Attorney General Martha Coakley's office has frozen the assets of Kalami Fuels Inc., doing business as Action Oil & Septic in Oxford, claiming the company continually failed to deliver home heating oil as promised.
The complaint against Action and its owner, George Papageorge, claims the company failed to honor prepaid contracts and that when it did deliver oil to prepaid customers, it only provided enough for a week or two, despite continuing to make full deliveries to cash customers. It also alleges that the contracts included unfair terms including failing to specify how and when oil would be delivered and baring customers from purchasing oil from another provider.
In one case, according to Coakely's office, a disabled widow was forced to spend Christmas night at a friend's house because she ran out of oil, and Action Oil failed to respond until Oxford Police became involved.
The AG's office is seeking more than $37,000 in restitution to victims and $75,000 in civil penalties.
A phone number listed for Action Oil was not answered this morning, and a message indicated its voice mail was full. A home phone number listed for Papageorge had been disconnected.
The Better Business Bureau website gives Action Oil an "F" rating and says it has received eight complaints since November 2011 alleging it delivered only small portions of oil to prepaid customers, failed to honor contractual agreements and did not respond to customer complaints.
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