PHOENIX (CBS5) -
A Phoenix auto repair shop accused of fraud has fired two of its employees and has to pay the state tens of thousands of dollars, according to the Arizona Attorney General's office.
Attorney General Tom Horne said Monday they investigated Meineke/Econolube at 6829 N. Seventh Street after they received consumer complaints as part of a new program of sting operations in Arizona.
On June 13, an undercover agent took a vehicle needing minor repair to Meineke/Econolube. The store manager, Scott Michael Bragg was recorded discovering the minor issue, yet providing an estimate for unneeded parts and labor totaling $650, according to the Attorney General's office. On a subsequent visit, service technician Eduardo A. Gastelum pulled a similar scam.
The State alleged that Econo-Lube N'Tune, Inc. - a Delaware corporation that owns and operates Econo-Lube N'Tune & Brakes and Meineke locations throughout the United States - and its agents violated the Arizona Consumer Fraud Act by recommending, performing and charging for unnecessary repair.
Under the terms of the Consent Judgment, which does not constitute an admission of liability and must get final approval from the court, Econo-Lube N'Tune, Inc. will pay the state $30,000 in civil penalties and $10,494.63 in costs and attorneys' fees.
Both the Bragg and Gastelum were fired as a result of the AG's investigation.
Seventh Street Meineke released the following statement Monday afternoon.
As the new owners of the 7th Street Meineke location, we have spent the last month working hard to repair the reputation and credibility that was lost in the years prior to our purchase. We purchased this Meineke from the corporate office a little over a month ago, and now run it along with seven others around the valley, all of which operate at the highest level of customer satisfaction. We want to stress that these unacceptable and unethical practices took place prior to our ownership, and we hope that the actions of a few individuals -- none of whom are still employed -- will dissuade customers from giving our new team a chance. Customer service is our highest priority, and it is our guarantee that no customer will ever be misled or overcharged by any of our employees in any way.
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Phoenix auto shop busted in fraud sting operation - CBS 5 - KPHO