Government: December 2005 to March 2006

Texas Attorney General Greg Abbott Hosted Interactive Cyber Safety Town Hall Meeting

National statistics show that one in five children received unwanted sexual solicitations online each year

March 30, 2006

TEXARKANA – Texas Attorney General Greg Abbott and his top Cyber Crimes Unit investigators, responding to the proliferation of predators seeking children online, visited Texarkana on March 21 for an interactive “cyber safety” town hall meeting at the Texas High School Little Theater.

This meeting was designed to arm parents with the tools they need to keep their children safer on the Internet. National statistics show that one in five children receive unwanted sexual solicitations online each year.

At the meeting, Attorney General Abbott and his Cyber Crimes Unit investigators outlined the risks children face online, the environment teens face online, and the way child predators are using this emerging technology to find victims. The investigators also offered information and safety tips about online predators and helped parents decipher chatroom lingo.

Teenagers were encouraged to participate in a discussion about safely using social networking Web sites like MySpace, Friendster and Xanga without compromising personal information that could unintentionally lead predators to them and their families.

The interactive presentation provided the audience with an opportunity to ask questions, and attendees also received Attorney General Abbott’s new “Internet Safety for Parents” video, which offers advice and tangible safeguards to parents on how to spot the warning signs that their children may be giving out too much information to a potential child predator.

The meeting included straight talk about the issue of online solicitation and some discussions included mature content. Parents of children of all ages and high school students were strongly encouraged to attend. Students in middle school attended at their parents’ discretion.

Cracking down on sexual predators is a top priority of Attorney General Abbott’s administration. The Cyber Crimes Unit’s hunt for online child sex predators has resulted in arrests of men from 14 Texas counties and Indonesia.

In addition to the Cyber Crimes Unit, Attorney General Abbott also formed the Fugitive Unit to locate convicted child sex offenders who have violated the terms of their parole and could be stalking children. The Fugitive Unit has arrested 270 of these parolees, as well as 46 unregistered sex offenders and another 23 men and women in other operations.

For more information, contact the Texas Attorney General’s office at 1 (800) 252-8011 or visit the Attorney General’s Web site at www.oag.state.tx.us.

- Document converted to past tense.
- Gray inset box added.

--* From the March 27 article "Attorney General Abbott’s Cyber Crimes Unit arrests a man for online solicitation."

Cyber Safety Town Hall Meeting

Purse seining for shrimp at Galveston. Photo credit - National Oceanic and Atmospheric Administration/Department of Commerce.

Perry Kicks Off Gulf of Mexico Summit

Government, industry and academic leaders are working to improve the environmental and economic health of the Gulf of Mexico

From the Office of Governor Rick Perry

March 30, 2006

CORPUS CHRISTI – Gov. Rick Perry kicked-off the State of the Gulf of Mexico Summit March 28, a three-day conference where leaders from government, industry and academia will work to improve the environmental and economic health of the Gulf of Mexico, and further efforts to recover and rebuild after the devastating 2005 hurricane season.

“In many ways, our common coastline points us towards a common future. That is why we are here – to plan for the future together, so that we can succeed together,” Perry said. “Every Gulf Coast state on both sides of our international border brings a unique perspective on managing our shared waters and responding to the challenges we all face. By sharing proven strategies, lessons learned in the past and new ideas for the future, our states will benefit both individually and collectively.”

As part of the summit, top environmental officials from the White House and U.S. and Mexican states are expected to issue a report, The Governors’ Action Plan for Healthy and Resilient Coasts, that outlines ways to improve and protect water quality, restore coastal wetlands and estuarine ecosystems, reduce pollution and nutrient loading, identify gulf habitats to support coastal management, and expand environmental education.

Perry pointed out that the Gulf of Mexico is the most economically productive body of water in both the United States and Mexico, largely due to the region’s busy ports and vibrant petroleum, fishing and tourism industries. Perry also said that although population growth along much of the Gulf Coast has fueled the region’s economy, growth has also placed greater demands on the environment. Large coastal populations also create unique challenges for emergency managers, who have an eye toward the approaching 2006 hurricane season, which will begin on June 1.

“Because we all share the Gulf’s benefits, we also share a responsibility to take care of it. The fact is, gulf waters respect no borders, and what happens in one coastal state can have a tremendous positive or negative impact on the entire group,” Perry said. “Restored habitat in one state might ultimately result in new fishery jobs in another, and shipping or retail jobs in a third. Pollution problems that begin off one state’s coastline could end up damaging ecosystems and tourism-based economies for hundreds of miles. And as we saw during last year’s devastating hurricane season, a catastrophic weather event can dramatically alter life not just for those who experience Mother Nature’s wrath firsthand, but for the entire region.”

Perry hosted the summit with Texas A&M University-Corpus Christi’s Harte Research Institute. Louisiana Gov. Kathleen Blanco attended, along with Gov. Hernandez of Tamaulipas and Gov. Herrera of Veracruz.

“With this summit as a starting point, I am confident that Gulf Coast states will chart a course that leads to healthier wetlands and cleaner water, renewed conservation efforts, a stronger, more productive economy for the next generation, and greater collaboration and coordination in times of emergency,” Perry said.

Perry - State of the Gulf of Mexico Summit

Part 5 of Texas tax reform - Perry Praises Plan for Record Property Tax Cuts

Tax Reform Commission Plan Also Calls for Overhaul of Business Taxes

From the Office of Governor Rick Perry

March 29, 2006

AUSTIN–Gov. Rick Perry today praised the Texas Tax Reform Commission for its work and said he wholeheartedly supports the commission's plan, which would provide a record $6 billion property tax cut while overhauling the state's antiquated business tax structure.

"If Texans want a fairer and broader business tax without loopholes, a stable source of revenue for our children's education, and substantial property tax relief, then we've got a plan that works for them," Perry said.

The commission's plan would pay for part of the reduction in school property taxes with a reformed, broader-based business tax while also lowering the rate businesses pay under the current franchise tax.

The governor said the plan contains four key benefits:

• It is a fundamentally fairer way to fund education because its centerpiece - the reformed franchise tax - is broader, fairer and assessed at a lower rate than the tax we have today. It closes tax loopholes so many more will pay their share, and some will pay less.

• It encourages employers to invest in people. If legislators pass this plan, employers will have new incentives to create jobs and invest in worker pensions, worker healthcare and employee dependent care.

• It makes homeownership more affordable for millions of Texas families by slashing school property taxes by about one-third starting in the 2007 tax year.

