FOR IMMEDIATE RELEASE
Contact: Olha Rybakoff, Director
Consumer Protection Unit
Phone: (302) 577-8513
Date: June 13, 2002
AG FILES COMPLAINT AGAINST IMAGES HEALTH SPA
Suit Alleges Violations of Delaware Health Spa Regulations and Consumer Laws
(Dover, DE): Attorney General Jane Brady today announced that her office has filed suit in the Court of Chancery against Images Health Spa and its owners and operators, Darryl and Lisa Nagle. Earlier this week, the Attorney General met with clients of the Images II health spa to distribute restitution checks for the unused portion of their spa members as a result of the closing of Images II in December, 2001. Restitution, in the amount of $17,357.66, from the Delaware Health Spa Guarantee Fund was paid out to 140 consumers.
The civil enforcement action filed today seeks an injunction and declaratory relief, unpaid health spa registration fees, restitution for all injured consumers, civil penalties and fees and costs associated with the State's action. The lawsuit alleges:
Defendants failed to register, post bond and pay registration fees as required by Delaware's Health Spa Regulation statute;
Defendants failed to meet their obligations to pay creditors, employees and maintain their membership obligations to their consumer members in violation of the Consumer Fraud Act;
Defendants continued to advertise, market and offer for sale, long-term health spa memberships notwithstanding Images' financial failures;
Defendants lead consumer members to believe that the health spa closing was temporary.
The complaint filed today requests that the Court order the defendants to make
full and complete restitution to consumer victims, reimburse the Health Spa Guarantee Fund for all registration fees and reimbursements due, to; bar the defendants from further violations of Delaware’s consumer and health spa laws and to pay civil penalties.