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Fraud cases put spa dealers in hot water Mail Tribune / Jim Craven Larry Milligan of Orley�s Stoves and Spas is frustrated with the recent spate of spa scam artists who bilk customers and soil the reputation of businessmen like himself. Police and business watchdogs say a few precautions in purchasing any big-ticket item can save a headache down the line. Legitimate businesses feel sting from scams By Jill Briskey If a deal sounds too good to be true, it probably is. That�s apparent in the rash of recent spa deals gone bad. And the ripoffs have legitimate business owners battling to uphold their good reputations. In the last few years, the number of crooked transactions, shady business deals and fraud cases has prompted the Medford Police Department to fight back. "More and more of what we do, aside from crimes against people, is fraud cases," Medford Lt. Tim George said. "We�ve probably seen a one-third to one-half increase in our fraud cases in the past few years." Some tips on how you can avoid a scam The Better Business Bureau has offered the following tips for consumers hoping to avoid being taken in by a potential scam or shady deal: Use common sense. If it sounds too good to be true, it probably is. Use caution when buying from a seller who is not based locally, one who doesn�t provide a telephone number and uses only a post office box rather than a street address. Watch out for sellers who closely mimic their company�s name to look like a different respected brand or business name. Be wary of an immediate request or demand for a check, money order or cash to be picked up by a courier or mailed to a post office box. Avoid sellers who only give vague answers to questions or insist you finalize a deal orally by providing personal financial information without a written contact. Research the company in question and its product. When in doubt, check out the Better Business Bureau�s Web site at www.bbb.org for a business�s rating. Customers who have been taken in by a bad deal are urged to contact the police department as soon as possible. Consumers are also urged to file a complaint with the state attorney general at: Financial Fraud, Consumer Complaints, 1162 Court St. NE, Salem, OR 97310. To contact the office directly and request a complaint form, call (877)877-9392. Injustices once handled as civil cases are now being prosecuted as criminal matters. Now detectives are assigned to fraud cases. "It used to be maybe burglaries were the thing to do. Now it�s kind of dangerous," Medford Detective Sue Campbell said. "It�s a whole different line of work. It�s much safer." Detective Ray Leach said crooks in the past were able to strike time after time � getting only a slap on the wrist when dissatisfied customers hauled them into civil court. "It�s no mess, no fuss. There�s no teeth in a civil settlement," Leach said. "They hurt a lot of people. These scams take in a lot of money." Investigative work has started to pay off in the form of arrests, especially for local scams involving spas. A number of local hot-tub salesmen have recently found themselves in hot water with both dissatisfied customers and police. "You front the money and they�re here today, gone tomorrow," Leach said of one type of scam. "They take money for a product without delivering." Medford police made an arrest after spending a month investigating one such scam. M. Sterling Knight was arrested Jan. 31 on charges of felony theft and forgery for allegedly taking $2,220 from a local couple in October. A police affidavit alleges that Knight told the couple he had spent their money on "other things" after failing to deliver, and they would not receive their spa. Knight, who is being held in the Jackson County Jail, is still awaiting a court date. Like many other business dealers arrested for such scams, court records show Knight was no stranger to civil court, with over a dozen past claims filed against him. Salesman and former Rogue Valley resident Todd Surgeon faces felony theft and racketeering charges, according to Medford police. He was arrested in the Lake Tahoe area Dec. 15 on unrelated charges of embezzlement. Authorities in Placer County claim Surgeon failed to deliver at least four hot tubs he allegedly sold to California customers. Surgeon remains jailed in Placer County, his bail set at $500,000. His trial date in Jackson County has been postponed indefinitely. The cloud hanging over spa scams has made business difficult for Larry Milligan, owner of Orley�s Stoves and Spas on Crater Lake Highway. Milligan said Orley�s has been up and running for more than 50 years in the Rogue Valley. The establishment has earned a satisfactory rating from the Better Business Bureau. Milligan said Rogue Valley has many reputable spa dealers but added there are others who will offer "great" deals at cheaper rates by sacrificing the quality and warranty of a product. He�s sorry to say that a few are out to bilk the customers. "Why is it that people are willing to spend big-ticket money on unestablished businesses? I just don�t understand. You pay for what you get," he said. Milligan advises customers to look into the business and the product�s reputation before making a decision. "It�s literally buyer beware. You�re not going to get pie in the sky for nothing," he added. Milligan said Orley�s is not associated with his son, Chad Milligan, 29, the owner of National Spas in Medford. Chad Milligan � better known to the public as the man attempting to change his name to Donald Trump Jr. � has also left behind a trail of angry customers, court records show. Chad Milligan has been named as the defendant in almost two dozen civil cases. Reach reporter Jill Briskey at 776-4485, or e-mail [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.