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Colorado AG files complaint against food truck fabricators months after Contact7 investigation

Posted at 10:23 PM, Dec 12, 2018
and last updated 2018-12-13 00:56:51-05

DENVER – Colorado Attorney General Cynthia Coffman on Wednesday announced that a Denver District Court had issued a preliminary injunction order against two food truck fabricators who were brought to the public’s attention earlier this year in a series of Contact7 investigations.

The injunction order names Denver Custom Food Trucks, Brother Custom Food Trucks and the owners, Larry Perez and Rudy Martinez, alleging they scammed thousands of dollars from food truck business owners promising to fix their vehicles within a period of six weeks, “knowing they could not deliver on their promises” on finished food trucks that would pass governmental safety inspections.

“Some of the impacted victims in this case liquidated savings or used 401k funds to purchase customized food trucks and others quit their jobs in reliance on Defendants’ promises that they would have an income-producing truck ready within six weeks of order,” said Annie Skinner with the AG’s office in a release sent to Denver7.

The injunction states that Perez and Martinez installed used equipment despite down payments being made and contracts beings sign stating that new equipment would be installed, while other customers said the trucks built by the pair “were not operable, required additional work, or failed to pass safety inspection.”

Back in May, a Contact7 investigation found Perez had a criminal history that includes charges of DUI and assault; as well as a felony drug conviction and civil judgments and liens against him in the thousands of dollars. The investigation also revealed that a class action lawsuit also accused Perez and his business partner of “blatant fraud.”

Skinner said in the statement that Denver Custom Food Trucks and Brothers Custom Food Trucks were shut down in May by Commerce City for failure to pay taxes. Despite the closure of their company, both men continued to do business in Denver.

The injunction order restricts both Perez and Martinez from “engaging in any activity related to the fabrication, repair, or sale of food trucks,” according to Skinner.

A hearing is scheduled to start in February 13, 2019.

If you believe you have been a victim of fraud, please file a report at www.stopfraudcolorado.gov or call 800-222-4444.