Jan 1, 2008 12:00 PM
Troubles for Former Club Owner IncludeCredit Card Fraud, Trademark Infringement
Hudson, Nh — The owner of a fitness club that closed its doors on Dec. 19 faces criminal charges for unlawfully charging $14,000 to another person's credit card and for improper business practices, according to the Nashua (NH) Telegraph.
A judge ordered the eviction of Elite Fitness and its owner, Sean Corriveau, because the court found that Corriveau failed to pay nearly $14,000 in rent to the owner of the retail plaza that housed the club, according to the Telegraph.
The New Hampshire Attorney General's office says a grand jury handed up the felony charge of fraudulent use of a credit card. Corriveau also faces two misdemeanor charges: taking membership fees and failing to deposit them into an escrow account, and failure to follow the standard practice for new businesses in assuring a $50,000 bond with the state, the newspaper reported.
Corriveau, who co-owned Elite Fitness with his brother-in-law, Dave Eddy, also is being sued for trademark infringement. Elite Fitness had operated under the name Powerhouse Gym since opening in August. But Powerhouse Gym claimed in federal court in November that Elite Fitness did not have permission to use the brand name, the newspaper reported.
The lawsuit, filed by Powerhouse Gym in the U.S. District Court of the Eastern District of Michigan, accuses Corriveau of trademark infringement, unfair competition and trademark dilution. The suit claims Corriveau never entered into a licensing agreement with Powerhouse Gym and has been selling unauthorized Powerhouse merchandise and sportswear.
The plaza owner told the newspaper that three fitness clubs say they will honor any Elite Fitness memberships should one of the clubs open in that location.
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