• It dramatically increases the state share of education funding. By Fiscal Year 2008, the state will pick up an estimated 50 percent of the cost of public education, instead of only 34 percent, which the current system is leading us toward in Fiscal Year 2007.

Perry appointed the bi-partisan commission last year to recommend changes to the current franchise tax. He named John Sharp, former comptroller and a Democratic, to chair the group.

The Texas Supreme Court later issued its ruling in a school-finance lawsuit and gave the legislature until June 1 to address what it found to be an unconstitutional statewide property tax.

"For years Texas has needed a new tax structure that protects jobs, reflects the modern economy, broadens the tax burden and lightens the load of property owners," Perry said. "Now we have that plan.

"It is a responsible plan that appeals to Texans' sense of fairness, encourages investments in jobs and workers, discourages harmful addictions like smoking, and utilizes a portion of the surplus to give the people a well-deserved tax cut without leaving future legislatures a mountain of debt."

The property tax cut would take effect immediately, with property owners seeing an initial rate reduction in school property taxes of 17 cents. Those property tax reductions would be paid for with an increase in taxes on tobacco products, increased tax compliance measures and a portion of the state surplus.

The reforms to the business tax structure would take effect next year and school property tax rates would be further reduced to $1 per $100 in valuation - a one-third reduction in the current school tax rate of $1.50.

"What this commission has proposed is fair, forward looking and future-oriented. It creates a tax structure for a 21st century economy. And it provides tax relief to those who need it most," Perry said.

"This is our great chance, a once in a generation opportunity to lay aside politics in pursuit of shared prosperity. I ask legislators of both parties to join me in that pursuit."

Perry - Texas Tax Reform Commission plans property tax cuts article

Perry - Texas Tax Reform Commission report - March 2006 pdf - size - 635 kb

Cornyn votes against amnesty proposal, committee immigration bill

Several of those who voted for the committee bill—including the chairman—did so with reservations

From the Office of Sen. John Cornyn

March 28, 2006

WASHINGTON—U.S. Sen. John Cornyn, chairman of the Immigration and Border Security subcommittee, made the following statement Monday regarding his vote against final passage of a committee bill that included amnesty for millions of illegal immigrants:

“I voted against this committee bill because it rewards illegal immigrants and will be considered an amnesty by Americans. It will encourage further disrespect for our laws, and will undercut our efforts to shore up homeland security. There is a better way to address this national security concern, and several of those who voted for the committee bill—including the chairman—did so with reservations.

“Adding border security measures to the McCain-Kennedy bill is not enough. But now that the full Senate debate is underway I’ll work for a comprehensive solution to our immigration situation, one with additional border security, interior enforcement, and employer accountability. And while we must address the12 million illegal aliens already here, we have to do so without granting them amnesty.”

Sens. Cornyn and Jon Kyl (R-Ariz.) are the authors of The Comprehensive Enforcement and Immigration Reform Act of 2005 (S.1438). The legislation will strengthen enforcement, bolster border security, and reform immigration laws.

For more information about the Cornyn-Kyl bill: www.cornyn.senate.gov/immigration

Cornyn - More Cornyn on Amnesty and Committee Immigration Bill

Attorney General Abbott’s Cyber Crimes Unit arrests a man for online solicitation

Victoria County man is second arrested under new online solicitation law

March 27, 2006

AUSTIN–Texas Attorney General Greg Abbott’s Cyber Crimes investigators continued their crackdown on child sex offenders, arresting a Victoria man on March 16 for allegedly using the Internet to solicit sex from a child.

Dionicio Robles, Jr., 52, was arrested in Victoria County after he allegedly sexually propositioned a person he thought was a 13-year-old girl online. The "girl" was actually an undercover Cyber Crimes investigator. Robles was charged with online solicitation of a minor.

Online Solicitation of Minor Now a felony in Texas even if the individual did not meet the child in person In 2005, the Texas Legislature passed and Gov. Perry signed House Bill 2228, which makes it a felony offense to “knowingly solicit” a minor to meet for sex. The law, which went into effect on June 18, explicitly prohibits the predator from claiming as a defense the fact that the meeting did not occur.

“I am committed to cracking down on those who seek to harm our children,” Attorney General Abbott said. “Internet-related crimes pose a threat to the fabric of our society, especially to the younger members of the community who can easily be misled by predators. I appreciate the efforts of local law enforcement in helping us hold these men accountable.”

Robles allegedly proposed a meeting for sex after he began chatting online with the “girl” in December 2005. Although Robles did not show up for the scheduled meeting on March 16, Cyber Crimes Unit investigators worked with Victoria police to arrest him on a warrant issued by 135th District Judge Kemper Stephen Williams.

In 2005, the Texas Legislature passed and Gov. Perry signed House Bill 2228, which makes it a felony offense to “knowingly solicit” a minor to meet for sex. The law, which went into effect on June 18, explicitly prohibits the predator from claiming as a defense the fact that the meeting did not occur.

“The recent change in Texas law means that a person no longer has to actually show up for a rendezvous for us to arrest him,” Attorney General Abbott added. “The solicitation of a meeting with someone he believes to be a 13-year-old is enough for our investigators to take him into custody.”

Robles faces second-degree felony charges under the statute, punishable by two to 20 years in state prison and a fine of up to $10,000.

Attorney General Abbott has made pursuing sexual predators a top priority in his administration. The Cyber Crimes Unit, which targets online predators, and the Fugitive Unit, which locates convicted child sex offenders who have violated the terms of their parole and could be stalking children, have combined for over 400 arrests of such offenders since Abbott took office in December 2002. His office also has obtained convictions against 38 men on child pornography charges.

To find out more about Attorney General Abbott’s efforts to crack down on sexual predators, visit the Attorney General’s Web site at www.oag.state.tx.us or call (800) 252-8011.

- Gray inset box added.

Attorney General arrest for online solicitation of a minor - a felony offense

Part 4 of Texas tax reform - Governor Perry says Texas must continue to lead in education reform

Says comprehensive tax reform will lead to stable funding for schools, continued economic growth

From the Office of Governor Rick Perry

March 24, 2006

AUSTIN–Gov. Rick Perry yesterday said Texas’ record on reforming education is the best in the nation, and that comprehensive tax reform will lead to a more reliable funding system for public schools. Perry spoke at the statewide education summit hosted by the Texas Public Education Reform Foundation.

“As a result of education reform, scores on national assessments have gone up in every age group, ethnicity and subject area,” Perry said. “More high schools than ever before are offering college credit courses, more students are taking the SAT, and a record number of children are attending an institution of higher learning because we are challenging them to achieve.”

