Leader Health and Fitness settles up with AG
Former Leader Health and Fitness club and pool members will be receiving their refund checks from the Pennsylvania Office of the Attorney General after an agreement was reached between the office and Leader's owners.
The office expects to send out checks by late summer.
An Assurance of Voluntary Compliance signed between the attorney general's office and BBMJ, LLC, the name of Leader's ownership group, was filed in the York County Court of Common Pleas this morning, the attorney general's office said.
The binding legal document orders BBMJ, LLC, to pay at least $45,000 in restitution and about $10,000 in fines and penalties.
Leader, formerly of 2500 S. George St., York Township, began informing staff and members early on June 9 it was going to close. By the end of the day, the business closed its doors for good.
More than 200 people complained to state authorities.
Through its investigation, the state's Bureau of Consumer Protection said it found Leader was selling services until the day before it closed.
A business selling services while knowing it is going to close soon violates the state's Consumer Protection Law, according to an agreement between the state and Leader's owners.
Nils Frederiksen, spokesman for the attorney general, said the agreement is a way to put corrective action on the record. He said Leader's owners have been cooperative, and the action does not imply anything "underhanded."
"It's an unfortunate situation all around," Frederiksen said. But, he said, what happened to consumers is covered by state law and being rectified.
The office said Leader has already refunded about $78,000 in summer camp fees it charged parents for Camp Leader, the club's day camp.
By BRENT BURKEY
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