Former Quartzsite business owner shut down in State sting

ATTORNEY GENERAL TOM HORNE: STING OPERATION SHUTS DOWN AUTO REPAIR SHOP PERMANENTLY

PHOENIX, AZ - Attorney General Tom Horne announced the resolution of a case in his ongoing auto repair “sting” operations, a program he instituted to deter auto repair shops from defrauding consumers. 

In the sting operation, an automotive repair expert shut off an undercover vehicle’s fuel cutoff switch before the State’s undercover operator called Sun Valley Towing for service.   Sun Valley Towing towed the vehicle to its repair shop where a mechanic simply reset the switch, correcting the problem.  The owner then charged the State’s undercover operator $340.00 for replacing the fuel pump, an unnecessary repair that was never performed. 

In a Consent Judgment totaling $686,582.09 the Court approved an award of $610,000 in civil penalties and $67,580.59 in restitution to consumers.  The Judgment against Tim Kunselman, owner of Sun Valley Towing LLC, located at 1354 S. 39^th Avenue in Phoenix, was based upon both customer complaints of deceptive business practices, and the State’s undercover auto sting operations. In 2009, Kunselman owned Quartzsite Tire, which was located at 1077 W. Main St. Quartzsite. 

“This judgment results from our ongoing undercover auto sting operations and holds Sun Valley Towing’s owner personally liable.”  Horne said.  “The many serious complaints we received from Sun Valley customers were validated when Kunselman and his company, Sun Valley Towing, were caught red-handed in one of our undercover auto stings charging for repairs they never performed – a very serious and expensive deception for consumers.”

The State’s suit also contained allegations regarding 59 complaints made by customers against Sun Valley Towing and Kunselman, alleging they failed to make promised repairs, kept their vehicles for months or years, returned them stripped of parts in the same or worse mechanical condition, and repeatedly lied to customers about their vehicle’s status and supposed refunds. 

In a similar judgment obtained last October against the business, the Court found, after reviewing the consumer complaints, “that Defendants engaged in a highly culpable, persistent course of callous, willful and deceptive misconduct that caused severe damage to an extraordinary number of consumers over an extended period of time.”

The Consent Judgment also includes a permanent injunction prohibiting Kunselman from engaging in auto repair, tow operations, vehicle repair, vehicle sales and vehicle service. 

Arizona AG Horne issues consumer warning

Horne Issues Consumer Warning About New Mortgage Ploy

PHOENIX (Wednesday, January 09, 2013) -- Arizona homeowners should be on the lookout for a mailing that appears to be a legal document, but may be a ploy against mortgage consumers, Attorney General Tom Horne said today.

The mailing comes in an envelope that appears to be an official legal or government document, but there is no company name or return address on the envelope or the letter itself.  A call to the toll-free number in the letter reveals the company as Fresh Start, based in New York.

The letter informs homeowners that they may be eligible to join a national lawsuit or make a potential legal claim against a mortgage lender.  The pitch from Fresh Start is that the homeowner must first pay $2,700 for the company to do “research” and then another $2,500 to retain a lawyer.  Such up-front fees are a violation of federal regulations and Arizona consumer fraud laws.

“This is the latest in a seemingly endless series of illegal or possibly illegal ploys related to Arizona’s mortgage crisis,” Horne said.  “Fresh Start claims to offer so-called audit services as a precursor to directing consumers to obtain legal assistance for mortgage holders who may have been victimized in the mortgage crisis.  But they first require as much as $5,200 up front from a homeowner. This is a blatant violation of Arizona law.”

Horne added, “The irony in this case is the consumer who brought this to the attention of my office has not been victimized in the mortgage crisis, but Fresh Start indicated he may be eligible for relief anyway and should pay the initial up-front fee for ‘research’.  Consumers need to be wary of this and other similar ploys.”

A copy of the letter is online here: https://www.azag.gov/sites/default/files/Mortgage-Ploy-Letter.pdf 

AG declines prosecution of Quartzsite Police Chief Jeff Gilbert based upon DPS investigation

For Immediate Release: Statement from Quartzsite 

Chief of Police Jeff Gilbert on DPS Report #2011-027462

Quartzsite, Arizona - On August 13, 2012, I received a completed copy of the criminal investigation conducted by the AZ Department of Public Safety (DPS) against myself and Sgt. Xavier Frausto. This report included the "Turndown" notice declining the case by the AZ Attorney General's Office, dated July 12/13, 2012. The allegations and complaint was initiated by then Quartzsite Mayor Ed Foster.