Perry also said the Texas economy’s strong performance is evidence that education reform is working. “One way to judge whether schools are succeeding is to look at the job climate, because one of the top factors employers consider in choosing where to expand is the presence of an educated workforce,” Perry said. “To me, the fact that so many businesses are expanding in Texas is a ringing endorsement of the progress we are making in education.”

Perry noted that since 2003, Texas has gained 530,000 new jobs and the Texas business climate has been called the best in the nation. The Federal Reserve recently reported that the Texas economy is running the strongest it has since 1998.

Perry said lawmakers must remember that good jobs and great schools are mutually dependent as they meet next month to consider comprehensive tax reform.

“Jobs provide the government revenue to pay for education, and education provides the workers needed to attract good jobs,” Perry said. “I view the upcoming special session as an opportunity to make lasting improvements to our tax structure so that it is broader, fairer and provides a more reliable source of revenue for our schools. And it is a chance to give Texans a significant property tax cut that stands the test of time.”

“It makes sense to deliver lasting property tax relief because it will make the dream of homeownership more affordable for millions of Texas families. Owning a home is not only an important part of the American dream, but research studies show that children of homeowners are more likely to do well in school and less likely to develop behavior problem,” Perry said. “A lasting property tax cut will not only give more Texas families the opportunity to own their own home, it will give their children a better opportunity to succeed in the classroom and a better opportunity to succeed in life.”

Perry said the education reform movement in Texas must continue to move forward, although he said legislators should start with property tax reform in the upcoming special session because the Supreme Court has ruled the current system unconstitutional.

“We must continue to push for reforms such as stronger accountability for taxpayers, higher standards that will ensure more children graduate prepared to succeed in college, and salaries that reward teachers for their hard work and provide incentives for them to do even better,” Perry said. “If the speaker and lieutenant governor can bring me a school reform bill that both chambers agree on, I will gladly add it to the call once the tax issue is resolved.”

Perry - Texas Must Lead in Education Reform

• Chart on the linked page is easier to read.

Texans have the right to request and receive nonconfidential government documents. Cartoon © John Trever.

Texas Attorney General Abbott - Documents for Texans

March 25, 2006

Open Government Documents to go.

• 2006 Public Information Handbook 1,299 kb

• 2006 Open Meeting Handbook 568 kb

• 2002 Texas Open Records Laws Made Easy (The New Law is the Texas Public Information Act) 291 kb

• 2002 The Texas Open Meetings Act Made Easy 268 kb

• 2003 Public Information Law 201 kb

• 2005 Open Meetings Law 85 kb

• Timeline for Public Information Access 22 kb

• Archive: Texas Open Government Series of Articles

Part 3 of Texas tax reform - Legislature must focus on reforming property tax system

Need for tax reform discussed with business leaders

From the Office of Governor Rick Perry

March 21, 2006

AUSTIN –Gov. Rick Perry told state business leaders Feb. 8 that when he calls the Texas Legislature back for a special session this spring, he will ask them to focus on reforming the property tax system.

“Whether education reform can be accomplished in the same 30-day special where legislators must take up tax reform remains to be seen,” Perry said in a speech to the Texas Association of Business. “I will ask legislators to start on the challenge the Supreme Court has deemed unconstitutional, and that is our property tax system.”

Perry said the special session represents a rare opportunity for lawmakers to reform the state’s tax system while also delivering much need property tax relief to Texans. Today only one in 16 businesses pays the franchise tax, and many experts view it as a voluntary tax that is an unstable source of revenue for our schools.

“It makes more sense to have a broader tax that captures more of the economy at a low rate,” Perry said.

Last September, Perry created the Texas Tax Reform Commission and asked former Texas Comptroller John Sharp, a Democrat and onetime political opponent of Perry’s, to head it. He named 24 individuals to the advisory group, and they have been holding public hearings across the state.

Perry acknowledged that some critics doubt that the legislature can overcome past disputes and pass a tax reform bill in the upcoming special session.

“Of course, some of the same folks never thought they would see John Sharp and me in the same room again,” he added. “But we put partisanship aside to work together on this challenge. The commission is working diligently on tax reform, taking input all across the state. I think they will produce a plan that is fair, that protects jobs and that provides a long-term source of revenue for our schools.”

He said those who are calling simply for a tax hike to raise billions for schools ignore two key issues: First, under the current system there is little capacity left to raise additional revenue for education because property taxes are near the cap in most districts, and the current franchise tax will produce less revenue over time if not reformed.

Comprehensive reform of the franchise tax will generate more money for education as the economy grows by simply capturing more sectors of the economy.

“And we don’t need to raise taxes one cent to generate more money for education, we just need the comptroller to collect the nearly $3 billion owed to her office today by deadbeats and tax cheats,” Perry added.

Perry - Tax Reform Still Needed

• Chart on the linked page is easier to read.

Proposed budget to provide additional $4 billion for border security

Cornyn—a Budget Committee member—applauds additional allocation to bolster border patrol, customs, technology

From the Office of John Cornyn, United States Senator - Texas

March 20, 2006

WASHINGTON —U.S. Sen. John Cornyn, a member of the Senate Budget Committee, applauded a move March 8 by the Budget Committee chairman to allocate an additional $4 billion for border security in the Fiscal Year 2007 budget. Cornyn, the chairman of the Judiciary Committee’s Border Security and Immigration subcommittee, said the allocation “shows a serious commitment to homeland and border security.”

“This allocation shows that the committee is serious in its commitment to the enhanced border security and interior enforcement that’s included in the comprehensive bill I’ve introduced with Sen. Kyl,” Cornyn said. “Our bill calls for 10,000 additional border patrol agents, UAVs, sensors, and other technology to help secure the border. This budget will go a long way in addressing these urgent needs.”

The proposed budget by U.S. Sen. Judd Gregg (R-N.H.) provides an additional $4 billion for border security above the President’s budget request. While the Budget Committee’s role is not to allocate the increased funding to specific programs, the additional $4 billion can go to various aspects of border security, including modernization of Customs and Border Protection, more border patrol agents, improved technology, training, and communications tools.

“This additional funding means more technology, more boots on the ground and more overall security along the border,” Cornyn said. “We need to enhance security along the border and in the interior, but we also need comprehensive immigration reform.”

The President’s FY07 budget request includes $7.9 billion for Customs and Border Protection, which is $536 million above current level. It adds 1,500 full time employees for border patrol, bringing the total to some 14,000. It provides $700 million more for Immigration and Customs Enforcement (ICE), which in part will go to increasing the number of detention beds by 6,700 and increases the number of detention officers and agents. This additional funding is part of the Administration’s Secured Border Initiative, which aims to cut the removal time for illegal immigrants.

