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Terry Goddard Files Consumer Fraud Lawsuit over Fictitious Businesses

(Phoenix, Ariz. – Dec. 7, 2009) Attorney General Terry Goddard today announced that he has filed a lawsuit against David Sasson and David Peer, both of Clearwater, Fla., and Gilad Gill of Bronx, New York, for violating the Arizona Consumer Fraud Act.

Court documents allege that the defendants advertised at least 47 fictitious businesses in the Tucson Yellow Pages. All of these businesses, when called, would allegedly redirect consumers to the same call center in Clearwater, Fla. The call center would then contact a local agent in Arizona to respond to the call and perform the requested services.

The complaint alleges the defendants violated the Arizona Consumer Fraud Act by:

  • Falsely representing that consumers had the option of contacting numerous locksmith companies, when all calls redirected consumers to the same call center.
  • Falsely representing the location of the businesses.
  • Falsely representing that they were members of Associated Locksmiths of America.

Documents also state that an advertisement for Priceline Locksmith, owned by Gill, included the Associated Locksmiths of America’s logo. Gill’s membership in the association was revoked in December 2005, but he continued to use the logo until July 2007.

The lawsuit asks the defendants to pay full restitution to victims and pay a fine of up to $10,000 for each violation of the Consumer Fraud Act. This case is being handled by Assistant Attorney General Taren Ellis in Pima County Superior Court.

“Arizonans have the right to be treated fairly by companies that want their business,” Goddard said. “I appreciate the cooperation in this case by the Associated Locksmiths of America. When businesses play by the rules, the market is more competitive and consumers win.”

If you believe you have been a victim of consumer 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.  Consumers can also file complaints online by visiting the Attorney General’s Web site atwww.azag.gov.  To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help.

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