Escolar Documentos
Profissional Documentos
Cultura Documentos
COMPLAINT
INTRODUCTION
1. This is a civil action brought by the 20th Judicial District District Attorney pursuant to
the Colorado Consumer Protection Act, C.R.S. 6-1-101 et seq., C.R.S. (2014)
(CCPA) to enjoin and restrain Defendants from engaging in certain unlawful and
deceptive trade practices, for statutorily mandated civil penalties, for disgorgement,
restitution, and other relief as provided in the CCPA.
2. Defendants Boulder Marathon, LLC and Jeffrey Mason own and manage two annual
Boulder marathon events. The Defendants advertised and accepted runners payments
for the October 2013 Boulder Marathon (2013 Marathon) and the October 2014
Boulder Marathon (2014 Marathon). Defendants cancelled the 2013 Marathon but
offered no refunds, instead offering to transfer the registration to the 2014 Marathon.
Two weeks before its scheduled date, Defendants cancelled the 2014 Marathon but
again offered no refunds. In total, Defendants collected approximately $198,891.00 in
entry fees for which runners have received no services. Defendants engaged in
deceptive trade practices when Defendants failed to obtain the governmental licenses
or permits required to run the 2014 Marathon, failed to provide services contracted for
with consumers, and made false representations regarding those services including
citing the 2013 flood as a basis for cancellation of the 2014 Marathon. Defendants
actions have caused injury to 1,839 paying runners.
PARTIES
3. Stanley L. Garnett is the duly elected District Attorney of the Twentieth Judicial
District and has express authority under C.R.S. 6-1-103 to enforce and prosecute
violations of the CCPA.
4. Defendant Boulder Marathon, LLC is a Colorado Limited Liability Company formed
on April 10, 2008, with a principal place of business at Post Office Box 47, Boulder,
CO 80306, and a registered agent, Charles Martien, LLC, at 1818 16th Street, Boulder,
CO 80302.
5. Defendant Jeffrey Mason is the owner and managing member of Boulder Marathon
LLC. Mr. Mason currently resides at 2600 S. Rock Creek Parkway, Apartment 21204, Superior, Colorado, 80027.
ACTS OF AGENTS
6. Whenever reference is made in this Complaint to any act or practice of Defendants,
such allegation shall be deemed to mean that the principals, owners, employees,
independent contractors, agents, and representatives of such Defendants performed,
directed, or authorized such act or practice on behalf of said Defendants, while
actively engaged in the scope of their duties.
JURISDICTION & VENUE
7. Pursuant to C.R.S. 6-1-103 and 6-1-110, this Court has the jurisdiction to enter
appropriate orders prior to and following an ultimate determination of liability.
8. The violations alleged herein occurred, in part, in Boulder County and the individual
Defendants reside in or have their principal place of business located in Boulder
County. Therefore, venue is proper under C.R.S. 6-1-103 and Colo. R. Civ. P. 98
(2014).
RELEVANT TIMES
9. The conduct that gives rise to the claims for relief contained in this Complaint
occurred between September, 2013 and the present. This action is timely brought
pursuant to C.R.S. 6-1-115 because it is brought within three years of the date on
which Defendants engaged in false, misleading, and deceptive acts which violate the
CCPA, and the Defendants continue to engage in false, misleading acts and practices
which violate the CCPA.
PUBLIC INTEREST
10. Through the unlawful practices of their business or occupation, Defendants have
deceived, misled, and financially injured consumers in Colorado. Further, Defendants
have taken market share from companies who do not engage in deceptive trade
practices. Therefore, these legal proceedings are in the public interest and are
necessary to safeguard citizens from Defendants unlawful business activities.
PERSONAL LIABILITY
11. This action is brought against the corporate entity and against Defendant Jeffrey
Mason, individually.
12. Defendant Jeffrey Mason has at all relevant times directly controlled, authorized,
approved and cooperated or participated in the unlawful conduct by Defendant
Boulder Marathon, LLC.
GENERAL ALLEGATIONS
I. Background on Defendants Business
13. Defendant Mason purchased the Boulder Marathon in 2007. As part of the purchase,
Defendant Mason gained the rights to run two races annually in Boulder, the Boulder
Spring Half-Marathon and the Boulder Marathon.
14. The process of managing marathons includes, among others,
15. Prior to any marathon, Defendants are required to obtain special event permits. To do
so, Defendants file applications with each permit issuer, pay an application fee and pay
the issuers costs of event.
16. Permit issuers for Defendants events include, but are not limited to, the Boulder
Reservoir (City of Boulder Property), Boulder County (for use of any road in
unincorporated Boulder County), Boulder County Sheriffs Office (for law
enforcement staffing) and Colorado State Patrol (for state highways that require any
type of road closure, restriction, or may create a significant impact to the motoring
public).
17. Defendants have obtained permits for prior events and were aware of the permitting
process.
II.
26. Defendant Jeffrey Masons bank wrote off the negative balance of $1,301.61.
27. On or about August, 2013, Defendant Jeffrey Mason opened his second personal
account.
28. On or about September 18, 2013, Defendant Jeffrey Masons second account carried a
balance of $2,436.15.
29. On or about November 19, 2013, Defendant Jeffrey Masons second account carried a
balance of -$304.17.