On a related note, Sen. Cornyn was successful Wednesday in adding assistance for local law enforcement agencies to the immigration reform bill now being debated in the Judiciary Committee. The Cornyn amendment provides reimbursement to border law enforcement officials who participate in immigration training programs to identify, process and detain immigration offenders. The amendment was accepted unanimously by the committee.

The Judiciary Committee will continue addressing immigration reform over the two weeks. The full Senate is expected to begin floor debate by March 27.

Cornyn - More on Funding for Border Security

Part 2 of Texas tax reform - Texas Tax Reform Commission is holding hearings across the state

From the Office of Governor Rick Perry

March 18, 2006

AUSTIN – The Texas Tax Reform Commission met March 8 in Houston and March 13 in the Dallas-Fort Worth-Arlington area to gather recommendations on how to reform the state tax structure.

The hearings were part of a series of public hearings the commission has been holding across the state to gather input from Texans on how to modernize the tax structure and reduce property taxes. The public is invited to participate at each of these hearings.

The 24-member, bi-partisan commission was created by Gov. Rick Perry in September 2005. It is chaired by former Texas comptroller John Sharp. Since the commission’s creation, the Texas Supreme Court has ruled the state’s current school property tax structure unconstitutional and has given lawmakers until June 1 to devise a different tax system and lower school property taxes.

The governor has outlined five key principles to guide the commission’s deliberations on tax reforms. Perry said our new tax structure must be fair, broad-based, modern, understandable to taxpayers and competitive with other states “so that Texas can continue to attract jobs by maintaining the best business climate in America.”

Source: The Office of Rick Perry, Governor of Texas

Perry - Hearings by Tax Reform Commission

• Chart on the linked page is easier to read.

Part 1 of Texas tax reform - Gov. Perry announces special session of legislature

Texas Supreme Court requires tax reform by June 1

From the Office of Governor Rick Perry

March 17, 2006

AUSTIN – Gov. Rick Perry today announced that he will call a special session of the legislature beginning on Monday, April 17, at 2 p.m.

“The Texas Supreme Court has ruled that Texas’ current tax system must be reformed by June 1,” Perry said. “This special session provides legislators of both parties a rare opportunity to significantly reduce property taxes, make substantial reforms to the franchise tax so it is fairer and broader, and ensure our schools have a reliable and constitutional stream of revenue.”

The governor will issue a proclamation outlining the specific issues for the session at a later date.

Perry - April Special Session on Tax Reform

• Chart on the linked page is easier to read.

Attorney General Abbott files emergency action to protect clients of unlicensed online payment service

EMO Corp. and officers cannot account for $2.4 million in customer cash

From the Office of Greg Abbott, Attorney General of Texas

March 16, 2006

HOUSTON—Texas Attorney General Greg Abbott has obtained an asset freeze and emergency approval for a court-appointed receiver to take over the operations of unlicensed Austin-based online payment service EMO Corp.

The company and its officers, Todd L. Tredeau, Tracey Jones and Nancy C. Humphries cannot fully account for more than $5.4 million that consumers placed into their accounts. The company’s books show they have only $3 million cash on hand, which means EMO cannot account for $2.4 million belonging to its customers. The officers failed to register with the Texas Banking Department and obtain a license as a “money services business,” as required by law.

“These officers must account for their outrageous mismanagement of consumers’ money, which they promised would be secure,” said Attorney General Abbott. “The court’s appointment of a receiver to seize control of this company’s assets will provide an opportunity to determine where this money has gone.”

The company’s Web site, www.emocorp.com, touts the service as a safe way to conduct financial transactions online, as a service to assist consumers who are recent victims of fraud and businesses that handle payrolls.

Consumers who open accounts with online payment services can deposit money into their accounts via credit cards or bank transfers and expect instant access to their accounts. The consumer uses the service to send or receive money to and from other members via electronic transfers. According to information given to the Department of Banking by EMO Corp., the company has a current customer base of 17,000 nationwide, with 6,000 of these in Texas.

The Banking Department denied EMO a license for failure to meet minimum net worth requirements of $500,000 and other statutory requirements. Furthermore, according to the company’s own financial statements presented to the Department of Banking, the company is insolvent.

Upon investigation following the asset freeze, the Attorney General will seek restitution to any consumer harmed by these transactions, as well as civil penalties and attorneys’ fees.

Notices like the receivership notice will be placed on the company web site, www.emocorp.com , as the need arises.

EMO in Receivership letter as A JPG image file - Suitable for Viewing - file size - 99 kb

Note: The jpg above is in large print so that people who are visually impaired can read it also. It was reduced in file size for the web. If you need to print a copy use the link below.

EMO in Receivership letter as A JPG image file - Suitable for Printing - file size - 185 kb, slower to load

Abbott Files Emergency Action To Protect Clients Of Unlicensed Online Payment Service Article

Seniors scammed by phony checks

From the Office of Greg Abbott, Attorney General of Texas

A dangerous new scam combines the counterfeit cashier's check with the phony lottery or sweepstakes. We are aware of several cases in which seniors have been scammed out of all their savings by this trick.

Like the phony lottery or sweepstakes, this scam begins with an email, call or mailer that promises a large sum of money. The money may be a prize, winnings from a lottery, a once-in-a-lifetime "investment opportunity" or an inheritance. The tip-off is that before you can receive your "prize" you must first send in some money of your own, which is supposedly to cover transfer fees or taxes or some other made-up cost. You lose this money, and it turns out you never get the prize.

Some savvy seniors just tell the scammer, "As soon as you send me the $40 million, I'll send you the 'fees' - Ha Ha!"

The scammers have now addressed this problem. They trick the victim into thinking they have actually sent the prize by sending the victim a phony cashier's check. The counterfeits are very good, so good in fact that even banks are fooled. The victim then lets down his or her guard, believing that the whole thing is not a scam but the real thing. After all, it appears they've actually received the money. So the victim sends the money for the fees, or taxes or whatever. Then the check turns out to be worthless, and the victim's money is gone.

In one variation that we are aware of, the scammer told the victim that he would help her by raising the money she needed to pay in order to collect a $2 million inheritance. He gave her a phony check for $61,000 and told her to deposit it in her account and then wire it overseas. Her bank initially told her the check was good. She did as she was told. When the check turned out to be worthless, she was liable for the money that she had wired to the scammer. Of course there was no inheritance. She lost her life savings.

