Local News

Defunct Weight Loss Centers May Have Broken Law

MIAMI (CBS4) ― When one of the state's biggest diet companies shut it's doors after the beginning of the year, it left hundreds of South Florida customers not only wondering if they'd ever get their money back but also what happened to all the private medical information the centers kept on file.

State prosecutors, wondering the same thing, have widened their investigation into LA Weight Loss Centers and Pure Weight Loss Centers to see if they broke any laws.

"All girls want to look nice and I got a couple of pounds extra," said Yaumary Rodriguez who originally signed up with an LA Weight Loss Center several years ago. Rodriguez said by staying on the plan she lost 24 pounds in the past year.

"My goal was 30 pounds but when I got down to 24," said Rodriguez, "I decided not to keep losing more"

At the beginning of the year, Rodriguez said she decided she needed to go back on the LA Weight Loss Center plan to help her drop a couple of pounds she picked up over the holidays. When she went to her local LA Weight Loss Center in Cutler Bay on January 4th to pick up her next shipment of weight loss bars, she said she was stunned to find that it had changed it's name to Pure Weight Loss.

She received her second shock when she was informed that the store, which was still filled with LA Weight Loss products, was closing down.

"The companies were closing," Rodriguez said she was told, "it was the last date of work for the whole company. They just closed and they never sent a notice to the people they never say anything."

Click Here to read more about why Pure Weight Loss Centers shut down.

Rodriguez said the company still owes her about $200 worth of counseling sessions and about $400 worth of diet bars.

"They stole my money," said Rodriguez, "if they don't send people's money back they are stealing their money."

CBS4 investigative consumer reporter Al Sunshine visited the Pure Weight Loss Center in Cutler Bay. He found the store closed, with no listing of whether it would ever open in the future.

On their website, Pure Weight Loss apologizes for inconveniencing it's customers and refers them to several other national diet and nutrition centers.

As for a refund, Pure Weight Loss has posted claim forms on their website, but CBS4's Al Sunshine found out that's not the only place they are. He found dozens of refund claim forms thrown out in a dumpster behind the vacant Pure Weight Loss Center off Sunset Drive and Southwest 117th Avenue. Many of these forms were completely filled out with the customer's name and personal information including their address, their medical histories and their weight.

Those customer records have been turned over to the Miami Dade Police Department. Investigators with the state's Attorney Generals' Office have inspected them and found not only personal medical information, but also credit card information.  

Click Here to find out what you can do if your identity has been stolen.

While Florida does not have specific laws protecting private medical records, it does have laws that deal with the proper handling and disposal of computerized financial data to protect an individual's identity and credit.

"It depends on if the business has gone out of business just in Florida, or they've gone completely under, but either way, there were still people in place, in positions of authority at the time the records were compromised and we'll certainly reach out to any and all people we can to make sure consumers are protected in this case," said Sandi Copes with the Florida Attorney Generals' Office.

Click Here to find out how to protect yourself from identity theft.

The state's consumer protection office said it will process local complaints against LA Weight Loss Center and Pure Weight Loss Center and try to get Florida customers their money back.

If you've been a victim of LA Weight Loss Centers or Pure Weight Centers closure, CLICK HERE to file a complaint with the state.

Both Pure Weight Loss and LA Weight Loss have reportedly filed for bankruptcy protection. Despite posting refund forms online, it will now be up to the bankruptcy court to decide how much of a refund, if any, will be given to the companies' former customers.

Brian J. Siegel, Senior Vice President, Secretary and General Counsel of LA Weight Loss Franchise Company issued the following statement in response to our story:

 

"Be advised that LA Weight Loss Franchise Company, which directly and through its franchisees operates more than 400 LA Weight Loss Centers in the US and Canada, has not filed for bankruptcy and, indeed, remains financially healthy and open for business. The bankrupt company, Pure Weight Loss, had operated LA Weight Loss Centers in the past, but at the time of its bankruptcy had re-branded it centers as "Pure Weight Loss." None of the Centers that closed in the bankruptcy were LA Weight Loss Centers.

Pure Weight Loss' closing and the loss to its clients dismay us as well. However, Pure Weight Loss and LA Weight Loss Franchise Company are wholly unaffiliated companies that have been independently owned and operated since LA Weight Loss Franchise Company was formed on September 27, 2004. On that date, LA Weight Loss was reorganized into two unaffiliated corporate entities. Although the Pure Weight Loss Centers are closing, we remain open to serve our clients as we have for the last ten years."

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