State Attorney General Bill Lockyer has a hand in two new lawsuits announced today by the AG´s office.
One lawsuit is against the Canadian energy company PowerEx. Lockyer is seeking restitution for massive gouging of the state agency that bought power on behalf of ratepayers during California energy crisis. The lawsuit alleges PowerEx helped manipulate the market to inflate prices and create phony supply shortages.
Lockyer filed the complaint on behalf of the California Department of Water Resources in Sacramento County Superior Court.
State officials are also suing several financial planning firms and their executives for more than $110 million accusing them of bilking thousands of elderly Californians by conning them into making sometimes ill-advised investments.
The firms named as defendants in the lawsuit, filed in Los Angeles Superior Court today, are Family First Advanced Estate Planning, Family First Insurance Services, American Investors Life Insurance Company, Group Legal Services and Senior Law Practice Group.
The lawsuit is being brought by the offices of Attorney General Lockyer and Insurance Commissioner John Garamendi. It contends the defendants engaged in unlawful business practices, fraud and deception in a scheme to lure elderly Californians into buying living trusts they didn´t really need. A Lockyer spokesman says more than half of the people targeted by the firms were over 65.
In a statement, Lockyer says, “Living trust mills such as this one violate not only the law, but the trust of their elderly victims.”