Government: A letter to Seniors About Phony Check Scams

Attorney General Abbott’s sexual predator crackdown nets 400th state-wide arrest in Houston Operation

Harris County sweep highlights success of Fugitive, Cyber Crimes units

From the Office of Greg Abbott, Attorney General of Texas

March 6, 2006

HOUSTON—Texas Attorney General Greg Abbott’s Fugitive and Cyber Crimes Units marked the 400th arrest in less than three years with the apprehension of Billy Gene Hutchins, 38, for parole violation on Monday during a fugitive roundup operation in Harris County. Investigators, with the assistance of the Houston Police Department, also arrested Kenneth Joel Tarver, 49, for parole violation; and Morris Lee Gray, 38, Frederick Espinosa Jr., 50, and Cornelius Ray Osborne, 33, for violation of Texas Sex Offender registration requirements.

All five arrests emphasize the importance of initiatives by Attorney General Abbott to track down and arrest child sex offenders around the state.

“Children are being victimized at the hands of previously convicted sex offenders and online criminals,” Attorney General Abbott said. “Our Fugitive and Cyber Crimes investigators are committed to getting these predators off the streets, and I greatly appreciate the cooperation of the many local law enforcement agencies and prosecutors who join us in protecting children and their families by putting these sex offenders behind bars.”

Attorney General Abbott established the Fugitive and Cyber Crimes units in 2003 to track down and arrest criminals before they can sexually exploit children. Abbott also initiated Operation Missing Predator in April 2005 to locate and arrest convicted sex offenders who are not registered. Since their creation, the Fugitive and Cyber Crimes units have made more than 400 arrests of parole violators, unregistered sex offenders, and cyber predators.

Attorney General Abbott established the Cyber Crimes Unit in May 2003 to track down child predators on the Internet. Cyber Crimes Unit investigators assume the identity of underage teens in Internet chat rooms, which often leads to child predators soliciting them for sex and then attempting to meet them. To date, the unit has netted 74 arrests in 14 Texas counties and Indonesia.

To find out more about Attorney General Abbott’s efforts to crack down on sexual predators, visit the Attorney General’s Web site at www.oag.state.tx.us or call (800) 252-8011

Government: 400th Arrest in Sex Predator Crackdown

Cornyn launches new web site

Revamped “online office” features improved constituent services, correspondence tools

From the Office of Senator John Cornyn

March 7, 2006

WASHINGTON—U.S. Sen. John Cornyn, a member of the Senate’s High Tech Task Force, announced the launch of his new official Senate Web site on Monday, highlighting features to improve constituent services and correspondence. The “online office” enhances the ability of constituents to contact Sen. Cornyn, receive information about resources available through Congress, and receive news about Senate business. The site also provides information in English and Spanish.

“The improved accessibility of my revamped ‘online office’ will help ensure that I can continue to address the needs of Texans in a timely manner,” Cornyn said. “It’s important that constituents are able to let their voices be heard and can take advantage of opportunities available through Congress. My new Web site is aimed at achieving these goals.”

The new Web site, www.cornyn.senate.gov, features a revised contact information section to facilitate correspondence with Sen. Cornyn and his staff, and improved access to forms and applications of interest to constituents.

The site also includes new information and technology features such as an RSS feed, which updates news to constituents’ home pages in real-time; expanded audio and video presence, including podcast services; additional ability for constituents to transfer information, such as press releases, from person to person; and improved search capabilities.

Government: More Cornyn Launches New Web Site and Contact Information

Attorney General Abbott warns Texans about recent bank scams To tap personal accounts

Several major financial institutions also urge consumers to avoid fraudulent e-mails

From the Office of Greg Abbott, Attorney General of Texas

March 4, 2006

AUSTIN—Texas Attorney General Greg Abbott today sent out an urgent message for all Texans to be on the lookout for official-looking e-mails purporting to originate from major financial institutions asking for personal account information.

In the latest series of so-called “phishing” scams, the e-mail sender claims to represent financial institutions such as Comerica, Chase or others. The message instructs the “account holder” to submit personal account information because “bank officials” have reason to believe his or her account may have been accessed by an unauthorized party.

“I cannot emphasize this enough – Texans who receive such e-mails should immediately delete them because these tactics are used to trick you into releasing private information to someone who will try to empty your bank account,” said Attorney General Abbott.

Government: More - Bank Scam Warning About Phishing

Attorney General Abbott files United States Supreme Court complaint over Medicare Drug Program payments

Complaint asserts that state payments demanded by the federal government violate state sovereignty; Texas predicts net losses of $100 million over four years

From the Office of Greg Abbott, Attorney General of Texas

March 3, 2006

AUSTIN—Texas Attorney General Greg Abbott today filed a complaint on behalf of Texas and several states in the U.S. Supreme Court, asserting the federal government has usurped states’ sovereign powers and violated the Constitution by mandating direct payments to the federal government to fund the new Medicare prescription drug program.

The program, known as Part D of the Medicare Prescription Drug, Improvement and Modernization Act of 2003, became effective in January and applies to coverage of outpatient prescription drugs for Medicare recipients through various health plans. The drug benefit program also covers those who are Medicaid-eligible in Texas and, overall, is expected to reach 323,000 Texas seniors and those with disabilities.

Government: More - Medicare Drug Program Payback Complaint Filed

Texas to receive funding for education following Katrina, Rita

More than $63 million heading to state to cover costs of displaced students and rebuilding efforts

From the Office of Senator John Cornyn

March 2, 2006

WASHINGTON—Additional funding is now on the way to Texas for costs incurred by schools educating students displaced or impacted by Hurricanes Katrina and Rita, U.S. Sen. John Cornyn announced Thursday, March 2.

The funding was authorized by congressional action in December through the Hurricane Education Recovery Act.

The first quarterly payment for educating displaced students will be $35 million. The latest funding is paid through the Temporary Emergency Impact Aid for Displaced Students program.

Cornyn also applauded the Department of Education for fully funding its commitment to repair and rebuild Texas schools damaged by Hurricane Rita through the Restart Aid program.

The Impact Aid provides emergency funding to the state for local educational agencies, including costs of students displaced by the hurricanes during the 2005-2006 school year. Funding for future quarters will be determined by the number of displaced students still enrolled in Texas schools.

In addition, more than $28 million is now on the way to fully fund the efforts to repair and rebuild Texas schools. The first installment of Restart Aid, $50 million, was paid to the state last month.

