CUOMO TO TAKE LEGAL ACTION AGAINST SMARTBUY AND ITS AFFILIATED COMPANIES FOR PREYING ON MEMBERS OF THE MILITARY WITH FRAUDULENT AND DECEPTIVE PRACTICES

WATERTOWN, N.Y. (April 14, 2010) - Attorney General Andrew M. Cuomo today announced that his office has initiated legal action against SmartBuy and its affiliated companies for targeting soldiers with fraudulent and deceptive business practices.

An investigation by Cuomo’s office determined that the company and its affiliated lenders targeted soldiers with so-called “financing” offers of monthly payments that were actually open-ended loan agreements, costing the soldiers thousands of dollars extra for consumer electronics.

“The specific intent of this business was to target soldiers on the move, fleecing them for thousands of dollars and leaving them with little recourse,” said Attorney General Cuomo. “We have no tolerance for companies or individuals who take advantage of those serving in our military.”

Cuomo’s office sent a notice of proposed litigation to six affiliated entities, including Frisco Marketing of N.Y., LLC, doing business as SmartBuy and SmartBuy Computers and Electronics; Integrity Financial of North Carolina, Inc.; Britlee, Inc.; GJS Management, Inc.; Rome Finance Company, Inc. and Rome Finance Co. LLC, all owned and/or operated by Fayetteville, N.C.-based John Paul Jordan, Stuart Jordan and Rebecca Wirt, and Concord, California-based William Collins and Ronald Wilson.

The Attorney General’s Office claims that the SmartBuy operation “engaged in illegal, deceptive and fraudulent business practices, including but not limited to fraudulently and deceptively selling electronics with financing agreements to federal employees, and in particular, military employees; violating New York State usury and banking laws by engaging in unlicensed lending and charging illegal rates of interest; and violating the State Fair Debt Collection Practices Act.”

In 2008, SmartBuy’s collective locations across the country brought in between $32 and $36 million. Until recently, SmartBuy operated a store front and kiosk in the Salmon Run Mall. Once the business became aware of the Attorney General’s investigation and expected legal action, SmartBuy abruptly shut down the location.

Attorney General Cuomo’s investigation has determined that all SmartBuy locations across the country are set up in close proximity to large military establishments and communities. Consumers who did business with SmartBuy or any of its affiliated organizations are urged to contact Attorney General Cuomo’s Watertown Regional Office at 315-785-2444.

The matter is being handled by Assistant Attorney General-In-Charge of the Watertown Regional Office Deanna Nelson under the supervision of Deputy Attorney General for Regional Affairs J. David Sampson and Special Deputy Chief of Staff Mitra Hormozi.

Comments

  1. Isn't ironic that the Attorney General who is contemplating running for Governor and at the same time wanting to gain press coverage for supposed wrong-doings of companys that are near military bases? How many businesses near Watertown, NY could be labeled as targeting military? Who does the AARP target? I wonder how much sales tax revenue we stand to lose each year from losing another business in the state of New York?

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