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2007 Accomplishments

Deceptive Auto Sales and Advertising

• GANVT Motors, Inc. d/b/a Gwinnett Place Nissan – The Governor’s Office of Consumer Affairs (OCA) alleged that this car dealership was involved in a variety of deceptive practices, including: refusal to refund a down payment to a consumer after his financing was denied; conducting used automobile sales in Spanish without providing a Spanish language version of the FTC Used Car Buyers Guide; falsely representing that consumers could lower purchase prices, monthly payment amounts, and financing rates by purchasing optional services, such as warranties; making representations that add-on warranties were free, when in fact consumers were charged for them; charging emission inspection fees on used cars, when such vehicles were required by law to be sold with unexpired emissions certificates; and committing various advertising deceptions through a direct mail piece.  In settlement of this matter, the dealership agreed to cease all deceptive business practices, pay $175,000 in civil penalties and pay $50,000 as reimbursement for investigative fees.  OCA also required the dealership’s management to institute rigid oversight policies and procedures to insure that sales and finance personnel are complying with Georgia law.   
  
  
• Rio Auto Sales, Inc. is a used automobile dealership against which OCA took action for deceptive advertising, violations of the Truth in Lending Act, and emissions and odometer document violations. The company entered into a settlement with OCA, agreeing to pay $23,900 in customer restitution and a $40,000 civil penalty.
  
  
• Seventeen additional automotive-related cases were resolved, the settlements of which totaled over $69,000 in customer restitution and $293,000 in civil penalty/administrative fees. The companies are:
  
  
  • Asbury Automotive Atlanta LLC d/b/a Nalley Roswell Chrysler Jeep
  • Atlanta Eurocars, LLC d/b/a Mercedes-Benz of South Atlanta
  • Blackmer-James Chevrolet d/b/a Blackmer-James Chevrolet
  • Capco 2, Inc. d/b/a Kia Mall of Georgia
  • Gibbes Holding Company, Inc. d/b/a Gibbes Automotive
  • Griffin Ford Sales
  • Hinesville Ford Company
  • Landmark Dodge Chrysler Jeep, LLC
  • Phillips Automotive, LLC
  • Roberson Chevrolet Buick LLC
  • Royal Oldsmobile Co., Inc. d/b/a Royal Buick Pontiac GMC
  • Stone Mountain Chrysler Jeep, Inc.
  • Sutherlin Nissan Mall of Georgia, L.L.C.
  • Thomasville Toyota, Inc. d/b/a Thomasville Toyota
  • Trapnell Quality Pre-Owned Autos, LLC
  • University Lincoln Mercury and Ronald L. Hill
  • Whitley Investments, Inc. d/b/a Payless Car Sales  

Unfair and Deceptive Marketing Practices

• Cancer Fund of America, Inc. entered into a settlement with OCA over allegations that the charitable organization misrepresented its services and disseminated deceptive and misleading solicitations to Georgia consumers.  OCA alleged that Cancer Fund of America’s (CFA) direct mail solicitations contained false and misleading claims, including assertions that it provided cancer patients with transportation to chemotherapy treatments and supplied medication to patients, when such was not the case.  Other allegations against CFA are that it misrepresented the number of cancer patients for whom it provided services and made false statements concerning how much of its proceeds went towards fundraising efforts.  In its settlement with OCA, CFA agreed to remove any false or misleading statements from its web site and from future direct mail solicitations and to pay $50,000 for the benefit of the Georgia Cancer Coalition, an independent non-profit organization dedicated to cancer prevention, research and treatment in Georgia.
  
  
• The King Locksmith Solutions, LLC f/k/a and also d/b/a Golden Locksmith Solutions, LLC; A Locksmith, A Locksmith 24/7, A Locksmith Atlanta, Anywhere Locksmith, Anyplace Locksmith, Papa Locksmith, Locksmith Services A-AA Amazing Locksmith, 24/7 Emergency Locksmith, A Anytime Anywhere Locksmith, Stone Mountain Locksmith, Decatur Locksmith, Atlanta Locksmith, Tucker Locksmith, Lithonia Locksmith, Norcross Locksmith, Lilburn Locksmith Lawrenceville Locksmith, Duluth Locksmith, Buford Locksmith, Marietta Locksmith, Smyrna Locksmith, Austell Locksmith and Kennesaw Locksmith- This mobile locksmith business service allegedly violated the Fair Business Practices Act by running deceptive telephone directory ads; quoting one price for service fees then charging consumers more once the technician was on location; and providing shoddy repairs.  In settlement of this matter, the company must henceforth comply with many strict advertising and locksmith technician performance standards.  Additionally, it must pay approximately $4,100 in restitution to 18 consumers, $80,000 in civil penalties and $25,000 for administrative costs.
  
