Attorney General Salazar Announces Payments To Buyer's Club Victims

Denver-- Attorney General Ken Salazar announced today that his office has begun distributing over $200,000 in restitution checks to consumers who filed complaints with his office or the Better Business Bureaus (BBB) against the buyers’ club US Direct (also known as Unimart). The restitution money was collected by the Attorney General’s office through judgments obtained against the company and six individuals, including a judgment against the owner of US Direct, John Manning.

Almost two hundred consumers, mostly Colorado residents, will receive checks of between $300 and $2,400. The restitution checks reimburse each consumer for the total amount they spent toward purchase of their membership contract, including any interest they paid.

The Attorney General's Office began investigating U.S. Direct in early 2001. In the Spring of 2001, Salazar filed a lawsuit against the company and six individuals associated with the company. In October 2002, with the case set for trial, five of the individuals agreed to Consent Judgments whereby, in addition to paying fines and restitution, they agreed never again to engage in the buyers club business. Trial proceeded against a sixth individual who was assessed fines, restitution, and attorney fees totaling over $40,000.

“Our lawsuit against this company, and the company’s owner and certain key managers and sales staff, put an end to misrepresentations about the savings that were available through this buyers club. The fines we obtained, of over $100,000, will hopefully deter such conduct in the future. I am pleased that those who filed complaints with our office and with the BBBs serving Colorado are receiving a full refund of any money they paid towards a membership,” Attorney General Salazar said.

Consumers complained that the company represented significant savings would result with purchase of a membership costing from $700 to $1995. The company represented it could deliver products direct from manufacturers at wholesale or manufacturers’ cost. Consumers complained that the actual savings they realized were not as great as represented and not all items advertised were available. In addition, consumers claimed that products were not delivered on time. Consumers who stopped paying the monthly installment on their contracts were subject to aggressive collection practices and the threat of a damaged credit rating.

US Direct is no longer in business having closed its stores in Colorado, Nebraska, and Oklahoma shortly after the Jefferson County District Court enjoined the company from making certain sales representations per an agreement reached with the company on the eve of trial.