Texas Attorney General Freezes Assets of Extreme Fitness Owner - KCBD NewsChannel 11 Lubbock

8/25/08

Texas Attorney General Freezes Assets of Extreme Fitness Owner

The Texas Attorney General filed a civil lawsuit Monday against Shon Perez and his wife Desiree. The suit claims both defrauded their customers and asked that their assets be frozen. That means they can't spend any more money on entertainment paid for with the money hundreds of people lost. 

You may have noticed that when we confronted Extreme Fitness owner Shon Perez back in April, there was a Hummer in the background. That vehicle is his. He also has a Harley motorcycle and lives in a 2364 square foot home.  Many of you had your suspicions where he spent the money he collected for membership dues. Court records show Perez collected at least $40,000 from about 800 consumers.

Dr. Jason White paid almost $1,000 for memberships for eight of his employees.  "I am shocked," said Dr. White.

The Texas Attorney General filed a lawsuit in Lubbock District Court on Monday.  After four months of investigating, they were able to find out that Perez and his wife spent money at numerous restaurants, bars, video stores, the Main Event, movies and so on.  Their investigation also revealed he was using the money to pay the loans on his automobiles, including his Hummer, boat, house and he bought a LakeRidge Country Club membership with the money as well. It goes on to say the Perez's repeatedly transferred money between their business and personal accounts, which can explain why the AG's office wanted their assets frozen.

"I knew that when he cashed the check back in February and went and checked on the locks, I knew the money was spent.  And when the reports came out in your investigation, and you saw the Hummer and boat and other stuff, you just knew where the money went," said Dr. White.

Back in April, the Perez's were supposed to open Extreme Fitness on Frankford. They promised top of the line fitness equipment, but now we know that equipment was never purchased, nor did they have the money to buy it, according to the AG's suit.

The Perez's have been charged for 17 violations under the Health Spa Act and 11 violations under the Deceptive Trade Practices Act. The Perez's are possibly facing a fine of at least $237,000. We also found out he may be the owner of Flex Fitness. We know he filed under an assumed name earlier this month for Flex Fitness.

In the meantime, if you would like to file a complaint with the AG's office, (click here).

6/2/08
Extreme Rip-Off?: Where's the Money?
A lot of people are still missing their money and the gym they joined is still closed for business. Many of you have contacted us wondering what's going on with Extreme Fitness.

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