ALBANY — A New York state auction company, which allegedly failed to give its customers the money gained from the auction sales of their items, has reached a settlement of more than $230,000 with the state, according to the New York Attorney General's Office.
According to the Attorney General's Office, Finder Lakes Estate and Auction Inc., sold the property of more than 20 customers but did not give the customers the proceeds from the sales of their items and continued to accept items from others for auction without intending to pay the proceeds to the owners of the property. The company charged a 15 to 35 percent commission along with other fees with the remaining monies from auction sales going to the customer, the Attorney General's Office said.
“New York consumers rely on companies to be trustworthy and responsible,” New York State Attorney General Barbara Underwood said in a statement. “No matter the industry, my office will continue to protect New Yorkers from businesses that defraud their customers.”
The settlement includes Finger Lakes paying $237,739 in restitution to its customers and $12,000 in civil penalties and costs, according to Underwood's office. The company is also required to pay a minimum of 20 percent of its remaining earnings from future auction sales to the Attorney General's Office for past customers who did not receive their rightful proceeds.