NYDFS Secures $157.4 Million in Recoveries and Penalties in 2022

The New York State Department of Financial Services (DFS) secured $157.4 million in 2022.

That total includes $124.5 million recovered for consumers and healthcare providers who filed complaints against insurance and non-mortgage-related banking providers, as well as $32.9 million in restitution and penalties collected from enforcement and supervisory actions against firms that violated laws and regulations, DFS said in a Wednesday (March 8) press release.

“DFS works tirelessly to help hardworking New Yorkers get the justice they deserve, and I am proud that last year we put $157.4 million back in their pockets,” Superintendent of Financial Services Adrienne A. Harris said in the release. “As we mark National Consumer Protection Week, New Yorkers should know that DFS is here to help them and will work for them every day to forge a fairer and more resilient financial system.”

During the year, DFS’s Consumer Assistance Unit (CAU) processed 43,000 insurance and non-mortgage-related banking complaints received from consumers and healthcare providers, according to the release.

These complaints against insurance companies, banks and other financial institutions were filed in response to student loan servicing, debt collection, property foreclosure and similar issues, the release said.

DFS has continued taking action during the first months of the new year.

The department announced Jan. 4 that Coinbase agreed to a $100 million settlement following an investigation into the cryptocurrency exchange’s compliance program.

With this settlement, Coinbase will pay the state a $50 million penalty for “significant failures in its compliance program” and invest $50 million in its compliance function over the next two years, DFS said at the time.

DFS adopted a new regulation governing disclosure agreements for commercial financing Feb. 1, with the goal of ensuring that small businesses have enough information when they seek financing.

“The new regulation aims to improve fairness and transparency in the financing process, so that entrepreneurs and New York businesses can effectively evaluate and choose the best offer available to them,” Harris said at the time.

The department said Feb. 21 it had developed new fraud detection tools to help it spot insider trading, market manipulation and front-running in digital asset trading.

“These tools will help us combat financial crime and fraud, hold regulated entities accountable, and further strengthen our national leadership in virtual currency supervision,” Harris said at the time.