco City Attorney Dennis Herrera. “These measures set all-important ad rates and revenue, and largely determine the success or failure of media outlets in a competitive industry. I’m grateful for the hard work and expertise of my co-counsel in this case, Attorney General Kamala D. Harris and L.A. City Attorney Carmen Trutanich. I am also appreciative to Arbitron and its legal team for their cooperative approach and willingness to negotiate with us in good faith.”

The case is the People of the State of California v. Arbitron, Inc., San Francisco Superior Court.

A copy of the settlement is attached to the online version of this release at www.oag.ca.gov.

SAN FRANCISCO -- Attorney General Kamala D. Harris today announced that Wal-Mart has agreed to pay $2.1 million for overcharging consumers in violation of a 2008 judgment against the retail chain.

Today’s modified judgment is the result of Wal-Mart’s failure to comply with a 2008 judgment that required the retail chain to resolve errors in pricing at checkout stands.

“Consumers should feel confident that the price on the shelf will be the same price they are charged at the cash register,” said Attorney General Harris. “Californians who shop at Wal-Mart should know that they have the right to ask for the appropriate discount.”

In December 2005, the Attorney General’s office and the San Diego District Attorney’s office investigated allegations that Wal-Mart stores in California were scanning items at a higher price than the prices advertised on store shelves and signs. Through random price-checking, county Departments of Weights and Measures across the state found that 164 Wal-Mart stores in 30 counties had made scanning errors.

According to the terms of the 2008 judgment, consumers who were overcharged at the cash register should have immediately received $3 off the lowest advertised price of the item. If the price was less than $3, the item was to be given to the consumer for free.

Starting in November 2010, Departments of Weights and Measures in 11 counties conducted investigations to monitor Wal-Mart’s compliance and found continued errors in pricing at Wal-Mart checkout stands.

Today, Attorney General Kamala D. Harris, San Diego District Attorney Bonnie M. Dumanis and San Diego City Attorney Jan I. Goldsmith filed a Stipulated Modified Judgment with the San Diego Superior Court resolving Wal-Mart’s failure to comply with the requirements of the 2008 judgment.

The $3 off program was originally scheduled to end in November 2012, but with today’s action has been extended to November 2013. Wal-Mart will also be required to put new, large signs describing the policy, in both English and Spanish, at each of the approximately 3,000 checkout stands at its 180 stores and super centers in California.

Wal-Mart has also agreed to designate a person at every Wal-Mart store in California to ensure pricing accuracy. Any price discrepancy must be reported within three hours to Wal-Mart’s corporate headquarters, which receives and maintains price audit information, consumer complaints and inspection reports for all California Wal-Mart stores.

Wal-Mart has agreed to pay new penalties and costs totaling $2.1 million. These funds will be divided between County Weights and Measures officials, the California Department of Measurement Standards, the Attorney General’s office, the San Diego District Attorney’s office and the San Diego City Attorney’s office.

A copy of the judgment and the sign that will be posted at all Wal-Mart checkout stands is attached to the online version of this release at www.oag.ca.gov.

SAN FRANCISCO -- Attorney General Kamala D. Harris today announced that three of the nation’s leading online dating providers have issued a joint statement of business principles that online dating providers should follow to help protect members from identity theft, financial scams and sexual predators.

The agreement between the Attorney General and online dating providers eHarmony, Match.com and Spark Networks (operator of such websites as JDate and ChristianMingle), states that the companies will protect their members through the use of online safety tools, including checking subscribers against national sex offender registries and by providing a rapid abuse reporting system for members.

The websites will also continue to proactively educate members about safe online dating practices, and will supply members with online safety tips, including fraud prevention guidance and tips for safely meeting people offline. These tips and financial scam warnings will be issued on an ongoing basis to registered members.

“I commend these companies for committing to these important consumer protections,” said Attorney General Harris. “Consumers should be able to use websites without the fear of being scammed or targeted. It is a priority for this office to ensure consumers are protected online, and companies who are creating in the Internet space have a continued opportunity to innovate and thrive.”

Providers will continue their efforts to screen members for safety threats, whether financial or physical, using a number of protective tools, including looking for fake profiles and checking sex offender registries to prevent registered sex offenders from using their fee-based services. Any member who is identified as a registered sex offender will not be allowed to use these services.