Government: More - Funding for Education Costs from Hurricanes Katrina and Rita

House members introduce bill to protect phone records

Bipartisan Legislation will Protect Law Enforcement Officers & Customers

From the Office of Lamar Smith, United States Representative - Texas

March 2, 2006

WASHINGTON – Recently, a bipartisan group of House Members introduced H.R. 4709, the “ Law Enforcement and Phone Privacy Protection Act of 2006,” legislation that will protect the privacy of citizens and law enforcement officials by criminalizing the fraudulent sale or solicitation of confidential cell phone records.

The bill’s original sponsors, Reps. Lamar Smith (R-TX), John Conyers, Jr. (D MI), Bob Goodlatte (R-VA) Bobby Scott (D-VA) Chris Cannon (R-UT), Zoe Lofgren (D-CA), Joe Wilson (R-SC), Stephanie Herseth (D-SD) and Dave Reichert (R-WA) offered the following joint statement:

"There are few things more personal than our phone call records. Dishonest individuals and businesses are posing as cell phone customers to access the personal call records of other individuals. These people have flourished in a gray area of the law. But that is about to stop.

"These practices assault our individual privacy, and may even contribute to stalking or other crimes of violence. In the wrong hands, this information can be used to target police officers, their families, and confidential informants. According to press reports, the FBI and the Chicago Police Department have begun to investigate this problem and recently took steps to warn their personnel, in particular undercover officers, to protect themselves from the release of sensitive personal information that might endanger them.

Government: More - House Bill for Protection of Cell Phone Records

Don’t fall for tax scams

By Greg Abbott, Attorney General of Texas

February 17, 2006

Tax season always seems to remind us of Benjamin Franklin's famous adage about the certainty of "death and taxes." Tax-related scams also spring up during this time of year, but the good news is that, unlike taxes, these schemes are avoidable.

Many businesses offer legitimate services preparing tax returns for those who don't have the time, the experience, the desire or the confidence to prepare the forms themselves. However, some unscrupulous operators prey on this need with deceptions that could cost you money and, worse, cause you serious problems with the Internal Revenue Service (IRS).

For instance, some businesses promise an "immediate refund" of your taxes, but generally the so-called "instant refund" is simply a loan.

Carefully read the fine print in any ad for this kind of service. The fees and interest for instant-refund loans can be quite high, so you should consider whether it would be better to fill out the tax refund paperwork yourself. If you can wait a little longer to receive a refund directly from the IRS, free of charge, you will be a lot better off.

Government: More - Abbott on Tax Scams

Attorney General Abbott files first suit against sellers of private phone records

‘USA Skiptrace’ of Colorado cited for peddling records without consumers’ knowledge

By Greg Abbott, Attorney General of Texas

February 10, 2006

AUSTIN – Texas Attorney General Greg Abbott today filed the state’s first lawsuit against a “data broker” and his companies – USA Skiptrace, AMS Research Services Inc. and Worldwide Investigations Inc. – for fraudulently marketing consumers’ private phone records. The suit comes in the aftermath of Attorney General Abbott announcing his broad investigation into several of these Web-based businesses last month.

The Attorney General is also seeking a temporary restraining order today against the Web-based businesses, found at www.usaskiptrace.com, and president John Strange of Denver. The businesses must answer to several allegations outlined in Attorney General Abbott’s suit, including openly soliciting services for a fee of at least $125 to produce private cell or land-line phone records, business or personal.

“Texas consumers expect their private information to be kept confidential,” said Attorney General Abbott. “USA Skiptrace is stealing private phone records without consumers’ consent or knowledge. This is an outrageous invasion of personal privacy and will not be tolerated in Texas.”

The lawsuit alleges that for $125, the company will obtain a person’s phone record history, including the number of calls made and received, the duration of calls, dates and times, and other private information. The purchaser of such information is required to fill out a form on USA Skiptrace’s Web site and pay for the service using credit card information. The purchaser provides the cell phone number, name and address of the person whose phone records are being sought. AMS Research Services Inc. and its general manager Strange then notify the purchaser his order will be fulfilled via email in between one and six business days.

The Attorney General’s investigation revealed that USA Skiptrace does not follow legal protocols such as subpoenas in obtaining these records, nor do consumers whose information is being requested receive notification of the activity. In fact, Strange boasts in his email correspondence that “we never contact the owners of phone numbers searched” and that the “owner has no way of knowing about the search or who ordered it.”

Moreover, the Attorney General has reason to believe Strange uses one or more illegal pretexts for obtaining this information, such as posing as the person whose records are being requested or claiming to speak for that person as his or her representative. Strange may also have illegally accessed phone company Web sites exclusively maintained for the personal use of the targeted consumer.

The suit alleges USA Skiptrace has violated the Texas Deceptive Trade Practices Act, which allows the state to seek civil penalties of $20,000 per violation. The suit also seeks attorneys’ fees and investigative costs.

The Attorney General continues to investigate other data brokers who may be violating the law and breaching the privacy of innocent consumers. Attorney General Abbott urges consumers to contact their cell phone companies to find out if any party has requested their cell phone records. Otherwise, consumers may have no way of knowing if their privacy has been breached. Consumers may also request a unique password-protected account through their cell phone companies to prevent others from accessing these records.

Consumers who believe their private information may have been illegally obtained by a fraudulent data marketer may file a complaint with the Attorney General’s Office by calling toll-free (800) 252-8011 or accessing the agency’s Web site at www.oag.state.tx.us .

Attorney General Abbott urges Texans to get involved during National Consumer Protection Week

New online consumer information center will help Texans get answers to common questions

By Greg Abbott, Attorney General of Texas

February 9, 2006

AUSTIN – Texas Attorney General Greg Abbott today called on consumers to join the fight against fraud during national Consumer Protection Week and announced a new Web-based self-service consumer information center.

“Protecting consumers against rip-off artists and identity thieves is a cornerstone of my administration,” said Attorney General Abbott. “This new online consumer information center empowers Texans to fully engage in this fight by helping to expose scams and by educating themselves about common consumer issues.”

The new online consumer information center can be accessed in the “Consumer Protection” section of the Attorney General’s Web site at www.oag.state.tx.us.

The site offers numerous self-help options for consumers, including knowing their rights under the law and how to blow the whistle on fraudulent businesses. The site gives tips on how to file complaints against businesses that mislead consumers, including banks and credit unions, car dealers, companies that solicit quick credit and companies that coerce consumers into divulging their Social Security numbers. The site also gives consumers information on how to recognize and report identity theft, telemarketing scams and misleading sweepstakes contests and business opportunities.

