CURRENT INVESTIGATIONS
American Tax Relief and Omni Consumer Tax, Inc.
In the current economic climate, many individuals and businesses are experiencing financial stress. This includes a large number of persons or companies that owe tax monies to the federal or state government but are unable to pay this tax obligation. This has lead to a dramatic increase in people seeking the services of so called “tax relief” companies that advertise their ability to negotiate with the Internal Revenue Service to dramatically reduce your tax obligation or in some cases, to eliminate it. These tax relief companies engage in extensive advertising campaigns in which they represent to consumers that a consumer’s tax debt can be settled for “pennies on the dollar.” These companies represent they have special expertise or knowledge that enables them to obtain this type of relief for a consumer. Frequently, this “expertise” is represented to be in the form of the employment of tax professionals such as attorneys and ex-IRS officers. A large up-front fee (between $3,000 and $12,000) is required before the entity will begin the process of negotiating the consumer’s tax debt.
Chrysler 2.7 Liter Engine Failure
Belt Law Firm, PC is investigating numerous complaints alleging engine failure in Chrysler’s 2.7 Liter engines, which are found in over 750,000 Chrysler vehicles manufactured between 1998 and 2004. It is alleged that there are multiple design defects in these engines allowing engine sludge to buildup eventually causing catastrophic engine failure. Specifically, that in many 1998-2000 2.7L Engines a defectively designed Timing Chain Tensioner is responsible for catastrophic engine failure. In 1998-2004 Dodge / Chrysler 2.7L Engines a defectively designed water pump allows coolant to enter the Engine over time and cause oil sludge. Also in the 1998-2004 2.7L engines, there can be a build up of engine sludge due to poor oil circulation caused by oil passages that are too narrow causing the oil to wear down more rapidly unlike normal engines. Chrysler has received hundreds of complaints about the premature failure of these engines. Despite these complaints, Chrysler asserts the 2.7L engine is not defective and that most of these engine failures are due to improper maintenance by the vehicles’ owners.
Conseco Life Insurance Policies – R Factor Premium Increase
Belt Law Firm, PC is investigating complaints byt Conseco Life Insurance policyholders who have recently been notified of a dramatic increase in their premiums and a demand for a large cash payment to make up an alleged shortfall in the policy’s funding. This premium increase primarily affects males over 60 years of age who initially purchased their policies from other insurance companies, such as Massachusetts General Life, which were later purchased by Conseco.
Express Scripts Data Breach
Express Scripts, one of the nation’s largest pharmacy benefit managers that administers the prescription drug benefits for approximately 50 million Americans, recently experienced a massive data breach of customer records. The breach resulted in an extortion attempt by an unknown party who demanded ESI pay millions or they would release the confidential data (including names, addresses and social security numbers) of ESI customers onto the internet. As proof they possessed this information, the extortion letter included the names, addresses, social security numbers and prescription information for 75 ESI customers. The FBI is currently investigating this matter, but to date no arrests have been made.
American Home Mortgage Servicing, Inc.
Many mortgage companies allow mortgagees to make mortgage payments online via their website. The American Home Mortgage Servicing, Inc. (AHMS) website represents that payments made by 9p.m. Central Standard Time will be credited to the payee’s account on that same date. Belt Law Firm, PC has received complaints that AHMS is violating this representation by waiting 3-5 days after a payment is scheduled before crediting the payee’s account. This has resulted in many mortgagees receiving hefty penalties for late mortgage payments.
NuCO2, Inc.
NuCO2, Inc., is the nation’s largest provider of beverage quality CO2 products to convenience stores, restaurants, hotels and theme parks. NuCO2 both sells and leases CO2 equipment to its customers. For those customers who have purchased the CO2 equipment, NuCO2 provides refills of the CO2 gas and bills clients monthly for this service. For those customers who lease their CO2 equipment, NuCO2 charges these clients a monthly rate for the lease of the equipment and for providing the CO2 gas to operate the equipment. As part of their billing process, NuCO2 also assesses numerous fees and surcharges. Many customers have contacted us questioning the legitimacy and fairness of these fees/surcharges.
Renewable Environmental Solutions, Inc.
Renewable Environmental Solutions, Inc. (RES) operates a plant in Carthage, Missouri employing a technology called the “Thermal Conversion Process” (hereinafter “TCP”) which converts agricultural waste products such as turkey offal, blood, feathers, and bones into oil by-products. RES takes the unused animal by-products and superheats and pressurizes them until they break down into their component chemicals. The hydrocarbon chains are then separated and converted into low-grade oil.
