Laura and Brian Nagao thought they were getting a good deal on a boat trailer. But now, a year and a half after sending a deposit to a Big Island-based salesman, they’ve yet to see anything in return for their
Laura and Brian Nagao thought they were getting a good deal on a boat trailer. But now, a year and a half after sending a deposit to a Big Island-based salesman, they’ve yet to see anything in return for their money.
The Nagaos aren’t the only Hawai‘i residents who say they’ve been scammed by the business man — and they’re not alone in seeking recourse.
George Lihilihi, who has been operating without a license under the business name Island Marine Repair, is now the subject of a lawsuit filed Feb. 8 by the state of Hawai‘i on behalf of four consumers.
The state alleges that Lihilihi has falsely represented to customers that he was an authorized dealer for boat trailers.
The penalties for the civil case range from $500 to $10,000 per violation. Levins said the state will likely ask for an injunction to stop any illegal conduct. In addition, the state is seeking restitution and refunds for the consumers.
Steve Levins, spokesman for the state Office of Consumer Protection, says litigation is usually the last resort when dealing with fraud, which rose 25 percent last year in Hawai‘i, according to the Federal Trade Commission.
Hawai‘i ranked 10th nationwide for consumer fraud complaints, with 2,500 for the year. The most popular scams were shop-at-home and catalog sales, prizes and sweepstakes, Internet services, Internet auctions, and foreign money offers.
According to the commission, a reported $3.2 million was lost to those scams, or an average of $1,450 per claim.
The Nagaos, however, lost more than double that amount.
In August of 2006, they wrote Lihilihi a check for $3,900 toward the $6,000 trailer after contacting him through an ad for Island Marine Repair in Hawaii Boats and Yachts magazine.
The lead time was initially eight weeks, but two months later, Lihilihi said the hitch and tire had sustained damage in transit and insurance would have to cover repairs — postponing the arrival by another couple of weeks.
The delays continued until the spring of 2007, when Brian Nagao finally demanded his money back.
He contacted the Hawai‘i Better Business Bureau, the Kaua‘i Police Department and the state Office of Consumer Protection.
According to Levins, the state is suing Lihilihi on behalf of several consumers who have filed complaints, either for contracted work that was not completed or property that has not been returned.
Levins said most people who are scammed don’t file complaints.
So far the Nagaos are the only known consumers affected on Kaua‘i. Even so, they don’t think it does anyone any good to keep quiet.
Nagao said the goal of speaking out is to protect others from similar scams.
“Local people don’t want to admit they’ve been scammed,” Nagao said. “I’m not saying they are going to get their money, but we got to stop that guy.”
Should more consumers come forward, they could potentially join the lawsuit. Complaints can be made online or over the phone. Once filed, the office alerts the business and gives it an opportunity to respond.
Each year the state Office of Consumer Protection recovers millions in restitution for victims of fraud; but many more millions are lost for good.
If an ounce of prevention is worth a pound of cure, then a little skepticism and research can go a long way in avoiding consumer fraud.
The Office of Consumer Protection offers a complaint data base and business history and business license status, all accessible online and over the phone
Levins said consumers should look out for red flags such as being pressured to purchase. In addition, consumers should find out about a business before giving any personal information over the phone when the call is unsolicited.
“Whether it’s someone telling you you’ve won $1 million or someone offering to clean your gutters, you should really find out who you are dealing with,” Levins said.
• For more information, visit hawaii.gov/dcca/areas/ocp/
