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AG sues Tucson-area companies over subleases of motor homes

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The state attorney general has sued three Tucson-area companies and their apparent principals, alleging they defrauded consumers in purported subleases of motor homes.

On Tuesday, Attorney General Terry Goddard announced the filing of the lawsuit in Pima County Superior Court against Kennedy Motorhome Services, Kennedy's Financial Services and Banker's First of Tucson.

Banker's First does business as Green Valley RV Services, according to its Web site.

Included as individual defendants in the suit were Claude Thomas Kennedy, Donald W. Kennedy, Granite Hobbs and Kenneth W. Griffith.

The attorney general contends the three defendants have been offering motor-home owners the chance to sublease their recreational vehicles by finding new owners to assume the loan payments.

Such a program is in violation of most vehicle owners' contracts with the original lien holders, Goddard said.

The defendants would find a new buyer or driver for the motor home and have that person sign an agreement promising to pay on the original loan, often requiring down payments of thousands of dollars. The new buyers were told they were buying the motor homes, the lawsuit alleges.

Goddard contends the defendants defrauded both the original owners and the so-called buyers.

He has asked the court to prohibit them from conducting any business in Arizona, including on the Internet; prohibit them from offering motor-home-sublease programs; order the defendants to make restitution to all the programs' victims; and order them to pay up to $10,000 for each violation of the Arizona Consumer Fraud Act.

Officials of the companies could not be reached for comment Tuesday.

A phone number at Banker's First was temporarily disconnected. A message left at a number for Kennedy's Financial Services was not immediately returned.