PRESS RELEASE FOR IMMEDIATE RELEASE
Contact: Barbara Gadbois
Phone: (302) 577-8323
Date: October 8, 2004
IMAGES HEALTH SPA REIMBURSES FUND FOR CONSUMER RESTITUTION
(Wilmington, DE): Attorney General M. Jane Brady today announced that on October 7, 2004, Vice Chancellor John W. Noble granted the State’s motion for a permanent injunction against Lifestyles Fitness and Racquet Club, Inc. (d/b/a Images Health Spa) and its owner, Darrell Nagle restraining them from violating the Health Spa Registration Act, Consumer Fraud Act and the Deceptive Trade Practices Act and from engaging in the health spa business in Delaware in the future, unless they fully comply with the Order.
The State sought, and the Vice Chancellor ordered, reimbursement in the amount of 65,264.00 to the Health Spa Guarantee Fund, which represents the amount paid to consumers for the unused portion of their memberships when the health spas close their doors.
Attorney General Brady said, “This case reinforces the wisdom of creating a fund for restitution to victims when health spas close their doors. This office will now seek enforcement of the Order to reimburse the Fund for monies we paid to victims in the Images case.”
The Health Spa Guarantee Fund was established to ensure reimbursement to consumers for pre-paid memberships in the event that a Delaware health spa closed. The defendants operated two health spas, one in Dover and one in Milford, under the trade name “Images”. A civil enforcement action was filed by the Attorney General’s Consumer Protection Unit in June of 2002, after both health spas closed abruptly. Proceedings are still pending against Lisa Nagle.