Penalty Amount
$200,000
Consumers Affected
1,654
ATA Consulting LLC, operating as Best Medical Transcription, settled for $200,000 over a 2016 server misconfiguration that publicly exposed health records of up to 1,654 patients. The settlement includes civil penalties and permanently bars the owner from operating a business in New Jersey. The breach violated HIPAA and the New Jersey Consumer Fraud Act due to inadequate security and failure to promptly notify affected individuals.
Defendants must pay $200,000 in civil penalties and costs, with $30,508 due within 30 days and the remainder suspended upon compliance. Owner Tushar Mathur is permanently enjoined from owning, managing, or holding a leadership position in any New Jersey business.
In-house legal teams should review all vendor and business associate agreements where the vendor handles protected health information (PHI), particularly medical transcription services. Focus on clauses mandating compliance with HIPAA security and privacy rules, specific technical security requirements (e.g., encryption, access controls), breach notification timelines (including 'without unreasonable delay' standards), and data retention/destruction provisions. Agreements may need amendments to require mandatory security audits, stronger password/authentication protocols for web portals, and explicit indemnification for HIPAA violations. Customer agreements with healthcare clients should also be checked for flow-down security obligations and liability caps related to data breaches.
Entity
ATA Consulting LLC
Also known as: Best Medical Transcription
Industry
HealthcareOfficial Press Release
https://www.njoag.gov/defunct-georgia-vendor-responsible-for-exposing-virtua-medical-group-patient-files-online-agrees-to-200000-settlement-owner-of-transcription-service-agrees-to-permanent-ban-on-owning-an-nj-busin/
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"ATA Consulting LLC, which did business as Best Medical Transcription"
"a $200,000 settlement"
"federal Health Insurance Portability and Accountability Act (“HIPAA”)"
"New Jersey Consumer Fraud Act (“CFA”)"
"in connection with a server misconfiguration that publically exposed the private health information"
$100K
New Jersey Attorney General Jennifer Davenport and the Division of Consumer Affairs announced a Consent Order with King Distribution LLC and 17 related retail smoke shops, resolving allegations that the companies illegally sold flavored vapor products in violation of New Jersey’s consumer protection laws. The Consent Order imposes a $100,000 civil penalty, requires reimbursement of $22,279 in investigation costs, and prohibits the companies from selling or distributing flavored vapor products in New Jersey. The enforcement action is part of New Jersey’s ongoing efforts to protect youth from flavored vape products, which have been permanently banned in the state since January 2020.
The New Jersey Bureau of Securities issued a Cease and Desist Order on April 30, 2026, against Titan Macro Finance for operating an investment fraud scheme via WhatsApp and Instagram that defrauded at least one New Jersey investor of $64,000. The scheme involved unregistered broker-dealer activity, fake trading profits, and undisclosed fees to access investor funds. The action was coordinated with the California Department of Financial Protection and Innovation, which issued a similar order against the entity for violating California’s Commodity Code.
New Jersey Attorney General Jennifer Davenport and the Bureau of Securities issued a public warning to state residents about fraudulent investment schemes proliferating on Meta-owned platforms including Facebook, Instagram, and WhatsApp. The alert details common scam tactics such as pump-and-dump schemes, confidence scams, and fraudulent cryptocurrency offerings, and provides tips for residents to avoid victimization. No enforcement action against any entity was announced in this release.
New Jersey Attorney General Jennifer Davenport led a bipartisan coalition of 27 state attorneys general in submitting a comment letter to the Federal Trade Commission urging federal rulemaking to regulate hidden and deceptive rental housing fees. The AG also issued guidance clarifying New Jersey’s new $50 rental application fee cap, effective May 1, 2026, warning that deceptive fee practices may violate the New Jersey Consumer Fraud Act. No specific enforcement action against a named individual entity was announced, with enforcement of the fee cap set to begin May 1, 2026.
$2.0M
New Jersey Attorney General Jennifer Davenport announced a multistate settlement with NCL Bahamas, Ltd. (Norwegian Cruise Line) resolving allegations of deceptive sales practices and unfair cancellation, refund, and future cruise credit policies during the COVID-19 pandemic. The settlement requires NCL to pay $2 million to participating states, implement employee training and management approval processes for sales communications during disasters, and prohibits deceptive sales statements and prioritizing sales over consumer health and safety. NCL has already issued over $3 billion in refunds and future cruise credits to consumers nationwide related to the underlying allegations.
Ibelis Gonzalez, a 46-year-old Jersey City resident, was indicted on charges including second-degree theft by deception, second-degree impersonation/theft of identity, and third-degree false government documents. She is alleged to have used fake identification to obtain debit cards in six victims' names, stealing approximately $86,840 from their bank accounts between May and June 2024. The case is being prosecuted by the New Jersey Division of Criminal Justice, with potential maximum fines of $150,000 for second-degree charges and $15,000 for third-degree charges.