An Indian American has been accused of charging exhorbitant rates from evacuees fleeing Hurricane Rita who sought shelter in his motel.
Bipin Patel, owner of Waco's Lone Star Motel, Texas, faces allegations that he illegally hiked motel prices as evacuees fled the Hurricane last September.
Texas Attorney General Greg Abbott this week filed suit against the motel, claiming it exploited evacuees to pocket excessive profits.
'The motel, located on La Salle Avenue, allegedly charged Hurricane Rita evacuees $60 and $141.25, respectively, for rooms that typically lease for $30 and $55,' Tom Kelley, a spokesman for the attorney general's office, said in a statement.
'Many consumers who were seeking shelter at that time were over the age of 65, which triggers a provision in the law authorizing the attorney general to request a penalty of up to $250,000, plus civil penalties of up to $20,000 per violation of the Texas Deceptive Trade Practices Act,' Kelley told the Waco Tribune
'These were thoroughly inflated rates. At least double or even more, almost triple,' said Kelley.
On September 20 last year, Governor Rick Perry issued a state disaster declaration as Hurricane Rita approached Texas, and federal officials urged residents of coastal counties around Houston, Beaumont and Port Arthur to evacuate. More than 2 million people heeded the warnings and headed north, with many stopping in Waco to wait.
An exorbitant rate is defined in the lawsuit as 'in excess of 10 per cent of the average price for those goods and services.'
