This is code that covers what I believe Capstone has been doing. I will break it down in laymen and then actual code  will be below. This is what they will most likely be charged with if this goes to court

Laymen translation via http://www.new-york-lawyers.org/scheme-to-defraud.html

A person is guilty of New York Penal Law 190.65(1) when that person engages in a systematic course of conduct that is ongoing (the “scheme”) and has the intent to defraud at least ten people. The purpose of this scheme is to obtain property from these people (it need not be money, but often is financially based) and it is done so through fraudulent pretenses, representations or promises. In the end, the accused or the defendant must actually obtain property.

A person is guilty of New York Penal Law 190.65(2) when similar elements are present. Here, a person must also engage in this ongoing scheme and course of conduct, but must only have the intent to defraud at least two people. However, as a result of this scheme, the accused must also obtain property valued in excess of $1,000.00.

Lastly, but again similar to subsections (1) and (2), a person is guilty of New York Penal Law 190.65(3) when he or she engages in the scheme to defraud more than one person, regardless of the value of the property obtained, and at least two of those individuals must be a “vulnerable elderly person.” Defined under NY PL 260.31, such a person must be “sixty years of age or older who is suffering from a disease or infirmity associated with advanced age and manifested by demonstrable physical, mental or emotional dysfunction to the extent that the person is incapable of adequately providing for his or her own health or personal care.”

Actual code

A person is guilty of a scheme to defraud in the first degree when he or she:  (a) engages in a scheme constituting a systematic ongoing course of conduct with intent to defraud ten or more persons or to obtain property from ten or more persons by false or fraudulent pretenses, representations or promises, and so obtains property from one or more of such persons;  or (b) engages in a scheme constituting a systematic ongoing course of conduct with intent to defraud more than one person or to obtain property from more than one person by false or fraudulent pretenses, representations or promises, and so obtains property with a value in excess of one thousand dollars from one or more such persons;  or (c) engages in a scheme constituting a systematic ongoing course of conduct with intent to defraud more than one person, more than one of whom is a vulnerable elderly person as defined in subdivision three of section 260.30 of this chapter or to obtain property from more than one person, more than one of whom is a vulnerable elderly person as defined in subdivision three of section 260.30 of this chapter, by false or fraudulent pretenses, representations or promises, and so obtains property from one or more such persons. 2. In any prosecution under this section, it shall be necessary to prove the identity of at least one person from whom the defendant so obtained property, but it shall not be necessary to prove the identity of any other intended victim, provided that in any prosecution under paragraph (c) of subdivision one of this section, it shall be necessary to prove the identity of at least one such vulnerable elderly person as defined in subdivision three of section 260.30 of this chapter. Scheme to defraud in the first degree is a class E felony. – See more at: http://codes.findlaw.com/ny/penal-law/pen-sect-190-65.html#sthash.ayA6vATt.dpuf