The case was declined for the following reasons stated by the turndown report as: "Victim/Witness Credibility Problems"; "Inadequate Evidence of Intent"; "Inadequate Evidence of Corroboration"; and "No Reasonable Likelihood of Conviction".

This is the third criminal investigation I have been subjected to along with members of my department from false allegations and complaints made by then Mayor Ed Foster. I have been exonerated, along with the other members of the department each time. Sergeant Xavier Frausto has served this community for nearly twenty years with his complete dedication to the community.

I have documented evidence that Ed Foster participated with another party and submitted a fabricated and forged letter to DPS in 2010 in an attempt to lend credibility to the first of his false allegations and complaints. While I brought this matter to the attention of DPS, to my knowledge they declined any further investigation of the incident.

Ed Foster, along with others, continues to this day in his attempt to discredit, and have me criminally charged, as the Chief of Police for the Quartzsite Police Department. His latest false allegations and complaints created an investigation and finding period that lasted nearly fourteen months resulting in an unknown loss and waste of the tax payer's dollar, not to mention the undue hardship that was created to the community, the Town, the Department, Sgt. Frausto, myself and our families. 

On behalf of the Quartzsite Police Department, myself and all those affected, I wish to thank the Town and community members of Quartzsite that have provided their continued support and stood behind us over the course of these false allegations and complaints.

I will continue with my dedication to the Town of Quartzsite as Chief of Police, to serve and protect and to provide the best possible police services to the community. Again, I wish to thank everyone for their support.

Jeff Gilbert

Chief of Police

Quartzsite Police Department

AG finds Quartzsite Town Council Violated Open Meeting Law

Arizona Attorney General Tom Horne finds Quartzsite

Open Meeting Law Violations

PHOENIX (Tuesday, December 13, 2011) -- Attorney General Tom Horne has found evidence that the Quartzsite Town Council has violated Arizona’s Open Meeting Laws (A.R.S. §§ 38-431 et. seq.) in connection with the conduct of Town Council meetings and dealings with a member of the public.

In a letter to the Quartzsite Town Attorney, Horne notes that on June 28, 2011, while addressing the Council, Quartzsite resident Jennifer Jones was removed from the meeting by a vote of the council. She had turned her back on the council and was addressing the audience, which the council reasonably could object to. Public bodies can eject members of the public for disruptive conduct, but they must first give a warning, which the council failed to do.

The second violation occurred on July 10, 2011 in which the Council convened an emergency meeting on at the Town Hall to discuss disruptions during previous meetings. The Council locked the doors to the meeting room and did not allow any member of the public to attend its meeting. Excluding the public from this meeting violated the Open Meeting Law.

In the third and related violation, the Attorney General notes that the Council did not fully comply with the posting requirements for emergency meetings. As of December 9, 2011, the minutes of the emergency meeting were not posted on the Town website.

The final violation involves the failure to comply with posting requirements for Notices and Minutes.

The Council did not post minutes for the July 10, 2011 emergency meeting. In addition, the Council failed to post minutes for a number of its meetings labeled as “work sessions.”

As a remedy, Horne is recommending that:

1. The Council will discuss the concerns listed in this letter with its legal counsel in open session during a properly noticed public meeting.

2. Each member of the Council and staff will participate in a training session with counsel from the League of Arizona Cities and Towns regarding the requirements of the Open Meeting Laws.

3. The Council will be subject to oversight by the Attorney General’s Office for a period of twelve months.

Arizona Attorney General's Top Tips for Holiday Shopping

With the first big day of the holiday shopping season

coming on “Black Friday,”

November 25, followed by “Cyber Monday” on November 28,

 Attorney General Tom Horne

today offered his top tips for holiday shoppers.

Attorney General Tom Horne’s

Top Tips for Holiday Shopping

(1) Bring ads for sales and “special deals” with you to the store.
Advertising a set of sales or “deals” and refusing to honor the terms of the advertisement is deceptive advertising and illegal in Arizona. Consumers using holiday sales and coupons should be careful that the specials advertised match what is advertised in stores.
Consider bringing ads with you to the store to see if prices charged match advertised prices. Read all fine print or disclosures before making your purchase. When checking out, watch the cash register display to be sure the scanned price matches the advertised or posted price. Check your receipt for accuracy before leaving the store. If you have pricing questions, ask to see the store’s pricing error policy.