Attorney General Abbott has made protecting Texas consumers a top priority of his administration. Since taking office in December 2002, Abbott has shut down more than 40 fraudulent businesses and halted illegal practices of almost 100 businesses that cheated Texas consumers out of tens of millions of dollars. The Attorney General’s office has obtained nearly $40 million in court-ordered restitution for consumers.

Attorney General Abbott also has warned Texas consumers about identity theft and the need to safeguard their financial information, and has aggressively enforced Texas consumer protection laws. For instance, he recently filed a lawsuit to halt the practices of the Dallas-area Twin Tax Service, which allegedly caused many consumers tax liability problems with the Internal Revenue Service.

Attorney General Abbott’s investigators are currently probing whether a number of Web-based companies are illegally selling cell phone records of Texas consumers without their knowledge.

As a leader in a hard-fought settlement against Ameriquest Mortgage Co., Attorney General Abbott also worked to get refunds for many Texas homeowners who refinanced their homes with the company but were misled by the Ameriquest’s widespread financing deceptions.

Consumers who believe they may have been misled or defrauded by a business may file a complaint with the Attorney General’s Office by calling toll-free (800) 252-8011 or accessing the agency’s Web site at www.oag.state.tx.us.

To get more information about national Consumer Protection Week, visit the Federal Trade Commission’s Web site at www.consumer.gov/ncpw/ .

Governor’s Advisory Council recommends changes to Criminal Justice System

Proposals Include More DNA Testing, More Forensics Labs, Greater Monitoring of Sex Offenders

By Rick Perry, Governor of Texas

February 8, 2006

AUSTIN – Gov. Rick Perry’s Criminal Justice Advisory Council has recommended several changes to improve fairness and public confidence in the criminal justice system, including giving judges more discretion to order post-conviction DNA testing.

“My purpose in creating the council was to examine how Texas can improve its criminal justice system, so that we might better protect the rights of both victims and the accused,” Perry said. “These recommendations provide a framework that will give Texans greater confidence in a justice system designed to protect all.”

The council’s recommendations are focused in four general areas: forensics, innocence projects, sex offender policies and technology assistance.

Government: More - Perry on Improving the Criminal Justice System

Cornyn: Budget holds line on spending; Must fund Border security, national security, Texas priorities

President Bush submits annual budget request to Congress

From the Office of Senator John Cornyn

February 7, 2006

WASHINGTON—President Bush submitted his annual budget proposal to Congress on Monday with his funding requests for fiscal year FY 2007. The President’s budget calls for funding of the nation’s top priorities, including: winning the global war on terror, securing our homeland and borders, maintaining a strong national defense, and keeping our economy growing. U.S. Sen. John Cornyn (R-Texas), a member of the Senate Budget Committee, said the President’s budget “holds the line on spending, while ensuring that we fund our most critical priorities.”

“Now that the President has submitted his budget request, Congress will review it and work with him to ensure that the final product is fiscally responsible, continues to put defending our nation as its highest priority, and maintains pro-growth tax and economic policies,” Cornyn said. “There are many key priorities for Texas that must be funded, including hurricane recovery efforts, and along those lines I’ll keep fighting to make sure that our state is made whole.”

Government: More - Cornyn on Proposed National Budget

Cornyn: President clearly outlined his vision for the country

President’s vision will make America stronger, more secure, more competitive, Cornyn says

From the Office of Senator John Cornyn

February 1, 2006

WASHINGTON—U.S. Sen. John Cornyn—chairman of the subcommittees on Immigration, Border Security and Citizenship; and Emerging Threats and Capabilities—made the following statement Tuesday regarding the President’s State of the Union address:

“The President clearly outlined his vision for the country in the coming year, leading us on a path that will unite the American people, make us stronger, more secure and more competitive. America will continue to lead.”

War on Terror / Iraq

“It’s critical that we remain vigilant in fighting an enemy that wants to kill innocent Americans, as they did on 9/11. We must continue the progress we’re making in Iraq and Afghanistan to bring democracy and peace to those important regions of the world. The President was right in his call to stay engaged around the world and protect Americans here at home.”

Government: More - Cornyn on Bush's State of Union Address

Perry, Dewhurst, Hutchison and Cornyn: HUD shortchanges Texas on hurricane relief funds

Leaders Vow to Continue to Press Washington for Full Funding

From Rick Perry, Governor of Texas

January 30, 2006

AUSTIN – Gov. Rick Perry, Lt. Gov. David Dewhurst, Sen. Kay Bailey Hutchison and Sen. John Cornyn today expressed deep disappointment that the U.S. Department of Housing and Urban Development (HUD) has shortchanged Texas on reimbursement costs for responding to Hurricanes Katrina and Rita.

“Thousands of Texas families and senior citizens whose homes were destroyed or severely damaged in Hurricane Rita will lack the funds to rebuild their homes as a result of this decision,” Perry said. “We sought close to $1 billion, HUD verbally committed to hundreds of millions of dollars, and instead they gave us little more than the change from their couch cushions. Critical repairs to schools, hospitals, universities, electric grids, ports, and water and sewer lines will go unfunded unless HUD revisits this.”

Government: HUD Shortchanges Texas on Hurricane Relief Funds

Abbott’s cyber crimes unit arrests a former Galveston County peace officer for child porn

Attorney General Abbott’s Cyber Crimes Unit arrested a former Galveston County peace officer who was caught with more than a thousand images of children engaged in sexual conduct.

From the Office of Greg Abbott, Attorney General of Texas

January 28, 2006

AUSTIN – Attorney ’s Cyber Crimes Unit arrested a former Galveston County peace officer who was caught with more than a thousand images of children engaged in sexual conduct.

Investigators arrested Weldon Kovacevich Jr., 44, on Wednesday when he showed up at the Galveston County Sheriff’s Office, thinking he would be picking up personal property.

He was charged with possession and promotion of child pornography.

Government: More - Former Galveston County peace officer, Weldon Kovacevich Jr., charged with possession and promotion of child pornography

Attorney General Abbott launches wide-scale investigation Of web sites selling cell phone records

Practices by fraudulent data brokers amount to massive invasion of Texans’ privacy

By Greg Abbott, Attorney General of Texas

January 28, 2006

AUSTIN - Texas Attorney General Greg Abbott today launched an extensive investigation into allegations that several renegade Web sites are illegally offering to sell Texas consumers’ cell phone records that are considered private information.

The Attorney General has also contacted cell phone providers regarding the actions they are taking to better safeguard customer information.

