BOSTON (Legal Newsline) - Massachusetts Attorney General Martha Coakley announced a consent judgment Monday against the former owner of a shuttered Waltham auto school to resolve allegations that he failed to refund hundreds of students.
Frederick Lovely, the former owner and sole officer of Cam's Auto School Inc., allegedly failed to complete driver education for more than 500 of its students who paid upfront for driving classes. Lovely allegedly knew he would not be able to provide the promised services when he obtained the fees and abruptly closed the school in March 2011.
"This defendant falsely advertised and sold driving school services when he knew they could not be provided," Coakley said. "We are pleased that this judgment orders full restitution for consumers who were harmed and prohibits the defendant from engaging in any driver education business in the state."
The judgment is the result of a lawsuit filed by Coakley's office in December 2011.
Under the terms of the consent judgment, Lovely must pay more than $282,500, including more than $174,900 in consumer restitution and $107,650 in civil penalties and fees. Coakley's office also obtained an order preventing Lovely from discharging his financial obligations under the consent judgment in a pending bankruptcy proceeding. Lovely is also permanently prohibited from accepting fees for any business related to driver education in the state.