  
• Vacation Network, Inc. f/d/b/a Augusta Reservation Systems, Inc. and Premiere Vacation Systems, L.L.C. and Vacation Reservation Systems, Inc. – Following an investigation into the practices of this provider of vacation travel packages, OCA alleged that the company engaged in various unfair and deceptive advertising and sales practices including: representing that accommodations were many miles closer to the areas stated than they actually were; failing to honor vouchers for free vacation prizes; representing that customers had won promotional prizes when, in fact, all of the participants were eligible to receive the promised “prizes”; and not providing the travel services as represented in the sales presentation by failing to secure requested reservations in the time period promised or by failing to refund deposits for cancelled bookings.  Under the settlement terms, the company was required to cease and desist from these acts; to pay a civil penalty of $160,000 and legal/investigative fees of $35,000; and to provide restitution to customers by allowing them to either cancel their service contracts and receive partial refunds, or to keep their travel packages and receive additional weeks of vacation. The total monetary restitution was over $1 million for 935 consumers.

Debt Adjustment and Credit Repair

• P & E Holdings, LLC, Greenwood Financial Solutions, LLC and Eddie Zucker, Individually - Between 2005 and January 2007 OCA received over 100 complaints against this debt management company. Allegations against the company include that it charged consumers for debt adjustment services, but neither provided those services nor issued refunds; made unauthorized debits from consumer accounts; charged consumers more than the maximum fees permitted by law; failed to file annual audit reports; failed to obtain the required insurance; and misrepresented itself as a non-profit agency licensed by the State of Georgia. According to the settlement terms, the company must refrain from soliciting any new business from Georgia consumers; comply with the Fair Business Practices Act and Debt Adjustment Act as concerns existing Georgia clients; pay approximately $48,000 in customer restitution; and reimburse the State for investigative fees in the amount of $65,000.
  
  
• DebtXS, LLP – This company allegedly charged consumers for debt adjustment services, but neither provided those services nor issued refunds; charged customers more than the maximum fees permitted by law; failed to maintain the insurance coverage required by law; and failed to file annual audits with OCA. The company entered into a settlement, in which it agreed to pay over $322,000 in customer restitution and $30,000 in administrative fees.

Multi-State Settlements

• Georgia, along with 48 other states and the District of Columbia, reached a settlement with AOL, resolving allegations that the Internet Service Provider made it extremely difficult for consumers to cancel their accounts and failed to disclose terms and conditions of paid service.
  
  Prior to this settlement, AOL only allowed customers to cancel their service by fax, mail or telephone. The majority of consumers called AOL directly and wound up speaking with service representatives who earned bonuses for persuading customers not to terminate their accounts. Consumers complained that this practice of trying to “save” customers made cancellation extremely difficult, if not impossible. Some consumers, for example, alleged that after requesting that their account be cancelled, they were nevertheless billed or charged for services.
  
  The settlement puts strict limitations on the practice of “saving” customers and requires recording and verification of these telephone calls. In addition, AOL agreed to maintain an online system for processing cancellations; issue refunds to anyone who can show that they were billed for services they had tried to cancel; and pay $3 million to the States to cover the costs of the investigation.
  
  
• The State of Georgia was one of 15 states that entered into a settlement with Partners Equity Capital Company, LLC d/b/a Commerce Commercial Leasing, LLC that provided nearly a million dollars in debt forgiveness to small businesses who owed payments through third-party leasing companies after an allegedly fraudulent telecommunications company went bankrupt.
  
  Partners Equity Capital Company (PECC) is one of the leasing companies that purchased equipment rental agreements with customers of NorVergence, Inc. NorVergence offered small businesses five-year rental agreements for a “Matrix box”, which the company falsely claimed would create significant savings (usually 30%) on telecommunications services. Under the alleged scheme, NorVergence would sell the contracts to leasing companies and walk away with the profits. When NorVergence was forced into bankruptcy in June 2004, its customers were left without service but still responsible for the five-year lease agreement payments to leasing companies.
  
  Under the terms of the settlement agreement, PECC is required to put $19,322 into an account, to be distributed to affected Georgia small businesses that elect to participate in the settlement.  PECC further agrees not to seek collections on NorVergence rental accounts from participating customers and to correct and withdraw any and all adverse credit information against participating customers that PECC submitted to the credit bureaus.

A few highlights of our 2007 achievements in criminal matters are:

Home Improvement Fraud

OCA criminal investigators arrested four suspects for their alleged participation in a home repair fraud scheme that conned elderly homeowners in Pickens, Cherokee, Cobb and Fulton Counties out of over $480,000. The perpetrators would allegedly target seniors and approach them with an offer to do some minor repair job, such as cleaning out the gutters or removing dead tree limbs. During the initial job, the perpetrators would “discover” additional problems with the house that needed immediate repair, hence a $15 gutter cleaning job might evolve into many thousands of dollars in repair work. One of the suspects admitted that he and his cohorts would often fabricate or cause the alleged damage and that they specifically targeted seniors by focusing their efforts in older established neighborhoods and at residences with parked cars displaying handicapped tags. Complainants contend that the perpetrators overcharged them for repairs and accepted payment for work that was never completed and often unnecessary. The suspects are facing multiple charges including theft by deception, theft by conversion of payments for property improvements, and racketeering. 