This joint statement also ensures that the online dating service providers have rapid abuse reporting systems, which give members access to a website, email address and/or phone number to report any suspected criminal activity, including physical safety concerns and fraud. This agreement reflects best practices that these industry leaders are following.

“In the interest of protecting and educating users, I strongly encourage all online dating companies to adopt the same principles as these industry leaders,” Attorney General Harris said.

Last year, Attorney General Harris established an eCrime Unit to prosecute identity theft, data intrusions and crimes involving the use of technology. Attorney General Harris will assign a liaison from the eCrime Unit to deal with reports of suspected criminal activity provided by the three online dating providers and other providers who adopt these principles.

In 2011, 40 million Americans used an online dating service and spent more than $1 billion on online dating website memberships. Of couples married in the last three years, one in six met through an online dating service and one in five people have dated someone they met through an online dating site.

“eHarmony has the greatest concern for the safety and security of our members. These types of practices have been part of our commitment to member safety and education for many years.” said eHarmony CEO Jeremy Verba. “We are proud to join Attorney General Harris, Match.com and Spark Networks in setting an example for the rest of the online dating industry.”

“We commend Attorney General Harris for working with us to communicate best practices for a safe and enjoyable online dating environment,” said Match.com President Mandy Ginsberg. “We have always been committed to setting the standard for positive consumer experiences in online dating, and we were happy to work with the Attorney General, eHarmony and Spark Networks to encourage best practices throughout the industry.”

“The safety of our members and integrity of our sites is of fundamental importance to us, and we have always taken a multi-faceted approach to creating and maintaining safe online communities like JDate and ChristianMingle,” said Greg Liberman, President and CEO of Spark Networks. “We are honored Attorney General Harris has recognized our efforts to date and look forward to our continuing collaboration with the Attorney General, eHarmony, and Match.com to protect the safety and privacy of online daters and encourage others in the industry to follow our examples.”

A copy of the agreement is attached to the online version of this release at www.oag.ca.gov.

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About the Companies:

About eHarmony, Inc.

Santa Monica, Calif.-based eHarmony, Inc. (www.eharmony.com) was founded in 2000 and is a pioneer in using relationship science to match singles seeking long-term relationships. Its service presents users with compatible matches based on key dimensions of personality that are scientifically proven to predict highly successful long-term relationships. On average, 542 people marry every day in the U.S. as a result of being matched on eHarmony, nearly 5% of new marriages.* Currently, eHarmony operates online matchmaking services in the United States, Canada, United Kingdom, Australia and Brazil, and through its affiliation with eDarling, in 11 countries throughout continental Europe.

* 2009 survey conducted for eHarmony by Harris Interactive.®

About Match.com

Founded in 1995, Match.com was the original dating website and pioneer of the online dating industry. Throughout its sixteen year history, Match.com has been responsible for more dates, relationships and marriages than any other website. Today, Match.com operates leading subscription-based online dating sites in 25 countries, 8 languages and across five continents. Match.com is an operating business of IAC and is headquartered in Dallas, Texas. For more information, visit www.match.com.

About Spark Networks, Inc.

Spark Networks, Inc. (www.Spark.net) is one of the world’s leading providers of online personals services. Spark Networks’ shares trade on the NYSE Amex under the symbol “LOV” (NYSE Amex: LOV). The Spark Networks portfolio of consumer websites includes, among others, JDate.com (www.JDate.com), ChristianMingle.com (www.ChristianMingle.com), BlackSingles.com® (www.BlackSingles.com) and SilverSingles®.com (www.SilverSingles.com).

SACRAMENTO --- Attorney General Kamala D. Harris today announced the appointment of Professor Katherine Porter of the University of California, Irvine School of Law as the California monitor of the commitment by the nation’s five largest banks to perform as much as $18 billion worth of homeowner and borrower benefits in the state. Attorney General Harris’ decision to appoint a California monitor was made independent of the national settlement, and Professor Porter’s role is focused exclusively on ensuring compliance in California.

This California commitment is part of a national federal-state mortgage settlement penalizing robo-signing and other servicing and foreclosure misconduct that is currently pending approval in a federal court in Washington, D.C. Upon approval of the settlement, California’s monitor will assist the Attorney General’s office in holding the banks accountable for their commitments to the state and ensuring that the promised benefits are delivered to homeowners in full and on time.

