Wrongdoing Exposed, Justice Delivered: Attorney General Bonta Secures Victory Against Los Angeles Retail Chain Curacao for Cheating Customers

OAKLAND - California Attorney General Rob Bonta today issued a statement regarding the California Second District Court of Appeal's ruling yesterday granting the California Department of Justice (DOJ) a complete victory, finding that Adir International LLC dba Curacao, and its owner Ron Azarkman (collectively, "Curacao"), unlawfully profited from the chain's largely Latino immigrant customer base. The court found that Curacao, a retail store chain with 10 locations in Southern California, illegally sold credit insurance to its customers. It also reversed the trial court's finding that Curacao's account/credit protection fees were lawful and held that such fees are unlawful under California consumer protection law.

"This court ruling not only found that Curacao broke the law but also affirms what we have known all along - that Curacao took advantage of the very customers it claimed to serve, specifically our Latino immigrant communities," said Attorney General Bonta. "This victory sends a clear message: The California Department of Justice will not back down. We will not tolerate illegal conduct by businesses and will ensure they are met with full accountability."

In 2017, the Attorney General's Office filed a lawsuit against Curacao alleging that the company was engaging in numerous and pervasive unlawful, unfair, and fraudulent business practices. The lawsuit alleged that Curacao lured in customers by advertising low prices and easy credit, then informed those customers that they could only buy at the advertised price after purchasing ancillary accessories, warranties, or installation services. In other cases, Curacao was alleged to have added items to payment contracts without their customer's knowledge.

Curacao and Mr. Azarkman previously agreed to provide more than $10 million in relief, and to be subject to a permanent injunction, in a partial settlement of the Attorney General's claims. Yesterday's ruling affirms the allegations brought by the DOJ, concluding that the company and its owner violated the Insurance Code. The ruling also reverses the trial court's findings on the Attorney General's Unruh Retail Installment Act claims, holding that account/credit protection fees are prohibited under California law. The account/credit protection fees at issue in the case were a significant source of revenue and returned a 97% profit for the company and Mr. Azarkman.

DOJ was assisted by the Los Angeles County Department of Consumer and Business Affairs, which helped investigate the case.

A copy of the ruling can be found here.