(2) Understand the new rules for gift cards.
Gift cards issued by merchants (single or group, i.e. chain stores) and those issued by financial institutions (many with Visa, American Express, MasterCard and Discover brand logos) will have to follow new guidelines recently set up by Congress. Under the Credit Card Act of 2009, limitations have been placed on fees and expiration dates for gift cards. Service fees can no longer be charged until the card has been inactive for 12 months and only after that time can one fee be charged per month. Fee details and terms need to be disclosed clearly and conspicuously prior to purchase. Also, gift cards now carry an expiration date of at least 5 years from the date of purchase or the date the card was last reloaded with funds. Make sure you understand any terms or details disclosed about any fee or expiration date prior to purchasing your gift card.

(3) Do online shopping at secure Web sites.
Using secure Web sites will help ensure that personal information, such as your name, address and credit card number, is transmitted to the merchant safely, without being intercepted by a third party. You can identify secure Web sites by looking for Web addresses that begin with “https” and check for a small padlock icon at the bottom of the page. Also look for SSL (Secure Sockets Layer) certificates which allow for safe browsing and purchasing (“VeriSign” is a commonly used SSL). Credit cards are still preferred over debit cards for online shopping security.

(4) Watch out for restocking fees.
Certain stores will charge you a percentage of the price for “restocking” an item that you return for refund or credit. These fees most often apply to larger purchases such as furniture, electronic equipment or appliances. If a business charges a restocking fee, it should disclose the fee in print advertising and promotional materials as well as post a clearly visible notice disclosing the fee and how consumers can obtain the full restocking fee policy. Before making a purchase, ask if the store charges a restocking fee. If so, make sure you understand the full cost and restocking policy.

(5) Save all receipts, warranties and service agreements.
Keeping printed copies of receipts, warranties and service agreements helps you negotiate any refunds or exchanges should you have a problem or decide to return the product.
During the time of purchase, request warranties and service contracts in writing and save receipts from all of your purchases. Bring them with you if you need a refund, exchange or repair.

(6) Be cautious of toys bought for children.
Make sure you read all labels and fine print on packages of toys purchased for children. Many toys are meant for children of certain ages and may contain small pieces hazardous to very young children. Also, to verify that the toy you have bought is safe, you can check the Consumer Product Safety Commission, http://www.cpsc.gov for more information.

(7) Travel safe this holiday season.
As you are booking your travel to see family this holiday season, take caution when booking through agents and online Web sites. Make sure you are working with a legitimate travel agent and remember, if the deal sounds too good to be true, it most likely is. It never hurts to take extra time researching a company or business online before using their service. Major airlines and travel companies often offer coupons and discounts while traveling over the holidays – be mindful of the small print and details regarding when purchase needs to be made and when travel dates are valid.

(8) Seasonal Employment Opportunities.
Many consumers seek seasonal employment to earn more cash during the holiday season. Be mindful of the employer you seek work from and make sure you are familiar with the company and its seasonal employment policies. Use caution when seeking employment from online job boards. Online employment boards may display employment opportunities that do not exist only as a means to obtain information from potential candidates. Use caution when providing identifying information over the internet and research companies that may not be familiar to you. Most job boards, such as Craigslist, allow users to report advertisements that are bogus are fraudulent.

If you believe you have been a victim of fraud, please contact the Attorney General's Office in Phoenix at 602.542.5763; in Tucson at 520.628.6504; or outside the Phoenix and Tucson metro areas at 1.800.352.8431. To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help. Locations and hours of operation are posted on the Attorney General’s Web site, www.azag.gov. Consumers can also file complaints online by visiting http://www.azag.gov/consumer/complaintform.html.

Arizona AG announces new Identity Theft programs

HORNE ANNOUNCES $110,000 GRANT

FROM THE CRIMINAL JUSTICE RECORDS

IMPROVEMENT PROGRAM (CJRIP)

PHOENIX  -- Attorney General Tom Horne announced that a grant for $110,000 has been awarded from the Criminal Justice Records Improvement Program (CJRIP). The primary focus of the grant will be to improve the timeliness, completeness, accuracy and accessibility of the state’s criminal justice information system, with an emphasis on criminal history information.

“This grant will bring much needed resources to the Attorney General’s Office in our efforts to work cooperatively with other law enforcement agencies statewide, and make it easier for law enforcement agencies to fight crime,” Horne said. “The Arizona Criminal Justice Commission is a great partner to work with as we develop better and more efficient communications among Arizona’s law enforcement professionals and I appreciate their support of this grant.”

This grant will make it easier for law enforcement agencies to access information about when and where criminals are arrested by addressing high disposition backlogs, and automating procedures for reporting arrests and/or disposition information to the criminal history records Central State Repository.