“Hundreds of thousands of California homeowners will benefit from the commitments of up to $18 billion extracted from mortgage lenders. We must enforce full and timely compliance with these commitments, and the appointment of Professor Porter as our California monitor is central to that enforcement,” said Attorney General Harris. “Professor Porter’s wealth of experience and knowledge will protect the interests of homeowners and ensure the settling banks deliver on their promises,” Attorney General Harris continued.

“I will work hard to make sure banks hold up their promises to change troubling practices so that families and communities across California see the benefits of the settlement,” said Professor Porter. “Part of repairing the damage of the mortgage crisis is restoring public confidence that our largest financial institutions will treat consumers fairly and follow the law.”

Katherine Porter is a Professor at University of California, Irvine School of Law. She specializes in commercial and consumer law, including mortgage foreclosures and bankruptcy, and just released a book, Broke: How Debt Bankrupts the Middle Class. In 2007, Porter authored an empirical study that offered some of the first systemic evidence of the problems in mortgage servicing that harmed homeowners. She has worked with other government entities, including the Federal Trade Commission and the Consumer Financial Protection Bureau, on issues relating to mortgage servicing.

Upon approval of the settlement, Professor Porter will verify the extent and timeliness of lenders meeting their obligations to California homeowners. Using information obtained by the national monitor of the mortgage settlement, former North Carolina Commissioner of Banks Joseph Smith, Professor Porter will review lender filings, homeowner reports and complaints, and other compliance documents to ensure that benefits committed by the banks are performed and result in meaningful relief to California borrowers. She will regularly report the results of her findings to the Attorney General’s Office.

The appointment of Professor Porter as the state’s monitor is one of a series of enforcement mechanisms to ensure transparent compliance with the national settlement and the separate California agreement. Bank of America, Wells Fargo, and JP Morgan Chase will face significant financial penalties if they do not meet their guarantee of a minimum of $12 billion in principal reductions and short sales for homeowners within the state. Unlike the larger national agreement, which is only enforceable in a federal court in Washington, D.C., the agreement reached with California empowers Attorney General Harris to enforce the penalty provisions in California state court.

California secured the estimated $18 billion in borrower benefits and relief as part of a national multistate settlement to penalize robo-signing and other bank servicing and foreclosure misconduct. The agreement comes after California departed from the multistate negotiations last September when the relief to California was estimated at $4 billion. Attorney General Harris insisted on more relief for the most distressed homeowners, on stronger enforcement provisions, and that California and other states preserve key investigations into mortgage misconduct.

California’s separate commitment also creates important incentives to ensure that banks will reduce the principal mortgage balance of underwater homeowners in California’s hardest-hit counties and that the principal reductions in these and other California communities will occur within the first year of the settlement. Professor Porter will ensure that both the California-specific and national settlements are properly implemented in the state.

“The California commitment provides a path for thousands of struggling homeowners in California to retain their homes, while preserving our ability to investigate banker crime and predatory lending,” added Attorney General Harris. “This is one important stride in our ongoing efforts to address the mortgage and foreclosure crisis that has devastated too many California communities.”

Attorney General Harris earlier this month joined Assembly Speaker John A. Pérez, Senate President pro Tem Darrell Steinberg and other state legislators to unveil the California Homeowner Bill of Rights, designed to protect homeowners from unfair practices by banks and mortgage companies and to help consumers and communities cope with the state’s urgent mortgage and foreclosure crisis. The legislation would make permanent and available to everyone the interim reforms agreed to as part of the California commitment, including a single point of contact for mortgage-holders and restrict the unfair and inherently deceptive system of dual-track foreclosures. State legislators authoring key components of the Homeowner Bill of Rights include Assemblymembers Wilmer Carter, Mike Davis, Mike Eng, Mike Feuer, Holly Mitchell, Nancy Skinner, Senate President pro Tem Darrell Steinberg, and Senators Mark DeSaulnier, Loni Hancock, Mark Leno, and Fran Pavley.

Attorney General Harris also continues her work to have the Federal Housing Finance Agency authorize Fannie Mae and Freddie Mac – holders or guarantors of over 60 per cent of California mortgages – to participate in targeted programs of principal reduction that will benefit struggling homeowners, stabilize the country’s housing market, and benefit taxpayers.

The state’s Mortgage Fraud Strike Force continues its work to crack down on all forms of mortgage misconduct. Earlier this month, three prominent attorneys were arrested and are accused of running a loan modification scam.

A photo of Professor Porter is attached to the electronic version of this release at http://oag.ca.gov/