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Scott.Noll@wreg.com
(Clearwater, FL 11/11/2009) Months after an On Your Side Investigation first exposed the problem, the feds have busted a Florida locksmith company accused of misleading and ripping-off customers.
Last week, federal agents hauled records and computers out of the Florida headquarters of Dependable Locks.
"This reaches throughout the United States," explained US Postal Inspector Dough Smith. "It happened to be based here in Clearwater, Florida. "This is where a lot of the employees were working."
Feds say Dependable managed at least one 100 locksmiths across the country, along with a team of dispatchers, who received calls that were electronically forwarded from hundreds to thousands of local phone numbers listed nationwide.
The investigation, which began in Missouri, cites what federal agents call "a persistent pattern of overcharging customers," and accuses of the company of instructing dispatchers to quote one price, then have locksmiths charge considerably more.
It's the same thing WREG On Your Side Investigators exposed happening in Memphis last March.
In one case, a dispatcher quoted a price of $35, plus labor to unlock a van.
But after just six minutes of work, the locksmith told our undercover decoy the job would cost $180.
When On Your Side Investigators asked to see the locksmith's state-required license, he told us, "I came from Florida. Maybe it's over there."
Another unlicensed locksmith we caught on camera working illegally, explained how the business works
"As far as I know they've got a couple different phone numbers that go to Miami," he said. "It's just a call center basically."
Following the raid, three Dependable employees face federal fraud and money laundering charges.
It's welcome news to local licensed locksmiths.
"I thought it was great," said locksmith Bryan Cunningham. "We're faced with, I can say, an epidemic with the phony locksmiths here in Memphis."
But, members of the West Tennessee Locksmith Association say it's tough to know what impact the Florida bust will have on the illegal locksmith business here.
That's because many operate under phony names, making them tough to trace.
During our investigation, one of the unlicensed locksmiths gave us a receipt with the name "1-2-3 Locksmith" across the top.
However, the company we called had a different name listed in the phone book.
"It's going to take more than just what's been done," explained locksmith Dan Ralph when asked if last week's raid would have an effect in the Mid South.
Ralph says it's time the state cracks down on companies ignoring the licensing law.
State records show in the first 15 months since the law took effect, only two companies have been fined.
However, at least 47 complaints have been filed with the state.
"I hope that it's (the bust) a huge step for other states to recognize this is a national problem," explained Kara Peifer, owner of a Memphis locksmith company. "Not just a Florida problem or a Missouri problem."
To find out if a locksmith is licensed, or to file a complaint:
http://www.tennessee.gov/commerce/boards/llp/index.shtml, call the program at 615-532-3369 or e-mail Locksmith.Licensing@TN.Gov.
- Federal agents raid headquarters of national locksmith company
- Company accused of overcharging customers and routing local phone numbers to call center in Florida
- Allegations similar to what On Your Side Investigation discovered happening in Memphis
Scott.Noll@wreg.com
(Clearwater, FL 11/11/2009) Months after an On Your Side Investigation first exposed the problem, the feds have busted a Florida locksmith company accused of misleading and ripping-off customers.
Last week, federal agents hauled records and computers out of the Florida headquarters of Dependable Locks.
"This reaches throughout the United States," explained US Postal Inspector Dough Smith. "It happened to be based here in Clearwater, Florida. "This is where a lot of the employees were working."
Feds say Dependable managed at least one 100 locksmiths across the country, along with a team of dispatchers, who received calls that were electronically forwarded from hundreds to thousands of local phone numbers listed nationwide.
The investigation, which began in Missouri, cites what federal agents call "a persistent pattern of overcharging customers," and accuses of the company of instructing dispatchers to quote one price, then have locksmiths charge considerably more.
It's the same thing WREG On Your Side Investigators exposed happening in Memphis last March.
In one case, a dispatcher quoted a price of $35, plus labor to unlock a van.
But after just six minutes of work, the locksmith told our undercover decoy the job would cost $180.
When On Your Side Investigators asked to see the locksmith's state-required license, he told us, "I came from Florida. Maybe it's over there."
Another unlicensed locksmith we caught on camera working illegally, explained how the business works
"As far as I know they've got a couple different phone numbers that go to Miami," he said. "It's just a call center basically."
Following the raid, three Dependable employees face federal fraud and money laundering charges.
It's welcome news to local licensed locksmiths.
"I thought it was great," said locksmith Bryan Cunningham. "We're faced with, I can say, an epidemic with the phony locksmiths here in Memphis."
But, members of the West Tennessee Locksmith Association say it's tough to know what impact the Florida bust will have on the illegal locksmith business here.
That's because many operate under phony names, making them tough to trace.
During our investigation, one of the unlicensed locksmiths gave us a receipt with the name "1-2-3 Locksmith" across the top.
However, the company we called had a different name listed in the phone book.
"It's going to take more than just what's been done," explained locksmith Dan Ralph when asked if last week's raid would have an effect in the Mid South.
Ralph says it's time the state cracks down on companies ignoring the licensing law.
State records show in the first 15 months since the law took effect, only two companies have been fined.
However, at least 47 complaints have been filed with the state.
"I hope that it's (the bust) a huge step for other states to recognize this is a national problem," explained Kara Peifer, owner of a Memphis locksmith company. "Not just a Florida problem or a Missouri problem."
To find out if a locksmith is licensed, or to file a complaint:
http://www.tennessee.gov/commerce/boards/llp/index.shtml, call the program at 615-532-3369 or e-mail Locksmith.Licensing@TN.Gov.