30. On or about December 17, 2013, Defendant Jeffrey Masons second account carried a
balance of $181.00.
31. In 2014, Defendants advertised the 2014 Marathon.
32. As of September 14, 2014, 635 runners from the 2013 Marathon had rolled their
registration over to the 2014 Marathon and 788 new runners had registered.
33. As of September 14, 2014, the total number of registered runners for the 2014
Marathon was 1,423.
34. As of September 14, 2014, 416 runners from the 2013 Marathon remain unregistered.
35. In 2014, Defendants collected new entry fees from 788 runners. Entry fees ranged
from $80.00 to $120.00 per runner, for a total of $74,891in new revenue.
36. On or about September 14, 2014, Defendants cancelled the 2014 Marathon via a
posted statement on http://bouldermarathon.com/29.html and to some runners via
email.
37. Defendants stated that the task of producing the 2014 marathon simply became
impossible because of:
Defendants had been unable to re-design, measure, and secure certification for the
new race course from USATF in time to run the 2014 Marathon;
Defendants had been unable to evaluate and create a new medical plan in time to
run for the 2014 Marathon;
Without the race course and medical plan, the permits will not be issued; and
Obtaining permits was impossible.
40. Additionally, Defendants website makes false and misleading claims the 2014
Marathon is a USATF/ Colorado State Championship Event and an official qualifier
for the Boston Marathon. In fact, the 2014 Marathon course was not certified by
USATF and could not serve as a qualifier for the Boston Marathon.
41. Defendants website makes false and misleading claims that Boulder County and the
City of Boulder are sponsors of the Boulder Marathon. The City and County do not
sponsor Defendants marathons.
42. Defendants website makes false and misleading claims of Support of Many Boulder
and State of Colorado Agencies. The local and state agencies have permitting and
logistical requirements that involve them in the marathons.
43. Defendants have deceived 1839 registrants for the 2013 Marathon and the 2014
Marathon through false and misleading advertising and their failure to obtain
governmental licenses or permits required to perform the services contracted for with
runners.
44. At all times prior to September 26, 2014, Defendants were aware of the lack of
permits, medical plan, course measurement, USATF course certification, City of
Boulder sponsorship and Boulder County sponsorship.
45. Defendants advertising resulted in runners paying total registration fees of
approximately $198,891 for the 2013 and 2014 Marathons.
46. Defendants Cancellation/Refund policy includes a no refund or transfers clause.
47. Consumers understood the Cancellation/Refund policy to mean that a runner could not
cancel registration and obtain a refund nor could a runner transfer registration to
another runner.
48. Plain language of the Cancellation/Refund policy waives refunds in the event of an
act of god or any other kind of unforeseen circumstance.
49. To date, Defendants have made no refunds to the 2013 or 2014 registrants, but instead
offered to rollover entries to a 2015 Marathon.
50. From January through August, 2014, Defendant Boulder Marathons bank closing
statements reflected balances under $500.00.
51. On or about August 29, 2014, Defendant Boulder Marathons bank account had a
balance of $583.26.
52. On or about June 17, Defendant Jeffrey Masons personal bank account had a balance
of -$778.04.
53. On or about July 2014, Defendant Jeffrey Mason closed his personal bank account.
54. On or about July 31, 2014, Defendant Jeffrey Masons bank wrote off the negative
balance on the account.
55. Defendants estimated 2014 Marathon expenses at $64,620.
56. Defendants had no cash on hand for estimated post marathon expenses of $22,000.
57. Defendants were relying on late entry fees over the last three weeks of registration for
the 2014 Marathon to produce a financially successful event.
58. Defendant Mason stated in an email to Boulder County that cancelling the 2014
Marathon would decimate the business and completely destroy [his] livelihood.
59. Defendants lack the financial ability to honor their commitments to 1,839 runners who
have paid their fees in 2013 and 2014.
60. Defendants intend to begin offering registration to 2015 marathons.
61. Defendants have no financial reserves to allocate to a 2015 marathon.
62. Defendants have failed to pay agencies in a timely manner.
63. Defendants have been required to make up-front payments to agencies because of
failure to pay bills in a timely manner.
64. Defendants are relying upon new revenue in 2015 to fund commitments made in 2013
and 2014.
65. As of September 8, 2014, Boulder County was requiring Defendants to sign a
performance contract because of their past inability to meet deadlines.
66. As of September 8, 2014, Defendants were not currently eligible for any special events
permits in 2015.
67. Numerous consumers who have registered for 2013 and 2014 races have sent emails,
submitted written complaints and made telephone complaints to the Boulder County
District Attorney requesting refunds of their entry fees.
68. Consumers complain of the failure to refund entry fees, the late notice of cancellation,
and dissatisfaction with the offer to roll registration to 2015.
78. Plaintiff incorporates herein by reference all allegations contained in paragraphs 1-77
of this Complaint.
79. Through the conduct described in this Complaint and in the course of their business,
vocation, or occupation, Defendants have knowingly made false representations as to
sponsorship, approval, status, affiliation, or connection of USATF, the City of
Boulder, the County of Boulder, and State of Colorado agencies.
80. By means of the above-described conduct, Defendants deceived, misled, and
unlawfully acquired money for Colorado consumers.