Tuesday, May 28, 2013

NEW JERSEY: Gas stations in North Plainfield, Scotch Plains among 6 sued by state for selling aviation fuel

Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file a complaint with the New Jersey Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.




A Daninka gas station in North Plainfield and a Lukoil gas station in Scotch Plains are among six gas stations being sued by the state for allegedly selling aviation fuel, containing toxic lead, to consumers who thought they were buying unleaded motor fuel.

“We allege that these gas stations clearly knew, or should have known, they were selling aviation fuel that contains toxic lead, while advertising it as unleaded gasoline for motorists,” state Attorney General Jeffrey S. Chiesa said. “We will pursue restitution for any consumer, if it is demonstrated that this aviation fuel damaged their vehicles. Just as importantly, we are holding these gas stations and the distributors responsible for their alleged, unlawful deception and potential harm to the public.”

The gas stations — in Mercer, Monmouth, Somerset and Union counties — allegedly received a total of nearly 65,000 gallons of 100 octane aviation gasoline, or avgas, from a fuel distributor Dec. 6 and 7. Avgas is used to power piston-engined aircraft. Unlike motor fuel, it contains tetraethyl lead, a toxic substance that can damage cars’ catalytic converters and oxygen sensors.

The state’s complaint, filed by the Division of Law, names as defendants Pasmel Property Inc. of Freehold and six Pasmel-owned gas stations: Daninka in North Plainfield, Express Fuel in Trenton; Keyport Delta, Manasquan Lukoil, Lawrenceville Lukoil and Scotch Plains Lukoil. The state’s suit also names as defendants Brooklyn-based Zephyr Oil, a fuel distributor, and Pittsgrove-based Lee Transport, a fuel transporter.

Between Dec. 6 and 8, the gas stations allegedly advertised the avgas to consumers as unleaded regular, plus or premium motor fuel. The state alleges that consumers unknowingly purchased the avgas and faced a potential risk of significant problems with their vehicles.

Such conduct allegedly constitutes multiple violations of New Jersey’s Consumer Fraud Act, Motor Fuels Act, Weights and Measures Act, Motor Fuels Regulations, and Advertising Regulations, as well as the Federal Clean Air Act.

“Any consumers who believe they purchased fuel from these six gas stations between Dec. 6 and Dec. 8 is urged to call the Division of Consumer Affairs at 800-242-5846, especially if you believe your vehicle may have been damaged as a result,” said Eric T. Kanefsky, director of the Division of Consumer Affairs.

According to the state’s lawsuit, Zephyr Oil on Dec. 4 purchased about 73,000 gallons of avgas, from a California-based company that is not a defendant in the lawsuit. At the time of that sale, the aviation fuel was stored at a fuel terminal in Bayonne. Zephyr Oil sold the fuel that same day to Pasmel, at a significant discount compared to the price of premium motor fuel at the time. Zephyr contracted with Lee Transport to deliver the avgas from the Bayonne terminal to the Pasmel stations.

The state alleges that Zephyr, Lee Transport and Pasmel knew or should have known that the fuel being delivered to the Pasmel stations was aviation fuel. The bills of lading clearly noted that the fuel was “AVGAS — Aviation.” Additionally, the loading forms signed by Lee Transport identified the fuel as “AVGAS,” as did the weight tickets from the Bayonne fuel terminal.

It was not until the afternoon of Dec. 7 when an employee of the fuel terminal learned from a Lee Transport driver that Lee Transport was delivering the aviation fuel to gas stations, according to the lawsuit. After learning this information, the fuel terminal halted the remaining deliveries. As a result, the remaining 8,000 gallons of avgas purchased by Pasmel was not delivered to any of the gas stations.

Violations of the Consumer Fraud Act may result in civil penalties of up to $10,000 for a first violation and up to $20,000 for subsequent violations. Violations of the Motor Fuels Act may result in civil penalties of up to $1,500 for a first violation and up to $3,000 for subsequent violations. A first violation of the Motor Fuels Act may result in a suspension of up to 30 days of the retail dealer’s license to sell motor fuels, and a subsequent offense can lead to a revocation of the license. Violations of the Weights and Measures Act may result in civil penalties of up to $1,000 for the first violation and up to $5,000 for subsequent violations.


http://www.mycentraljersey.com

Lawrenceville Lukoil Among Gas Stations Accused of Substituting Aviation Fuel For Unleaded

Lawrenceville Lukoil is one of six gas stations in New Jersey accused of selling aviation fuel in place of unleaded gas, Attorney General Jeffrey S. Chiesa and the New Jersey Division of Consumer Affairs (DCA) announced on Tuesday, May 28.