The grant will also fund an attorney’s position, which will be responsible for conducting an analysis of statutes, administrative rules and policies surrounding the criminal justice process. This will include booking, disposition reporting, fingerprinting, prosecution responsibilities, and court procedures, such as trial, sentencing, warrants and disposition reporting. Additional responsibilities will include reviewing and drafting memorandums of understanding between agencies that share criminal data.

IDENTITY THEFT GRANT

PHOENIX-- The Attorney General’s Office has been awarded a $50,000 grant for expanding and improving the outreach and capacity of victim service programs to better address the rights and needs of identity theft victims. The grant was awarded by the United States Department of Justice, Office for Victims of Crime, through the Maryland Crime Victims Resource Center, Inc. With funding from this grant, the Office of the Arizona Attorney General will create a community-based coalition dedicated to educating the public on how to safe-guard their identity, educating consumers on how to report suspected identity theft, and training law enforcement officers on how best to respond to victims of identity theft.

Horne stated: “The Arizona Attorney General’s Office will use a systems-based model to promote close cooperation among coalition members, create training materials, and improve outreach tools and victim assistance services to better serve identity theft victims.”

The Arizona Identity Theft Coalition will be composed of public and non-profit agencies from across the state. Members will be drawn from a number of different service sectors ranging from law enforcement, legal services, government agencies, veteran’s services and academic institutions.

Since 2003 Arizona has ranked either first or second nationally in reports of identity theft. Arizonans reported 6,549 incidents of identity theft last year. Horne stated, “this is an opportunity for service providers to work together, to find cohesive and effective ways of providing services to victims of identity theft.”



Attorney General Horne Finds Reasonable Cause to Believe Open Meeting Law Has Been Violated in Quartzsite

PHOENIX (Friday, July 29, 2011) – Tom Horne, Arizona Attorney General, today released partial information regarding the Attorney General’s Office investigation of events in Quartzsite. Horne stated:

 “Normally, we do not release the results of an investigation until it has been completed. However, because this is a matter of unusual public interest, we are prepared to say that, based on review of a video of a July 10 meeting, there is reasonable cause to believe that there has been a violation of the Open Meeting Law, inasmuch as the public was excluded. The meeting was held under the misconception that an emergency meeting can be conducted without the public present. Independently of the question of whether the Town Council had a legitimate reason to hold an emergency meeting, even proper emergency meetings must allow the public to be present. The exception is if there is a legitimate basis for an executive session, and the City Council did not attempt to hold a proper executive session during the emergency meeting. The investigation of this and other alleged violations of Open Meeting Laws is ongoing.”

Town Manager, Alex Taft, said she was surprised by the unusual move to release a statement before the investigation is completed.

Wallow Fire Fraud Alert

HORNE ISSUES WARNING:

WALLOW FIRE DISASTER ATTRACTS CONSUMER FRAUD AND SCAMS

PHOENIX (Thursday, June 9, 2011) -- Attorney General Tom Horne issued a warning today that Arizonans need to be wary of consumer scams and other fraudulent schemes that may appear as criminal predators take advantage of the disastrous Wallow Fire.

“Disasters such as the Wallow Fire often bring out the very best in people who work cooperatively to help each other. Unfortunately, the opposite is also true as scam artists and frauds use the tragedy to exploit vulnerable victims or con generous people into giving to fraudulent charities,” Horne said.

“My office is releasing a guide to protecting yourself from fraudulent schemes,” he added. “It is important that all Arizonans, whether they are personally affected by the Wallow Fire or the other fires that are currently burning in the state get this information so they are not further victimized in an already tragic situation.”

Among the tips that fire victims need to consider are:
•If you have insurance, contact your insurance company first and file your claim. Your insurance company’s adjuster will provide an estimate.
•Whether you are insured or not, obtain at least two estimates on work in writing before choosing a contractor to repair your home or remove debris.
•Never enter into or sign a contract while reviewing it quickly.
•Don’t pay for services you have yet to receive. Make progress payments as the terms of your agreement are being met.

The consumer guide also cautions people about potentially fraudulent charities:

•To help victims of the Wallow Fire or other Arizona fire disasters, consider donating to nationally known and legitimate charities, like the Red Cross, rather than charities that you may not recognize.
•Don’t judge a charity by its name. False charities may use names that closely resemble legitimate charities.
•Don’t let callers play on your sympathy by identifying their organization with the fire. This can be a tactic to get your money.
•Don’t be pressured. Give only when you are comfortable with the charity.
•Avoid cash donations and make checks payable to the organization, not to an individual.

The full Wildfire Consumer Protection Warning guide is available at:

http://www.azag.gov/consumer/DISASTER_RECOVERY_CONSUMER_HANDOUT.pdf