November 2, 2005

DILLON ANNOUNCES:

CRIMINAL CHARGES FILED AGAINST GAS STATIONS DEFRAUDING CONSUMERS

Nassau County District Attorney Denis Dillon and Nassau County Commissioner of Consumer Affairs Roger Bogsted announced today the filing of criminal and administrative charges against three gas stations. The stations are charged for cheating consumers in two different ways: 1) overcharging for the gas provided, and 2) octane fraud for selling gas at premium prices but providing a lesser grade gas at that price.

The Getty station d/b/a (Doing Business As) Atlantic Mart, Inc., is located at 869 Atlantic Avenue in Baldwin. The station both overcharged several consumers for gas, and gave customers buying premium gas a lower grade gas at the premium price.

According to Dillon, "Consumer Affairs received several allegations that the Getty station was overcharging customers. The allegation was that the customer would ask for a certain dollar amount of gas, and the pump would be shut off several dollars short of that amount. Consumer Affairs received two specific complaints that a customer sought $40 worth of gas and the pump was shut off at $37, and 2) that a customer sought $20 worth of gas and the pump was shut off at $18. Based on this information, my office conducted a sting at the station. An undercover was sent to purchase $20 worth of gas; when the pump read $18.04, it was shut off by the attendant who took $20 and provided no change. Undercover video confirmed the overcharging in this case."

"In addition, on September 13, 2005, an investigator went into the same Getty station to purchase premium 93 octane gas," Dillon continued. "The investigator purchased two gallons at $3.39 a gallon. The gas was sent to a lab that identified that it was only 89.8 or unleaded plus which was selling at $3.29 a gallon. The station was, in fact, stealing 10¢ a gallon from each customer of premium gas."

The Gulf station, d/b/a D&M Gulf S.S., is located at 251 Long Beach Road, Island Park, NY. An undercover visited the station on October 17, 2005, to purchase premium gas at $3.15 a gallon. He purchased two gallons of gas, a sample of which was sent to a lab for testing. The gas tested at 86.3 octane, or regular level. As regular was selling at $2.85 a gallon, the station was stealing 30¢ a gallon from each customer of premium gas.

A third station, Fast Petro, d/b/a Express is located at 1587 Hempstead Turnpike in Elmont. The station refused to sell gas to our undercover after field tests by Consumer Affairs showed a possible violation; a sample obtained by Consumer Affairs was tested and showed that the alleged premium gas was only 88.1 octane. The difference between premium and regular gas was 34¢ a gallon.

The Getty, d/b/a Atlantic Mart, Inc. has been charged with three criminal charges. As the result of the overcharging, they are charged with Scheme to Defraud in the Second Degree, a Class A Misdemeanor. In addition, as a result of the octane scam, they are charged with an additional count of Scheme to Defraud in the Second Degree, and one count of Petit Larceny, also an A Misdemeanor.

The Gulf station, d/b/a D&M Gulf S.S., has been charged with one count of Scheme To Defraud in the Second Degree and one count of Petit Larceny, both Class A Misdemeanors as a result of the octane scam.

Finally, the Fast Petro station d/b/a Express has been charged by Consumer Affairs with a violation of the Agricultural and Markets Law under their octane provisions.

Getty and Gulf stations charged criminally face fines up to $5,000 per charge, or the higher amount of double the amount of the corporation’s gain from the commission of the offense.

"When the price of gasoline rose to such high levels we suspected the possibility of fraud," said Dillon. "Our investigation confirmed our suspicion that some gasoline retailers compounded the price increases by defrauding the consumer. I consider protecting the residents and consumers of Nassau County one of my most important obligations. Together with the Department of Consumer Affairs I will be proactive in investigating the marketplace to ensure that criminals do not add to the already large financial burden that Nassau taxpayers face. I want to remind residents that prices remain relatively high and that any suspicions of price gouging, or other fraud by gas stations, be reported to my Price Gouging Hotline at (516) 571-6306."

"We are here to help and protect the consumers in Nassau County. We will continue to closely monitor gas stations with an eye towards full prosecution of those caught picking the pockets of our motoring public,"stated Consumer Affairs Commissioner Roger C. Bogsted.

The charges are merely accusations, and the defendants are presumed innocent until and unless proven guilty.