WATERTOWN, N.Y. (Legal Newsline) - New York Attorney General Andrew Cuomo has taken legal action against an electronics store and its affiliated companies over allegations of targeting soldiers with fraudulent and deceptive business practices.
The legal action follows an investigation by Cuomo's office into SmartBuy. Cuomo says the company and its affiliated lenders had targeted soldiers with so-called "financing" offers of monthly payments that the investigation revealed were actually open-ended loan agreements.
These loan agreements resulted in thousands of dollars extra being paid for consumer electronics by the soldiers.
"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," Cuomo said. "We have no tolerance for companies or individuals who take advantage of those serving in our military."
Cuomo says all SmartBuy locations nationwide are set in close proximity to large military establishments and communities.
A notice of proposed litigation was sent by Cuomo's office to six of SmartBuy's 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, Calif.-based William Collins and Ronald Wilson.
Cuomo claims that SmartBuy "engaged in illegal, deceptive and
SmartBuy's collective locations brought in between $32 and $36 million nationwide in 2008.