Crist reaches $609,000 settlement in hurricane price gouging

ANorth Carolina-based company has reached a settlement to resolve Florida price gouging allegations stemming from the 2004 hurricane season, according to Florida Attorney General Charlie Crist.

Crist said Southeastern Restoration Inc., also known as Afterdisaster, will pay more than $19,500 in restitution to victims of price gouging in the aftermath of Hurricane Ivan and will issue a billing credit of more than $550,000 to other victims of gouging.

Crist said his price gouging hotline received a complaint in early 2005 alleging that Afterdisaster was charging an exorbitant fee to a condominium association for water extraction and mold remediation services. Crist’s investigation focused on two condominiums, the Oceania and the Aegean, both in Destin. Afterdisaster allegedly refused to provide the associations with a price list but claimed it charged a rate acceptable to insurers. Investigators alleged that the Oceania was overbilled by at least 40 percent, while the Aegean was charged more than five times the cost.

According to the settlement, Afterdisaster will issue a credit to the Aegean for $550,000, while the Oceania will receive $19,500 in reimbursements. The company has agreed to provide specific price lists when offering services during a state of emergency. In addition, it will reimburse Florida $40,000 for the state’s cost of investigating.

Topics Florida Catastrophe Natural Disasters Hurricane