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State Attorney General Sues Peekskill Heating Company

Attorney General Eric T. Schneiderman's lawsuit charges that the company did not deliver product or services paid for by consumers.
Attorney General Eric T. Schneiderman's lawsuit charges that the company did not deliver product or services paid for by consumers. Photo Credit: Courtesy of the Office of Attorney General Schneiderman

PEEKSKILL, N.Y. -- New York State Attorney General Eric T. Schneiderman announced Friday that he has filed a lawsuit against Nu Way Fuel and Service Corp., Nu Way Services of New York, Inc., owner David DeSilva Jr. and his father, David DeSilva Sr., according to a news release

The lawsuit, filed in state Supreme Court in White Plains, charges that the unlicensed companies engaged in persistent fraudulent, illegal and deceptive conduct in connection with the operation of the Peekskill-based home heating oil business and seeks more than $80,000 in restitution for more than 70 consumers.

"My office will aggressively pursue unscrupulous businesses that fail to provide products and services that consumers have paid for," Schneiderman said in the statement. "Not only is the costly home-heating season rapidly approaching, this lawsuit sends a message to contractors and suppliers around New York State that broken promises can result in law enforcement action. We are seeking to get them their money back and punish the lawbreakers."

Beginning in March 2012, Nu Way allegedly began taking pre-payments for heating oil and oil-burner service that were supposed to be provided to consumers throughout the 2012-13 heating season, according to the release. However, instead of filling customers' oil tanks, Nu Way allegedly delivered the oil in amounts -- sometimes as little as 15 gallons per delivery -- which was only a small fraction of the oil the customers paid for in advance, according to the release, and completed only a portion of the oil-burner service work it was contracted to perform.

As a result, Westchester consumers paid for more than $80,000 of heating oil and oil burner service that were reportedly never provided.

In filing the lawsuit, Schneiderman seeks restitution for all injured consumers and a court order barring Nu Way and the DeSilvas from operating a home heating oil business in New York State unless they obtain all necessary licenses and permits and post a $200,000 performance bond.

Also, the lawsuit seeks an order enjoining Nu Way and the DeSilvas from engaging in any future violations of consumer protection laws and an order directing them to provide a full accounting of monies received from consumers, all contracts and a complete list of customers.

Consumers with complaints against Nu Way should file a complaint with the Office of the Attorney General. Complaint forms are available here .

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