Attorney General Ashley Moody took action against a custom trailer company, its owner and two managers for deceiving customers. A complaint filed in Polk County against Husky Cargo, LLC, and two managers, Dwayne Pass and Tammy Pass, alleges that the business collected down payments for custom trailers that were not delivered or built as promised according to customer requirements. As part of a proposed consent judgment with the Attorney General’s Office, Husky Cargo agreed to provide restitution to consumers impacted by the alleged deceptive and unfair business practices.
Attorney General Ashley Moody said, “Accepting payment without providing the product is not just a terrible business model, it is unlawful. Our Consumer Protection team will hold responsible any entity taking customers’ money and not delivering the promised goods or services.”
Since June 2015, the Attorney General’s Office and the Better Business Bureau received numerous complaints from Husky Cargo consumers. According to the complaints, consumers placed sales orders with Husky Cargo and paid advance deposits but did not receive the trailers, as promised. Husky Cargo marketed trailers and conducted sales through the company website, eBay, other internet advertising means, and at the company’s physical location.
According to complaints received by the Attorney General’s Office, consumers each paid the defendants up to several thousands of dollars, with Husky Cargo ultimately receiving a total sum of $156,178, with some of that already refunded to consumers through efforts of the Attorney General’s Office. Consumers also say Husky Cargo failed to provide customer service, including but not limited to, failing to answer business phones or returning consumers’ phone calls or emails.
In addition to participating in the deceptive acts of the business, Dwayne and Tammy Pass allegedly diverted company funds for personal use. Litigation is ongoing against the two Husky Cargo managers.
To view the complaint, click here.
Owner Michael Gatewood contested the allegations, alleging that the deceptive acts were caused by Dwayne and Tammy Pass; however, Gatewood is agreeing to provide restitution to consumers on behalf of Husky Cargo. Husky Cargo is permanently restrained from soliciting orders or collecting funds from customers. The owner also agreed to certain restrictions for two years related to creating, controlling or managing any corporation that customizes cargo trailers.
To view the agreement, click here.
As part of reaching its agreement with the company and its owner, the Attorney General’s Office obtained an injunction to prohibit the company from engaging in the manufacture or sale of automotive and cargo trailers or collecting additional payments. Subject to court approval, the consent judgment provides $75,000 in consumer restitution.
To view the proposed consent judgment, click here.