NEW YORK – The promise of a better life turned into a nightmare for 71 nurses recruited from abroad by Advanced Care Staffing (ACS) and Priority Care Staffing. New York Attorney General Letitia James just secured over $660,000 in restitution for these healthcare workers, victims of a brazen scheme that trapped them with predatory contracts and crippling financial penalties. ACS, led by CEO Sam Klein, systematically exploited vulnerable individuals seeking opportunity, turning their dreams into debt.
The Office of the Attorney General (OAG) investigation revealed ACS lured nurses with promises of visa sponsorship and assistance with immigration costs. But the fine print held a vicious catch: exploitative employment contracts demanding as much as $20,000 from any nurse who dared to resign or was terminated before their contract expired. Since 2020, ACS had been routinely collecting this “termination penalty,” preying on nurses who found themselves facing untenable conditions – chronic understaffing, inadequate patient care, relentless mandatory double shifts, and weeks without a single day off.
“Advanced Care Staffing exploited vulnerable nurses, had them sign unfair contracts, and forced them to pay illegal financial penalties,” Attorney General James stated bluntly. “Nurses are the backbone of our health care system, and they deserve fair and just treatment. No worker in New York should be forced to choose between their financial security and their basic rights. My office will always fight to ensure nurses across New York can continue their life-saving work free from mistreatment and intimidation.”
The scheme dates back to 2013, with ACS recruiting nurses from multiple countries, offering a seemingly legitimate pathway to employment in New York City, Westchester, and Long Island. The contracts, presented with limited explanation and discouraging independent legal review, were designed to keep nurses locked in, regardless of the circumstances. Initially, nurses were forced to sign a legal pledge guaranteeing payment of the $20,000 penalty if they left early. Around 2022, ACS shifted tactics, enforcing the penalty through arbitration – a process that not only demanded the initial fee but also saddled nurses with responsibility for ACS’s “lost profits” and all associated legal costs.
This created a chilling atmosphere of fear, according to the OAG. Nurses consistently voiced concerns about the dangerous working conditions, but feared the financial ruin that would accompany resignation. ACS further amplified the pressure, bombarding nurses with letters and emails threatening arbitration and demanding at least $20,000 – and potentially more – if they didn’t reconsider. The $663,668.66 in restitution secured by Attorney General James will provide much-needed relief to the 71 exploited nurses, and ACS is now legally obligated to forgive outstanding debt and remove these predatory clauses from its contracts.
This case serves as a stark reminder of the vulnerabilities faced by foreign-recruited workers and the lengths some companies will go to maximize profit. The OAG’s investigation and subsequent action send a clear message: exploiting healthcare workers, especially those dedicated to caring for others, will not be tolerated in New York State. The investigation remains open, and further legal action against Advanced Care Staffing and Sam Klein is not ruled out.
Key Facts
- State: New York
- Agency: NY AG
- Category: Human Trafficking|White Collar Crime|Fraud & Financial Crimes
- Source: Official Source ↗
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