News Release - Panhandle Water System Company Sued for Deceptive Practices

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Attorney General Bill McCollum News Release

July 19, 2007

en Español

Print Version

Media Contact: Sandi Copes
Phone: (850) 245-0150

Panhandle Water System Company Sued for Deceptive Practices

~ Company allegedly faked water test results to gain sales ~

TALLAHASSEE, FL – Attorney General Bill McCollum today filed a lawsuit against a Panhandle water system company, alleging that the company used flagrantly deceptive tactics to sell water systems to Floridians in and around Northwest Florida. Avian Environmental Services faces potential fines of $10,000 per violation of Florida’s Unfair and Deceptive Trade Practices Act as cited in the lawsuit, filed this morning in Bay County Circuit Court.

“Consumers should never be lied to or tricked into purchasing something out of fear for their health or safety,” said Attorney General McCollum. “Our office is sending a clear message that we will not tolerate such behavior towards our citizens.”

An investigation conducted by the Attorney General’s Economic Crimes Division revealed that the company purportedly used fabricated quotes from fraudulent experts in an effort to sell overpriced water systems. One victim, a senior citizen in Pensacola, told investigators she had been pressured into purchasing a system for several thousand dollars and to date has still only received a partial refund from the company.

Additionally, the lawsuit cites specific claims made by the company during demonstrations, presentations and sales pitches that health hazards are present in the water supply. Phony tests often “revealed” dissolved solids in the water and salesmen often claimed that the tests revealed feces or chemicals in the water. Subsequent tests by legitimate water companies showed no problems with the consumers’ water.

Avian has been under investigation by the Attorney General’s Office since 2005 and efforts to resolve the allegations through consumer reimbursements have not been successful. The lawsuit, which also names the company’s president, Robert A. Madden, and manager Don A. Madden, Jr., calls for Avian to immediately cease business operations and refund Florida consumers who purchased various products from the company.

A copy of the lawsuit against Avian is available here.