Oregon Department of Justice

Attorney General Ellen F. Rosenblum

Oregon Department of Justice - Attorney General Ellen F. Rosenblum
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Attorney General Permanently Stops Nevada Corp From Selling Magnetic Mattress Pads in Oregon

April 25, 2002

Attorney General Hardy Myers today announced that the owner of a defunct Nevada corporation selling magnetic mattress pads is permanently restrained from doing business of any kind in the state and will provide refunds to Oregonians who purchased the product. Named in an Assurance of Voluntary Compliance filed today in Marion County Circuit Court is Jay Time, Inc. that did business nationwide as Creative Health Products, a division of International Health Concepts and California Health Products, and owner Louis J. Hoffman of Marian del Rey, California.

"Fraud in the health products industry is growing with older consumers appearing to be targets in many incidents," Myers said. "It is important for consumers of all ages to be knowledgeable when purchasing health products but seniors need to be especially cautious purchasing medical devices of questionable effect based on a money back promise."

Department of Justice consumer protection staff received complaints against the company in November from consumers after attending free lunch or dinner promotional seminars. The company touted a money back guarantee with a 90 to 180 day turnaround but consumers were not receiving their refunds. Justice investigators found the company continued to promote the guarantee when they knew that they lacked the financial resources to honor refund requests. Jay Time filed for Chapter 7 bankruptcy in January 2002.

Under the settlement agreement that admits no law violation, Hoffman will personally provide full restitution to Oregon consumers who return the product and file complaints with Justice. The respondents also are permanently prevented from doing any type of business in Oregon or from conveying any products, directly or indirectly, into the state.

Consumers wanting information on health fraud may call the Attorney General's consumer hotline at (503) 378-4320 (Salem area only), (503) 229-5576 (Portland area only) or toll-free at 1-877-877-9392. Justice is online at www.doj.state.or.us.

Contact:

Jan Margosian, (503) 947-4333 (media line only) jan.margosian@doj.state.or.us |
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