East Meadow company to return $1.5M to scammed homeowners

Nassau County homeowners are recovering the $1.5 million out of which they were scammed when they signed up for a spurious state tax exemption program with an East Meadow company.

Eric Schneiderman, the New York State attorney general, filed suit against the company, YCA Corp., and its owner Arie Gal last January. He alleged that both parties sent out deceptive mailers urging homeowners to sign up for the School Tax Relief, or STAR, program, which which provides a partial exemption from school property taxes for households making less than $500,000 per year.

Those who responded to the mailers, Schneiderman contends, were charged a fee equal to the savings they were offered, even though singing up for the program is supposed to be free.

The Nassau County Supreme Court has demanded full restitution from Gal and his company and charged both with civil penalties, as outlined in court documents. An accounting has also been set forth by the court to ensure homeowners have their money returned.

“[Gal and his company] basically prayed on first-time homeowners,” said Jennifer Skelly, 34, of Bayville.

Skelly bought her home in August 2012 and, shortly after superstorm Sandy, she received a STAR application from YCA. At the time, she said, she believed it was from Nassau County. After filling the form out and submitting it, she said that she received a letter stating that she was approved, but that her “STAR Exemption Advisor” fee was equivalent to her first-year tax savings — $865.49.

When some homeowners refused to pay their so-called fee, Gal sued them in a small claims court. To avoid litigation, many of these homeowners paid Gal. Some residents have paid up to $1,000 for services, dating back to 2013, according to the LI Families community web forum.

On Jan. 30, 2017, Schneiderman obtained a temporary restraining order to keep YCA Corp. and Gal from doing business in New York and froze their assets. The Nassau County Assessor’s Office and Valerie Singleton, Assistant Attorney General in Charge of the Nassau Regional Office, assisted with the investigation, Schneiderman added.

“Home ownership is challenging enough,” Schneiderman said. “Today’s decision serves as a reminder that my office will continue to aggressively pursue those seeking to scam New York homeowners.”