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NY AG Sues Solar Company and Lenders for Defrauding Consumers

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Filed March 17th, 2026
Detected March 17th, 2026
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Summary

New York Attorney General Letitia James has sued solar company Attyx and its lending partners for allegedly defrauding New Yorkers out of an estimated $275 million. The lawsuit claims the company made false promises of free solar systems and home repairs, leading consumers to sign contracts for expensive installations and loans.

What changed

New York Attorney General Letitia James has filed a lawsuit against home solar power company Attyx (formerly SUNco), its two CEOs, and two lending companies. The complaint alleges a fraudulent scheme that generated approximately $275 million by deceiving New York homeowners with false promises of free or reduced-cost solar panel installations and roof repairs. Salespeople allegedly misrepresented government incentives, leading consumers to sign contracts for expensive systems and loans they could not afford, often targeting low-income individuals and seniors.

The Attorney General is seeking to halt Attyx's illegal practices, cancel all contracts with consumers and lending partners, and provide restitution. This enforcement action highlights the risks of deceptive sales tactics in the home improvement and solar energy sectors. Regulated entities, particularly those involved in consumer financing and home services, should be aware of the potential for significant penalties and legal action when engaging in misleading advertising or predatory sales practices. The OAG's investigation indicates a pattern of targeting vulnerable populations with high-pressure sales tactics and misrepresentations about costs and financing.

What to do next

  1. Review marketing and sales practices for compliance with New York consumer protection laws.
  2. Ensure all representations regarding costs, incentives, and financing are accurate and substantiated.
  3. Provide clear and understandable contract terms to consumers, especially regarding loan obligations.

Penalties

Restitution for defrauded consumers, cancellation of contracts, and court orders to stop illegal practices.

Source document (simplified)

Attorney General James Sues Home Solar Power Company and Lenders for Cheating New Yorkers Out of Hundreds of Millions of Dollars

Attyx Falsely Promised Free Home Solar Systems, Then Charged Tens of Thousands of Dollars for Expensive Installations and Fees

Attyx Generated an Estimated $275 Million from Fraudulent Tactics in New York

March 17, 2026

NEW YORK – New York Attorney General Letitia James today sued Attyx, formerly known as SUNco, along with its two CEOs and two lending companies it partnered with, for defrauding New York homeowners with false promises of free home repairs and solar panel installations. An investigation by the Office of the Attorney General (OAG) found that Attyx targeted consumers – including many low-income New Yorkers and seniors on fixed incomes – with promises of free or reduced-price home solar power systems, roof repairs, and other home improvement projects. Attyx’s salespeople fraudulently told consumers that government “incentives” and “programs” would cover the cost of their installations. In reality, consumers were misled into signing sales and loan contracts to pay tens or even hundreds of thousands of dollars. The OAG estimates that this fraudulent scheme generated nearly $275 million for Attyx in New York alone. Attorney General James is seeking a court order to stop Attyx’s illegal practices, cancel all of Attyx and its lending partners’ agreements with consumers, and deliver restitution for those who were defrauded.

“When New Yorkers need home repairs, they should be able to get quality service without worrying about scammers cheating them out of their savings,” said Attorney General James. “Attyx preyed on vulnerable and elderly homeowners with false promises and predatory tactics, leaving them with crushing loans they could not afford. My office will fight in court to bring these companies to justice and deliver relief to the thousands of New Yorkers who were ripped off by this illegal scheme.”

Attyx is a major home improvement company with operations across the United States. The OAG’s investigation found that Attyx defrauded thousands of New Yorkers with a lucrative bait-and-switch scheme. Through its website and advertising, Attyx falsely promised roof replacements and other home improvement work for free or at greatly reduced prices with the help of clean energy “incentives” and “programs” earned through home solar panel installations. Attyx also advertised that its home solar systems will allow consumers to significantly reduce their monthly energy bills.

Once consumers expressed interest, Attyx salespeople pushed them to electronically sign contracts, often without their knowledge, to purchase home solar systems at exorbitant prices, which Attyx inflated far beyond the cost of the actual work being done. Attyx’s salespeople repeatedly sold solar installations to low-income consumers and locked them into loans with exorbitant monthly payment amounts even after the consumers informed the salespeople that they had low incomes, were retired and on fixed incomes, or did not file tax returns. Consumers became trapped in expensive loan agreements with Attyx’s lending partners to finance their purchases, and were forced to pay tens of thousands of dollars for home improvement work.

Attorney General James alleges that Attyx violated New York consumer protection laws with its false advertising. Attyx misled consumers about the costs of their solar power systems and home improvement work and falsely claimed they would receive free roof replacements after receiving money from the government in the form of solar tax credits. In fact, there were no government programs that provided consumers with free roofs, and Attyx’s customers often did not qualify for the tax credits in the amounts that Attyx claimed were available to them

Attyx’s salespeople also violated the law by misleading consumers about the sales and loan agreements they were signing. Salespeople repeatedly told consumers that they were merely signing application or credit-check forms – not that they were agreeing to purchase expensive home solar systems and take out long-term loans to finance them. Consumers were repeatedly not allowed to review drafts of the agreements they were actually signing. Even if they did, they would not have been able to learn the true amounts they were agreeing to pay due to the contracts’ fraudulent and misleading language.

Attyx’s lending partners, which include the companies Solar Mosaic and WebBank, further defrauded Attyx’s customers by charging them hidden fees. Attyx and its lending partners concealed the lenders’ fees by hiding them within the high prices the consumers were supposedly paying to Attyx for their solar systems. By concealing these fees, Attyx’s lending partners unlawfully understated the loans’ total costs and interest rates while overstating the amounts financed by the loans, making it impossible for consumers to learn the true costs of the loans they were receiving.

Attorney General James also alleges that Attyx falsely marketed its services under the name of another solar services company, LGCY Power, in a scheme aimed at deceiving both consumers and the New York Public Service Commission (PSC), which regulates home solar energy providers. In 2025, PSC ordered Attyx to cease its marketing of solar energy systems to New York consumers, but instead of complying with the PSC’s orders, Attyx fraudulently and illegally continued its operations under the LGCY Power name.

With this lawsuit, Attorney General James is seeking restitution and damages for consumers, an order voiding Attyx’s and the lenders’ agreements with consumers, an injunction barring Attyx and its partners from continuing their illegal, fraudulent conduct in the future, and civil penalties.

This matter is handled by Assistant Attorney General John P. Figura, under the supervision of Bureau Chief Jane M. Azia and Deputy Bureau Chief Laura J. Levine, all of the Bureau of Consumer Frauds & Protection. The Bureau of Consumer Frauds and Protection is a part of the Division for Economic Justice, which is led by Chief Deputy Attorney General Chris D’Angelo and is overseen by First Deputy Attorney General Jennifer Levy.

Source

Analysis generated by AI. Source diff and links are from the original.

Classification

Agency
State AG
Filed
March 17th, 2026
Instrument
Enforcement
Legal weight
Binding
Stage
Final
Change scope
Substantive

Who this affects

Applies to
Consumers Insurers
Geographic scope
State (New York)

Taxonomy

Primary area
Consumer Protection
Operational domain
Legal
Topics
Financial Services Housing Energy

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