Matter of Giardina v James
2020 NY Slip Op 03857 [185 AD3d 451]
July 9, 2020
Appellate Division, First Department
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
As corrected through Wednesday, September 2, 2020


[*1]
 In the Matter of Robert Giardina et al., Appellants,
v
Letitia James, Attorney General of the State of New York, Respondent.

Hodgson Russ LLP, Buffalo (Jeffrey C. Stravino of counsel), for appellants.

Letitia James, Attorney General, New York (Ari J. Savitzky of counsel), for respondent.

Order, Supreme Court, New York County (Lynn R. Kotler, J.), entered November 1, 2019, which denied the petition to quash subpoenas duces tecum issued by respondent, and granted respondent's motion to dismiss the petition and compel compliance, unanimously affirmed, without costs.

Respondent was authorized to issue subpoenas in connection with an investigation into complaints and allegations that petitioners' employer engaged in fraudulent practices in its merchant cash advance business (see Executive Law § 63 [12]; Matter of American Dental Coop. v Attorney-General of State of N.Y., 127 AD2d 274, 280 [1st Dept 1987]). The information sought "bears a reasonable relationship to the subject matter under investigation and the public interest to be served" (id.). Neither petitioners' vague claims of criminal investigations, nor the civil actions pending against their employer warrant a stay of the subpoenas (see Sayre v Hoey, 113 AD3d 482 [1st Dept 2014]; New York State Commn. on Govt. Integrity v Congel, 156 AD2d 274, 280 [1st Dept 1989], appeal dismissed 75 NY2d 836 [1990]). Concur—Acosta, P.J., Manzanet-Daniels, Kapnick, Singh, González, JJ.

Motion to relieve counsel, denied with leave to renew.