DENVER- Today Colorado Attorney General Cynthia H. Coffman announced that a Denver District Court has issued a preliminary injunction order against Denver Custom Food Trucks, Brothers Custom Food Trucks and the owners, Larry Perez and Rudy Martinez.
The State alleges that Defendants Perez and Martinez took advantage of the high demand for food truck fabrication in Colorado, promising fast build-out times and guaranteeing that finished food trucks would pass governmental safety inspections despite knowing they could not deliver on their promises.
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. Consumers describe having their dreams of running their own business crushed when Defendants Perez and Martinez delivered a faulty truck after a long delay, or failed to deliver a truck at all. Consumers who received a truck complain that Defendants installed used equipment despite a down payment and a contract stating that new equipment would be installed. Others complain that the trucks built by Perez and Martinez were not operable, required additional work, or failed to pass safety inspection. Neither Defendants Perez nor Martinez hold a motor vehicle dealers license as required by law to sell trucks. Defendants often “skipped title” to deliberately avoid government oversight and failed to deliver trucks with a clean title, causing harm to consumers when they tried to register their truck.
Defendants Perez and Martinez’s businesses, Denver Custom Food Trucks and Brothers Custom Food Trucks, respectively, were shut down in May by Commerce City for failure to pay taxes – the second time that Perez was shut down for failure to pay taxes. Despite the tax issues, and despite numerous customer complaints, Perez and Martinez continued their businesses in Denver.
The Denver District Court entered a preliminary injunction order that restricts the Defendants from engaging in any activity related to the fabrication, repair, or sale of food trucks. A two-day permanent injunction hearing is scheduled to start February 13, 2019. If you believe you have been a victim of fraud, please file a report at www.stopfraudcolorado.gov