Restitution Checks in the Mail for Cheated Heating Oil Customers of F&S Oil in CT
Court-ordered payments to customers of F&S fuel who were cheated out of heating oil they pre-paid for are on the way. (image: blog.spinvox.com)
In March, HeatingOil.com reported on the latest progress in the case of F&S Oil, the Connecticut heating oil dealer that abruptly shut down in 2008. When F&S closed for business, it owed millions of dollars to wholesale heating oil sellers, employees, vendors, and customers. The Connecticut Attorney General’s office won payment for many of these parties, and set aside $1 million in proceeds from F&S asset sales to pay customers who had pre-paid for heating oil and services that they never received. After the court appointed a receiver to distribute the $1 million six months ago, Connecticut Attorney General Richard Blumenthal said the restitution checks to affected F&S customers “will be going out very shortly.”
According to the Waterbury Republican-American, “very shortly” finally arrived this week. On Wednesday, Blumenthal said that the payment checks were in the mail and that claimants should be receiving payments this week. As we reported in December, the payments will only cover about one-third of customers’ lost funds, due to the massive debts owed by F&S and its comparatively paltry assets. Though it may be of little consolation to customers who last hundreds or even thousands of dollars, F&S’s former owner Richard Stevens has pleaded guilty to one felony count of filing a false tax return and is scheduled to be sentenced for his crime in federal court on November 3. The maximum penalty for the crime is a $10,000 fine and 1 year in prison.
Although its pace was painfully slow (as the Republican-American noted, the announcement of restitution payments “came two years, six months and eight days after the Waterbury-based home heating oil distributor abruptly closed its doors”), justice is finally being served in the F&S case. Hopefully, decisive action by state authorities and tough prosecution by federal authorities will help deter any other nefarious heating oil dealers around the Northeast from allowing their financial troubles go so far as to leave paying customers without oil.
The F&S case is a painful reminder to heating oil customers of how important it is to check out heating oil dealers before pre-paying for any oil or services. By checking the company’s rating with the Better Business Bureau, checking with state and local courts for any outstanding legal actions against the company, and seeking out the opinions of other customers, prospective pre-buy customers can get a good idea of the dealer’s financial standing and service track record before making payments. When pre-paying, customers should use a credit card whenever possible, as credit payments can be more easily stopped through credit card companies.
If you are a former F&S customer who paid for oil or services that you did not receive and you have not yet registered with the Connecticut Attorney General’s office, you can do so by calling 1-800-961-2157. If you’ve received your restitution check for money lost to F&S, share your experience with other heating oil users in the comments section below.