Telemarketing Fraud

• Telemarketers at Capricorn Marketing LLC called more then 10,000 people between 2001 and 2004, falsely telling them they had won or were a finalist for a $50,000 prize. The victims, most of whom were elderly, were then asked to provide their bank information so that their winnings could be deposited.  However, instead of depositing money into their accounts, the company called the victims to “confirm” that they had ordered expensive magazine subscriptions and then deducted money from the victims’ bank accounts. OCA raided the company in February 2004. In 2007 all 11 defendants pled guilty to racketeering charges. The main offenders were sentenced to as much as 10 years in prison, and the victims who filed complaints with OCA received restitution from monies seized during the raid.
  
  
• OCA’s investigation into allegations of advance fee telemarketing fraud by Global Financial, Inc. began in 2003. Global Financial telemarketers offered a credit card for a fee of $221.95 to victims across the country. However, rather than providing a credit card, the company provided consumers with information on how to get a credit card. OCA shut the operation down during the execution of a search warrant, by freezing the corporation’s bank accounts, and ultimately through the indictment of four of the officers and managers for telemarketing fraud. An officer acting on behalf of Global Financial, Inc. pled the corporation guilty to five felony counts of Prohibited Telemarketing.  The plea agreement included a restitution order refunding 314 victims $221.95 each, totaling $69,692, plus a $10,000 fine and court costs.

Mortgage Fraud

Two suspects were arrested by OCA investigators for their alleged participation in a mortgage fraud and identity fraud scheme. This investigation was initiated after Georgia Bureau of Investigation Region 10 requested assistance regarding a complaint received from an out-of-state law enforcement agency. OCA learned that the personal identifying information of a New York resident was used to obtain a $282,000 mortgage for residential property located in Atlanta, Georgia. OCA later determined that the victim’s name and information were used to co-sign for a loan for a 2006 Nissan Armada valued at $47,000.

Identity Fraud/Fake ID Manufacturing

• OCA criminal investigators, working in conjunction with the United States Secret Service and other law enforcement agencies, shut down a major fake ID and counterfeit check manufacturer and made several key arrests in an identity fraud ring that had operated up and down the East Coast from Florida to New Jersey for several years. Starting with data breaches at an Atlanta-based health care facility and a well-known check-processing company, investigators traced the crime to the top, where they uncovered an underground facility that manufactured counterfeit checks and over 1,400 fake IDs, including driver’s licenses, student ID cards and fraudulent employee identification cards. The use of the IDs has been tracked to over $1 million in U.S. retail fraud loss. Investigators have made over 10 arrests so far, including that of the alleged ring leader who is charged with racketeering.
  
  
• Rafael Gonzales Estrella, Oscar Boteo Muniz and Anastacio Sanchez were arrested for their involvement in the sale of fake IDs, including Georgia driver’s licenses, social security cards and other documents. The defendants pled guilty to Manufacturing Fraudulent Identification Documents and received prison sentences ranging from 3 to 4 years. The suspects are subject to deportation after their release from prison.
  
  
• Five suspects were arrested for their alleged involvement in a counterfeit ID and document operation in which they allegedly offered to sell fraudulent identifications issued by the federal and state governments. Documents included social security cards, alien residence cards, and Georgia IDs or driver’s licenses issued by any state within the United States or by any country. The defendants were held without bond pending trial or deportation.
  
  
• OCA was part of a multi-agency investigation into a credit card skimming and counterfeiting ring operating in Georgia. Credit card skimming involves the use of a device that captures the information from a credit card’s magnetic strip. A suspect allegedly “skimmed” at least eight credit card account numbers belonging to ID fraud victims at a popular Atlanta restaurant. OCA criminal investigators arrested a total of four suspects for their alleged involvement in the scheme. The ring was further linked to skimming at two other North Georgia restaurants where local law enforcement agencies made additional arrests.

Theft by Deception

OCA investigated an allegedly deceptive business called Driver’s Restoration Services, LLC that offered to help consumers get their suspended, cancelled or revoked driver’s licenses reinstated in exchange for a fee of several hundred dollars. The investigation revealed that one suspect employed by the company failed to perform any services once he collected his fees. The suspect was arrested and charged with theft by deception. A second suspect was arrested by OCA investigators pursuant to outstanding forgery warrants obtained by the Georgia Department of Driver Services.

2006 Accomplishments

2005 Accomplishments

2004 Accomplishments