AG takes court action against Marblehead heating oil dealer

MARBLEHEAD – State Attorney General Martha Coakley on Thursday filed a lawsuit against a North Shore heating oil company whose Marblehead owners allegedly engaged in unfair and deceptive practices with their customers.The complaint, filed in Suffolk Superior Court, was not the first against Peter G. Davekos, doing business as Apollo Group in Lynn, and Anita Davekos, owner of Anchor Fuel and Swampscott-based Astrofuel. In 2004, the pair was subject to similar accusations by customers and by then state Attorney General Thomas Reilly.The most recent court complaint alleges that since 2004, the Davekos failed to disclose information concerning price and fees for the sale of home heating oil and that they filed unlawful and inflated property liens surreptitiously upon the consumers’ homes in an attempt to collect outstanding balances.The complaint also alleges that the Davekos failed to file business certificates in the North Shore communities where they conduct business as required under a prior agreement with the attorney general’s office and as required by law.Further, the complaint contends the defendants provided buyers with delivery authorization cards that failed to disclose cancellation fees, monthly late fees and other charges that were routinely added to consumers’ bills.”Families across the commonwealth already struggle to pay the high energy costs that we are faced with here in the Northeast,” Coakley said. “Failure to disclose accurate information concerning the costs associated with the delivery of home heating oil and then improperly filing inflated liens on consumers’ homes as a means to excise payment is an unconscionable business practice and will not be tolerated.”Coakley said the liens, filed at the Southern Essex Registry of Deeds, were excessive and not followed up by any attempt to enforce or remove the liens. As a result, the consumers were left with clouded homeowner real estate titles unnecessarily.The Massachusetts Lien Statute allows certain parties to file liens against a debtor’s property for a debt stemming from personal labor and services related to the construction or renovation of a structure.In most instances, the Davekos filed liens for amounts purportedly due for the delivery of oil. However, in the course of its investigation, Coakley’s office found the liens filed were often thousands of dollars more than the alleged last balance owed.The liens included late charges, finance fees and lien fees, as well as undisclosed cancellation fees, all of which are not permitted by law.The Davekos allegedly filed these liens without providing any notice to consumers, who typically learned of the lien by chance, according to Coakley. The pair also filed the liens under assumed names and then failed to take any additional steps to enforce or release the liens as required by law.In 2004, the Davekos were investigated by the attorney general’s office. At the time, Anita Davekos was doing business as Astrofuel, Apollo Oil and Anchor Fuel. The defendants signed an agreement with the attorney general to discontinue these illegal practices. The agreement also stipulated that the pair must file business certificates in communities where their companies deliver heating oil.Coakley’s office is now seeking an injunction that will prohibit the Davekos from utilizing sale documents that do not disclose material terms about price and fees prior to the completion of the sales transaction. The attorney general also wants to stop them from improperly filing liens on consumers’ homes and conducting business or filing liens under assumed names.Additionally, the lawsuit seeks a court order requiring that the Davekos dissolve all improperly filed liens, provide full restitution to consumers and pay civil penalties and investigation costs.A hearing on the request for preliminary injunction is March 10.