“This is a serious breach of personal privacy,” said Attorney General Abbott. “The business of using trickery to obtain consumers’ cell phone records amounts to nothing more than the illegal trafficking of private information.”

Online data marketers promoting these illegal services charge between $50 and $200 for obtaining records of specific cellular phone calls, usually those made over the previous 30 days. Some Web companies falsely tell their customers that these records are public information.

Government: More - Illegal Sales of Cell Phone Records

Attorney General Abbott awards over $360,000 for Consumer Law Program at University of Houston

Funds from company that scammed consumers to underwrite consumer protection initiative

By Greg Abbott, Attorney General of Texas

January 28, 2006

HOUSTON - Texas Attorney General Greg Abbott today appeared at the University of Houston to formally announce more than $360,000 in funding to expand consumer law services for the university.

The award is part of the liquidation of Mark Nutritionals Inc., which is currently in Chapter 7 bankruptcy in San Antonio. The Attorney General sued the company in December 2002 for its widespread deceptive marketing and sale of weight-loss products known as “Body Solutions.” The company filed for bankruptcy in September 2002 seeking to reorganize under Chapter 11.

Government: Attorney General Awards Consumer Law Program

University of Texas' national championship victory

UT’s Rose Bowl and national championship victory was stunning

By Rick Perry, Governor of Texas

January 6, 2006

LOS ANGELES –Texas Gov. Rick Perry made the following statement on the University of Texas Longhorn’s national championship victory.

“We may never have the opportunity to see a more exciting, better played and better coached game of college football than UT’s stunning Rose Bowl and national championship victory. As a Texan, I am proud of the tremendous poise and perseverance the Longhorns showed last night even as many national observers proclaimed the game to be over before it began.

"But Texas fans knew that USC would be in for the fight of their lives against a well-coached team with one of the best quarterbacks to ever play college football and a team that plays tough because nearly every starter was born and raised in Texas.

"My hat’s off to the USC Trojans who played with the skill of two-time national champions and afterward displayed the class befitting their great legacy. Even an Aggie like me can be proud of Texas’ historic win.”

Attorney General Abbott says agreement with online services provider will give consumer refunds

iMergent’s storesonline.com site misled many about developing Web businesses

By Greg Abbott, Attorney General of Texas

December 3, 2005

SAN ANTONIO – Attorney General Greg Abbott announced an agreement with online services provider iMergent Inc. Nov. 29 that will provide refunds totaling up to $400,000 to Texas consumers who were misled about the company’s promise to help them develop Web-based businesses.

“We aggressively pursued this company on behalf of Texas consumers who were promised prospering businesses and reliable technical support from this company but were let down,” said Attorney General Abbott. “Consumers who were misled or who received inoperable software can now file claims to get refunds."

Consumers who want refunds based on iMergent’s deceptive practices may obtain a full explanation of the refund process by accessing the Attorney General’s Web site at www.oag.state.tx.us, or by calling the Attorney General’s Consumer Protection hotline at (800) 252-8011.

Only those who purchased iMergent software licenses in Texas on or after Feb. 23, 2003, and who request a refund request questionnaire from the Attorney General before Jan. 17 will be eligible.

Government: Deceptive Web Site Software - Request Refund

Attorney General Abbott wins tough sentences against Victoria man For child pornography

Rickie Lee Smith caught with thousands of images, videos of children as young as toddlers

By Greg Abbott, Attorney General of Texas

December 3, 2005

VICTORIA – Texas Attorney General Greg Abbott announced Nov. 30 that his Cyber Crimes Unit has obtained tough prison sentences for a Victoria man who was caught with thousands of sexually explicit photos and videos of children, some as young as toddler age.

Rickie Lee Smith, a 50-year-old delivery truck driver, pled guilty Nov. 28 to seven counts of possession of child pornography and 10 counts of child pornography promotion. He received a maximum 10-year sentence for each of the seven possession charges and a 13-year sentence for each of the promotion convictions. All of the sentences will run concurrently. He was also fined $17,000 and ordered to register for life as a sex offender upon his release from prison.

Government: More Child Pornography

Attorney General Abbott helps children by helping their parents address custody concerns

Legal Aid of NorthWest Texas receives funds to operate statewide hotline addressing legal issues

By Greg Abbott, Attorney General of Texas

December 3, 2005

DALLAS – Texas Attorney General Greg Abbott continued his commitment to Texas families and children by announcing a grant to Legal Aid of NorthWest Texas to operate his office’s statewide Access and Visitation Hotline Wednesday, Nov. 16. The hotline is staffed by attorneys who provide legal information and assistance about child custody and visitation matters.

“I am committed to helping parents without custody stay involved in their children’s lives,” said Attorney General Abbott. “Children thrive on the security that comes from knowing both parents want and care for them.”

The hotline’s toll free number, 1-866-292-4636, is answered in English and Spanish, Monday - Friday from 1 to 5 p.m. Attorneys provide basic legal information and education about a parent’s rights pertaining to child access, visitation and custody; establishing paternity; and the child support process.
Parents also are referred to a Web site, www.txaccess.org , to obtain downloadable legal forms and examples for completing them. Also available are samples of parent letters to request compliance with orders, visitation logs, and other tools for resolving custody and visitation concerns.

Government: More Child Custody

Attorney General Abbott brings first enforcement action in nation against Sony BMG for spyware violations

Attorney General Abbott Brings First Enforcement Action In Nation Against Sony BMG For Spyware Violations

By Greg Abbott, Attorney General of Texas

December 3, 2005

AUSTIN - Texas Attorney General Greg Abbott sued Nov. 21 Sony BMG Music Entertainment as the first state in the nation to bring legal action against SONY for illegal “spyware.” The suit is also the first filed under the state’s spyware law of 2005.

It alleges the company surreptitiously installed the spyware on millions of compact music discs (CDs) that consumers inserted into their computers when they play the CDs, which can compromise the systems.

The Attorney General’s lawsuit alleges the New York-based company violated a new Texas law protecting consumers from the hidden spyware. The company accomplished this by using new technology on certain music CDs to install files onto consumers’ computers that hide other files installed by Sony. This secret “cloaking” component is installed without the knowledge of consumers and can cause their computers to become vulnerable to computer viruses and other forms of attack.

“Sony has engaged in a technological version of cloak and dagger deceit against consumers by hiding secret files on their computers,” said Attorney General Abbott. “Consumers who purchased a Sony CD thought they were buying music. Instead, they received spyware that can damage a computer, subject it to viruses and expose the consumer to possible identity crime.

Government: More Sony