The six gas stations named in a lawsuit filed by Chiesa and the DCA allegedly substituted 65,000 gallons of 100 octane aviation gasoline, or avgas, from a fuel distributor, between Dec. 6 and 7, 2012. According to the DCA, the aviation fuel was advertised as unleaded regular, plus, or premium motor fuel, and sold to unsuspecting customers between Dec. 6 and 8, 2012.

That deceit is a violation of New Jersey’s Consumer Fraud Act, Motor Fuels Act, Weights and Measures Act, Motor Fuels Regulations, and Advertising Regulations, as well as the Federal Clean Air Act.

Avgas is used to power piston-engined aircraft, and contains a toxic lead known as tetraethyl lead. This lead can damage the catalytic converters and oxygen sensors of a car.

“We allege that these gas stations clearly knew, or should have known, they were selling aviation fuel that contains toxic lead, while advertising it as unleaded gasoline for motorists,” Chiesa said. “We will pursue restitution for any consumer, if it is demonstrated that this aviation fuel damaged their vehicles.  Just as importantly, we are holding these gas stations and the distributors responsible for their alleged, unlawful deception and potential harm to the public.”

The following gas stations, located in Mercer, Monmouth, Somerset and Union counties, were named in the lawsuit: Pasmel Property, Inc., of Freehold, and six Pasmel-owned gas stations: Daninka, in North Plainfield; Express Fuel, in Trenton; Keyport Delta; Manasquan Lukoil; Lawrenceville Lukoil; and Scotch Plains Lukoil.

Zephyr Oil, a fuel distributor based out of Brooklyn, and Lee Transport, a fuel transporter based out of Pittsgrove, were also named in the lawsuit. They are accused of violating the Consumer Fraud Act by selling and/or distributing leaded aviation fuel that they knew, or should have known, would be advertised and sold to consumers as unleaded motor fuel.

Zephyr Oil is accused of purchasing about 73,000 gallons of avgas on Dec. 4, 2012, from a California-based company not named in the lawsuit. Zephyr Oil then sold that fuel to Pasmel at a significantly discounted price. Lee Transport was contracted to deliver the fuel from a terminal in Bayonne, where it was being stored, to the gas stations.

The state alleges that all three entities knew or should have known the fuel being transported was avgas, as the bills were clearly labelled “AVGAS – Aviation," and the loading forms signed by Lee Transport labelled the fuel "AVGAS." The weight tickets from the Bayonne terminal also labelled the fuel "AVGAS."

An employee at the terminal learned from a Lee Transport driver on the afternoon of Dec. 7 that the aviation fuel was being transported to gas stations, according to the DCA. At that point, the terminal stopped deliveries of the fuel, leaving 8,000 gallons of the fuel undelivered to gas stations.

“Any consumers who believe they purchased fuel from these six gas stations between December 6 and December 8 is urged to call the Division of Consumer Affairs at 800-242-5846, especially if you believe your vehicle may have been damaged as a result,” DCA Director Eric T. Kanefsky said.

Violations of the Consumer Fraud Act may result in civil penalties of up to $10,000 for a first violation and up to $20,000 for subsequent violations.  Violations of the Motor Fuels Act may result in civil penalties of up to $1,500 for a first violation and up to $3,000 for subsequent violations.

A first violation of the Motor Fuels Act may result in a suspension of up to 30 days of the retail dealer’s license to sell motor fuels, and a subsequent offense can lead to a revocation of the license.

Violations of the Weights and Measures Act may result in civil penalties of up to $1,000 for the first violation, and up to $5,000 for subsequent violations.

Enforcement Supervisor John McGuire, of the New Jersey Office of Weights and Measures within the Division of Consumer Affairs, conducted the investigation.  Deputy Attorneys General Glenn T. Graham and Jeffrey Koziar, of the Consumer Fraud Prosecution Section within the Division of Law, are representing the State in the action.

Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file a complaint with the New Jersey Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.


http://eastwindsor.patch.com