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Scammer fined $8.2 million for deceiving WA small businesses

A scammer based in Michigan has been ordered to pay over $8.2 million in penalties and restitution, according to a release from the Washington State Attorney General’s Office.

The King County Superior Court imposed a $7.4 million penalty and awarded $850,000 in restitution following a trial against the scammer group named Labor Law Poster Service and its principals, the release said.

The AG’s office said that for nearly ten years, Labor Law Poster Service targeted thousands of small businesses in Washington with deceiving mail and tricked them into buying workplace posters they were not required to purchase.

The solicitations looked like they were from legitimate government sources, leading business owners to believe the posters were mandatory.

Before the trial, the court determined that the company’s nearly 600,000 solicitations violated consumer protection laws, holding co-owner Joseph Fata personally liable.

The trial also focused Fata’s violation of a 2016 court order relating to other deceptive actions, the AG’s office said.

The King County Judge imposed a $12 penalty for each of the deceptive mailers sent, totaling $7.1 million.

This lawsuit marks the third enforcement action against the group’s operations, with previous actions in 2008 and 2016.

The 2016 action resulted in a $1.2 million penalty and restitution, according to the Attorney General’s office.

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