Orlando Cay Clubs Resort and Academy
Belt Law Firm, PC represents approximately 200 condominium unit owners at the former Orlando Cay Clubs Resort and Academy in Orlando, Florida, in a fraud and deceptive trade practices case against IMG Academies, LLP and Sunvest Communities USA, LLC. Although not a class action, this multi-plaintiff, mass action, shares many of the same characteristics of a class action and asserts that IMG Academies, Sunvest and Cay Clubs International were involved in a partnership or joint venture to develop and convert an apartment complex in Orlando, Florida (known as the Eaglewood Apartments) into luxury condominium units, which included an on-site IMG Academies sports complex and training facility. The plaintiffs were induced to purchase these units pre-conversion and renovation based on the representation of the IMG partnership/joint venture, which would bring IMG’s entire soccer training facility to the Orlando Cay Clubs Resort and Academy. Plaintiffs were also promised a 15% “leaseback” within 45 days of purchase. Under the leaseback arrangement, Plaintiffs were to receive 15% of their purchase price back to offset the cost of their mortgage and HOA payments for two years during which time the promised conversion and renovations were to be completed. The promised conversion and renovations were not done, and the vast majority of purchasers received none, or only a portion of the promised leaseback monies.
Rambus, Inc.
Belt Law Firm, P.C. has filed a securities class action lawsuit against Rambus, Inc. for various violations of Federal Securities laws. During the Class Period, Rambus carried out a plan, scheme and course of conduct which was intended to and did: (a) deceive the investing public, including Plaintiffs and other Class members (b) artificially inflate and maintain the market price of Rambus’ common stock; and (c) cause Plaintiffs and other members of the Class to purchase Rambus’ securities at artificially inflated prices. Such conduct constitutes a violation of Section 10(b) of the Securities and Exchange Act and Rule 10b-5 promulgated thereunder. As a result of the dissemination of the materially false and misleading information and failure to disclose material facts, the market price of Rambus’ securities was artificially inflated during the Class Period. In ignorance of the fact that the market prices of Rambus’ securities were artificially inflated, and relying directly or indirectly on the false and misleading statements made by Defendants, Plaintiffs and the other members of the Class acquired Rambus securities during the Class Period at artificially inflated prices based on their reliance. The market prices of Rambus’ securities declined materially when the truth concerning Rambus’ financial prospects and business, which had been concealed by Defendants’ material misrepresentations and omissions, was disclosed, causing Plaintiffs and the other members of the Class substantial damages.
Inphonic, Inc.
Belt Law Firm, P.C. has filed a class action lawsuit against Inphonic, Inc. for various violations of law for its failure to pay promised cellphone rebates to its customers. InPhonic operates as an online seller of cellphone services by utilizing the following websites, subsidiaries and/or affiliates: Wirefly, AlWireless.com, Point.com, Cellular Choice, Cellularone.com, Wireless World, and Tmiwireless.com. InPhonic offered rebate incentives to encourage customers to purchase goods and services through them instead of directly from the manufacturers and wireless carriers. InPhonic rarely paid the promised rebates.
Global Tel-Link / Department of Corrections
Global Tel-Link, a private company based in Mobile, Alabama, is the nation’s largest provider of telephone services to prison and jail inmates. Global Tel-Link contracts with state corrections departments and/or sheriff departments to obtain exclusive rights to place payphones in correctional facilities. The inmate must use the Global Tel-Link payphone to contact his family or attorney. These calls are almost always collect calls, which are billed at ridiculously exorbitant rates that far exceed those rates charged by a typical long distance carrier. In many states this can be as much as $17 for a 15-minute phone call.
Ganz / Webkinz
Ganz is one of the largest providers of gift offerings, collectibles, seasonal gifts and home decor products. Ganz provides these products to over 30,000 retail customers all over the United States. Ganz is also the manufacturer and distributor of the famous webkinz products. Belt Law Firm, PC has received complaints from a number of Ganz retail customers who complain that in order for Ganz to give the retailer access to the webkinz line, the retailer must also purchase large sums of other Ganz products. Retailers complain that these other Ganz products are poor sellers, which they would otherwise never purchase. However, the overwhelming popularity of the webkinz products forces retailers to purchase the poor selling products in order to get access to the webkinz line.
United Parcel Service (UPS)
Belt Law Firm, PC is currently investigating the billing practices of UPS. Specifically, the assessment of certain surcharges and fees by UPS. UPS assesses a litany of fees and surcharges including courier pickup charges, delivery area surcharge, delivery reattempt surcharge, inside delivery charge, inside pickup charge, residential delivery charge, residential pickup charge and fuel surcharge, which are assessed to customers in invoices. Although it is not uncommon for businesses to assess fees and surcharges, these fees/surcharges can be unfair and deceptive if not properly disclosed and assessed in a proper manner.
