Employees, Customers Out Money After Weight Loss Center Closes
When Pure Weight Loss shut its doors, it left lots of people in Connecticut complaining they were out a lot of money.
It also left people out of jobs, and some former employees are saying they're out the money the were owed for working.
Earlier this month, NBC 30 did a story about customers who said they were out hundreds of dollars after Pure Weight Loss closed its doors.
Now, Danielle Bertothy, a former employee, claims she's owed almost $600.
She said a check from the company bounced. NBC 30 spoke with other former employees who say they're in the same situation.
NBC 30 visited the address on the paycheck in Horsham, Pa.
Nobody was there when NBC 30 visited, but there were signs that an auction company was about to sell the remaining furnishings.
Under state laws in Pennsylvania and Connecticut, a company's top executives -- not just the company -- could be held responsible for failing to pay an employee.
Attorney General Richard Blumenthal said these employees deserve to have someone held accountable. "We're going to hold accountable the individual, if there were violations logged, not just the company which may be without assets, but also individuals who have participated in any illegalities," he said.
NBC 30 then drove to the home of Vahan Karian, the president and sole owner of Pure Weight Loss.
No one came to the door of the home, which is estimated at almost $1 million in value, with an enclosed pool connected to the back.
He and his wife allegedly also own three south Florida beach-front condominiums -- One he bought for $2.3 million three years ago and another he bought just over a year ago for almost $2.6 million.
NBC 30 discovered financial filings that put Karian first in line to be paid in bankruptcy court, saying in part he loaned the company a quarter-million dollars in its final days.
In that paperwork, it appears he signed for both himself and the company.
That is all legal, but the timing is under investigation by the attorney general in Pennsylvania. Pure Weight Loss branches closed by Jan. 4. The transaction appears to have taken place three days later and a few days after that, Pure Weight Loss filed for bankruptcy.
Bertothy's check was signed by a senior vice president of the company. She said she was told by co-workers that the account closed days or weeks before the date on her check.
In Pennsylvania, both the labor department and the attorney general's office are investigating the company and its executives.
In Connecticut, the attorney general's office is still investigating the bounced paychecks of Bertothy and others.
"Writing a check on an account that either has been closed or is known to have insufficient funds, could be a violation of law, especially if the person or official writing the check has reason to believe it will not be honored," Blumenthal said.
NBC 30 repeatedly tried to reach Vahan Karian and his attorneys. The calls have not been returned.
The state of Pennsylvania has logged more than 1,800 complaints against Pure Weight Loss.
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