Suit Filed Over Energy System

The consumer law division of the state attorney general’s office has filed suit against an Encinitas firm that it says misrepresented savings from the energy conservation system it markets.

The suit accuses the American Utilities Co. and two officers, Keith George Gardner and Lloyd Buis, of overstating tax credits, energy savings and other supposed financial benefits and of illegally offering referral fees of $100 to $500 to prospective customers. The suit further alleges that the firm failed to give customers full information about financing arrangements, in which a trust deed was placed on the customer’s home.

M. Howard Wayne, deputy attorney general, said earlier this week that investigators have yet to determine how many energy systems were sold by American Utilities, how many liens have been placed on customers’ homes or whether any foreclosures have resulted. The suit is seeking civil penalties of $250,000 and a court injunction to halt what it calls the improper activities.